Exhibit 99.1
New York Community Bancorp, Inc.
Reports 2nd Quarter 2007 Cash Earnings of $0.27 Per Diluted Share (1)
and Operating Earnings of $0.23 Per Diluted Share (2)
- Board of Directors Declares $0.25 Per Share Quarterly Cash
Dividend -
- Company Announces Post-Merger Balance Sheet Repositioning -
- Sale of Atlantic Bank Headquarters Completed on July 16, 2007 -
WESTBURY, N.Y.--(BUSINESS WIRE)--July 25, 2007--New York Community
Bancorp, Inc. (NYSE: NYB) (the "Company") today reported its earnings
for the three months ended June 30, 2007.
Performance Highlights
---------------------------------------------------------------
-- Margin Expansion: Our 2Q 2007 net interest margin rose 12
basis points linked-quarter, to 2.44%.
-- Higher Average Yield on Loans: Our average yield on loans rose
30 basis points in the 2nd quarter, to 6.44%.
-- Solid Asset Quality: Non-performing assets represented 0.05%
of total assets at June 30th.
-- Strong Operating Efficiency: Our 2Q 2007 operating efficiency
ratio was 40.48%.(3)
-- PennFed Acquisition Completed: The Company completed the
acquisition of PennFed Financial Services, Inc. ("PennFed") on
April 2nd.
-- Significant Post-Merger Balance Sheet Repositioning:
-- 1-4 family loans of $1.4 billion were sold in whole or
securitized form in 2Q 2007.
-- A portion of the proceeds from the sale of loans was used
to prepay wholesale borrowings of $330.3 million with an
average cost of 5.35% at quarter-end.
-- $1.1 billion of lower-yielding securities were sold in 3Q
2007, resulting in a significant one-time pre-tax
impairment loss of $57.0 million in the 2nd quarter.
-- Our acquisition of 11 branches in New York City from Doral
Bank, FSB ("Doral") has received the necessary regulatory
approvals and is set for completion on the evening of July
26th.
-- Our acquisition of Synergy Financial Group ("Synergy") is
progressing on schedule and is expected to be completed
early in 4Q 2007.
-- Sale of Atlantic Bank Headquarters: The sale of our Atlantic
Bank headquarters was completed on July 16th, generating
proceeds of approximately $105 million and a 3rd quarter 2007
pre-tax gain of approximately $65 million which will maintain
the Company's capital strength.
-- Tangible Capital Strength: Tangible stockholders' equity
equaled 5.80% of tangible assets excluding the impairment loss
and after-tax mark-to-market adjustments on securities;
including the impairment loss and adjustments, the ratio was
5.57% at June 30th.(4)
Please Note: All footnotes to the text of this release are located
on page 19.
The Company reported operating earnings of $71.8 million, or $0.23
per diluted share, for the three months ended June 30, 2007 (2) and
cash earnings of $82.9 million, or $0.27 per diluted share.(1) In
conjunction with the Company's decision to sell $1.1 billion of
securities in the third quarter, a pre-tax loss of $57.0 million on
the other-than-temporary impairment of securities (the "impairment
loss") was recorded in the second quarter of 2007, in accordance with
the current interpretation of FASB Staff Position FAS 115-1/124-1.
Absent the impairment loss, which was due to a change in market
interest rates rather than a change in credit quality, the Company's
GAAP earnings would have equaled $74.7 million, or $0.24 per diluted
share. Reflecting the impairment loss, which was equal to $38.7
million, or $0.12 per diluted share, on an after-tax basis, the
Company recorded GAAP earnings of $36.0 million, or $0.12 per diluted
share, for the three months ended June 30, 2007.
In addition to the aforementioned impairment loss, the Company's
second quarter 2007 GAAP earnings included an after-tax gain on the
sale of securities of $6.2 million in connection with the post-merger
repositioning of the balance sheet. A portion of the proceeds from
securities sales was utilized to prepay $330.3 million of wholesale
borrowings with an average cost of 5.35%, generating an after-tax
charge of $2.2 million. In addition, the Company recorded a $1.3
million after-tax loss on debt redemption in the current second
quarter, in connection with the early redemption of certain
trust-preferred securities.
In the third quarter of 2007, the Company will record a pre-tax
loss of approximately $7.5 million on the sale of the $1.1 billion of
securities that were written down in the second quarter, as described
above.
Commenting on the Company's operating results, Chairman,
President, and Chief Executive Officer Joseph R. Ficalora stated,
"While our second quarter performance was certainly gratifying on an
operating basis, we are even more excited about the actions we took
over the course of the quarter to position ourselves for future
periods. As a result of these actions, we have provided ourselves with
the liquidity to capitalize on market conditions and the opportunity
to enhance our margin in a challenging rate environment.
"We started the quarter by completing our acquisition of PennFed
on April 2nd and immediately began the repositioning of our balance
sheet. A portion of the proceeds from the sale of one-to-four family
loans was invested in higher-yielding assets and utilized to reduce
our balance of wholesale borrowings.
"We next announced plans to acquire Synergy Financial Group,
another in-market institution, and on June 6th, announced the sale of
our Atlantic Bank headquarters in Herald Square. The sale of the
building was completed last week, generating proceeds of about $105
million and a third quarter gain of approximately $65 million,
pre-tax. As a result of the gain from the sale of the building, the
strength of our capital measures will be maintained.
"We expect the benefit of these actions to be reflected in future
quarters, as the repositioning enhances the fundamental strength of
our margin, and the liquidity created gives us significant flexibility
with regard to the management of our assets and liabilities. These
actions are consistent with our mission, and our business model, and,
we believe, will create value in future periods," Mr. Ficalora said.
"As for our second quarter performance, the highlight was our net
interest margin, which rose 12 basis points linked-quarter and 15
basis points year-over-year. While the expansion of our margin largely
reflects the higher yields provided by our interest-earning assets and
the contribution of prepayment penalties to term yields, we also held
the line on our cost of funds over the last three months. As indicated
in the past, we had expected to see an increase in prepayment
penalties in 2007 and 2008, and this expectation has thus far been
validated by the volume recorded to date. Prepayment penalties totaled
$36 million in the first six months of 2007, exceeding last year's
twelve-month amount by 22%.
"Another second quarter highlight was the quality of our assets,
which has been a constant throughout our public life. Non-performing
assets declined $10.8 million over the course of the quarter to $14.7
million, which represented a modest 0.05% of total assets at the end
of June.
"In addition, our operating efficiency ratio, which has
consistently ranked among the best in the nation, improved to 40.48%
in the quarter, reflecting the growth of our core revenues," Mr.
Ficalora commented.
$0.25 Per Share Dividend to be Paid on August 15, 2007
"Reflecting the strength of our operating performance and our
solid capital position," Mr. Ficalora continued, "the Board of
Directors last night reaffirmed its commitment to our quarterly cash
dividend of $0.25 per share. It's important to note that our cash
earnings equaled $0.27 per diluted share in the second quarter,
bringing our year-to-date cash earnings to $0.50 per diluted share.
The next dividend will be paid on August 15, 2007 to shareholders of
record on August 6th."
