Exhibit 99.1
New York Community Bancorp, Inc.
Reports 3rd Quarter 2007 Cash Earnings Per Diluted Share of $0.38,(1)
Diluted GAAP EPS of $0.35, and Diluted Operating EPS of $0.23(2)
Board of Directors Declares $0.25 Per Share Quarterly Cash
Dividend
Performance Highlights
-- Stable Net Interest Margin: Our net interest margin measured
2.41% and 2.44% in 3Q and 2Q 2007; year-over-year, our third
quarter 2007 margin was up 17 basis points.
-- Solid Asset Quality: At quarter-end, non-performing assets
represented 0.07% of total assets and non-performing loans
represented 0.11% of total loans.
-- Consistent Operating Efficiency: Our operating efficiency
ratio equaled 40.06% in 3Q 2007, as compared to 40.48% and
40.68% in the trailing and year-earlier three months.(3)
-- Sale of Atlantic Bank Headquarters: The sale of our Atlantic
Bank headquarters was completed on July 16th, generating a
third quarter 2007 pre-tax gain of $64.9 million, equivalent
to $44.8 million, or $0.14 per diluted share, after-tax.
-- Acquisition of Doral Branch Network Completed: We completed
the acquisition of 11 branches in New York City from Doral
Bank, FSB ("Doral") on July 26, 2007.
-- Synergy Acquisition Completed: The acquisition of Synergy
Financial Group, Inc. ("Synergy") on October 1st added 21
branches to our franchise in central New Jersey, and provided
assets of approximately $900 million and deposits of
approximately $500 million.(4)
-- Tangible Capital Strength: Tangible stockholders' equity
equaled 5.74% of tangible assets excluding after-tax
mark-to-market adjustments on securities; including the
adjustments, the ratio was 5.69% at quarter-end.(5)
Business Editors
WESTBURY, N.Y.--(BUSINESS WIRE)--Oct. 19, 2007--New York Community
Bancorp, Inc. (NYSE: NYB) (the "Company") today reported GAAP earnings
of $110.9 million, or $0.35 per diluted share, for the three months
ended September 30, 2007, and cash earnings of $119.6 million, or
$0.38 per diluted share.(1) The Company's cash earnings thus
contributed $8.7 million, or 7.9%, more to tangible capital at
September 30, 2007 than its GAAP earnings contributed.
The Company's third quarter 2007 GAAP and cash earnings included
an after-tax gain of $44.8 million, or $0.14 per diluted share, on the
sale of its Atlantic Bank headquarters building in July. The after-tax
gain more than offset an after-tax loss of $5.0 million, or $0.02 per
diluted share, on the sale of securities during the quarter, in
connection with the previously announced repositioning of the
post-merger balance sheet. Excluding these amounts, the Company
reported third quarter 2007 operating earnings of $71.2 million, or
$0.23 per diluted share.(2)
For the nine months ended September 30, 2007, the Company reported
GAAP earnings of $211.7 million, or $0.69 per diluted share, and cash
earnings of $272.9 million, or $0.89 per diluted share.(1)
Accordingly, the Company's nine-month cash earnings contributed $61.2
million, or 28.9%, more to tangible capital at September 30, 2007 than
its GAAP earnings contributed. In addition, the Company reported
operating earnings of $207.8 million, or $0.68 per diluted share, for
the nine months ended September 30, 2007.(2)
Commenting on the Company's third quarter performance, Chairman,
President, and Chief Executive Officer Joseph R. Ficalora stated, "We
are pleased with the results we produced in the third quarter of 2007,
and with the opportunities the quarter presented to demonstrate the
merits of our business plan. In particular, I would like to point out
the contribution to tangible capital of our third quarter and
nine-month cash earnings, which were $0.38 and $0.89 per diluted
share, respectively.
"Once again, our margin was a significant factor in our
performance, with third quarter prepayment penalty income of $17.1
million recorded on the heels of our all-time high of $22.3 million in
the second quarter of this year. In addition, the $17.1 million was
more than three times the level recorded in the year-earlier third
quarter, contributing to a 156% increase in prepayment penalty income
year-to-date. As a result, our margin equaled 2.41% in the third
quarter of 2007, representing a modest three-basis point reduction
from the second quarter measure, but a year-over-year increase of 17
basis points.
"Another third quarter highlight was the continuing quality of our
assets," Mr. Ficalora continued. "In a market beset with credit woes,
our record of asset quality continues to be solid. Non-performing
assets represented 0.07% of total assets at the end of September, and
the $151,000 of loans we charged off consisted of consumer and
unsecured credits that were acquired in our early merger transactions.
While we do not expect to remain immune to the negative turn in the
credit cycle, we believe that our multi-family lending niche and the
strength of our credit and underwriting standards will enable us to
maintain our record of asset quality in the quarters ahead.
"Although the quality of our assets has always been important to
us, its significance has become even greater in today's marketplace.
Not only does it distinguish us from many other institutions, it also
factors significantly in our ability to maintain our capital strength.
At September 30, 2007, our tangible stockholders' equity equaled 5.74%
of tangible assets, excluding mark-to-market securities adjustments;
including these adjustments, the ratio was 5.69%.
"Our growth-through-acquisition strategy has been very much
apparent in 2007," Mr. Ficalora noted, "and we've just completed our
seventh transaction in as many years. With our acquisition of Synergy
Financial Group on October 1st and PennFed on April 2nd, we added more
than $2 billion in deposits and 45 branches to our Community Bank
franchise in New Jersey. We also acquired deposits in connection with
our purchase of Doral's branch network in New York City, which added
11 branches to our Commercial Bank franchise on July 26th. The
deposits we've acquired over the course of this year have enabled us
to pay down a portion of our higher-cost funding, and to price our
depository products somewhat conservatively.
"Another recent benefit of an earlier merger transaction was the
sale of our Atlantic Bank headquarters building at Herald Square. We
acquired Atlantic Bank in April 2006 for $400 million, and generated
gross proceeds of $105 million through the sale of its headquarters in
July. The sale generated an after-tax gain of $44.8 million, which
added $0.14 to our third quarter diluted GAAP and cash earnings per
share."
$0.25 Per Share Dividend to be Paid on November 15, 2007
"In view of the strength of our capital and our earnings, the
Board of Directors last night declared a $0.25 per share dividend,
payable on November 15, 2007 to shareholders of record on November
6th," Mr. Ficalora said. "The dividend continues to be an important
component of our shareholders' return on investment, and our
commitment to maintaining it at the current level is supported by our
confidence in our earnings capacity."
Balance Sheet Summary
The Company recorded total assets of $30.0 billion at September
30, 2007, reflecting a linked-quarter increase of $416.2 million and a
$1.6 billion increase from the balance recorded at December 31, 2006.
The linked-quarter increase was partially due to the Doral
transaction, which contributed assets of $494.4 million at the time of
its completion. In addition to the assets acquired from Doral in the
third quarter, the nine-month increase partially reflects the
transaction with PennFed Financial Services, Inc. ("PennFed") on April
2nd.
