Filed by New York Community Bancorp, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Long Island Financial Corp.
Commission File No. 0-29826
New York Community Bancorp, Inc. Reports
3rd Quarter 2005 Diluted GAAP EPS of $0.30
and Diluted Cash EPS of $0.32
WESTBURY, N.Y.--(BUSINESS WIRE)--Oct. 19, 2005--
Looks Forward to the Benefits of the Strategic Acquisitions of Long
Island Financial Corp. and Atlantic Bank of New York
3rd Quarter 2005 Highlights
-- Tangible stockholders' equity equaled 5.58% of tangible assets
at quarter-end excluding net unrealized losses on securities,
representing a year-to-date increase of 19 basis points;
including net unrealized losses, the ratio improved 15 basis
points to 5.37%
-- The Bank's leverage capital ratio equaled 8.76% at quarter-end
-- At quarter-end, securities totaled $5.6 billion, representing
22.6% of total assets; loans totaled $15.9 billion,
representing 63% of total assets, including $12.0 billion of
multi-family loans, representing 76% of total loans
-- Reflecting the repositioning of the balance sheet that began
in June 2004, securities are down $7.9 billion, or 58%; loans
are up $4.0 billion, or 32%; deposits are up $1.1 billion, or
11%; and wholesale borrowings are down $5.6 billion, or 35%
-- Since August 1st, the Company has announced strategic
acquisitions of Long Island Financial Corp. and Atlantic Bank
of New York. As a result of these prospective acquisitions,
the Company expects to have:
-- Total assets of approximately $27.0 billion;
-- Net securities of approximately $5.2 billion, representing
19% of total assets;
-- Loans of approximately $17.2 billion, representing 64% of
total assets; and
-- Deposits of approximately $13.4 billion, including core
deposits of approximately $8.8 billion, representing 66%
of total deposits
New York Community Bancorp, Inc. (NYSE: NYB) today reported third
quarter 2005 earnings of $77.6 million, or $0.30 per diluted share,
generating a 1.38% return on average tangible assets ("ROTA") and a
26.49% return on average tangible stockholders' equity ("ROTE"). The
Company's cash earnings for the quarter totaled $83.8 million, or
$0.32 per diluted share, generating an ROTA of 1.46% and an ROTE of
27.98%.(1)
For the nine months ended September 30, 2005, the Company reported
earnings of $255.2 million, or $0.97 per diluted share, providing
returns on average assets and stockholders' equity of 1.53% and
29.59%, respectively. The Company's cash earnings for the current
nine-month period amounted to $274.6 million, or $1.05 per diluted
share, and provided an ROTA of 1.61% and an ROTE of 31.20%.(1)
In view of the significant difference in the Company's balance
sheet as a result of the repositioning in June 2004 and the Company's
subsequent actions, management believes that a comparison of the
Company's results for the third and second quarters of 2005 is more
germane to understanding the progress made, and the Company's current
direction, than a comparison of its third quarter and nine-month 2005
and 2004 results.
Acquisitions Expected to Enhance Earnings, Improve Margin, and
Generate Core Deposit Growth
Commenting on the Company's third quarter 2005 performance,
President and Chief Executive Officer Joseph R. Ficalora stated, "The
quarter was consistent with our expectations, and reflects the actions
we have been taking to position ourselves for the challenges and
opportunities that lie ahead. As the two acquisitions we've recently
announced suggest, we are very much focused on the future, and the
opportunity to enhance our earnings, improve our margin, and generate
core deposit growth. Between them, LICB and Atlantic Bank are expected
to bring $1.5 billion in low-cost core deposits, and a loan portfolio
that both complements and builds upon our own. With the addition of 29
branches, including five in Manhattan, the acquisitions also represent
the potential to build our customer base and our revenue stream.
"Looking at our balance sheet at the end of the quarter, we see
the ongoing benefit of our repositioning," Mr. Ficalora said. "At $5.6
billion, securities now represent 22.6% of total assets, and are
expected to decline to 19% in connection with the completion of the
transaction with Atlantic Bank. At $15.9 billion, total loans now
represent 63% of total assets, and are on target to meet our internal
growth expectations by the end of the year. These improvements in our
balance sheet reflect the strength of our business model and, we
expect, will only be enhanced by the acquisitions that are soon to
take place.
"In anticipation of further short-term rate increases by the FOMC
and the expected infusion of core deposits through the LICB and
Atlantic Bank transactions, we took the opportunity to reposition our
deposit mix. While deposits are up year-to-date, they declined on a
linked-quarter basis," Mr. Ficalora noted, "reflecting our decision to
run off brokered deposits that we had added in the second quarter in
order to fund the high volume of loans we produced. At the same time,
we decided to shift our focus from liquid money market accounts to
term deposits in order to stabilize our deposit base. As a result, CDs
have grown 14% in the last three months.
"Although funding costs continue to rise, as they have for the
past five quarters, the magnitude of the contraction in our margin has
begun to decrease," Mr. Ficalora commented. "We expect the downward
trend to be mitigated by the LICB and Atlantic transactions, and look
forward to the positive contributions they are expected to make not
only to our margin, but also to the addition of a commercial banking
platform to our business model, and the long-term value of the
Company.
"The volume of loans produced in the last three months, while
below the trailing-quarter level, actually exceeded our expectations,
as market conditions became more conducive to lending as the quarter
progressed," Mr. Ficalora said. "Of the $991 million of loans
produced, the majority consisted of loans on multi-family buildings,
which continue to be our primary niche. While margin contraction
continued in the face of the flattening yield curve, our average yield
on assets was stable, while the average yield on our loans, I'm
pleased to say, increased.