Balance Sheet Summary
Primarily reflecting the benefit of the PennFed acquisition, the
Company's assets rose $1.6 billion and $1.1 billion, respectively, to
$29.6 billion over the three and six months ended June 30, 2007. While
PennFed had total assets of $2.3 billion at the date of acquisition,
the Company sold $1.4 billion of one-to-four family loans acquired in
the transaction, either as whole or securitized loans. By quarter-end,
the proceeds were utilized to pay down wholesale borrowings of $452.6
million and to purchase $671.2 million of securities with an average
yield of 6.24%. As a result, wholesale borrowings totaled $10.7
billion at June 30, 2007, representing 36.2% of total assets, and
securities totaled $5.7 billion, representing 19.2%.
Loans
The flexibility provided by PennFed and by the pending Doral and
Synergy transactions has given the Company the opportunity to restrain
its lending in the current environment. While originations totaled
$2.2 billion in the first half of the year, including $1.0 billion in
the second quarter, repayments totaled $3.2 billion during the
six-month period, including second quarter repayments of $1.7 billion.
As a result, the loan portfolio declined to $18.9 billion,
representing 63.9% of total assets, at June 30, 2007, as compared to
$19.3 billion, or 68.9% of total assets, at March 31, 2007 and $19.7
billion, or 69.0% of total assets, at December 31, 2006. While the
volume of loan originations was exceeded by the volume of loan
repayments in the second quarter, the Company realized a
linked-quarter increase in interest income as a result of the rise in
prepayment penalties stemming from anticipated refinancing activity
and property sales.
Multi-family loans represented $13.5 billion, or 71.6%, of total
loans at June 30, 2007, down $692.5 million from the trailing
quarter-end balance and $990.0 million from the balance recorded at
year-end 2006. While originations totaled $1.0 billion in the first
six months of the year, including $377.8 million in the second
quarter, the volume of loans produced was exceeded by repayments. In
the current environment, the Company has opted to limit its
multi-family loan production rather than compete for product on
irrational terms.
At June 30, 2007, the average multi-family loan had a principal
balance of $3.4 million, and the portfolio had an average
loan-to-value ratio of 63.2%. The expected weighted average life of
the portfolio was 3.2 years at quarter-end.
Commercial real estate loans represented $3.2 billion, or 17.0%,
of total loans at June 30, 2007, and were up $158.7 million and $99.4
million, respectively, from the balances recorded at March 31, 2007
and December 31, 2006. The increase was largely attributable to the
PennFed transaction, which accounted for $130.6 million of commercial
real estate loans at the second quarter-end. The average commercial
real estate loan had a principal balance of $2.0 million at June 30,
2007. The portfolio had an average loan-to-value ratio of 57.0% and an
expected weighted average life of 3.5 years at that date.
Construction loans totaled $1.1 billion at June 30, 2007 and were
up $23.6 million and $42.4 million, respectively, from the balances
recorded at March 31, 2007 and December 31, 2006. Year-to-date
originations totaled $378.0 million, including $233.5 million of loans
produced in the second quarter of the year. Construction loans
represented 6.0% of total loans at June 30, 2007 and had a remaining
average life of less than 18 months on advanced funds.
Largely reflecting loans acquired in the PennFed transaction,
other loans rose $78.4 million and $60.1 million, respectively, to
$735.6 million at June 30, 2007 from the balances recorded at March
31, 2007 and December 31, 2006. Commercial and industrial loans
represented $629.4 million of other loans at June 30, 2007, as
compared to $626.1 million and $641.8 million, respectively, at the
earlier dates.
At the present time, the Company's pipeline amounts to
approximately $877 million, and includes approximately $596 million of
multi-family loans.
Asset Quality
The Company recorded non-performing assets of $14.7 million at
June 30, 2007, representing 0.05% of total assets, as compared to
$25.5 million, representing 0.09% of total assets, at March 31, 2007
and to $22.5 million, representing 0.08% of total assets, at December
31, 2006. The reduction in non-performing assets was primarily due to
the repayment of a construction loan in the amount of $10.7 million
that had been on non-accrual status since the second quarter of 2005.
Non-performing loans represented $13.7 million, or 0.07% of total
loans, at the close of the second quarter, an improvement from $24.6
million, or 0.13% of total loans, at March 31, 2007 and from $21.2
million, or 0.11% of total loans, at December 31, 2006. Other real
estate owned accounted for $994,000 of non-performing assets at June
30, 2007, as compared to $899,000 and $1.3 million, respectively, at
the earlier dates.
The allowance for loan losses rose to $88.2 million at June 30,
2007 from $85.3 million at the close of the trailing quarter and from
$85.4 million at December 31, 2006. While charge-offs totaled $67,000
in the second quarter, the impact was offset by the addition of a $2.9
million loan loss allowance in connection with the acquisition of
PennFed. Reflecting the acquired allowance and the reduction in
non-performing loans in the second quarter, the allowance for loan
losses represented 641.64% of non-performing loans at June 30, 2007,
as compared to 346.62% at March 31, 2007 and 402.7% at December 31,
2006. The loan loss allowance represented 0.47% of total loans at the
close of the second quarter, as compared to 0.44% and 0.43%,
respectively, at the earlier dates.
Securities
Securities represented $5.7 billion, or 19.2%, of total assets at
June 30, 2007, as compared to $4.7 billion and $4.9 billion, or 16.9%
and 17.3%, of total assets at March 31, 2007 and December 31, 2006,
respectively. The increase reflects the addition of PennFed's
securities portfolio, which totaled $459.5 million at the end of the
second quarter, as well as securities totaling $671.2 million that
were purchased during the quarter with a portion of the proceeds from
the sale of PennFed's one-to-four family loan portfolio. The vast
majority of the purchased securities were government agency-backed
securities.
Available-for-sale securities represented $2.8 billion, or 48.3%,
of total securities at June 30, 2007, and were up $832.5 million and
$811.1 million, respectively, from the trailing quarter- and year-end
amounts. The balance of held-to-maturity securities, meanwhile,
totaled $2.9 billion, representing a $118.1 million increase from the
March 31, 2007 balance and a $44.7 million reduction from the year-end
2006 amount.
Mortgage-related securities represented $2.0 billion and $1.3
billion of available-for-sale and held-to-maturity securities,
respectively, at June 30, 2007; other securities represented the
remaining $732.5 million and $1.6 billion of the respective balances.
At June 30, 2007, the after-tax net unrealized loss on
available-for-sale securities totaled $17.9 million, signifying a
linked-quarter reduction of $17.3 million. The reduction primarily
reflects the $57.0 million pre-tax loss on the other-than-temporary
impairment of securities totaling $1.1 billion that was recorded in
the second quarter of the year.
Funding Sources
The Company recorded total deposits of $13.8 billion at June 30,
2007, up $1.4 billion, or 10.9%, from the balance recorded at March
31, 2007 and $1.2 billion, or 9.1%, from the balance recorded at
December 31, 2006. The increase primarily reflects deposits acquired
in the PennFed transaction. At the date of acquisition, PennFed had
total deposits of $1.6 billion, including certificates of deposit
("CDs") of $1.0 billion and core deposits (defined as NOW and money
market accounts, savings accounts, and non-interest-bearing accounts)
of $584.0 million.