Loans
The loan portfolio totaled $19.0 billion at September 30, 2007,
signifying an $83.0 million increase from the balance at June 30, 2007
and a $651.8 million reduction from the balance recorded at December
31, 2006. While loan production rose in the third quarter of the year,
and certain loans were acquired in the Doral transaction, the growth
of the portfolio was hindered by an increase in repayment activity.
Repayments totaled $6.0 billion in the nine months ended September 30,
2007, including $1.3 billion in the third quarter of the year. During
the quarter, prepayment penalty income totaled $17.1 million, boosting
the year-to-date total to $53.1 million. In contrast, the Company
recorded prepayment penalty income of $5.3 million in the year-earlier
third quarter and $20.8 million in the year-earlier nine-month period.
In the third quarter of 2007, the Company recorded loan
originations of $1.2 billion, exceeding the trailing quarter's
production by $174.6 million and boosting the year-to-date total to
$3.4 billion. Multi-family loans accounted for $1.7 billion, or 50.6%,
of year-to-date originations, and for $680.8 million, or 57.3%, of
loans produced in the third quarter of the year. Commercial real
estate and construction loans represented $305.6 million and $461.0
million, respectively, of year-to-date originations, including $152.8
million and $83.0 million, respectively, in the last three months. The
Company also originated $820.7 million of commercial and industrial
("C&I") loans in the first nine months of 2007, including third
quarter originations of $253.1 million.
Multi-family loans represented $13.6 billion, or 71.8%, of total
loans at September 30, 2007, up $97.0 million from the June 30, 2007
balance and down $893.0 million from the balance recorded at year-end
2006. At September 30, 2007, the average multi-family loan had a
principal balance of $3.5 million, and the portfolio had an average
loan-to-value ratio of 63.4%. The expected weighted average life of
the portfolio was 3.5 years at quarter-end.
Commercial real estate loans represented $3.1 billion, or 16.3%,
of total loans at September 30, 2007, down $117.2 million from the
balance at June 30, 2007 and $17.7 million from the balance at
year-end 2006. The portfolio had an average loan-to-value ratio of
56.8% and an expected weighted average life of 3.3 years at September
30, 2007. The average commercial real estate loan had a principal
balance of $2.0 million at that date.
Construction loans represented $1.1 billion, or 6.0%, of total
loans at September 30, 2007, down $4.6 million from the balance
recorded at June 30, 2007 and up $37.8 million from the balance
recorded at year-end 2006. At September 30, 2007, the average
construction loan had a remaining life of less than 18 months on
advanced funds.
Other loans totaled $817.0 million at September 30, 2007, and were
up $81.4 million and $141.5 million from the balances recorded at June
30, 2007 and December 31, 2006, respectively. C&I loans represented
$722.7 million of the third quarter-end total, up from $629.4 million
and $641.8 million, respectively, at the earlier dates.
At the present time, the Company's pipeline amounts to
approximately $937 million, including approximately $617 million of
multi-family loans.
Asset Quality
The Company recorded non-performing assets of $22.3 million at
September 30, 2007, representing 0.07% of total assets at that date.
At June 30, 2007 and December 31, 2006, non-performing assets totaled
$14.7 million and $22.5 million, representing 0.05% and 0.08% of total
assets, respectively.
Non-performing loans represented $20.8 million, or 0.11%, of total
loans at the close of the current third quarter, as compared to $13.7
million, or 0.07%, at June 30, 2007 and $21.2 million, or 0.11%, at
December 31, 2006. Other real estate owned accounted for $1.5 million
of non-performing assets at September 30, 2007, as compared to
$994,000 and $1.3 million, respectively, at the earlier dates.
The allowance for loan losses totaled $88.0 million at September
30, 2007, as compared to $88.2 million and $85.4 million,
respectively, at June 30, 2007 and December 31, 2006. While the
allowance was reduced on a linked-quarter basis by charge-offs of
$151,000, the increase from the year-end 2006 balance reflects the
addition of a $2.9 million loan loss allowance in connection with the
PennFed transaction, which more than offset the $286,000 of
charge-offs recorded over the nine-month period.
Securities
The Company sold $1.1 billion of lower-yielding securities early
in the third quarter and utilized the proceeds to invest in
higher-yielding agency-backed obligations. In addition, the Company
acquired certain agency-backed obligations in connection with the
Doral transaction. Reflecting these actions, securities totaled $5.9
billion and represented 19.6% of total assets at the close of the
current third quarter, as compared to $5.7 billion, representing 19.2%
of total assets, at June 30, 2007, and $4.9 billion, representing
17.3% of total assets, at December 31, 2006.
Available-for-sale securities represented $1.5 billion, or 25.0%,
of total securities at September 30, 2007, a $1.3 billion reduction
from the June 30, 2007 balance and a $464.1 million reduction from the
year-end 2006 amount. In contrast, held-to-maturity securities
represented $4.4 billion, or 75.0%, of total securities at September
30, 2007, signifying a $1.5 billion increase from the trailing
quarter-end level and a $1.4 billion increase from the balance at
year-end 2006.
Funding Sources
Deposits rose $948.5 million to $13.6 billion in the first nine
months of 2007, largely reflecting deposits acquired in the
transactions with PennFed and, to a lesser extent, Doral. In the three
months ended September 30, 2007, deposits declined by $201.8 million,
primarily due to a $262.1 million decrease in certificates of deposit
("CDs") to $6.6 billion, as the Company continued to focus on reducing
such higher-cost sources of funds.
Borrowed funds totaled $12.1 billion at September 30, 2007, up
$507.6 million from the trailing quarter-end balance and $198.5
million from the balance recorded at December 31, 2006. Wholesale
borrowings accounted for $11.2 billion of the total at September 30,
2007, as compared to $10.7 billion and $11.1 billion, respectively, at
the earlier dates. The three-month increase partially reflects the
borrowings acquired in the transaction with Doral.
Stockholders' Equity
The Company recorded total stockholders' equity of $4.0 billion at
September 30, 2007, a $70.0 million increase from the balance at June
30, 2007 and a $341.6 million increase from the balance recorded at
December 31, 2006. The September 30, 2007 amount was equivalent to
13.42% of total assets and a book value of $12.85 per share, based on
313,633,512 shares.
Tangible stockholders' equity totaled $1.6 billion at the end of
September, up $54.7 million from the second quarter-end balance and
$133.9 million from the balance recorded at December 31, 2006.
Excluding after-tax mark-to-market adjustments on securities of $13.3
million, adjusted tangible stockholders' equity represented 5.74% of
adjusted tangible assets at the current third-quarter end. The
comparable ratios were 5.80% and 5.66%, respectively, at June 30, 2007
and year-end 2006. Including the adjustments, tangible stockholders'
equity represented 5.69% of tangible assets at September 30, 2007, as
compared to 5.57% and 5.47%, respectively, at the earlier dates.(5)
The Company's subsidiary banks also reported solid levels of
capital at September 30, 2007, and continued to exceed the
requirements for classification as "well capitalized" institutions
under the FDIC Improvement Act. At quarter-end, New York Community
Bank had a leverage capital ratio of 8.05% and New York Commercial
Bank had a leverage capital ratio of 11.35%.
