Exhibit 99.1
New York Community Bancorp, Inc. Reports 4th Quarter 2006 Diluted Adjusted
Cash EPS of $0.24 (1), Diluted Operating EPS of $0.21(2),
and Diluted GAAP EPS of $0.18
Board of Directors Declares $0.25 Per Share Quarterly Cash
Dividend
WESTBURY, N.Y.--(BUSINESS WIRE)--Jan. 24, 2007--New York Community
Bancorp, Inc.:
4th Quarter 2006 Highlights
-- Margin Expansion: Our net interest margin rose three basis
points linked-quarter, to 2.27%.
-- An Increase in the Average Yield on Loans: At 6.08%, our
average yield on loans was up 14 basis points linked-quarter
and 46 basis points year-over-year.
-- Stabilization of Operating Earnings: Diluted operating
earnings per share were $0.21 in the current fourth quarter,
consistent with the level recorded in the third quarter of
2006.(2)
-- Rational Loan Production: Loan originations totaled $982.5
million during the quarter, with mortgage loans accounting for
$725.4 million, or 73.8%.
-- Solid Asset Quality: Non-performing assets declined $10.9
million, or 32.6%, to $22.5 million linked-quarter, and
represented 0.08% of total assets at December 31, 2006.
-- Strong Operating Efficiency: Our operating efficiency ratio
was 39.12% in the current fourth quarter.
-- Tangible Capital Strength: Tangible stockholders' equity
equaled 5.66% of total tangible assets, excluding after-tax
net unrealized losses on securities; including such losses,
the ratio was 5.47% at December 31, 2006.(3)
-- Acquisition of PennFed Financial Services, Inc. (NASDAQ/Global
Market: PFSB): The acquisition of PennFed is progressing on
schedule and is expected to be completed on or about March 31,
2007, pending regulatory and PennFed shareholder approval.
New York Community Bancorp, Inc. (NYSE: NYB) today reported
operating earnings of $61.7 million, or $0.21 per diluted share, and
GAAP earnings of $53.1 million, or $0.18 per diluted share, for the
three months ended December 31, 2006. The Company's fourth quarter
operating earnings were consistent with its GAAP and operating
earnings in the trailing three-month period. (2)
The Company's fourth quarter 2006 GAAP earnings were reduced by an
after-tax loss of $1.2 million recorded in connection with the
write-off of unamortized issuance costs stemming from the redemption
of certain trust preferred securities; an after-tax charge of $2.0
million recorded in connection with the retirements of the Company's
chairman and senior lending consultant; and a non-cash after-tax
charge of $5.4 million recorded in connection with the merger-related
allocation of Employee Stock Ownership Plan ("ESOP") shares.
The Company also reported adjusted cash earnings of $69.1 million,
or $0.24 per diluted share, for the current fourth quarter, and $290.4
million, or $1.01 per diluted share, for the full year. (1)
For the twelve months ended December 31, 2006, the Company also
reported operating earnings of $263.6 million, or $0.92 per diluted
share, and GAAP earnings of $232.6 million, or $0.81 per diluted
share.(2) These amounts reflect the full-year benefit of the
acquisition of Long Island Financial Corp. ("Long Island Financial")
on December 30, 2005 and the eight-month benefit of the acquisition of
Atlantic Bank of New York ("Atlantic Bank") on April 28, 2006.
In addition to the loss on debt redemption and the retirement and
merger-related charges recorded in the fourth quarter, the Company's
twelve-month 2006 GAAP earnings reflect the impact of a $3.6 million
after-tax mark-to-market loss on interest rate swaps recorded in the
first quarter and an $18.8 million post-merger repositioning charge
recorded in connection with the Company's acquisition of Atlantic Bank
in the second quarter of the year.
Commenting on the Company's fourth quarter 2006 performance,
Chairman, President, and Chief Executive Officer Joseph R. Ficalora
stated, "The fourth quarter of 2006 was noteworthy for a plethora of
reasons: the linked-quarter expansion of our net interest margin,
despite the continued inversion of the yield curve...the exceptional
quality of our loan portfolio...the stabilization of our operating
earnings, which were consistent with the trailing-quarter level...and
the meaningful increase in prepayment penalties.
"While the level of prepayment penalties we receive will vary with
the level of refinancing activity," Mr. Ficalora continued, "the
increase in the fourth quarter is indicative of what we would
reasonably expect, given the expected weighted average life of our
multi-family and commercial real estate loan portfolios. Prepayments
rose $3.4 million, or 64%, both year-over-year and linked-quarter, to
$8.7 million in the fourth quarter of 2006.
"In a difficult rate environment, and in the face of heightened
competition, we grew our loan portfolio in a rational manner over the
course of the year. While opportunities to lend were plentiful in the
recent quarter, we chose to adhere to our longstanding credit
standards, rather than augment our growth by lending at loan-to-values
that exceeded our maximum ratios," Mr. Ficalora said.
"In the past 12 months, we have capitalized on our commercial bank
acquisitions to expand both our franchise and product menu, while
maintaining a respectable level of efficiency. With the upgrade and
integration of our commercial bank systems successfully completed, we
now are in the process of rolling out our sales and service program,
with the intent of increasing the cross-sale of products throughout
our branch network.
"We believe that the achievements reflected in our fourth quarter
performance have positioned us well for the future, and that the
strength of our business model will continue to be overtly
demonstrated in the quarters ahead. With the pending acquisition of
PennFed currently slated for the end of this quarter, we look forward
to the opportunity to deploy their deposits and, importantly, the cash
flows generated through the repositioning of their assets, into more
profitable lending, while carefully managing our cost of funds in a
still-challenging interest rate environment."
$0.25 Per Share Dividend to be Paid on February 15, 2007
"Reflecting the strength of our earnings and our tangible capital
levels, the Board of Directors last night reiterated its commitment to
maintaining our quarterly cash dividend at the current level,
declaring a $0.25 per share dividend, payable on February 15, 2007 to
shareholders of record at the close of business on February 5th," Mr.
Ficalora said.
Balance Sheet Summary
The Company had total assets of $28.5 billion at December 31,
2006, signifying a $2.2 billion, or 8.4%, increase from the
year-earlier balance, and a $441.9 million, or 1.5%, decline from the
balance recorded at September 30, 2006. The year-over-year growth of
the balance sheet was largely driven by organic loan production and by
the acquisition of Atlantic Bank. The linked-quarter decline reflects
management's decision to shrink the balance sheet in anticipation of
the pending PennFed acquisition and in view of the level of market
interest rates over the last three months.
Loans
Loans represented $19.7 billion, or 69.0%, of total assets at the
close of the current fourth quarter, up $2.6 billion, or 15.4%, from
the balance recorded at December 31, 2005. While the year-over-year
increase partly reflects the loans acquired in the Atlantic Bank
transaction, the growth of the portfolio was largely due to organic
loan production, with twelve-month originations totaling $5.0 billion,
including $982.5 million in the fourth quarter of the year. On a
linked-quarter basis, the loan portfolio declined a modest $103.2
million.