Core deposits represented $6.9 billion, or 50.0%, of total
deposits at the close of the second quarter, as compared to $6.3
billion and $6.7 billion, respectively, at March 31, 2007 and December
31, 2006. The linked-quarter increase stemmed from a $333.5 million
rise in NOW and money market accounts to $3.1 billion, a $186.2
million rise in savings accounts to $2.6 billion, and a $30.4 million
rise in non-interest-bearing accounts to $1.2 billion. The six-month
increase in core deposits was the net effect of a $184.3 million
increase in savings accounts, a $65.9 million increase in
non-interest-bearing accounts, and a $36.8 million reduction in NOW
and money market accounts. CDs totaled $6.9 billion at the close of
the second quarter, and were up $805.2 million and $936.9 million,
respectively, from the March 31st and December 31st amounts.
Borrowed funds totaled $11.6 billion at the close of the second
quarter, down $309.1 million from the December 31, 2006 balance, and
up $91.4 million from the balance recorded at March 31, 2007.
Wholesale borrowings accounted for $10.7 billion of the June 30, 2007
balance, a $353.2 million reduction from the year-end 2006 balance and
a $46.8 million increase from the March 31, 2007 amount. While the
Company reduced its balance of wholesale borrowings by $452.6 million
in the second quarter, the PennFed transaction added $499.4 million to
the June 30, 2007 balance of wholesale borrowings.
Stockholders' Equity
The Company recorded total stockholders' equity of $4.0 billion at
June 30, 2007, up $249.9 million and $271.6 million, respectively,
from the balances recorded at March 31, 2007 and December 31, 2006.
The June 30, 2007 amount was equivalent to 13.37% of total assets and
a book value of $12.67 per share, based on 312,572,289 shares.
Tangible stockholders' equity totaled $1.5 billion at the close of
the second quarter, signifying a linked-quarter increase of $49.0
million and a six-month increase of $79.3 million. Excluding the
aforementioned impairment loss and after-tax mark-to-market
adjustments on securities, adjusted tangible stockholders' equity
represented 5.80% of adjusted tangible assets, as compared to 5.86%
and 5.66%, respectively, at March 31, 2007 and December 31, 2006.
Including the impairment loss and adjustments, tangible stockholders'
equity represented 5.57% of tangible assets, as compared to 5.70% and
5.47%, respectively, at the earlier dates.(3)
The Company's subsidiary banks also reported solid levels of
capital at the close of the second quarter, and continued to exceed
the requirements for classification as "well capitalized" institutions
under the FDIC Improvement Act. At June 30, 2007, New York Community
Bank had a leverage capital ratio of 7.73% and New York Commercial
Bank had a leverage capital ratio of 11.21%.
Second Quarter 2007 Earnings Summary
Net Interest Income
The Company recorded net interest income of $161.1 million in the
three months ended June 30, 2007, signifying a linked-quarter increase
of $14.9 million, or 10.2%. The increase was driven by a $31.6 million
rise in interest income to $401.0 million, which exceeded a $16.7
million, or 7.5%, rise in interest expense to $239.9 million.
The linked-quarter increase in interest income was attributable to
a $1.5 billion rise in the average balance of interest-earning assets
to $26.3 billion, largely reflecting interest-earning assets acquired
in the PennFed transaction, and a 14-basis point increase in the
average yield to 6.10%. Reflecting refinancing activity and property
sales in the multi-family sector, prepayment penalties rose to $22.3
million in the current second quarter from $13.7 million in the first
quarter of the year. The higher average yield also reflects the
replenishment of the portfolio with loans featuring higher interest
rates.
Loans generated interest income of $313.5 million, representing
78.2% of total interest income in the current second quarter and a
$15.0 million increase from the trailing-quarter amount. The average
yield on loans rose 30 basis points, to 6.44%, on a linked-quarter
basis, offsetting the impact of a $26.5 million reduction in the
average balance of loans to $19.5 billion. In the current environment,
management has refrained from originating loans at historic volumes,
rather than compete for product by offering loans on irrational terms.
Instead, management has opted to capitalize on the increased liquidity
afforded by the post-merger balance sheet repositioning and the
current market, and will reevaluate the lending environment as market
conditions become more favorable.
The linked-quarter increase in interest expense was largely
acquisition-related, as the average balance of interest-bearing
liabilities rose $1.4 billion, reflecting a $1.3 billion rise in
average interest-bearing deposits to $12.9 billion and an $87.1
million rise in average borrowed funds to $11.8 billion. While the
interest expense produced by such funds rose $13.1 million and $3.7
million, respectively, on a linked-quarter basis, these increases were
fairly modest. The average cost of interest-bearing deposits rose two
basis points, to 3.51%, over the course of the quarter, while the
average cost of borrowed funds rose five basis points, to 4.33%. The
average cost of total interest-bearing liabilities rose one basis
point on a linked-quarter basis, to 3.90%.
The same factors that contributed to the rise in the Company's
second quarter 2007 net interest income contributed to a rise in its
net interest margin to 2.44%. The margin expanded 12 basis points on a
linked-quarter basis and 15 basis points year-over-year.
Non-interest (Loss) Income
Primarily reflecting the aforementioned pre-tax impairment loss of
$57.0 million, the Company recorded a non-interest loss of $23.9
million in the three months ended June 30, 2007, as compared to
non-interest income of $24.1 million in the trailing three-month
period. While the second quarter amount also reflects a $1.8 million
loss on debt redemption stemming from the early redemption of certain
trust preferred securities, the non-interest loss was tempered by a
$994,000 increase in fee income to $10.7 million; a $607,000 increase
in other income to $14.9 million; and a $9.2 million net gain on the
sale of securities.
Non-interest Expense
The Company recorded non-interest expense of $84.6 million in the
three months ended June 30, 2007, as compared to $74.3 million in the
three months ended March 31, 2007. The linked-quarter increase stemmed
from a $6.3 million rise in operating expenses to $75.6 million, an
$821,000 rise in core deposit intangible ("CDI") amortization to $5.8
million, and a $3.2 million charge for the prepayment of wholesale
borrowings.
The increase in operating expenses primarily reflects the addition
of PennFed's branch network on April 2nd, as well as accruals for the
Company's Stock and Management Incentive Compensation Plans. During
the quarter, compensation and benefits expense rose $2.7 million to
$39.9 million, reflecting both factors, while the PennFed transaction
contributed to a $2.4 million rise in occupancy and equipment expense
to $17.5 million and a $1.1 million increase in general and
administrative expense to $18.2 million. The increase in CDI
amortization reflects the CDI acquired in the PennFed transaction,
which is being amortized on an accelerated basis over a period of ten
years.
Income Tax Expense
The Company recorded income tax expense of $16.6 million in the
current second quarter, down $14.5 million from the level recorded in
the trailing three-month period. The linked-quarter reduction was
attributable to a $43.4 million decline in pre-tax income to $52.5
million and a decline in the effective tax rate to 31.54% from 32.43%.
The reduction in pre-tax income primarily reflects the impact of the
aforementioned impairment loss.