Third Quarter 2007 Earnings Summary
Net Interest Income
The Company recorded net interest income of $154.9 million in the
three months ended September 30, 2007, as compared to $161.1 million
and $139.8 million, respectively, in the trailing and year-earlier
three months. The linked-quarter reduction was largely due to the
decline in prepayment penalty income, which totaled $17.1 million in
the three months ended September 30, 2007, as compared to $22.3
million in the second quarter of the year. Year-over-year, net
interest income rose $15.0 million, reflecting several factors,
including an $11.8 million rise in prepayment penalty income and the
higher yields produced by loans and securities.
While interest income fell $3.8 million to $397.2 million in the
three months ended September 30, 2007, reflecting the drop in
prepayment penalty income, interest expense rose $2.4 million to
$242.4 million during the same time. The decline in prepayment penalty
income contributed to a seven-basis point drop in the average yield on
loans during the quarter, limiting the rise in the average yield on
interest-earning assets to one basis point. While the average yield
rose to 6.11% on a linked-quarter basis, the average balance of
interest-earning assets declined by $359.4 million to $26.0 billion
over the three-month period.
During the quarter, the interest income produced by loans declined
$10.8 million, as the average balance declined $485.8 million to $19.0
billion and the average yield dropped to 6.37%. While the lower yield
reflects the aforementioned reduction in prepayment penalty income,
the lower average balance was attributable to two primary factors: the
Company's conservative approach to multi-family lending when many of
its competitors were originating loans on irrational terms, early in
the quarter, as well as the seasonality of its multi-family niche.
The linked-quarter decline in the interest income from loans was
partly offset by an increase in the interest income produced by
securities in the current third quarter. During the quarter,
securities generated interest income of $81.8 million, up $8.5 million
from the trailing-quarter amount. The increase stemmed from a $263.2
million rise in the average balance of such assets to $6.0 billion and
a 35-basis point rise in the average yield to 5.47%. The latter
increases are indicative of the deployment of cash flows from the sale
of lower-yielding securities into higher-yielding agency-backed
obligations.
While the average balance of interest-bearing liabilities fell
$306.8 million in the three months ended September 30, 2007, the
impact of the reduction was offset by a five-basis point increase in
the average cost of funds to 3.95%. Borrowed funds generated interest
expense of $132.5 million, as the average balance of such funds rose
$134.2 million to $11.9 billion and the cost of such funds rose nine
basis points to 4.42%. The related increase in interest expense was
partly offset by a $3.0 million reduction in the interest expense
produced by interest-bearing deposits to $109.9 million, the result of
a $441.0 million decline in the average balance to $12.5 billion and a
one-basis point drop in the average cost to 3.50%. In addition, the
average balance of non-interest-bearing deposits rose $18.6 million to
$1.2 billion over the course of the quarter, partially reflecting
deposits acquired in the transaction with Doral.
CDs represented 54.3% of average interest-bearing deposits and
generated interest expense of $78.6 million in the current third
quarter, signifying a $1.7 million decline from the trailing-quarter
amount. Reflecting a reduction in brokered CDs, as well as the
strategic run-off of higher-cost deposits, the average balance of CDs
fell $224.8 million over the course of the quarter, and the average
cost of such funds was maintained at 4.60%.
Reflecting the linked-quarter reduction in prepayment penalty
income, the Company's net interest margin equaled 2.41% in the current
third quarter, as compared to 2.44% in the trailing three-month
period. The margin was up 17 basis points on a year-over-year basis,
reflecting the same factors that contributed to the year-over-year
rise in net interest income, described above.
Non-interest Income (Loss)
The Company recorded non-interest income of $84.4 million in the
third quarter of 2007, as compared to a non-interest loss of $23.9
million in the second quarter of the year. The third quarter 2007
amount was increased by a $64.9 million gain on the sale of the
Atlantic Bank headquarters building, and tempered by a $7.3 million
net loss on the sale of securities in connection with the post-merger
repositioning of the balance sheet.
The second quarter 2007 loss was attributable to an other-than
temporary impairment loss on securities of $57.0 million and a $1.8
million loss on debt redemption, which were only partly offset by a
$9.2 million net gain on the sale of securities. The impairment loss
was equivalent to $38.7 million, or $0.12 per diluted share, on an
after-tax basis, and the loss on debt redemption was equivalent to
$1.3 million after-tax. The net gain on the sale of securities was
equal to $6.2 million, or $0.02 per diluted share, after tax.
Absent the aforementioned pre-tax gains and losses, the Company
recorded non-interest income of $26.9 million in the third quarter of
2007, as compared to $25.7 million in the trailing three-month period.
In the third quarter of 2006, the Company recorded non-interest income
of $23.5 million. The linked-quarter rise in non-interest income
reflects an increase in both Bank-owned Life Insurance ("BOLI") income
and other income, which rose $716,000 and $595,000 to $7.0 million and
$9.2 million, respectively. These increases were only partly offset by
a $123,000 decline in fee income to $10.6 million from the level
recorded in the trailing three-month period. The year-over-year rise
in non-interest income also was fueled by increased BOLI income and
other income; in addition, fee income was up year-over-year.
Non-interest Expense
Non-interest expense totaled $78.7 million in the three months
ended September 30, 2007, as compared to $84.6 million and $71.5
million, respectively, in the three months ended June 30, 2007 and
September 30, 2006. Included in the second quarter 2007 amount was a
charge of $3.2 million that was recorded in connection with the
prepayment of wholesale borrowings, equivalent to $2.2 million, or
$0.01 per diluted share, after-tax.
Operating expenses accounted for $72.8 million of the September
30, 2007 total, a $2.8 million reduction from the second quarter level
and a $6.4 million increase from the year-earlier amount. The
year-over-year increase largely reflects the addition of PennFed's 24
branches in April, which boosted expenses in all three categories,
together with accruals for the Company's stock incentive and
management incentive compensation plans. While the acquisition of
Doral's 11 branches on July 26th also contributed to the
year-over-year increase in operating expenses, the impact was
significantly lower, given the timing of the transaction, among other
factors.
The linked-quarter reduction in operating expenses was the net
effect of a $752,000 decline in occupancy and equipment expense to
$16.7 million, a $2.7 million decline in general and administrative
expenses to $15.5 million, and a $673,000 increase in compensation and
benefits expense to $40.6 million.
The amortization of core deposit intangibles ("CDI") accounted for
$5.9 million of total non-interest expense in the current third
quarter, up $32,000 from the trailing-quarter level and $806,000 from
the level recorded in the third quarter of 2006. The linked-quarter
increase reflects the CDI acquired in the Doral branch transaction;
the year-over-year increase also reflects the CDI acquired with
PennFed.