Multi-family loans totaled $14.5 billion at the close of the
current fourth quarter, up $1.7 billion, or 13.0%, from the
year-earlier balance, and down $170.6 million from the balance
recorded at September 30, 2006. While the acquisition of Atlantic Bank
contributed to the year-over-year increase, the growth of the
multi-family loan portfolio primarily reflects the volume of loans
produced over the past four quarters, with twelve-month originations
totaling $2.8 billion, including $400.6 million in the fourth quarter
of the year. At December 31, 2006, the average multi-family loan had a
principal balance of $3.6 million. The portfolio had an average
loan-to-value ratio of 64.0% and an expected weighted average life of
3.8 years at that date.
Commercial real estate loans totaled $3.1 billion at the close of
the current fourth quarter, up $227.0 million from the year-earlier
balance and $104.9 million from the balance recorded at September 30,
2006. In addition to the loans acquired in the Atlantic Bank
transaction, the year-over-year increase reflects twelve-month
originations totaling $413.7 million, including $152.3 million in the
fourth quarter of the year. At December 31, 2006, the average
commercial real estate loan had a principal balance of $2.3 million.
The portfolio had an average loan-to-value ratio of 57.1% and an
expected weighted average life of 3.5 years at that date.
Construction loans totaled $1.1 billion at December 31, 2006, down
$79.4 million on a linked-quarter basis, and up $245.7 million from
the balance recorded at December 31, 2005. The year-over-year growth
of the portfolio was largely due to organic loan production, with
originations totaling $984.8 million over the twelve-month period,
including $154.6 million in the fourth quarter of the year.
Other loans rose $500.4 million year-over-year and $53.9 million
linked-quarter to $675.5 million at December 31, 2006. Included in the
latter amount were commercial and industrial ("C&I") loans totaling
$643.1 million, up $490.5 million from the balance recorded at
December 31, 2005. In addition to the loans acquired in the Atlantic
Bank transaction, the year-over-year increase in other loans reflects
twelve-month originations totaling $710.0 million, including $675.9
million of C&I loans. Other loan originations totaled $257.0 million
in the current fourth quarter and included $232.0 million of C&I
loans.
At the present time, the Company has a pipeline of approximately
$737 million, including approximately $532 million of multi-family
loans. The level of the pipeline is a function of various factors
including competition for product, the current rate environment, and
the attractiveness of the spreads between the yields on new loans and
the cost of funds. It is currently anticipated that all of the loans
in the current pipeline will be originated by quarter-end.
Asset Quality
The Company improved upon its solid record of asset quality in the
current fourth quarter, as non-performing assets declined $10.9
million, or 32.6%, on a linked-quarter basis and $6.3 million, or
21.9%, year-over-year to $22.5 million at December 31, 2006. The
latter amount was equivalent to 0.08% of total assets, an improvement
from 0.12% and 0.11%, respectively, at September 30, 2006 and December
31, 2005.
Included in non-performing assets at December 31, 2006 were
non-performing loans of $21.2 million and other real estate owned of
$1.3 million. The year-end balance of non-performing loans was down
$11.0 million, or 34.1%, from the trailing quarter-end balance and
down $6.4 million, or 23.1%, from the balance recorded at December 31,
2005. Non-performing loans represented 0.11% of total loans at the end
of the current fourth quarter and 0.16% of total loans at each of the
earlier dates.
The allowance for loan losses totaled $85.4 million at the close
of the current fourth quarter, down $141,000 on a linked-quarter
basis, but up $5.7 million from the balance recorded at December 31,
2005. The linked-quarter reduction reflects the level of
fourth-quarter charge-offs; the year-over-year increase was the net
effect of the $6.1 million loan loss allowance acquired in the
Atlantic Bank transaction and twelve-month charge-offs totaling
$420,000. All of the charge-offs recorded in 2006 were on consumer and
other unsecured credits that were acquired in the Company's various
merger transactions. At December 31, 2006, the allowance for loan
losses equaled 0.43% of total loans and 402.72% of non-performing
loans.
Securities
At December 31, 2006, the securities portfolio totaled $4.9
billion and represented 17.3% of total assets, a reduction from $5.2
billion, or 18.0% of total assets, at the close of the trailing
quarter and from $5.6 billion, or 21.4% of total assets, at December
31, 2005. Included in the year-end 2006 amount were available-for-sale
securities of $1.9 billion, signifying a year-over-year reduction of
$438.4 million, and held-to-maturity securities of $3.0 billion,
signifying a year-over-year reduction of $272.8 million.
At December 31, 2006, the after-tax net unrealized loss on
available-for-sale securities totaled $42.8 million, a $2.8 million
reduction from the September 30, 2006 level and a $605,000 reduction
from the level recorded at December 31, 2005.
Funding
The Company funds the production of loans through four primary
sources: the cash flows generated through the repayment of loans; the
deposits gathered through the branch network; the use of wholesale
funding; and the cash flows generated through securities redemptions
and sales.
Deposits totaled $12.6 billion at December 31, 2006, a $514.1
million increase from the year-earlier balance, and a $1.1 billion
reduction from the balance recorded at September 30, 2006. While the
year-over-year increase was driven by the deposits acquired in the
Atlantic Bank transaction, the linked-quarter decline largely reflects
a strategic reduction in higher-cost brokered deposits and, to a
lesser extent, a decline in higher-cost certificates of deposit
("CDs"). During the fourth quarter of 2006, the Company reduced the
level of brokered deposits by $916.3 million to $943.8 million at
year-end.
Core deposits (defined as NOW and money market accounts, savings
accounts, and non-interest-bearing accounts) represented $6.7 billion,
or 52.9%, of total deposits at the close of the quarter, while CDs
accounted for the remaining $5.9 billion, or 47.1%.
Taking advantage of attractive rates on certain wholesale funding
sources, the Company increased its use of wholesale borrowings in the
fourth quarter of 2006. As a result, wholesale borrowings rose $786.5
million to $11.1 billion on a linked-quarter basis, and were up $1.4
billion year-over-year. The latter increase was partly offset by the
prepayment of wholesale borrowings totaling $886.1 million in the
second quarter, utilizing the proceeds from the sale of securities
acquired in the transactions with Long Island Financial and Atlantic
Bank. The Company intends to utilize wholesale borrowings when the
cost of such funds is more attractive than the cost of alternative
funding sources, and to reduce its higher-cost wholesale funding
sources when the opportunity arises.
At December 31, 2006, the Company also had junior subordinated
debentures totaling $455.7 million and other borrowings totaling
$354.0 million. Included in junior subordinated debentures at year-end
were $120.0 million of floating rate trust preferred capital
securities featuring an annual interest rate equal to the three-month
LIBOR plus 1.60% that were issued on December 14, 2006. These
securities were issued for the purpose of funding the redemption of
three previously issued trust preferred securities totaling $121.3
million and featuring higher floating rates of interest equal to the
three- and six-month LIBOR plus a range of 3.60% to 3.75%.
Stockholders' Equity
Stockholders' equity totaled $3.7 billion at December 31, 2006,
signifying a $22.2 million decrease from the trailing quarter-end
balance, and a $365.0 million increase from the balance recorded at
December 31, 2005. The year-end 2006 amount was equivalent to 12.95%
of total assets and a book value of $12.56 per share, based on
293,890,372 shares. The balances recorded at September 30, 2006 and
December 31, 2005 were equivalent to 12.83% and 12.65% of total
assets, and book values of $12.66 and $12.43 per share, based on
293,217,441 and 267,594,393 shares, respectively.