Company Profile
New York Community Bancorp, Inc. is the 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. With
160 offices serving customers in New York City, Long Island, and
Westchester County in New York, and Essex, Hudson, Union, Ocean,
Monmouth, and Middlesex Counties in New Jersey, New York Community
Bank is the fourth largest thrift depository in its market, and
operates through eight local divisions: Queens County Savings Bank,
Roslyn Savings Bank, Richmond County Savings Bank, Roosevelt Savings
Bank, CFS Bank, First Savings Bank of New Jersey, Ironbound Bank, and
Penn Federal Savings Bank. New York Commercial Bank currently has 27
branches serving Manhattan, Queens, Brooklyn, Westchester County, and
Long Island, including 16 branches of Atlantic Bank. Additional
information about New York Community Bancorp, Inc. and its bank
subsidiaries is available at www.myNYCB.com and
www.NewYorkCommercialBank.com.
Post-Earnings Conference Call
The Company will host a conference call on July 25, 2007 at 9:30
a.m. (ET) to discuss its second quarter 2007 performance, the sale of
its Atlantic Bank headquarters, and the post-merger balance sheet
repositioning. The conference call may be accessed by dialing
800-811-7286 (for domestic calls) or 913-981-4902 (for international
calls) and providing the following access code: 1452853. A replay of
the conference call will be available approximately two hours
following completion of the call through midnight on August 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 webcast, and may be accessed by visiting the
Company's web site, www.myNYCB.com, clicking on "Investor Relations,"
and following the prompts. The web cast will be archived through 5:00
p.m. on August 6, 2007.
Forward-looking Statements and 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 targeted 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, those
pertaining to banking, securities, tax, environmental protection, and
insurance, 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.
In addition, the following factors, among others, could cause the
actual results of our recent acquisition of PennFed Financial
Services, Inc., our pending acquisition of 11 branches from Doral
Bank, FSB ("Doral"), and our pending acquisition of Synergy Financial
Group, Inc.("Synergy"), and the expected benefits of the respective
transactions to the combined company and our shareholders, to differ
materially from the expectations stated in this release: the ability
of the Company, Doral, and Synergy to consummate the respective
transactions; a materially adverse change in the financial condition
or results of operations of any of these companies; the ability of the
Company and Synergy to obtain the necessary regulatory approvals and,
in the case of Synergy, to obtain the necessary shareholder approval;
the ability of the Company to successfully integrate the assets,
liabilities, customers, systems, and any personnel it may acquire into
its operations pursuant to the transactions; and the Company's 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 the
Company's control.
It also should be noted that the Company routinely evaluates
opportunities to expand through acquisition and frequently conducts
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, the
Company undertakes no obligation to update these forward-looking
statements to reflect events or circumstances that occur after the
date on which such statements were made.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
June 30, December 31,
2007 2006
------------ ------------
(unaudited)
Assets
Cash and cash equivalents $ 1,080,034 $ 230,759
Securities available for sale:
Mortgage-related securities 2,019,383 1,664,337
Other securities 732,498 276,450
Securities held to maturity:
Mortgage-related securities 1,305,464 1,387,817
Other securities 1,635,083 1,597,380
------------ ------------
Total securities 5,692,428 4,925,984
Mortgage loans:
Multi-family 13,542,676 14,532,652
Commercial real estate 3,213,890 3,114,446
Construction 1,142,290 1,099,844
1-4 family 283,650 230,486
------------ ------------
Total mortgage loans 18,182,506 18,977,428
Other loans 735,611 675,463
------------ ------------
Total loans 18,918,117 19,652,891
Less: Allowance for loan losses (88,181) (85,389)
------------ ------------
Loans, net 18,829,936 19,567,502
Federal Home Loan Bank of New York stock, at
cost 385,832 404,311
Premises and equipment, net 227,123 196,084
Goodwill 2,330,704 2,148,108
Core deposit intangibles 116,157 106,381
Other assets 961,536 903,241
------------ ------------
Total assets $29,623,750 $28,482,370
============ ============
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 3,120,235 $ 3,156,988
Savings accounts 2,578,414 2,394,145
Certificates of deposit 6,881,459 5,944,585
Non-interest-bearing accounts 1,189,189 1,123,286
------------ ------------
Total deposits 13,769,297 12,619,004
------------ ------------
Official checks outstanding 29,914 20,158
Borrowed funds:
Wholesale borrowings 10,717,168 11,070,333
Junior subordinated debentures 500,744 455,659
Other borrowings 353,008 354,016
------------ ------------
Total borrowed funds 11,570,920 11,880,008
Mortgagors' escrow 67,182 74,736
Other liabilities 224,966 198,627
------------ ------------
Total liabilities 25,662,279 24,792,533
------------ ------------
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; 313,852,246 and
295,350,936 shares issued; 313,852,246
and 295,350,936 shares outstanding,
respectively) 3,139 2,954
Paid-in capital in excess of par 3,635,686 3,341,340
Retained earnings (partially restricted) 371,173 421,313
Less: Unallocated common stock held by
ESOP (4,036) (4,604)
Common stock held by SERP (3,113) (3,113)
Accumulated other comprehensive loss (41,378) (68,053)
------------ ------------
Total stockholders' equity 3,961,471 3,689,837
------------ ------------
Total liabilities and stockholders' equity $29,623,750 $28,482,370
============ ============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the For the
Three Months Ended Six Months Ended
---------------------------- -------------------
March
June 30, 31, June 30, June 30, June 30,
2007 2007 2006 2007 2006
--------- -------- --------- --------- ---------
Interest Income:
Mortgage and other
loans $313,469 $298,467 $277,057 $611,936 $532,680
Securities 73,319 70,688 74,610 144,007 146,456
Money market
investments 14,221 246 478 14,467 644
--------- -------- -------- --------- ---------
Total interest income 401,009 369,401 352,145 770,410 679,780
--------- -------- -------- --------- ---------
Interest Expense:
NOW and money
market accounts 25,246 23,902 30,834 49,148 57,183
Savings accounts 7,310 5,701 4,434 13,011 7,092
Certificates of
deposit 80,334 70,228 59,475 150,562 107,967
Borrowed funds 127,003 123,349 113,330 250,352 226,514
Mortgagors' escrow 34 33 56 67 110
--------- -------- -------- --------- ---------
Total interest expense 239,927 223,213 208,129 463,140 398,866
--------- -------- -------- --------- ---------
Net interest
income 161,082 146,188 144,016 307,270 280,914
Provision for loan
losses -- -- -- -- --
--------- -------- -------- --------- ---------
Net interest
income after
provision
for loan
losses 161,082 146,188 144,016 307,270 280,914
--------- -------- -------- --------- ---------
Non-interest (Loss)
Income:
Fee income 10,747 9,753 9,768 20,500 18,094
Net securities
gains 9,195 -- -- 9,195 2,823
Loss on debt
redemption (1,848) -- -- (1,848) --
Loss on other-
than-temporary
impairment of
securities (56,958) -- -- (56,958) --
Loss on mark-to-
market of
interest rate
swaps -- -- -- -- (6,071)
Other 14,935 14,328 13,891 29,263 27,989
--------- -------- -------- --------- ---------
Total non-interest
(loss) income (23,929) 24,081 23,659 152 42,835
--------- -------- -------- --------- ---------
Non-interest Expense:
Operating expenses:
Compensation and
benefits 39,926 37,203 32,517 77,129 62,058
Occupancy and
equipment 17,491 15,103 13,959 32,594 26,019
General and
administrative 18,178 17,039 14,640 35,217 28,358
--------- -------- -------- --------- ---------
Total operating
expenses 75,595 69,345 61,116 144,940 116,435
Prepayment of
borrowings 3,190 -- -- 3,190 --
Post-merger
repositioning
charge -- -- 27,609 -- 27,609
Amortization of
core deposit
intangibles 5,823 5,002 4,467 10,825 7,773
--------- -------- -------- --------- ---------
Total non-interest
expense 84,608 74,347 93,192 158,955 151,817
--------- -------- -------- --------- ---------
Income before income
taxes 52,545 95,922 74,483 148,467 171,932
Income tax expense 16,571 31,103 23,871 47,674 54,945
--------- -------- -------- --------- ---------
Net Income $ 35,974 $ 64,819 $ 50,612 $100,793 $116,987
========= ======== ======== ========= =========
Basic earnings
per share $ 0.12 $ 0.22 $ 0.18 $ 0.33 $ 0.42
========= ======== ======== ========= =========
Diluted
earnings per
share $ 0.12 $ 0.22 $ 0.18 $ 0.33 $ 0.42
========= ======== ======== ========= =========
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATION OF GAAP AND OPERATING EARNINGS
(unaudited)
Although operating earnings are not a measure of performance
calculated in accordance with GAAP, the Company believes that
operating earnings are an important indication of its ability to
generate earnings through ongoing operations.