Income Tax Expense
Income tax expense totaled $49.7 million in the current third
quarter, up from $16.6 million and $29.4 million, respectively, in the
trailing and year-earlier three months. The linked-quarter increase
largely reflects the favorable impact of the gain on the sale of the
Atlantic Bank headquarters on the Company's third quarter pre-tax
income, as compared to the adverse impact of the impairment loss on
the Company's pre-tax income in the second quarter of the year.
Pre-tax income totaled $160.6 million in the current third quarter, as
compared to $52.5 million in the three months ended June 30, 2007. In
addition, the effective tax rate was 31.0% in the three months ended
September 30, 2007, as compared to 31.5% in the trailing three-month
period. In the third quarter of 2006, the Company recorded pre-tax
income of $91.8 million and an effective tax rate of 32.0%.
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
180 offices serving customers in New York City, Long Island, and
Westchester County in New York, and Essex, Hudson, Union, Ocean,
Mercer, Middlesex, and Monmouth counties in New Jersey, New York
Community Bank is the fourth largest thrift depository in the market
it serves. Reflecting the growth of its franchise through in-market
merger transactions, the Community Bank currently operates through
nine 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, Penn Federal Savings Bank,
and Synergy Bank. New York Commercial Bank currently has 38 branches
serving Manhattan, Queens, Brooklyn, Westchester County, and Long
Island, including 19 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 October 19, 2007 at
9:30 a.m. (ET) to discuss its third quarter 2007 performance and
strategies. The conference call may be accessed by dialing
888-819-8006 (for domestic calls) or 913-981-5543 (for international
calls) and providing the following access code: 6361949. A replay of
the conference call will be available approximately two hours
following completion of the call through midnight on October 28th, 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 October 31, 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 acquisitions of PennFed Financial
Services, Inc. and Synergy Financial Group, Inc., our acquisition of
11 branches and certain assets and liabilities from Doral Bank, FSB,
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: a materially adverse change in
the financial condition or results of operations of any of these
companies; the ability of the Company to successfully integrate the
assets, liabilities, customers, systems, and any personnel it may
acquire into its operations pursuant to these transactions; and the
Company's ability to realize the related revenue synergies and cost
savings within the expected time frames.
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. Furthermore, the timing and occurrence or
non-occurrence of events may be subject to circumstances beyond the
Company's control.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. Except as required by applicable law or regulation, the
Company undertakes no obligation to update these forward-looking
statements to reflect events or circumstances that occur after the
date on which such statements were made.
- Financial Statements and Highlights Follow -
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
September 30, December 31,
2007 2006
------------- ------------
(unaudited)
Assets
Cash and cash equivalents $ 1,279,622 $ 230,759
Securities available for sale:
Mortgage-related securities 1,036,077 1,664,337
Other securities 440,586 276,450
Securities held to maturity:
Mortgage-related securities 2,366,817 1,387,817
Other securities 2,053,630 1,597,380
------------- ------------
Total securities 5,897,110 4,925,984
Mortgage loans:
Multi-family 13,639,672 14,532,652
Commercial real estate 3,096,728 3,114,446
Construction 1,137,667 1,099,844
1-4 family 310,012 230,486
------------- ------------
Total mortgage loans 18,184,079 18,977,428
Other loans 817,005 675,463
------------- ------------
Total loans 19,001,084 19,652,891
Less: Allowance for loan losses (88,030) (85,389)
------------- ------------
Loans, net 18,913,054 19,567,502
Federal Home Loan Bank of New York stock,
at cost 376,080 404,311
Premises and equipment, net 197,455 196,084
Goodwill 2,349,504 2,148,108
Core deposit intangibles 112,701 106,381
Other assets 914,379 903,241
------------- ------------
Total assets $30,039,905 $28,482,370
============= ============
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 2,947,587 $ 3,156,988
Savings accounts 2,456,765 2,394,145
Certificates of deposit 6,619,367 5,944,585
Non-interest-bearing accounts 1,543,785 1,123,286
------------- ------------
Total deposits 13,567,504 12,619,004
------------- ------------
Official checks outstanding 22,215 20,158
Borrowed funds:
Wholesale borrowings 11,225,313 11,070,333
Junior subordinated debentures 500,527 455,659
Other borrowings 352,634 354,016
------------- ------------
Total borrowed funds 12,078,474 11,880,008
Mortgagors' escrow 119,922 74,736
Other liabilities 220,316 198,627
------------- ------------
Total liabilities 26,008,431 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; 314,823,165 and
295,350,936 shares issued; 314,823,165
and 295,350,936 shares outstanding,
respectively) 3,148 2,954
Paid-in capital in excess of par 3,659,859 3,341,340
Retained earnings (partially restricted) 403,940 421,313
Less: Unallocated common stock held by
ESOP (3,751) (4,604)
Common stock held by SERP (3,113) (3,113)
Accumulated other comprehensive loss (28,609) (68,053)
------------- ------------
Total stockholders' equity 4,031,474 3,689,837
------------- ------------
Total liabilities and stockholders' equity $30,039,905 $28,482,370
============= ============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the Nine Months
For the Three Months Ended Ended
----------------------------- -----------------------
September September September September
30, June 30, 30, 30, 30,
2007 2007 2006 2007 2006
--------- --------- --------- ----------- -----------
Interest Income:
Mortgage and
other loans $302,665 $313,469 $288,839 $ 914,601 $ 821,519
Securities 81,833 73,319 72,108 225,840 218,564
Money market
investments 12,726 14,221 350 27,193 994
--------- --------- -------- ----------- -----------
Total interest
income 397,224 401,009 361,297 1,167,634 1,041,077
--------- --------- -------- ----------- -----------
Interest Expense:
NOW and money
market
accounts 24,067 25,246 30,397 73,215 87,580
Savings
accounts 7,195 7,310 5,299 20,206 12,391
Certificates of
deposit 78,589 80,334 70,148 229,151 178,115
Borrowed funds 132,495 127,003 115,575 382,847 342,089
Mortgagors'
escrow 26 34 31 93 141
--------- --------- -------- ----------- -----------
Total interest
expense 242,372 239,927 221,450 705,512 620,316
--------- --------- -------- ----------- -----------
Net interest
income 154,852 161,082 139,847 462,122 420,761
Provision for
loan losses -- -- -- -- --
--------- --------- -------- ----------- -----------
Net interest
income after
provision
for loan
losses 154,852 161,082 139,847 462,122 420,761
--------- --------- -------- ----------- -----------
Non-interest
Income (Loss):
Fee income 10,624 10,747 10,437 31,124 28,531
Bank-owned life
insurance 6,999 6,283 6,110 19,364 17,351
Net (loss) gain
on sale of
securities (7,307) 9,195 -- 1,888 2,823
Gain on sale of
bank-owned
property 64,879 -- -- 64,879 --
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 9,247 8,652 6,920 26,145 23,668
--------- --------- -------- ----------- -----------
Total non-
interest income
(loss) 84,442 (23,929) 23,467 84,594 66,302
--------- --------- -------- ----------- -----------
Non-interest
Expense:
Operating
expenses:
Compensation
and benefits 40,599 39,926 34,478 117,728 96,536
Occupancy and
equipment 16,739 17,491 15,875 49,333 41,894
General and
administrative 15,462 18,178 16,075 50,679 44,433
--------- --------- -------- ----------- -----------
Total operating
expenses 72,800 75,595 66,428 217,740 182,863
Prepayment of
borrowings -- 3,190 -- 3,190 --
Post-merger
repositioning
charge -- -- -- -- 27,609
Amortization of
core deposit
intangibles 5,855 5,823 5,049 16,680 12,822
--------- --------- -------- ----------- -----------
Total non-
interest expense 78,655 84,608 71,477 237,610 223,294
--------- --------- -------- ----------- -----------
Income before
income taxes 160,639 52,545 91,837 309,106 263,769
Income tax
expense 49,730 16,571 29,360 97,404 84,305
--------- --------- -------- ----------- -----------
Net Income $110,909 $ 35,974 $ 62,477 $ 211,702 $ 179,464
========= ========= ======== =========== ===========
Basic
earnings per
share $ 0.36 $ 0.12 $ 0.21 $ 0.69 $ 0.64
========= ========= ======== =========== ===========
Diluted
earnings per
share $ 0.35 $ 0.12 $ 0.21 $ 0.69 $ 0.63
========= ========= ======== =========== ===========
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.