The year-over-year increase in stockholders' equity largely
reflects the Company's issuance of 24.5 million shares of common stock
in a secondary offering on the 18th of April, which generated net
proceeds of $400.1 million for the all-cash acquisition of Atlantic
Bank. The linked-quarter decline in stockholders' equity reflects the
impact of the Company's adoption of Statement of Financial Accounting
Standards ("SFAS") No. 158, which requires balance sheet recognition
of the over- or under-funded status of pension and other
post-retirement benefit plans. The adoption of SFAS No. 158 increased
the Company's accumulated other comprehensive loss by $15.9 million at
December 31, 2006.
Tangible stockholders' equity, which is calculated by subtracting
goodwill and core deposit intangibles ("CDI") from total stockholders'
equity, equaled $1.4 billion at December 31, 2006, down $13.3 million
from the trailing quarter-end balance but up $177.7 million, or 14.1%,
from the balance recorded at December 31, 2005. The year-end 2006
amount equaled 5.66% of tangible assets, excluding after-tax
mark-to-market adjustments on securities, up three basis points from
the trailing quarter-end level, and up 25 basis points year-over-year.
Including after-tax mark-to-market adjustments on securities, the
year-end 2006 amount equaled 5.47% of tangible assets, as compared to
5.43% and 5.19% at the earlier dates. (3)
At December 31, 2006, the Company's capital ratios continued to
exceed the minimum federal requirements for a bank holding company.
While the Company received dividends totaling $325.0 million from its
principal bank subsidiary, New York Community Bank, during the current
fourth quarter, both the Community Bank and New York Commercial Bank
continued to exceed the minimum levels for classification as a "well
capitalized" institution under the FDIC Improvement Act at year-end.
The Community Bank had a leverage capital ratio of 7.10% at the end of
December and the Commercial Bank had a leverage capital ratio of
10.01%.
Fourth Quarter 2006 Earnings Summary
Net Interest Income
The Company recorded net interest income of $140.8 million in the
current fourth quarter, up $1.0 million from the trailing-quarter
level and up $7.7 million year-over-year. The increases were driven by
two primary factors: an increase in refinancing activity, which led to
a rise in the level of prepayment penalties recorded, and the
replacement of lower-yielding assets with higher-yielding loans. In
addition, the year-over-year improvement in net interest income
reflects the benefit of the Company's commercial bank acquisitions,
which provided an infusion of lower-cost and non-interest-bearing
deposits, and the opportunity to reduce certain higher-cost sources of
funding, using the cash flows produced through a reduction in
securities.
Prepayment penalties totaled $8.7 million in the current fourth
quarter, up $3.4 million from the levels recorded in both the trailing
and year-earlier quarters, signifying increases of 64.4% and 63.8%,
respectively.
While the average balance of interest-earning assets declined
$84.4 million over the course of the quarter, the average yield on
such assets rose 12 basis points during this time, to 5.86%.
Year-over-year, the growth was more dramatic, with the average yield
rising 46 basis points, in concert with a $3.0 billion rise in the
average balance to $25.1 billion. As a result, the Company recorded
interest income of $367.6 million in the current fourth quarter, up
$6.3 million and $69.0 million, respectively, from the levels recorded
in the three months ended September 30, 2006 and December 31, 2005.
Loans accounted for the bulk of the increase in interest income
recorded in the current fourth quarter, as the average yield rose to
6.08%. The latter yield was up 14 basis points from the
trailing-quarter measure and up 46 basis points from the yield
recorded in the fourth quarter of 2005. The increase in the average
yield on loans was coupled with an increase in the average balance
recorded. Loans averaged $19.5 billion in the current fourth quarter,
as compared to $19.4 billion and $16.2 billion in the trailing and
year-earlier three months.
Interest expense totaled $226.8 million in the current fourth
quarter, and was up $5.4 million on a linked-quarter basis and $61.2
million year-over-year. While the average balance of interest-bearing
liabilities fell $8.2 million on a linked-quarter basis to $23.5
billion, the reduction was offset by a nine-basis point increase in
the average cost of funds to 3.83%. During the quarter, the average
cost of CDs rose 23 basis points to 4.57%, offsetting a $238.7 million
decline in the average balance to $6.2 billion. During this time, the
average cost of borrowed funds rose four basis points to 4.22%, while
the average balance rose $484.5 million to $11.5 billion. As a result,
the interest expense produced by CDs rose $1.0 million to $71.2
million in the current fourth quarter and the interest expense
produced by borrowed funds rose $6.1 million to $121.7 million. These
linked-quarter increases were partly offset by a $1.9 million decline
in the interest expense produced by NOW and money market accounts in
the current fourth quarter, as the average balance of such funds fell
$160.9 million to $3.3 billion, coupled with a six-basis point drop in
the average cost to 3.45%.
The year-over-year increase in interest expense was the result of
a $2.5 billion rise in the average balance of interest-bearing
liabilities and a 73-basis point rise in the average cost of funds.
The latter increase was largely attributable to the rise in short-term
interest rates over the course of the year, while the higher average
balance largely reflects the use of wholesale borrowings during the
third and fourth quarters, and the growing popularity of CDs in a
rising rate environment. Year-over-year, the average cost of CDs and
borrowed funds rose 134 basis points and 33 basis points,
respectively, while the average balances of such funds rose $1.2
billion and $1.0 billion. CDs thus accounted for $30.4 million of the
year-over-year increase in interest expense in the current fourth
quarter, with borrowed funds accounting for $18.4 million of the rise.
The interest expense produced by core deposits totaled $33.9 million
in the current fourth quarter and was up $12.4 million year-over-year.
The increase stemmed from a $606.3 million rise in the average balance
to $6.8 billion and a 60-basis point rise in the average cost of such
funds to 1.97%. Included in the average balance of core deposits in
the current fourth quarter were non-interest-bearing accounts of $1.1
billion, signifying a $375.3 million increase from the year-earlier
amount.
The linked-quarter and year-over-year increases in interest
expense were exceeded by the aforementioned increases in interest
income; as a result, net interest income rose $1.0 million
linked-quarter and $7.7 million year-over-year, as stated above.
Net interest margin rose to 2.27% in the current fourth quarter
from 2.24% in the third quarter of the year. While the current fourth
quarter margin was down 18 basis points from the year-earlier measure,
the linked-quarter comparison reflects stabilization, which was
largely attributable to the replenishment of the loan portfolio with
higher-yielding credits and the linked-quarter increase in prepayment
penalties.
Non-interest Income
The Company produced non-interest income of $22.7 million in the
current fourth quarter, as compared to $23.5 million in the trailing
quarter and $21.7 million in the fourth quarter of 2005. The fourth
quarter 2006 amount was reduced by a pre-tax loss of $1.9 million on
the aforementioned redemption of trust preferred securities, absent
which the level of non-interest income would have exceeded the
trailing-quarter and year-earlier amounts by $1.1 million and $2.8
million, respectively.
While fee income fell $306,000 on a linked-quarter basis to $10.1
million, the reduction was offset by a $1.2 million increase in other
income to $14.2 million, together with net securities gains of
$210,000. The linked-quarter growth of other income was largely driven
by an increase in the revenues produced through the sale of
third-party investment products and the revenues generated by the
Company's investment advisory subsidiary, Peter B. Cannell & Co., Inc.