The Company calculated its operating earnings for the three and six
months ended June 30, 2007 by (1) adding back to non-interest income
the $1.8 million pre-tax loss incurred in connection with the
redemption of trust preferred securities (the "loss on debt
redemption"); (2) subtracting from non-interest income the $9.2
million pre-tax net gain on the sale of securities; (3) adding back
to non-interest income the $57.0 million pre-tax loss on the other-
than-temporary impairment of securities; and (4) subtracting from
non-interest expense the $3.2 million pre-tax charge for the
prepayment of borrowings. To calculate its operating earnings for the
three and six months ended June 30, 2006, the Company subtracted from
non-interest expense the pre-tax post-merger repositioning charge of
$27.6 million. In calculating its operating earnings for the six-
month period, the Company also added back to non-interest income a
$6.1 million pre-tax non-cash loss on the mark-to-market of interest
rate swaps incurred in the first quarter of 2006.
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 calculated 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 and six months ended June 30, 2007 and 2006 follows. For the
three months ended March 31, 2007, the Company's GAAP and operating
earnings were the same.
For the For the
Three Months Ended Six Months Ended
-------------------------- -------------------
March
(in thousands, except June 30, 31, June 30, June 30, June 30,
per share data) 2007 2007 2006 2007 2006
-------- -------- -------- --------- ---------
GAAP Earnings $35,974 $64,819 $50,612 $100,793 $116,987
Adjustments to GAAP
earnings:
Net securities gains (9,195) -- -- (9,195) --
Loss on other-than-
temporary
impairment of
securities 56,958 -- -- 56,958 --
Loss on debt
redemption 1,848 -- -- 1,848 --
Loss on mark-to-
market of interest
rate swaps -- -- -- -- 6,071
Prepayment of
borrowings 3,190 -- -- 3,190 --
Post-merger
repositioning
charge -- -- 27,609 -- 27,609
Income tax effect on
adjustments (16,955) -- (8,849) (16,955) (11,283)
-------- -------- -------- --------- ---------
Operating earnings $71,820 $64,819 $69,372 $136,639 $139,384
======== ======== ======== ========= =========
Diluted GAAP Earnings
per Share $0.12 $0.22 $0.18 $0.33 $0.42
Adjustments to diluted
GAAP earnings per
share:
Net securities gains (0.02) -- -- (0.02) --
Loss on other-than-
temporary
impairment of
securities 0.12 -- -- 0.13 --
Loss on debt
redemption -- -- -- -- --
Loss on mark-to-
market of interest
rate swaps -- -- -- -- 0.01
Prepayment of
borrowings 0.01 -- -- 0.01 --
Post-merger
repositioning
charge -- -- 0.06 -- 0.07
-------- -------- -------- --------- ---------
Diluted operating
earnings per share $0.23 $0.22 $0.24 $0.45 $0.50
======== ======== ======== ========= =========
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATION OF GAAP AND CASH EARNINGS AND ADJUSTED CASH EARNINGS
(unaudited)
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 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 and six months ended June 30, 2007, 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 calculated its adjusted cash earnings
for the second quarter of 2007 by (1) adding back to non-interest
income the $1.8 million pre-tax loss incurred in connection with the
redemption of trust preferred securities; (2) subtracting from non-
interest income the $9.2 million pre-tax net gain on the sale of
securities; and (3) subtracting from non-interest expense the $3.2
million pre-tax charge for the prepayment of wholesale borrowings.
The Company calculated its adjusted cash earnings for the three and
six months ended June 30, 2006 by subtracting the $27.6 million pre-
tax post-merger repositioning charge from non-interest expense. In
addition, the $6.1 million pre-tax loss on the mark-to-market of
interest rate swaps was added back to non-interest income in
calculating the Company's adjusted cash earnings for the first six
months of 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
calculated in accordance with GAAP. Moreover, the manner in which the
Company calculates 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 and cash earnings and
adjusted cash earnings for the three months ended June 30, 2007,
March 31, 2007, and June 30, 2006 and for the six months ended June
30, 2007 and 2006 follows:
For the For the
Three Months Ended Six Months Ended
-------------------------- -------------------
March
(in thousands, except June 30, 31, June 30, June 30, June 30,
per share data) 2007 2007 2006 2007 2006
-------- -------- -------- --------- ---------
GAAP Earnings $35,974 $64,819 $50,612 $100,793 $116,987
Additional contributions
to tangible
stockholders' equity:
Amortization and
appreciation of
shares held in stock-
related benefit plans 2,640 1,598 1,568 4,238 3,183
Associated tax
benefits (604) (1,376) 178 (1,980) 197
Dividends on
unallocated ESOP
shares 365 365 545 730 1,091
Amortization of core
deposit intangibles 5,823 5,002 4,467 10,825 7,773
Loss on other-than-
temporary impairment
of securities 38,668 -- -- 38,668 --
-------- -------- -------- --------- ---------
Total additional
contributions to
tangible stockholders'
equity 46,892 5,589 6,758 52,481 12,244
-------- -------- -------- --------- ---------
Cash earnings $82,866 $70,408 $57,370 $153,274 $129,231
======== ======== ======== ========= =========
Diluted GAAP Earnings
per Share $0.12 $0.22 $0.18 $0.33 $0.42
Additional contributions
to diluted cash
earnings per share:
Amortization and
appreciation of
shares held in stock-
related benefit plans 0.01 0.01 -- 0.02 0.01
Associated tax
benefits -- (0.01) -- (0.01) --
Dividends on
unallocated ESOP
shares -- -- -- -- --
Amortization of core
deposit intangibles 0.02 0.02 0.02 0.03 0.03
Loss on other-than-
temporary impairment
of securities 0.12 -- -- 0.13 --
-------- -------- -------- --------- ---------
Total additional
contributions to
diluted cash earnings
per share 0.15 0.02 0.02 0.17 0.04
-------- -------- -------- --------- ---------
Diluted cash earnings
per share $0.27 $0.24 $0.20 $0.50 $0.46
======== ======== ======== ========= =========
Cash Earnings $82,866 $70,408 $57,370 $153,274 $129,231
Adjustments to cash
earnings:
Net securities gains (9,195) -- -- (9,195) --
Loss on debt
redemption 1,848 -- -- 1,848 --
Loss on mark-to-market
of interest rate
swaps -- -- -- -- 6,071
Prepayment of
borrowings 3,190 -- -- 3,190 --
Post-merger
repositioning charge -- -- 27,609 -- 27,609
Income tax effect on
adjustments 1,335 -- (8,849) 1,335 (11,283)
-------- -------- -------- --------- ---------
Adjusted cash earnings $80,044 $70,408 $76,130 $150,452 $151,628
======== ======== ======== ========= =========
Diluted Cash Earnings
per Share $0.27 $0.24 $0.20 $0.50 $0.46
Net securities gains (0.02) -- -- (0.01) --
Loss on debt
redemption -- -- -- -- --
Loss on mark-to-market
of interest rate
swaps -- -- -- -- 0.01
Prepayment of
borrowings 0.01 -- -- 0.01 --
Post-merger
repositioning charge -- -- 0.06 -- 0.07
-------- -------- -------- --------- ---------
Adjusted diluted cash
earnings per share $0.26 $0.24 $0.26 $0.50 $0.54
======== ======== ======== ========= =========
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity on page 14 of this release.