For the three months ended September 30, 2007, the Company calculated
its operating earnings by adding back to non-interest income the $7.3
million pre-tax net loss on the sale of securities and by subtracting
from non-interest income the $64.9 million pre-tax gain on the sale
of bank-owned property. In addition to reflecting these third quarter
adjustments, the Company's operating earnings for the nine months
ended September 30, 2007 were calculated by (1) subtracting from
second quarter non-interest income the $9.2 million pre-tax net gain
on the sale of securities; (2) adding back to second quarter non-
interest income the $57.0 million pre-tax loss on the other-than-
temporary impairment of securities; (3) adding back to second quarter
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"); and (4) subtracting from second quarter
non-interest expense the $3.2 million pre-tax charge for the
prepayment of wholesale borrowings. To calculate its operating
earnings for the nine months ended September 30, 2006, the Company
subtracted from non-interest expense a pre-tax post-merger
repositioning charge of $27.6 million and added back to non-interest
income a $6.1 million pre-tax non-cash loss on the mark-to-market of
interest rate swaps.
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.
Reconciliations of the Company's GAAP and operating earnings for the
three months ended September 30, 2007 and June 30, 2007, and for the
nine months ended September 30, 2007 and 2006, follow. For the three
months ended September 30, 2006, the Company's GAAP and operating
earnings were the same.
For the For the
Three Months Ended Nine Months Ended
---------------------------- -------------------
Sept.
(in thousands, except Sept. 30, June 30, 30, Sept. 30, Sept. 30,
per share data) 2007 2007 2006 2007 2006
--------- --------- -------- --------- ---------
GAAP Earnings $110,909 $ 35,974 $62,477 $211,702 $179,464
Adjustments to GAAP
earnings:
Net loss (gain) on
sale of securities 7,307 (9,195) -- (1,888) --
Gain on sale of
bank-owned
property (64,879) -- -- (64,879) --
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
Income tax effect on
adjustments 17,823 (16,955) -- 868 (11,283)
--------- --------- -------- --------- ---------
Operating earnings $ 71,160 $ 71,820 $62,477 $207,799 $201,861
========= ========= ======== ========= =========
Diluted GAAP Earnings
per Share $ 0.35 $ 0.12 $ 0.21 $ 0.69 $ 0.63
Adjustments to
diluted GAAP
earnings per share:
Net loss (gain) on
sale of securities 0.02 (0.02) -- -- --
Gain on sale of
bank-owned
property (0.14) -- -- (0.15) --
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 -- -- -- -- 0.07
--------- --------- -------- --------- ---------
Diluted operating
earnings per share $ 0.23 $ 0.23 $ 0.21 $ 0.68 $ 0.71
========= ========= ======== ========= =========
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. (Please see the reconciliation of
stockholders' equity and tangible stockholders' equity on page 13 of
this release.) 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.
The Company also reports 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 third quarter of 2007 by adding back to non-interest
income the $7.3 million pre-tax net loss on the sale of securities
and by subtracting from non-interest income the $64.9 million pre-tax
gain on the sale of bank-owned property. In addition to reflecting
these third quarter adjustments, the Company calculated its adjusted
cash earnings for the nine months ended September 30, 2007 by (1)
subtracting from second quarter non-interest income the $9.2 million
pre-tax net gain on the sale of securities; (2) adding back to second
quarter non-interest income the $1.8 million pre-tax loss incurred in
connection with the redemption of trust preferred securities; and (3)
subtracting from second quarter non-interest expense the $3.2 million
pre-tax charge for the prepayment of wholesale borrowings. For the
nine months ended September 30, 2006, the Company calculated its
adjusted cash earnings by subtracting a $27.6 million pre-tax post-
merger repositioning charge from non-interest expense and by adding
back to non-interest income a $6.1 million pre-tax loss on the mark-
to-market of interest rate swaps.
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. Reconciliations of the Company's GAAP and cash earnings and
adjusted cash earnings for the three months ended September 30, 2007,
June 30, 2007, and September 30, 2006 and for the nine months ended
September 30, 2007 and 2006 follow:
For the Nine Months
For the Three Months Ended Ended
--------------------------- -------------------
Sept.