("PBC").
Year-over-year, fee income rose $2.3 million, and was coupled with
a $336,000 increase in other income. The latter increase stemmed from
several revenue sources, including the Company's investment in
Bank-owned Life Insurance, PBC, and third-party investment product
sales.
Non-interest Expense
The Company recorded non-interest expense of $78.5 million in the
three months ended December 31, 2006, as compared to $71.5 million and
$89.4 million in the three months ended September 30, 2006 and
December 31, 2005, respectively.
Operating expenses accounted for $73.5 million of the fourth
quarter 2006 figure, and for $66.4 million and $86.4 million of the
earlier amounts. Included in the current fourth quarter amount were a
$3.1 million pre-tax charge recorded in connection with the
retirements of the Company's chairman and senior lending consultant
and a $5.7 million non-cash pre-tax charge recorded for the allocation
of ESOP shares pursuant to the acquisition of Atlantic Bank. In the
year-earlier fourth quarter, the Company recorded a non-cash pre-tax
merger-related charge of $36.6 million pursuant to the acquisition of
Long Island Financial. Excluding the respective charges, compensation
and benefits amounted to $33.4 million and $24.9 million in the
current and year-earlier fourth quarters, while operating expenses
amounted to $64.7 million and $49.8 million, respectively.
Excluding the retirement and merger-related charges, the
year-over-year increase in compensation and benefits was largely due
to the Company's establishment of a commercial bank subsidiary through
the two acquisitions, and the related expansion of its staff. The
impact of the acquisitions is also reflected in the level of occupancy
and equipment expenses, which rose $3.8 million to $14.8 million,
reflecting the addition of 29 branch offices.
The linked-quarter increase in operating expenses was largely due
to the impact of the retirement and merger-related charges recorded in
the current fourth quarter. Absent these charges, the level of
compensation and benefits was consistent with the amount recorded in
the trailing quarter; similarly, the levels of general and
administrative and other expenses were relatively flat. In addition,
occupancy and equipment expenses declined $1.0 million in the current
fourth quarter from the level recorded in the third quarter of 2006.
Reflecting the CDI acquired in the Long Island Financial and
Atlantic Bank transactions, CDI amortization rose $2.1 million from
the fourth quarter 2005 level to $5.0 million in both the third and
fourth quarters of 2006.
Income Tax Expense
The Company recorded fourth quarter 2006 income tax expense of
$31.8 million, up $2.5 million on a linked-quarter basis and $3.3
million year-over-year. While pre-tax income declined $6.9 million
from the trailing-quarter level to $84.9 million, the reduction was
offset by an increase in the effective tax rate to 37.46% from 31.97%.
The increase in the effective tax rate reflects the non-deductibility
of the aforementioned merger-related charge, which also contributed to
the linked-quarter decline in pre-tax income, as well as an increase
in certain deferred tax asset valuation allowances.
The year-over-year increase in income tax expense was the net
effect of a $19.5 million rise in pre-tax income, and a decline in the
effective tax rate from 43.57%. In the fourth quarter of 2005, the
Company recorded a merger-related charge in connection with the Long
Island Financial transaction which contributed to an increase in the
effective tax rate while lowering the level of pre-tax income recorded
during that period.
Company Profile
New York Community Bancorp, Inc. is the $28.5 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 January 24, 2007 at
9:30 a.m. (ET) to discuss its fourth quarter 2006 performance. The
conference call may be accessed by dialing 800-946-0720 (for domestic
calls) or 719-457-2646 (for international calls) and providing the
following access code: 8264020. A replay of the conference call will
be available approximately two hours following completion of the call
through midnight on February 2nd, 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 February 5, 2007.
Forward-looking Statements and the Associated Risk Factors
This release, like many written and oral communications presented
by New York Community Bancorp, Inc. 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 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. 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 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,
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; potential exposure to unknown or contingent
liabilities of companies we target for acquisition; our ability to
retain key members of management; our timely development of new lines
of business and competitive products or services 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; any interruption in customer
service due to circumstances beyond our control; 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 legislation,
regulation, and policies, including, but not limited to, 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; 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; the
ability to keep pace with, and implement on a timely basis,
technological changes; 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.
The following factors, among others, could cause the actual
results of the proposed acquisition of PennFed Financial Services,
Inc. to differ materially from the expectations stated in this
release: the ability of PennFed Financial Services, Inc. to obtain the
required shareholder approval and the ability of both companies to
obtain the required regulatory approvals; the ability of the two
companies to consummate the transaction; a materially adverse change
in the financial condition or results of operations of either company;
the ability of New York Community Bancorp, Inc. to successfully
integrate the assets, liabilities, customers, systems, and any
personnel we may acquire into our operations pursuant to the
transaction; and our ability to realize the related revenue synergies
and cost savings within the expected time frames.
Furthermore, the timing and occurrence or non-occurrence of events
may be subject to circumstances beyond our control.
In addition, it should be noted that we routinely evaluate
opportunities to expand through acquisition and frequently conduct due
diligence activities in connection with such opportunities. As a
result, acquisition discussions and, in some cases, negotiations, may
take place in the future, and acquisitions involving cash, debt, or
equity securities may occur.
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, we
undertake no obligation to update these forward-looking statements to
reflect events or circumstances that occur after the date on which
such statements were made.
(1) Please see the reconciliation of GAAP and cash earnings and
adjusted cash earnings.
(2) Please see the reconciliation of GAAP and operating earnings.