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATION OF STOCKHOLDERS' EQUITY AND TANGIBLE STOCKHOLDERS'
EQUITY,
TOTAL ASSETS AND TANGIBLE ASSETS, AND THE RELATED MEASURES
(unaudited)
Although tangible stockholders' equity, adjusted tangible
stockholders' equity, tangible assets, and adjusted tangible assets
are not calculated in accordance with GAAP, management uses these
non-GAAP measures in its analysis of the Company's performance. The
Company believes that these non-GAAP measures are an important
indication of its ability to grow both organically and through
business combinations, and, with respect to tangible stockholders'
equity and adjusted tangible stockholders' equity, 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 sum of its goodwill and core deposit
intangibles ("CDI") and calculates tangible assets by subtracting the
same sum from its total assets. To calculate its ratio of tangible
stockholders' equity to tangible assets, the Company divides its
tangible stockholders' equity by its tangible assets, both of which
include after-tax net unrealized losses on securities. In the second
quarter of 2007, the Company also calculated its ratio of tangible
stockholders' equity to tangible assets excluding the $38.7 million
after-tax loss on the other-than-temporary impairment of securities
(the "impairment loss"), as well as the after-tax net unrealized
losses on securities, as such losses are impacted by changes in
market interest rates and therefore tend to change from day to day.
This ratio is referred to as the ratio of "adjusted tangible
stockholders' equity to adjusted tangible assets." The Company
calculates tangible book value 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.
Neither tangible stockholders' equity, adjusted tangible stockholders'
equity, tangible assets, adjusted tangible assets, nor the related
measures should be considered in isolation or as a substitute for
stockholders' equity, total assets, or any other measure calculated
in accordance with GAAP. Moreover, the manner in which the Company
calculates its tangible stockholders' equity, tangible assets, and
the related measures may differ from that of other companies
reporting measures with similar names.
Reconciliations of the Company's stockholders' equity, tangible
stockholders' equity, and adjusted tangible stockholders' equity,
total assets, tangible assets, and adjusted tangible assets, and the
related measures at or for the three months ended June 30, 2007,
March 31, 2007, and December 31, 2006 and the six months ended June
30, 2007 and 2006 follow:
At or for the
Three Months Ended
---------------------------------------
June 30, March 31, Dec. 31,
2007 2007 2006
------------- ------------ ------------
(in thousands)
Total Stockholders' Equity $ 3,961,471 $ 3,711,606 $ 3,689,837
Less: Goodwill (2,330,704) (2,144,642) (2,148,108)
Core deposit intangibles (116,157) (101,379) (106,381)
------------ ------------ ------------
Tangible stockholders' equity $ 1,514,610 $ 1,465,585 $ 1,435,348
Total Assets $29,623,750 $27,977,914 $28,482,370
Less: Goodwill (2,330,704) (2,144,642) (2,148,108)
Core deposit intangibles (116,157) (101,379) (106,381)
------------ ------------ ------------
Tangible assets $27,176,889 $25,731,893 $26,227,881
Tangible Stockholders' Equity $ 1,514,610 $ 1,465,585 $ 1,435,348
Add back: Impairment loss 38,668 -- --
After-tax net
unrealized losses on
securities 25,872 43,854 52,125
------------ ------------ ------------
Adjusted tangible stockholders'
equity $ 1,579,150 $ 1,509,439 $ 1,487,473
Tangible Assets $27,176,889 $25,731,893 $26,227,881
Add back: Impairment loss 38,668 -- --
After-tax net
unrealized losses on
securities 25,872 43,854 52,125
------------ ------------ ------------
Adjusted tangible assets $27,241,429 $25,775,747 $26,280,006
Average Stockholders' Equity $ 3,916,867 $ 3,605,550 $ 3,652,575
Less: Average goodwill (2,329,512) (2,146,913) (2,151,829)
Average core deposit
intangibles (119,666) (104,651) (109,693)
------------ ------------ ------------
Average tangible stockholders'
equity $ 1,467,689 $ 1,353,986 $ 1,391,053
Average Assets $30,109,869 $28,234,808 $28,524,090
Less: Average goodwill (2,329,512) (2,146,913) (2,151,829)
Average core deposit
intangibles (119,666) (104,651) (109,693)
------------ ------------ ------------
Average tangible assets $27,660,691 $25,983,244 $26,262,568
Net Income $ 35,974 $ 64,819 $ 53,121
Add: Amortization of core
deposit intangibles, net of
tax 3,530 3,010 3,038
------------ ------------ ------------
Adjusted net income $ 39,504 $ 67,829 $ 56,159
At or for the
Six Months Ended
-------------------------
June 30, June 30,
2007 2006
------------ ------------
(in thousands)
Total Stockholders' Equity $ 3,961,471 $ 3,697,170
Less: Goodwill (2,330,704) (2,149,824)
Core deposit intangibles (116,157) (116,478)
------------ ------------
Tangible stockholders' equity $ 1,514,610 $ 1,430,868
Total Assets $29,623,750 $28,728,824
Less: Goodwill (2,330,704) (2,149,824)
Core deposit intangibles (116,157) (116,478)
------------ ------------
Tangible assets $27,176,889 $26,462,522
Tangible Stockholders' Equity $ 1,514,610 $ 1,430,868
Add back: Impairment loss 38,668 --
After-tax net
unrealized losses on
securities 25,872 78,619
------------ ------------
Adjusted tangible stockholders'
equity $ 1,579,150 $ 1,509,487
Tangible Assets $27,176,889 $26,462,522
Add back: Impairment loss 38,668 --
After-tax net
unrealized losses on
securities 25,872 78,619
------------ ------------
Adjusted tangible assets $27,241,429 $26,541,141
Average Stockholders' Equity $ 3,762,299 $ 3,440,154
Less: Average goodwill (2,238,717) (2,040,647)
Average core deposit
intangibles (112,200) (96,835)
------------ ------------
Average tangible stockholders'
equity $ 1,411,382 $ 1,302,672
Average Assets $29,177,750 $27,669,413
Less: Average goodwill (2,238,717) (2,040,647)
Average core deposit
intangibles (112,200) (96,835)
------------ ------------
Average tangible assets $26,826,833 $25,531,931
Net Income $ 100,793 $ 116,987
Add: Amortization of core
deposit intangibles, net of tax 6,562 4,650
------------ ------------
Adjusted net income $ 107,355 $ 121,637
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended
-------------------------------------------------------