(in thousands, except Sept. 30, June 30, 30, Sept. 30, Sept. 30,
per share data) 2007 2007 2006 2007 2006
--------- -------- -------- --------- ---------
GAAP Earnings $110,909 $35,974 $62,477 $211,702 $179,464
Additional
contributions to
tangible stockholders'
equity:
Amortization and
appreciation of
shares held in
stock-related
benefit plans 2,871 2,640 1,557 7,109 4,740
Associated tax
benefits (375) (604) 34 (2,355) 231
Dividends on
unallocated ESOP
shares 365 365 546 1,095 1,637
Amortization of core
deposit intangibles 5,855 5,823 5,049 16,680 12,822
Loss on other-than-
temporary impairment
of securities -- 38,668 -- 38,668 --
--------- -------- -------- --------- ---------
Total additional
contributions to
tangible stockholders'
equity 8,716 46,892 7,186 61,197 19,430
--------- -------- -------- --------- ---------
Cash earnings $119,625 $82,866 $69,663 $272,899 $198,894
========= ======== ======== ========= =========
Diluted GAAP Earnings
per Share $ 0.35 $ 0.12 $ 0.21 $ 0.69 $ 0.63
Additional
contributions to
diluted cash earnings
per share:
Amortization and
appreciation of
shares held in
stock-related
benefit plans 0.01 0.01 0.01 0.02 0.02
Associated tax
benefits -- -- -- (0.01) --
Dividends on
unallocated ESOP
shares -- -- -- -- 0.01
Amortization of core
deposit intangibles 0.02 0.02 0.02 0.06 0.04
Loss on other-than-
temporary impairment
of securities -- 0.12 -- 0.13 --
--------- -------- -------- --------- ---------
Total additional
contributions to
diluted cash earnings
per share 0.03 0.15 0.03 0.20 0.07
--------- -------- -------- --------- ---------
Diluted cash earnings
per share $ 0.38 $ 0.27 $ 0.24 $ 0.89 $ 0.70
========= ======== ======== ========= =========
Cash Earnings $119,625 $82,866 $69,663 $272,899 $198,894
Adjustments to cash
earnings:
Net loss (gain) on
sale of securities 7,307 (9,195) -- (1,888) --
Gain on sale of bank-
owned property (64,879) -- -- (64,879) --
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
Income tax effect on
adjustments 17,823 1,335 -- 19,158 (11,283)
--------- -------- -------- --------- ---------
Adjusted cash earnings $ 79,876 $80,044 $69,663 $230,328 $221,291
========= ======== ======== ========= =========
Diluted Cash Earnings
per Share $ 0.38 $ 0.27 $ 0.24 $ 0.89 $ 0.70
Net loss (gain) on
sale of securities 0.01 (0.02) -- -- --
Gain on sale of bank-
owned property (0.14) -- -- (0.15) --
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 -- -- -- -- 0.07
--------- -------- -------- --------- ---------
Adjusted diluted cash
earnings per share $ 0.25 $ 0.26 $ 0.24 $ 0.75 $ 0.78
========= ======== ======== ========= =========
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. The Company
also calculates its ratio of tangible stockholders' equity to
tangible assets excluding 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." In the second quarter of 2007, the
Company calculated its ratio of adjusted tangible stockholders'
equity to adjusted tangible assets by also excluding the $38.7
million after-tax loss on the other-than-temporary impairment of
securities (the "impairment loss"). 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 September 30, 2007, June 30, 2007, and
December 31, 2006 and the nine months ended September 30, 2007 and
2006 follow:
At or for the
Three Months Ended
----------------------------------------
Sept. 30, June 30, Dec. 31,
2007 2007 2006
------------- ------------ -------------
(in thousands)
Total Stockholders' Equity $ 4,031,474 $ 3,961,471 $ 3,689,837
Less: Goodwill (2,349,504) (2,330,704) (2,148,108)
Core deposit
intangibles (112,701) (116,157) (106,381)
------------ ------------ -------------
Tangible stockholders' equity $ 1,569,269 $ 1,514,610 $ 1,435,348
Total Assets $30,039,905 $29,623,750 $ 28,482,370
Less: Goodwill (2,349,504) (2,330,704) (2,148,108)
Core deposit
intangibles (112,701) (116,157) (106,381)
------------ ------------ -------------
Tangible assets $27,577,700 $27,176,889 $ 26,227,881
Tangible Stockholders' Equity $ 1,569,269 $ 1,514,610 $ 1,435,348
Add back: After-tax net
unrealized losses on
securities 13,315 25,872 52,125
Impairment loss -- 38,668 --
------------ ------------ -------------
Adjusted tangible
stockholders' equity $ 1,582,584 $ 1,579,150 $ 1,487,473
Tangible Assets $27,577,700 $27,176,889 $ 26,227,881
Add back: After-tax net
unrealized losses on
securities 13,315 25,872 52,125
Impairment loss -- 38,668 --
------------ ------------ -------------
Adjusted tangible assets $27,591,015 $27,241,429 $ 26,280,006
Average Stockholders' Equity $ 3,951,215 $ 3,916,867 $ 3,652,575
Less: Average goodwill (2,341,272) (2,329,512) (2,151,829)
Average core deposit
intangibles (116,769) (119,666) (109,693)
------------ ------------ -------------
Average tangible
stockholders' equity $ 1,493,174 $ 1,467,689 $ 1,391,053
Average Assets $29,816,281 $30,109,869 $ 28,524,090
Less: Average goodwill (2,341,272) (2,329,512) (2,151,829)
Average core deposit
intangibles (116,769) (119,666) (109,693)
------------ ------------ -------------
Average tangible assets $27,358,240 $27,660,691 $ 26,262,568
Net Income $ 110,909 $ 35,974 $ 53,121
Add back: Amortization of
core deposit intangibles,
net of tax 3,549 3,530 3,038
------------ ------------ -------------
Adjusted net income $ 114,458 $ 39,504 $ 56,159
At or for the
Nine Months Ended
---------------------------
Sept. 30, Sept. 30,
2007 2006
------------- -------------
(in thousands)
Total Stockholders' Equity $ 4,031,474 $ 3,712,010
Less: Goodwill (2,349,504) (2,151,951)
Core deposit
intangibles (112,701) (111,430)
------------- -------------
Tangible stockholders' equity $ 1,569,269 $ 1,448,629
Total Assets $ 30,039,905 $28,924,286
Less: Goodwill (2,349,504) (2,151,951)
Core deposit
intangibles (112,701) (111,430)
------------- -------------
Tangible assets $ 27,577,700 $26,660,905
Tangible Stockholders' Equity $ 1,569,269 $ 1,448,629
Add back: After-tax net
unrealized losses on
securities 13,315 55,626
Impairment loss -- --
------------- -------------
Adjusted tangible
stockholders' equity $ 1,582,584 $ 1,504,255
Tangible Assets $ 27,577,700 $26,660,905
Add back: After-tax net
unrealized losses on
securities 13,315 55,626
Impairment loss -- --
------------- -------------
Adjusted tangible assets $ 27,591,015 $26,716,531
Average Stockholders' Equity $ 3,825,963 $ 3,505,233
Less: Average goodwill (2,273,278) (2,077,447)
Average core deposit
intangibles (113,740) (102,774)
------------- -------------
Average tangible
stockholders' equity $ 1,438,945 $ 1,325,012
Average Assets $ 29,392,932 $27,973,989
Less: Average goodwill (2,273,278) (2,077,447)
Average core deposit
intangibles (113,740) (102,774)
------------- -------------