(3) Please see the reconciliation of stockholders' equity and
tangible stockholders' equity.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
December 31, December 31,
2006 2005
------------ ------------
Assets
Cash and cash equivalents $ 230,759 $ 231,803
Securities available for sale:
Mortgage-related securities 1,664,337 1,967,770
Other securities 276,450 411,444
Securities held to maturity:
Mortgage-related securities 1,387,817 1,606,468
Other securities 1,597,380 1,651,570
------------ ------------
Total securities 4,925,984 5,637,252
Mortgage loans:
Multi-family 14,532,652 12,857,210
Commercial real estate 3,114,446 2,887,452
Construction 1,099,844 854,161
1-4 family 230,486 254,510
------------ -----------
Total mortgage loans 18,977,428 16,853,333
Other loans 675,463 175,069
------------ ------------
Total loans 19,652,891 17,028,402
Less: Allowance for loan losses (85,389) (79,705)
------------ ------------
Loans, net 19,567,502 16,948,697
Federal Home Loan Bank of New York stock, at
cost 404,311 330,212
Premises and equipment, net 196,084 140,279
Goodwill 2,148,108 1,980,689
Core deposit intangibles 106,381 86,533
Other assets 903,241 928,240
------------ ------------
Total assets $28,482,370 $26,283,705
============ ============
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 3,156,988 $ 3,576,983
Savings accounts 2,394,145 2,434,990
Certificates of deposit 5,944,585 5,247,029
Non-interest-bearing accounts 1,123,286 845,897
------------ ------------
Total deposits 12,619,004 12,104,899
------------ ------------
Official checks outstanding 20,158 43,438
Borrowed funds:
Wholesale borrowings 11,070,333 9,717,392
Junior subordinated debentures 455,659 454,197
Other borrowings 354,016 357,069
------------ ------------
Total borrowed funds 11,880,008 10,528,658
Mortgagors' escrow 74,736 63,051
Other liabilities 198,627 218,782
------------ ------------
Total liabilities 24,792,533 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; 295,350,936 and
273,396,452 shares issued; 295,350,936
and 269,776,791 shares outstanding,
respectively) 2,954 2,734
Paid-in capital in excess of par 3,342,090 3,012,655
Retained earnings (partially restricted) 421,313 475,501
Less: Treasury stock (0 and 3,619,661
shares at December 31, 2006 and 2005,
respectively) -- (100,169)
Unallocated common stock held by ESOP (4,604) (6,874)
Common stock held by SERP (3,113) (3,113)
Unearned common stock held by RRPs (750) --
Accumulated other comprehensive loss (68,053) (55,857)
------------ ------------
Total stockholders' equity 3,689,837 3,324,877
------------ ------------
Total liabilities and stockholders' equity $28,482,370 $26,283,705
============ ============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the Three Months Ended
-----------------------------------------
December 31, September 30, December 31,
2006 2006 2005
------------- ------------- -------------
Interest Income:
Mortgage and other loans $296,948 $288,839 $227,214
Securities 70,415 72,108 71,309
Money market investments 260 350 146
------------- ------------ -----------
Total interest income 367,623 361,297 298,669
------------- ------------ -----------
Interest Expense:
NOW and money market
accounts 28,475 30,397 18,559
Savings accounts 5,465 5,299 2,939
Certificates of deposit 71,171 70,148 40,751
Borrowed funds 121,672 115,575 103,278
Mortgagors' escrow 35 31 56
------------- ------------ -----------
Total interest expense 226,818 221,450 165,583
------------- ------------ -----------
Net interest income 140,805 139,847 133,086
Provision for loan losses -- -- --
------------- ------------ -----------
Net interest income
after provision for
loan losses 140,805 139,847 133,086
------------- ------------ -----------
Non-interest Income:
Fee income 10,131 10,437 7,829
Net securities gains 210 -- --
Loss on debt redemption (1,859) -- --
Loss on mark-to-market of
interest rate swaps -- -- --
Other 14,206 13,030 13,870
------------- ------------ -----------
Total non-interest income 22,688 23,467 21,699
------------- ------------ -----------
Non-interest Expense:
Operating expenses:
Compensation and benefits 42,169 34,478 61,497
Occupancy and equipment 14,841 15,875 11,021
General and
administrative 14,462 14,063 12,587
Other 2,027 2,012 1,327
------------- ------------ -----------
Total operating expenses 73,499 66,428 86,432
Post-merger repositioning
charge -- -- --
Amortization of core
deposit intangibles 5,049 5,049 2,930
------------- ------------ -----------
Total non-interest expense 78,548 71,477 89,362
------------- ------------ -----------
Income before income taxes 84,945 91,837 65,423
Income tax expense 31,824 29,360 28,507
------------- ------------ -----------
Net Income $ 53,121 $ 62,477 $ 36,916
============= ============ ===========
Basic earnings per
share $ 0.18 $ 0.21 $ 0.14
============= ============ ===========
Diluted earnings per
share $ 0.18 $ 0.21 $ 0.14
============= ============ ===========
For the Twelve Months Ended
---------------------------
December 31, December 31,
2006 2005
-------------- ------------
Interest Income:
Mortgage and other loans $1,118,467 $ 857,537
Securities 288,979 320,777
Money market investments 1,254 704
-------------- ------------
Total interest income 1,408,700 1,179,018
-------------- ------------
Interest Expense:
NOW and money market accounts 116,055 73,052
Savings accounts 17,856 13,349
Certificates of deposit 249,286 116,173
Borrowed funds 463,761 380,828
Mortgagors' escrow 176 249
-------------- ------------
Total interest expense 847,134 583,651
-------------- ------------
Net interest income 561,566 595,367
Provision for loan losses -- --
-------------- ------------
Net interest income after provision
for loan losses 561,566 595,367
-------------- ------------
Non-interest Income:
Fee income 38,662 32,614
Net securities gains 3,033 2,999
Loss on debt redemption (1,859) --
Loss on mark-to-market of interest
rate swaps (6,071) --
Other 55,225 62,088
-------------- ------------
Total non-interest income 88,990 97,701
-------------- ------------
Non-interest Expense:
Operating expenses:
Compensation and benefits 138,705 138,114
Occupancy and equipment 56,735 44,380
General and administrative 54,159 47,810
Other 6,763 6,317
-------------- ------------
Total operating expenses 256,362 236,621
Post-merger repositioning charge 27,609 --
Amortization of core deposit
intangibles 17,871 11,733
-------------- ------------
Total non-interest expense 301,842 248,354
-------------- ------------
Income before income taxes 348,714 444,714
Income tax expense 116,129 152,629
-------------- ------------
Net Income $ 232,585 $ 292,085
============== ============
Basic earnings per share $ 0.82 $ 1.12
============== ============
Diluted earnings per share $ 0.81 $ 1.11
============== ============
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.
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.
For the three months ended December 31, 2006, the Company calculated
its operating earnings by adding back to non-interest income the pre-
tax loss incurred in connection with the redemption of certain trust
preferred securities, and by subtracting from non-interest expense
the pre-tax charge recorded in connection with the retirements of the
Company's chairman and senior lending consultant and the non-cash
pre-tax charge recorded for the allocation of ESOP shares in
connection with the acquisition of Atlantic Bank (the "merger-related
charge"). To calculate its operating earnings for the twelve months
ended December 31, 2006, the Company also added back to non-interest
income a pre-tax loss on the mark-to-market of interest rate swaps
that was recorded in the first quarter, and subtracted from non-
interest expense the pre-tax charges for the prepayment of certain
wholesale borrowings and the termination of its interest rate swap
agreements following the acquisition of Atlantic Bank (collectively,
the "post-merger repositioning charge"). For the three and twelve
months ended December 31, 2005, the Company calculated its operating
earnings by subtracting from non-interest expense the non-cash pre-
tax merger-related charge recorded for the allocation of ESOP shares
in connection with the acquisition of Long Island Financial.
A reconciliation of the Company's GAAP and operating earnings for the
three months ended December 31, 2006, September 30, 2006, and
December 31, 2005 and for the twelve months ended December 31, 2006
and 2005 follows:
For the For the
(in thousands, Three Months Ended Twelve Months Ended
---------------------------- -------------------
except per Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
share data) 2006 2006 2005 2006 2005
--------- --------- -------- --------- ---------
GAAP Earnings $53,121 $62,477 $36,916 $232,585 $292,085
Adjustments to GAAP
earnings:
Merger-related
charge 5,744 -- 36,588 5,744 36,588
Loss on debt
redemption 1,859 -- -- 1,859 --
Retirement charge 3,072 -- -- 3,072 --
Post-merger
repositioning
charge -- -- -- 27,609 --
Loss on mark-to-
market of interest
rate swaps -- -- -- 6,071 --
Income tax effect on
adjustments (2,088) -- (2,598) (13,371) (2,598)
-------- --------- -------- --------- ---------
Operating earnings $61,708 $62,477 $70,906 $263,569 $326,075
======== ========= ======== ========= =========
Diluted GAAP Earnings
per Share $ 0.18 $ 0.21 $ 0.14 $ 0.81 $ 1.11
Adjustments to diluted
GAAP earnings per
share:
Merger-related
charge 0.02 -- 0.13 0.02 0.13
Loss on debt
redemption -- -- -- -- --
Retirement charge 0.01 -- -- 0.01 --
Post-merger
repositioning
charge -- -- -- 0.07 --
Loss on mark-to-
market of interest
rate swaps -- -- -- 0.01 --
-------- --------- -------- --------- ---------
Diluted operating
earnings per share $ 0.21 $ 0.21 $ 0.27 $ 0.92 $ 1.24
======== ========= ======== ========= =========
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.