June 30, 2007 March 31, 2007
--------------------------- ---------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
----------- -------- ------ ----------- -------- ------
Assets:
Interest-
earning
assets:
Mortgage and
other
loans, net $19,465,563 $313,469 6.44% $19,492,078 $298,467 6.14%
Securities 5,724,322 73,319 5.12 5,308,608 70,688 5.33
Money market
investments 1,126,275 14,221 5.06 20,341 246 4.90
----------- -------- ------ ----------- -------- ------
Total
interest-
earning
assets 26,316,160 401,009 6.10 24,821,027 369,401 5.96
Non-interest-
earning
assets 3,793,709 3,413,781
----------- -----------
Total assets $30,109,869 $28,234,808
=========== ===========
Liabilities and
Stockholders'
Equity:
Interest-
bearing
deposits:
NOW and
money
market
accounts $ 3,129,495 $ 25,246 3.24% $ 2,942,119 $ 23,902 3.29%
Savings
accounts 2,618,547 7,310 1.12 2,403,504 5,701 0.96
Certificates
of deposit 6,997,582 80,334 4.60 6,127,205 70,228 4.65
Mortgagors'
escrow 166,731 34 0.08 120,250 33 0.11
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
deposits 12,912,355 112,924 3.51 11,593,078 99,864 3.49
Borrowed
funds 11,757,489 127,003 4.33 11,670,369 123,349 4.28
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
liabilities 24,669,844 239,927 3.90 23,263,447 223,213 3.89
Non-interest-
bearing
deposits 1,201,180 1,096,095
Other
liabilities 321,978 269,716
----------- -----------
Total
liabilities 26,193,002 24,629,258
Stockholders'
equity 3,916,867 3,605,550
----------- -----------
Total
liabilities
and
stockholders'
equity $30,109,869 $28,234,808
=========== ===========
Net interest
income/
interest rate
spread $161,082 2.20% $146,188 2.07%
======== ====== ======== ======
Net interest-
earning
assets/net
interest
margin $ 1,646,316 2.44% $ 1,557,580 2.32%
=========== ====== =========== ======
Ratio of
interest-
earning
assets to
interest-
bearing
liabilities 1.07x 1.07x
====== ======
Core deposits $ 6,949,222 $ 32,556 1.88% $ 6,441,718 $ 29,603 1.86%
=========== ======== ====== =========== ======== ======
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended June 30,
-------------------------------------------------------
2007 2006
--------------------------- ---------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
----------- -------- ------ ----------- -------- ------
Assets:
Interest-
earning
assets:
Mortgage and
other
loans, net $19,465,563 $313,469 6.44% $18,936,269 $277,057 5.85%
Securities 5,724,322 73,319 5.12 6,104,410 74,610 4.89
Money
market
investments 1,126,275 14,221 5.06 44,104 478 4.35
----------- -------- ------ ----------- -------- ------
Total
interest-
earning
assets 26,316,160 401,009 6.10 25,084,783 352,145 5.62
Non-interest-
earning
assets 3,793,709 3,466,536
----------- -----------
Total assets $30,109,869 $28,551,319
=========== ===========
Liabilities and
Stockholders'
Equity:
Interest-
bearing
deposits:
NOW and
money
market
accounts $ 3,129,495 $ 25,246 3.24% $ 3,803,638 $ 30,834 3.25%
Savings
accounts 2,618,547 7,310 1.12 2,582,918 4,434 0.69
Certificates
of deposit 6,997,582 80,334 4.60 5,866,922 59,475 4.07
Mortgagors'
escrow 166,731 34 0.08 168,149 56 0.13
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
deposits 12,912,355 112,924 3.51 12,421,627 94,799 3.06
Borrowed
funds 11,757,489 127,003 4.33 10,993,660 113,330 4.13
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
liabilities 24,669,844 239,927 3.90 23,415,287 208,129 3.56
Non-interest-
bearing
deposits 1,201,180 1,255,955
Other
liabilities 321,978 304,203
----------- -----------
Total
liabilities 26,193,002 24,975,445
Stockholders'
equity 3,916,867 3,575,874
----------- -----------
Total
liabilities
and
stockholders'
equity $30,109,869 $28,551,319
=========== ===========
Net interest
income/
interest rate
spread $161,082 2.20% $144,016 2.06%
======== ====== ======== ======
Net interest-
earning
assets/net
interest
margin $ 1,646,316 2.44% $ 1,669,496 2.29%
=========== ====== =========== ======
Ratio of
interest-
earning
assets to
interest-
bearing
liabilities 1.07x 1.07x
====== ======
Core deposits $ 6,949,222 $ 32,556 1.88% $ 7,642,511 $ 35,268 1.85%
=========== ======== ====== =========== ======== ======
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Six Months Ended June 30,
-------------------------------------------------------
2007 2006
--------------------------- ---------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
----------- -------- ------ ----------- -------- ------
Assets:
Interest-
earning
assets:
Mortgage and
other
loans, net $19,478,748 $611,936 6.29% $18,283,831 $532,680 5.83%
Securities 5,517,613 144,007 5.22 6,038,349 146,456 4.85
Money
market
investments 576,363 14,467 5.06 30,534 644 4.25
----------- -------- ------ ----------- -------- ------
Total
interest-
earning
assets 25,572,724 770,410 6.03 24,352,714 679,780 5.59
Non-interest-
earning
assets 3,605,026 3,316,699
----------- -----------
Total assets $29,177,750 $27,669,413
=========== ===========
Liabilities and
Stockholders'
Equity:
Interest-
bearing
deposits:
NOW and
money
market
accounts $ 3,036,325 $ 49,148 3.26% $ 3,683,217 $ 57,183 3.13%
Savings
accounts 2,511,620 13,011 1.04 2,486,797 7,092 0.58
Certificates
of deposit 6,564,798 150,562 4.62 5,576,998 107,967 3.90
Mortgagors'
escrow 143,619 67 0.09 137,320 110 0.16
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
deposits 12,256,362 212,788 3.50 11,884,332 172,352 2.92
Borrowed
funds 11,714,169 250,352 4.31 11,037,539 226,514 4.14
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
liabilities 23,970,531 463,140 3.89 22,921,871 398,866 3.51
Non-interest-
bearing
deposits 1,148,928 1,045,724
Other
liabilities 295,992 261,664
----------- -----------
Total
liabilities 25,415,451 24,229,259
Stockholders'
equity 3,762,299 3,440,154
----------- -----------
Total
liabilities
and
stockholders'
equity $29,177,750 $27,669,413
=========== ===========
Net interest
income/
interest rate
spread $307,270 2.14% $280,914 2.08%
======== ====== ======== ======
Net interest-
earning
assets/net
interest
margin $ 1,602,193 2.38% $ 1,430,843 2.29%
=========== ====== =========== ======
Ratio of
interest-
earning
assets to
interest-
bearing
liabilities 1.07x 1.06x
====== ======
Core deposits $ 6,696,873 $ 62,159 1.87% $ 7,215,738 $ 64,275 1.80%