Average tangible assets $ 27,005,914 $25,793,768
Net Income $ 211,702 $ 179,464
Add back: Amortization of
core deposit intangibles,
net of tax 10,111 7,670
------------- -------------
Adjusted net income $ 221,813 $ 187,134
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended
-------------------------------------------------------
September 30, 2007 June 30, 2007
--------------------------- ---------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
----------- -------- ------ ----------- -------- ------
Assets:
Interest-
earning
assets:
Mortgage and
other
loans, net $18,979,750 $302,665 6.37% $19,465,563 $313,469 6.44%
Securities 5,987,562 81,833 5.47 5,724,322 73,319 5.12
Money market
investments 989,423 12,726 5.10 1,126,275 14,221 5.06
----------- -------- ------ ----------- -------- ------
Total
interest-
earning
assets 25,956,735 397,224 6.11 26,316,160 401,009 6.10
Non-interest-
earning
assets 3,859,546 3,793,709
----------- -----------
Total assets $29,816,281 $30,109,869
=========== ===========
Liabilities and
Stockholders'
Equity:
Interest-
bearing
deposits:
NOW and
money
market
accounts $ 3,064,306 $ 24,067 3.12% $ 3,129,495 $ 25,246 3.24%
Savings
accounts 2,534,661 7,195 1.13 2,618,547 7,310 1.12
Certificates
of deposit 6,772,774 78,589 4.60 6,997,582 80,334 4.60
Mortgagors'
escrow 99,653 26 0.10 166,731 34 0.08
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
deposits 12,471,394 109,877 3.50 12,912,355 112,924 3.51
Borrowed
funds 11,891,671 132,495 4.42 11,757,489 127,003 4.33
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
liabilities 24,363,065 242,372 3.95 24,669,844 239,927 3.90
Non-interest-
bearing
deposits 1,219,793 1,201,180
Other
liabilities 282,208 321,978
----------- -----------
Total
liabilities 25,865,066 26,193,002
Stockholders'
equity 3,951,215 3,916,867
----------- -----------
Total
liabilities
and
stockholders'
equity $29,816,281 $30,109,869
=========== ===========
Net interest
income/
interest rate
spread $154,852 2.16% $161,082 2.20%
======== ====== ======== ======
Net interest-
earning
assets/net
interest
margin $ 1,593,670 2.41% $ 1,646,316 2.44%
=========== ====== =========== ======
Ratio of
interest-
earning
assets to
interest-
bearing
liabilities 1.07x 1.07x
====== ======
Core deposits $ 6,818,760 $ 31,262 1.82% $ 6,949,222 $ 32,556 1.88%
=========== ======== ====== =========== ======== ======
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
-------------------------------------------------------
2007 2006
--------------------------- ---------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
----------- -------- ------ ----------- -------- ------
Assets:
Interest-
earning
assets:
Mortgage and
other
loans, net $18,979,750 $302,665 6.37% $19,424,240 $288,839 5.94%
Securities 5,987,562 81,833 5.47 5,712,371 72,108 5.05
Money market
investments 989,423 12,726 5.10 29,436 350 4.72
----------- -------- ------ ----------- -------- ------
Total
interest-
earning
assets 25,956,735 397,224 6.11 25,166,047 361,297 5.74
Non-interest-
earning
assets 3,859,546 3,407,162
----------- -----------
Total assets $29,816,281 $28,573,209
=========== ===========
Liabilities and
Stockholders'
Equity:
Interest-
bearing
deposits:
NOW and
money
market
accounts $ 3,064,306 $ 24,067 3.12% $ 3,438,853 $ 30,397 3.51%
Savings
accounts 2,534,661 7,195 1.13 2,563,579 5,299 0.82
Certificates
of deposit 6,772,774 78,589 4.60 6,416,244 70,148 4.34
Mortgagors'
escrow 99,653 26 0.10 103,218 31 0.12
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
deposits 12,471,394 109,877 3.50 12,521,894 105,875 3.35
Borrowed
funds 11,891,671 132,495 4.42 10,972,048 115,575 4.18
----------- -------- ------ ----------- -------- ------
Total
interest-
bearing
liabilities 24,363,065 242,372 3.95 23,493,942 221,450 3.74
Non-interest-
bearing
deposits 1,219,793 1,228,255
Other
liabilities 282,208 217,744
----------- -----------
Total
liabilities 25,865,066 24,939,941
Stockholders'
equity 3,951,215 3,633,268
----------- -----------
Total
liabilities
and
stockholders'
equity $29,816,281 $28,573,209
=========== ===========
Net interest
income/
interest rate
spread $154,852 2.16% $139,847 2.00%
======== ====== ======== ======
Net interest-
earning
assets/net
interest
margin $ 1,593,670 2.41% $ 1,672,105 2.24%
=========== ====== =========== ======
Ratio of
interest-
earning
assets to
interest-
bearing
liabilities 1.07x 1.07x
====== ======
Core deposits $ 6,818,760 $ 31,262 1.82% $ 7,230,687 $ 35,696 1.96%
=========== ======== ====== =========== ======== ======
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Nine Months Ended September 30,
-------------------------------------------------------
2007 2006
--------------------------- ---------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
----------- --------- ----- ----------- --------- -----
Assets:
Interest-
earning
assets:
Mortgage and
other
loans, net $19,310,587 $914,601 6.32% $18,668,144 $821,519 5.87%
Securities 5,675,776 225,840 5.31 5,928,496 218,564 4.92
Money market
investments 715,563 27,193 5.08 30,164 994 4.41
----------- --------- ----- ----------- --------- -----
Total
interest-
earning
assets 25,701,926 1,167,634 6.06 24,626,804 1,041,077 5.64
Non-interest-
earning
assets 3,691,006 3,347,185
----------- -----------
Total assets $29,392,932 $27,973,989
=========== ===========
Liabilities and
Stockholders'
Equity:
Interest-
bearing
deposits:
NOW and
money
market
accounts $3,045,754 $73,215 3.21% $3,600,867 $87,580 3.25%
Savings
accounts 2,519,384 20,206 1.07 2,512,672 12,391 0.66
Certificates
of deposit 6,634,885 229,151 4.62 5,859,821 178,115 4.06
Mortgagors'
escrow 128,803 93 0.10 125,828 141 0.15
----------- --------- ----- ----------- --------- -----
Total
interest-
bearing
deposits 12,328,826 322,665 3.50 12,099,188 278,227 3.07
Borrowed
funds 11,773,987 382,847 4.35 11,015,469 342,089 4.15
----------- --------- ----- ----------- --------- -----
Total
interest-
bearing
liabilities 24,102,813 705,512 3.91 23,114,657 620,316 3.59
Non-interest-
bearing
deposits 1,172,809 1,107,236
Other
liabilities 291,347 246,863
----------- -----------
Total
liabilities 25,566,969 24,468,756
Stockholders'
equity 3,825,963 3,505,233
----------- -----------
Total
liabilities
and
stockholders'
equity $29,392,932 $27,973,989
=========== ===========
Net interest
income/
interest rate
spread $462,122 2.15% $420,761 2.05%
========= ===== ========= =====
Net interest-
earning
assets/net
interest
margin $1,599,113 2.39% $1,512,147 2.27%
=========== ===== =========== =====
Ratio of
interest-
earning
assets to
interest-
bearing
liabilities 1.07x 1.07x
===== =====
Core deposits $6,737,947 $93,421 1.85% $7,220,775 $99,971 1.85%