The Company believes that cash earnings and adjusted 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. 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.
For the three and twelve months ended December 31, 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 for the
fourth quarter of 2006 were calculated by excluding from its cash
earnings the aforementioned loss on debt redemption and the charge
recorded in connection with the retirements of the Company's chairman
and senior lending consultant. To calculate its adjusted cash
earnings for the twelve months ended December 31, 2006, the Company
also excluded from its cash earnings the loss on the mark-to-market
of interest rate swaps recorded in the first quarter and the post-
merger repositioning charge recorded in connection with the Atlantic
Bank transaction in the second quarter of the year.
A reconciliation of the Company's GAAP earnings and cash earnings for
the three months ended December 31, 2006, September 30, 2006, and
December 31, 2005 and for the twelve months ended December 31, 2006
and 2005 follows, together with a reconciliation of its cash earnings
and adjusted cash earnings for the three and twelve months ended
December 31, 2006.
For the Three For the Twelve
Months Ended Months Ended
---------------------------- -------------------
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
(in thousands, except
per share data) 2006 2006 2005 2006 2005
-------- --------- --------- --------- ---------
GAAP Earnings $53,121 $62,477 $36,916 $232,585 $292,085
Additional
contributions to
tangible
stockholders' equity:
Amortization and
appreciation of
shares held in
stock-related
benefit plan (2) 7,269 1,557 38,242 12,009 43,653
Associated tax
benefits (126) 34 302 105 2,039
Dividends on
unallocated ESOP
shares 545 546 1,164 2,182 4,656
Amortization of
core deposit
intangibles 5,049 5,049 2,930 17,871 11,733
-------- --------- --------- --------- ---------
Total additional
contributions to
tangible
stockholders' equity 12,737 7,186 42,638 32,167 62,081
-------- --------- --------- --------- ---------
Cash earnings $65,858 $69,663 $79,554 $264,752 $354,166
======== ========= ========= ========= =========
Diluted GAAP Earnings
per Share $ 0.18 $ 0.21 $ 0.14 $ 0.81 $ 1.11
Additional
contributions to
diluted cash earnings
per share:
Amortization and
appreciation of
shares held in
stock-related
benefit plan (2) 0.02 0.01 0.15 0.04 0.17
Associated tax
benefits -- -- -- -- 0.01
Dividends on
unallocated ESOP
shares -- -- -- 0.01 0.02
Amortization of
core deposit
intangibles 0.02 0.02 0.01 0.06 0.04
-------- --------- --------- --------- ---------
Total additional
contributions to
diluted cash earnings
per share 0.04 0.03 0.16 0.11 0.24
-------- --------- --------- --------- ---------
Diluted cash earnings
per share $ 0.22 $ 0.24 $ 0.30 $ 0.92 $ 1.35
======== ========= ========= ========= =========
Cash Earnings $65,858 $69,663 $79,554 $264,752 $354,166
Adjustments to cash
earnings:
Loss on debt
redemption 1,859 -- -- 1,859 --
Retirement charge 3,072 -- -- 3,072 --
Post-merger
repositioning
charge -- -- -- 27,609 --
Loss on mark-to-
market of interest
rate swaps -- -- -- 6,071 --
Income tax effect on
adjustments (1,726) -- -- (13,009) --
-------- --------- --------- --------- ---------
Adjusted cash earnings$69,063 $69,663 $79,554 $290,354 $354,166
======== ========= ========= ========= =========
Diluted Cash Earnings
per Share $ 0.22 $ 0.24 $ 0.30 $ 0.92 $ 1.35
Loss on debt
redemption 0.01 -- -- -- --
Retirement charge 0.01 -- -- 0.01 --
Post-merger
repositioning
charge -- -- -- 0.07 --
Loss on mark-to-
market of interest
rate swaps -- -- -- 0.01 --
-------- --------- --------- --------- ---------
Adjusted diluted cash
earnings per share $ 0.24 $ 0.24 $ 0.30 $ 1.01 $ 1.35
======== ========= ========= ========= =========
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity.
(2) The amounts for the three and twelve months ended December 31,
2006 and 2005 include non-cash pre-tax merger-related charges of $5.7
million and $36.6 million, respectively.
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
December 31, 2006, September 30, 2006, and December 31, 2005 and at
or for the twelve months ended December 31, 2006 and 2005 follows:
At or for the
Three Months Ended
-----------------------------------------
Dec. 31, Sept. 30, Dec. 31,
(in thousands) 2006 2006 2005
------------- ------------- -------------
Total Stockholders' Equity $ 3,689,837 $ 3,712,010 $ 3,324,877
Less: (2,148,108) (2,151,951) (1,980,689)
Goodwill
Core deposit
intangibles (106,381) (111,430) (86,533)
------------- ------------- -------------
Tangible stockholders' equity$ 1,435,348 $ 1,448,629 $ 1,257,655
Total Assets $ 28,482,370 $ 28,924,286 $ 26,283,705
Less: (2,148,108) (2,151,951) (1,980,689)
Goodwill
Core deposit
intangibles (106,381) (111,430) (86,533)
------------- ------------- -------------
Tangible assets $ 26,227,881 $ 26,660,905 $ 24,216,483
Average Stockholders' Equity $ 3,652,575 $ 3,633,268 $ 3,176,719
Less: (2,151,829) (2,149,848) (1,938,147)
Average goodwill
Average core deposit
intangibles (109,693) (114,459) (77,805)
------------- ------------- -------------
Average tangible
stockholders' equity $ 1,391,053 $ 1,368,961 $ 1,160,767
Average Assets $ 28,524,090 $ 28,573,209 $ 25,246,283
Less: (2,151,829) (2,149,848) (1,938,147)
Average goodwill
Average core deposit
intangibles (109,693) (114,459) (77,805)
------------- ------------- -------------
Average tangible assets $ 26,262,568 $ 26,308,902 $ 23,230,331
Net Income $ 53,121 $ 62,477 $ 36,916
Add: Amortization of core
deposit
intangibles, net of tax 3,038 3,020 1,760
------------- ------------- -------------
Adjusted net income $ 56,159 $ 65,497 $ 38,676
At or for the
Twelve Months Ended
---------------------------
Dec. 31, Dec. 31,
(in thousands) 2006 2005
------------- -------------
Total Stockholders' Equity $ 3,689,837 $ 3,324,877
Less: (2,148,108) (1,980,689)
Goodwill
Core deposit intangibles (106,381) (86,533)
------------- -------------
Tangible stockholders' equity $ 1,435,348 $ 1,257,655
Total Assets $ 28,482,370 $ 26,283,705
Less: (2,148,108) (1,980,689)
Goodwill
Core deposit intangibles (106,381) (86,533)
------------- -------------
Tangible assets $ 26,227,881 $ 24,216,483
Average Stockholders' Equity $ 3,542,371 $ 3,193,394
Less: (2,096,196) (1,941,055)
Average goodwill
Average core deposit intangibles (104,518) (82,024)
------------- -------------
Average tangible stockholders' equity $ 1,341,657 $ 1,170,315
Average Assets $ 28,112,644 $ 24,898,129
Less: (2,096,196) (1,941,055)