=========== ======== ====== =========== ======== ======
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
(unaudited)
For the Three Months Ended
--------------------------------------
June 30, March 31, June 30,
2007 2007 2006
------------ ------------ ------------
GAAP EARNINGS DATA:
Net income $35,974 $64,819 $50,612
Basic earnings per share 0.12 0.22 0.18
Diluted earnings per share 0.12 0.22 0.18
Return on average assets 0.48% 0.92% 0.71%
Return on average tangible
assets (1) 0.57 1.04 0.81
Return on average
stockholders' equity 3.67 7.19 5.66
Return on average tangible
stockholders' equity (1) 10.77 20.04 15.59
Efficiency ratio (2) 55.12 40.73 36.45
Operating expenses to average
assets 1.00 0.98 0.86
Interest rate spread 2.20 2.07 2.06
Net interest margin 2.44 2.32 2.29
Shares used for basic EPS
computation 310,847,788 293,323,631 287,473,052
Shares used for diluted EPS
computation 312,443,563 294,704,316 288,948,750
OPERATING EARNINGS DATA: (3)
Operating earnings $71,820 $64,819 $69,372
Basic earnings per share 0.23 0.22 0.24
Diluted earnings per share 0.23 0.22 0.24
Return on average assets 0.95% 0.92% 0.97%
Return on average tangible
assets (1) 1.09 1.04 1.09
Return on average
stockholders' equity 7.33 7.19 7.76
Return on average tangible
stockholders' equity (1) 20.54 20.04 21.08
Efficiency ratio (2) 40.48 40.73 36.45
CASH EARNINGS DATA: (4)
Cash earnings $82,866 $70,408 $57,370
Basic cash earnings per share 0.27 0.24 0.20
Diluted cash earnings per
share 0.27 0.24 0.20
Cash return on average assets 1.10% 1.00% 0.80%
Cash return on average
tangible assets (1) 1.20 1.08 0.87
Cash return on average
stockholders' equity 8.46 7.81 6.42
Cash return on average
tangible stockholders'
equity (1) 22.58 20.80 16.79
Cash efficiency ratio (2) 37.58 39.79 35.51
ADJUSTED CASH EARNINGS DATA:
(4)
Adjusted cash earnings $80,044 $70,408 $76,130
Basic cash earnings per share 0.26 0.24 0.26
Diluted cash earnings per
share 0.26 0.24 0.26
Adjusted cash return on
average assets 1.06% 1.00% 1.07%
Adjusted cash return on
average tangible assets (1) 1.16 1.08 1.16
Adjusted cash return on
average stockholders' equity 8.17 7.81 8.52
Adjusted cash return on
average tangible
stockholders' equity (1) 21.81 20.80 22.28
Adjusted cash efficiency
ratio (2) 39.06 39.79 35.51
For the Six Months Ended
-------------------------
June 30, June 30,
2007 2006
------------ ------------
GAAP EARNINGS DATA:
Net income $100,793 $116,987
Basic earnings per share 0.33 0.42
Diluted earnings per share 0.33 0.42
Return on average assets 0.69% 0.85%
Return on average tangible
assets (1) 0.80 0.95
Return on average
stockholders' equity 5.36 6.80
Return on average tangible
stockholders' equity (1) 15.21 18.68
Efficiency ratio (2) 47.15 35.96
Operating expenses to average
assets 0.99 0.84
Interest rate spread 2.14 2.08
Net interest margin 2.38 2.29
Shares used for basic EPS
computation 302,134,119 277,267,649
Shares used for diluted EPS
computation 303,593,922 278,827,109
OPERATING EARNINGS DATA: (3)
Operating earnings $136,639 $139,384
Basic earnings per share 0.45 0.50
Diluted earnings per share 0.45 0.50
Return on average assets 0.94% 1.01%
Return on average tangible
assets (1) 1.07 1.13
Return on average
stockholders' equity 7.26 8.10
Return on average tangible
stockholders' equity (1) 20.29 22.11
Efficiency ratio (2) 40.60 35.30
CASH EARNINGS DATA: (4)
Cash earnings $153,274 $129,231
Basic cash earnings per share 0.51 0.47
Diluted cash earnings per
share 0.50 0.46
Cash return on average assets 1.05% 0.93%
Cash return on average
tangible assets (1) 1.14 1.01
Cash return on average
stockholders' equity 8.15 7.51
Cash return on average
tangible stockholders'
equity (1) 21.72 19.84
Cash efficiency ratio (2) 38.61 34.98
ADJUSTED CASH EARNINGS DATA:
(4)
Adjusted cash earnings $150,452 $151,628
Basic cash earnings per share 0.50 0.55
Diluted cash earnings per
share 0.50 0.54
Adjusted cash return on
average assets 1.03% 1.10%
Adjusted cash return on
average tangible assets (1) 1.12 1.19
Adjusted cash return on
average stockholders' equity 8.00 8.82
Adjusted cash return on
average tangible
stockholders' equity (1) 21.32 23.28
Adjusted cash efficiency
ratio (2) 39.41 34.34
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity on page 14 of this release.
(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 on pages 12
and 13 of this release.
(3) Please see the reconciliation of GAAP and operating earnings on
page 12 of this release.
(4) Please see the reconciliation of GAAP and cash earnings and
adjusted cash earnings on page 13 of this release.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
At
At June 30, At March 31, December 31,
2007 2007 2006
------------ ------------ ------------
BALANCE SHEET DATA:
Book value per share $12.67 $12.58 $12.56
Tangible book value per share
(1) 4.85 4.97 4.88
Stockholders' equity to total
assets 13.37% 13.27% 12.95%
Tangible stockholders' equity to
tangible assets (1) 5.57 5.70 5.47
Tangible stockholders' equity to
tangible assets excluding the
after-tax loss on the other-
than-temporary impairment of
securities and after-tax net
unrealized losses on
securities (1) 5.80 5.86 5.66
Shares used for book value and
tangible book value per share
computation (1) 312,572,289 295,015,198 293,890,372
Total shares issued and
outstanding 313,852,246 296,385,458 295,350,936
ASSET QUALITY RATIOS:
Non-performing loans to total
loans 0.07% 0.13% 0.11%
Non-performing assets to total
assets 0.05 0.09 0.08
Allowance for loan losses to
non-performing loans 641.64 346.62 402.72
Allowance for loan losses to
total loans 0.47 0.44 0.43
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity on page 14 of this release.
Footnotes to the Text
- ----------------------------------------------------------------------
(1) Please see page 13 for a reconciliation of our GAAP and cash
earnings.
(2) Please see page 12 for a reconciliation of our GAAP and operating
earnings.
(3) The Company calculates its GAAP and operating 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 on page 12 of this
release.
(4) Please see page 14 for a reconciliation of our stockholders'
equity and tangible stockholders' equity and the related
measures.
CONTACT: New York Community Bancorp, Inc.
Ilene A. Angarola, 516-683-4420
First Senior Vice President &
Director, Investor Relations