=========== ========= ===== =========== ========= =====
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
(unaudited)
For the Three Months Ended
-----------------------------------------
Sept. 30, June 30, Sept. 30,
2007 2007 2006
------------- ------------- -------------
GAAP EARNINGS DATA:
Net income $ 110,909 $ 35,974 $ 62,477
Basic earnings per share 0.36 0.12 0.21
Diluted earnings per share 0.35 0.12 0.21
Return on average assets 1.49% 0.48% 0.87%
Return on average tangible
assets (1) 1.67 0.57 1.00
Return on average
stockholders' equity 11.23 3.67 6.88
Return on average tangible
stockholders' equity (1) 30.66 10.77 19.14
Efficiency ratio (2) 30.42 55.12 40.68
Operating expenses to
average assets 0.98 1.00 0.93
Interest rate spread 2.16 2.20 2.00
Net interest margin 2.41 2.44 2.24
Shares used for basic EPS
computation 312,077,886 310,847,788 292,244,262
Shares used for diluted EPS
computation 313,597,185 312,443,563 293,550,619
OPERATING EARNINGS DATA: (3)
Operating earnings $ 71,160 $ 71,820 $ 62,477
Basic operating earnings per
share 0.23 0.23 0.21
Diluted operating earnings
per share 0.23 0.23 0.21
Return on average assets 0.95% 0.95% 0.87%
Return on average tangible
assets (1) 1.09 1.09 1.00
Return on average
stockholders' equity 7.20 7.33 6.88
Return on average tangible
stockholders' equity (1) 20.01 20.54 19.14
Operating efficiency ratio
(2) 40.06 40.48 40.68
CASH EARNINGS DATA: (4)
Cash earnings $ 119,625 $ 82,866 $ 69,663
Basic cash earnings per
share 0.38 0.27 0.24
Diluted cash earnings per
share 0.38 0.27 0.24
Cash return on average
assets 1.60% 1.10% 0.98%
Cash return on average
tangible assets (1) 1.75 1.20 1.06
Cash return on average
stockholders' equity 12.11 8.46 7.67
Cash return on average
tangible stockholders'
equity (1) 32.05 22.58 20.35
Cash efficiency ratio (2) 29.22 37.58 39.72
ADJUSTED CASH EARNINGS DATA:
(4)
Adjusted cash earnings $ 79,876 $ 80,044 $ 69,663
Basic adjusted cash earnings
per share 0.26 0.26 0.24
Diluted adjusted cash
earnings per share 0.25 0.26 0.24
Adjusted cash return on
average assets 1.07% 1.06% 0.98%
Adjusted cash return on
average tangible assets (1) 1.17 1.16 1.06
Adjusted cash return on
average stockholders'
equity 8.09 8.17 7.67
Adjusted cash return on
average tangible
stockholders' equity (1) 21.40 21.81 20.35
Adjusted cash efficiency
ratio (2) 38.48 39.06 39.72
For the Nine Months Ended
----------------------------
Sept. 30, Sept. 30,
2007 2006
------------- --------------
GAAP EARNINGS DATA:
Net income $ 211,702 $ 179,464
Basic earnings per share 0.69 0.64
Diluted earnings per share 0.69 0.63
Return on average assets 0.96% 0.86%
Return on average tangible assets (1) 1.10 0.97
Return on average stockholders' equity 7.38 6.83
Return on average tangible
stockholders' equity (1) 20.55 18.83
Efficiency ratio (2) 39.83 37.54
Operating expenses to average assets 0.99 0.87
Interest rate spread 2.15 2.05
Net interest margin 2.39 2.27
Shares used for basic EPS computation 305,485,131 282,314,713
Shares used for diluted EPS computation 306,899,035 283,779,872
OPERATING EARNINGS DATA: (3)
Operating earnings $ $207,799 $ $201,861
Basic operating earnings per share 0.68 0.72
Diluted operating earnings per share 0.68 0.71
Return on average assets 0.94% 0.96%
Return on average tangible assets (1) 1.08 1.08
Return on average stockholders' equity 7.24 7.68
Return on average tangible
stockholders' equity (1) 20.19 21.08
Operating efficiency ratio (2) 40.42 37.08
CASH EARNINGS DATA: (4)
Cash earnings $ $272,899 $198,894
Basic cash earnings per share 0.89 0.70
Diluted cash earnings per share 0.89 0.70
Cash return on average assets 1.24% 0.95%
Cash return on average tangible assets
(1) 1.35 1.03
Cash return on average stockholders'
equity 9.51 7.57
Cash return on average tangible
stockholders' equity (1) 25.29 20.01
Cash efficiency ratio (2) 34.89 36.57
ADJUSTED CASH EARNINGS DATA: (4)
Adjusted cash earnings $ $230,328 $221,291
Basic adjusted cash earnings per share 0.75 0.78
Diluted adjusted cash earnings per
share 0.75 0.78
Adjusted cash return on average assets 1.04% 1.05%
Adjusted cash return on average
tangible assets (1) 1.14 1.14
Adjusted cash return on average
stockholders' equity 8.03 8.42
Adjusted cash return on average
tangible stockholders' equity (1) 21.34 22.27
Adjusted cash efficiency ratio (2) 39.10 36.12
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity on page 13 of this release.
(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 on pages 11
and 12 of this release.
(3) Please see the reconciliation of GAAP and operating earnings on
page 11 of this release.
(4) Please see the reconciliations of GAAP and cash earnings and
adjusted cash earnings on page 12 of this release.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
At September At December
30, At June 30, 31,
2007 2007 2006
------------ ------------ ------------
BALANCE SHEET DATA:
Book value per share $12.85 $12.67 $12.56
Tangible book value per share
(1) 5.00 4.85 4.88
Stockholders' equity to total
assets 13.42% 13.37% 12.95%
Tangible stockholders' equity to
tangible assets (1) 5.69 5.57 5.47
Tangible stockholders' equity to
tangible assets excluding
after-tax net unrealized losses
on securities (1)(2) 5.74 5.80 5.66
Shares used for book value and
tangible book value per share
computations (1) 313,633,512 312,572,289 293,890,372
Total shares issued and
outstanding 314,823,165 313,852,246 295,350,936
ASSET QUALITY RATIOS:
Non-performing loans to total
loans 0.11% 0.07% 0.11%
Non-performing assets to total
assets 0.07 0.05 0.08
Allowance for loan losses to
non-performing loans 423.06 641.64 402.72
Allowance for loan losses to
total loans 0.46 0.47 0.43
(1) Please see the reconciliation of stockholders' equity and tangible
stockholders' equity on page 13 of this release.
(2) The ratio at June 30, 2007 also excludes the second quarter after-
tax loss on the other-than-temporary impairment of securities.
Footnotes to the Text
- ----------------------------------------------------------------------
(1) Please see page 12 for a reconciliation of our GAAP and cash
earnings and adjusted cash earnings.
(2) Please see page 11 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
reconciliation of GAAP and operating earnings on page 11 of this
release.
(4) As the acquisition of Synergy was completed on October 1, 2007,
its assets and liabilities are not included in our September 30, 2007
balance sheet.
(5) Please see page 13 for a reconciliation of our stockholders'
equity and tangible stockholders' equity and the related measures.
CONTACT: New York Community Bancorp, Inc.
Ilene A. Angarola
First Senior Vice President &
Director, Investor Relations
516-683-4420