Average goodwill
Average core deposit intangibles (104,518) (82,024)
------------- -------------
Average tangible assets $ 25,911,930 $ 22,875,050
Net Income $ 232,585 $ 292,085
Add: Amortization of core deposit
intangibles, net of tax 10,753 7,048
------------- -------------
Adjusted net income $ 243,338 $ 299,133
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended
--------------------------------
December 31, 2006
--------------------------------
Average
Average Yield/
Balance Interest Cost
------------ --------- -------
Assets:
Interest-earning assets:
Mortgage and other loans, net $19,519,215 $296,948 6.08 %
Securities 5,541,880 70,415 5.08
Money market investments 20,547 260 5.02
------------ --------- -------
Total interest-earning assets 25,081,642 367,623 5.86
Non-interest-earning assets 3,442,448
------------
Total assets $28,524,090
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $ 3,277,937 $ 28,475 3.45 %
Savings accounts 2,436,975 5,465 0.89
Certificates of deposit 6,177,519 71,171 4.57
Mortgagors' escrow 136,793 35 0.10
------------ --------- -------
Total interest-bearing deposits 12,029,224 105,146 3.47
Borrowed funds 11,456,527 121,672 4.22
------------ --------- -------
Total interest-bearing liabilities 23,485,751 226,818 3.83
Non-interest-bearing deposits 1,120,130
Other liabilities 265,634
------------
Total liabilities 24,871,515
Stockholders' equity 3,652,575
------------
Total liabilities and stockholders'
equity $28,524,090
============
Net interest income/interest rate
spread $140,805 2.03 %
========= =======
Net interest-earning assets/net
interest margin $ 1,595,891 2.27 %
============ =======
Ratio of interest-earning assets to
interest-bearing liabilities 1.07 x
=======
Core deposits $ 6,835,042 $ 33,940 1.97 %
============ ========= =======
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 December 31,
-------------------------------
2006
-------------------------------
Average
Average Yield/
Balance Interest Cost
------------ --------- --------
Assets:
Interest-earning assets:
Mortgage and other loans, net $19,519,215 $296,948 6.08 %
Securities 5,541,880 70,415 5.08
Money market investments 20,547 260 5.02
------------ --------- --------
Total interest-earning assets 25,081,642 367,623 5.86
Non-interest-earning assets 3,442,448
------------
Total assets $28,524,090
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,277,937 $28,475 3.45 %
Savings accounts 2,436,975 5,465 0.89
Certificates of deposit 6,177,519 71,171 4.57
Mortgagors' escrow 136,793 35 0.10
------------ --------- --------
Total interest-bearing deposits 12,029,224 105,146 3.47
Borrowed funds 11,456,527 121,672 4.22
------------ --------- --------
Total interest-bearing liabilities 23,485,751 226,818 3.83
Non-interest-bearing deposits 1,120,130
Other liabilities 265,634
------------
Total liabilities 24,871,515
Stockholders' equity 3,652,575
------------
Total liabilities and stockholders'
equity $28,524,090
============
Net interest income/interest rate
spread $140,805 2.03 %
========= ========
Net interest-earning assets/net
interest margin $1,595,891 2.27 %
============ ========
Ratio of interest-earning assets to
interest-bearing liabilities 1.07 x
========
Core deposits $6,835,042 $33,940 1.97 %
============ ========= ========
Three Months Ended December 31,
--------------------------------
2005
-------------------------------
Average
Average Yield/
Balance Interest Cost
------------ --------- -------
Assets:
Interest-earning assets:
Mortgage and other loans, net $16,160,147 $227,214 5.62 %
Securities 5,920,878 71,309 4.82
Money market investments 15,565 146 3.72
------------ --------- -------
Total interest-earning assets 22,096,590 298,669 5.40
Non-interest-earning assets 3,149,693
------------
Total assets $25,246,283
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,099,808 $18,559 2.38 %
Savings accounts 2,384,120 2,939 0.49
Certificates of deposit 5,005,881 40,751 3.23
Mortgagors' escrow 118,783 56 0.19
------------ --------- -------
Total interest-bearing deposits 10,608,592 62,305 2.33
Borrowed funds 10,418,821 103,278 3.89
------------ --------- -------
Total interest-bearing liabilities 21,027,413 165,583 3.10
Non-interest-bearing deposits 744,854
Other liabilities 297,297
------------
Total liabilities 22,069,564
Stockholders' equity 3,176,719
------------
Total liabilities and stockholders'
equity $25,246,283
============
Net interest income/interest rate
spread $133,086 2.30 %
========= =======
Net interest-earning assets/net
interest margin $1,069,177 2.45 %
============ =======
Ratio of interest-earning assets to
interest-bearing liabilities 1.05 x
=======
Core deposits $6,228,782 $21,498 1.37 %
============ ========= =======
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Twelve Months Ended December 31,
---------------------------------
2006
---------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ----------- --------
Assets:
Interest-earning assets:
Mortgage and other loans, net $18,882,661 $1,118,467 5.92 %
Securities 5,831,048 288,979 4.96
Money market investments 27,740 1,254 4.52
------------ ----------- --------
Total interest-earning assets 24,741,449 1,408,700 5.69
Non-interest-earning assets 3,371,195
------------
Total assets $28,112,644
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,519,471 $116,055 3.30 %
Savings accounts 2,493,592 17,856 0.72
Certificates of deposit 5,939,897 249,286 4.20
Mortgagors' escrow 128,591 176 0.14
------------ ----------- --------
Total interest-bearing deposits 12,081,551 383,373 3.17
Borrowed funds 11,126,640 463,761 4.17
------------ ----------- --------
Total interest-bearing liabilities 23,208,191 847,134 3.65
Non-interest-bearing deposits 1,110,486
Other liabilities 251,596
------------
Total liabilities 24,570,273
Stockholders' equity 3,542,371
------------
Total liabilities and stockholders'
equity $28,112,644
============
Net interest income/interest rate
spread $561,566 2.04 %
=========== ========
Net interest-earning assets/net
interest margin $1,533,258 2.27 %
============ ========
Ratio of interest-earning assets to
interest-bearing liabilities 1.07 x
========
Core deposits $7,123,549 $133,911 2.93 %
============ =========== ========
Twelve Months Ended December 31,
---------------------------------
2005
-------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ---------- -------
Assets:
Interest-earning assets:
Mortgage and other loans, net $15,183,973 $857,537 5.65 %
Securities 6,487,566 320,777 4.94
Money market investments 25,620 704 2.75
------------ ---------- -------
Total interest-earning assets 21,697,159 1,179,018 5.43
Non-interest-earning assets 3,200,970
------------
Total assets $24,898,129
============
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
NOW and money market accounts $3,376,893 $73,052 2.16 %
Savings accounts 2,637,639 13,349 0.51
Certificates of deposit 4,250,386 116,173 2.73
Mortgagors' escrow 108,971 249 0.23
------------ ---------- -------
Total interest-bearing deposits 10,373,889 202,823 1.96
Borrowed funds 10,292,641 380,828 3.70
------------ ---------- -------
Total interest-bearing liabilities 20,666,530 583,651 2.82
Non-interest-bearing deposits 738,075
Other liabilities 300,130
------------
Total liabilities 21,704,735
Stockholders' equity 3,193,394
------------
Total liabilities and stockholders'
equity $24,898,129
============
Net interest income/interest rate
spread $595,367 2.61 %
========== =======
Net interest-earning assets/net
interest margin $1,030,629 2.74 %
============ =======
Ratio of interest-earning assets to
interest-bearing liabilities 1.05 x
=======
Core deposits $6,752,607 $86,401 1.28 %
============ ========== =======
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
(unaudited)
-
-
For the Three Months Ended
------------------------------------------
Dec. 31, Sept. 30, Dec. 31,
2006 2006 2005
------------- ------------- --------------
GAAP EARNINGS DATA:
Net income $53,121 $62,477 $36,916
Basic earnings per share 0.18 0.21 0.14
Diluted earnings per share 0.18 0.21 0.14
Return on average assets 0.74 % 0.87 % 0.58 %
Return on average tangible
assets (1) 0.86 1.00 0.67
Return on average
stockholders' equity 5.82 6.88 4.65
Return on average tangible
stockholders' equity (1) 16.15 19.14 13.33
Efficiency ratio (2) 44.96 40.68 55.84
Operating expenses to
average assets 1.03 0.93 1.37
Interest rate spread 2.03 2.00 2.30
Net interest margin 2.27 2.24 2.45
Shares used for basic EPS
computation 292,481,537 292,244,262 260,978,950
Shares used for diluted EPS
computation 293,698,501 293,550,619 262,537,355
OPERATING EARNINGS DATA: (3)
Operating earnings $61,708 $62,477 $70,906
Basic earnings per share 0.21 0.21 0.27
Diluted earnings per share 0.21 0.21 0.27
Return on average assets 0.87 % 0.87 % 1.12 %
Return on average tangible
assets (1) 0.99 1.00 1.25
Return on average
stockholders' equity 6.76 6.88 8.93
Return on average tangible
stockholders' equity (1) 18.62 19.14 25.04
Efficiency ratio (2) 39.12 40.68 32.20
CASH EARNINGS DATA: (4)
Cash earnings $65,858 $69,663 $79,554
Basic cash earnings per
share 0.23 0.24 0.30
Diluted cash earnings per
share 0.22 0.24 0.30
Cash return on average
assets 0.92 % 0.98 % 1.26 %
Cash return on average
tangible assets (1) 1.00 1.06 1.37
Cash return on average
stockholders' equity 7.21 7.67 10.02
Cash return on average
tangible stockholders'
equity (1) 18.94 20.35 27.41
Cash efficiency ratio (2) 40.51 39.72 31.13
ADJUSTED CASH EARNINGS DATA:
(4)
Adjusted cash earnings $69,063 $69,663 $79,554
Basic adjusted cash earnings
per share 0.24 0.24 0.30
Diluted adjusted cash
earnings per share 0.24 0.24 0.30
Adjusted cash return on
average assets 0.97 % 0.98 % 1.26 %
Adjusted cash return on
average tangible assets (1) 1.05 1.06 1.37
Adjusted cash return on
average stockholders'
equity 7.56 7.67 10.02
Adjusted cash return on
average tangible
stockholders' equity (1) 19.86 20.35 27.41
Adjusted cash efficiency
ratio (2) 38.20 39.72 31.13
For the Twelve Months Ended
---------------------------
Dec. 31, Dec. 31,
2006 2005
------------- -------------
GAAP EARNINGS DATA:
Net income $232,585 $292,085
Basic earnings per share 0.82 1.12
Diluted earnings per share 0.81 1.11
Return on average assets 0.83 % 1.17 %
Return on average tangible assets (1) 0.94 1.31
Return on average stockholders' equity 6.57 9.15
Return on average tangible stockholders'
equity (1) 18.14 25.56
Efficiency ratio (2) 39.41 34.14
Operating expenses to average assets 0.91 0.95
Interest rate spread 2.04 2.61
Net interest margin 2.27 2.74
Shares used for basic EPS computation 284,877,310 260,412,409
Shares used for diluted EPS computation 286,261,492 262,497,843
OPERATING EARNINGS DATA: (3)
Operating earnings $263,569 $326,075
Basic earnings per share 0.93 1.25
Diluted earnings per share 0.92 1.24
Return on average assets 0.94 % 1.31 %
Return on average tangible assets (1) 1.06 1.46
Return on average stockholders' equity 7.44 10.21
Return on average tangible stockholders'
equity (1) 20.45 28.46
Efficiency ratio (2) 37.59 28.86
CASH EARNINGS DATA: (4)
Cash earnings $264,752 $354,166
Basic cash earnings per share 0.93 1.36
Diluted cash earnings per share 0.92 1.35
Cash return on average assets 0.94 % 1.42 %
Cash return on average tangible assets
(1) 1.02 1.55
Cash return on average stockholders'
equity 7.47 11.09
Cash return on average tangible
stockholders' equity (1) 19.73 30.26
Cash efficiency ratio (2) 37.56 27.84
ADJUSTED CASH EARNINGS DATA: (4)
Adjusted cash earnings $290,354 $354,166
Basic adjusted cash earnings per share 1.02 1.36
Diluted adjusted cash earnings per share 1.01 1.35
Adjusted cash return on average assets 1.03 % 1.42 %
Adjusted cash return on average tangible
assets (1) 1.12 1.55
Adjusted cash return on average
stockholders' equity 8.20 11.09
Adjusted cash return on average tangible
stockholders' equity (1) 21.64 30.26
Adjusted cash efficiency ratio (2) 36.64 27.84
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity.
(2) The Company calculates its GAAP, operating, cash, and adjusted
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 December 31, At September 30, At December 31,
2006 2006 2005
--------------- ---------------- ---------------
BALANCE SHEET DATA:
Book value per share $12.56 $12.66 $12.43
Tangible book value
per share (1) 4.88 4.94 4.70
Stockholders' equity
to total assets 12.95 % 12.83 % 12.65 %
Tangible stockholders'
equity to tangible
assets (1) 5.47 5.43 5.19
Tangible stockholders'
equity to tangible
assets excluding
after-tax net
unrealized losses on
securities (1) 5.66 5.63 5.41
Shares used for book
value and tangible
book value
computation (1) 293,890,372 293,217,441 267,594,393
Total shares issued
and outstanding 295,350,936 295,117,419 269,776,791
ASSET QUALITY RATIOS:
Non-performing loans
to total loans 0.11 % 0.16 % 0.16 %
Non-performing assets
to total assets 0.08 0.12 0.11
Allowance for loan
losses to non-
performing loans 402.72 265.98 289.17
Allowance for loan
losses to total loans 0.43 0.43 0.47
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity.
CONTACT: New York Community Bancorp, Inc.
Ilene A. Angarola, 516-683-4420
First Senior Vice President &
Director, Investor Relations