"We also are encouraged by the level of prepayment penalties
during the quarter," Mr. Ficalora noted. "Prepayment penalties on
loans rose $8.0 million to $13.2 million, including $1.8 million
recorded in interest income, and $11.4 million recorded as fee income,
largely reflecting the prepayment of a multi-family loan that had been
in our portfolio for little more than a year. The increase in fee
income contributed nicely to our third quarter earnings, which also
reflected the benefit of our ongoing efficiency. Our efficiency ratio
continues to be among the best in the nation, measuring 29.82% for the
quarter and 27.90% year-to-date. Based on the strength of our
earnings, on both a GAAP and cash basis," Mr. Ficalora noted, "we were
quite comfortable in maintaining our quarterly cash dividend at the
current $0.25 per share level, as we announced last week.
"At the start of this year, we noted that 2005 would be a year of
transition, and so it is proving to be," Mr. Ficalora said. "The
improvements we've made to our balance sheet over the past five
quarters will be reinforced by the addition of the LICB and Atlantic
Bank franchises, and the value of our Company enhanced by the addition
of their branches, products, and staff."
Balance Sheet Summary
The Company recorded total assets of $25.0 billion at September
30, 2005, a $977.1 million increase from the balance recorded at
December 31, 2004. Reflecting the ongoing repositioning of the balance
sheet, total loans rose $2.5 billion, or 18.4% in the first nine
months of 2005, or 24.5% on an annualized basis, while total
securities declined $1.4 billion, or 20.2%. At September 30, 2005,
loans and securities represented 63.4% and 22.6%, respectively, of
total assets, in contrast to 55.7% and 29.5%, respectively, at
December 31, 2004.
Loans
The Company recorded total loans of $15.9 billion at the close of
the current third quarter, up from $13.4 billion at December 31, 2004.
The increase was driven by year-to-date originations totaling $4.8
billion, including $990.5 million in the three months ended September
30, 2005. Multi-family loans represented 73.3% of year-to-date
originations, with commercial real estate and construction loans
representing 13.5% and 10.7%, respectively. The growth of the loan
portfolio was partly tempered by year-to-date repayments and sales
totaling $2.3 billion, including $818.9 million in the third quarter
of the year.
Multi-family loans rose $2.2 billion, or 21.9%, from the balance
recorded at the end of December to $12.0 billion, representing 75.6%
of total loans, at September 30, 2005. The increase reflects
year-to-date originations of $3.5 billion, including third quarter
originations of $584.7 million. The portfolio had an average principal
balance of $3.5 million at the close of the quarter and an average
loan-to-value ratio of 60.1%. The expected weighted average life of
the portfolio was 3.2 years at September 30, 2005.
Multi-family loans are typically originated for a term of ten
years, with a fixed rate of interest in the first five years, tied to
the five-year Treasury, and a rate that adjusts annually in years six
through ten. The Company's multi-family loans typically refinance
within the first five-year period and, in doing so, generate
prepayment penalties ranging from five points to one point of the
initial loan balance.
The majority of the Company's multi-family loans are secured by
rent-regulated buildings in New York City and the proceeds typically
used by the Company's borrowers to make improvements to the
properties. Because the rents on the apartments in these buildings are
generally below market, the buildings tend to be fully occupied, even
during times of economic adversity. The Company's asset quality has
been supported by its multi-family credits, which have not incurred a
loss for more than twenty years.
The Company has been originating multi-family loans in this market
for several decades. Its longevity reflects the relationships it has
developed with several leading mortgage brokers, who are familiar with
the Company's lending practices, its underwriting standards, and its
long-standing practice of lending on the cash flows produced by the
rent rolls of the buildings collateralizing these loans. Because the
multi-family market is largely broker-driven, these longstanding
relationships have supported the growth of the Company's multi-family
loan portfolio.
Commercial real estate loans totaled $2.6 billion at September 30,
2005, representing 16.5% of total loans outstanding and a $470.3
million, or 22.0%, increase from the balance recorded at December 31,
2004. The increase reflects year-to-date originations totaling $640.1
million, including $165.4 million in the third quarter of the year. At
September 30, 2005, the portfolio had an average principal balance of
$2.7 million and a loan-to-value ratio of 58.2%; the expected weighted
average life of the portfolio was 3.6 years at that date.
The Company's commercial real estate loan portfolio is largely
secured by mixed-use and office buildings in New York City and
national credit retail shopping centers in both New York City and Long
Island. Commercial real estate loans feature terms that parallel the
terms featured by the Company's multi-family credits. The Company has
not had a loss on a commercial real estate loan in more than ten
years.
The construction loan portfolio totaled $900.3 million at
September 30, 2005, representing 5.7% of total loans outstanding and a
$96.0 million, or 11.9%, increase from the year-end 2004 amount. The
increase reflects year-to-date originations totaling $508.2 million,
including $193.3 million in the third quarter of the year. The
majority of the portfolio consists of loans for the construction of
one-to-four family homes on Long Island, where the Bank is the primary
lender to several leading builders and developers. The typical
construction loan features a term of 18 to 24 months and a floating
rate of interest tied to prime.
Since December 1, 2000, the Company has been originating
one-to-four family loans on a pass-through basis, and selling the
loans to a third-party conduit within ten days of closing,
service-released. Reflecting this practice, repayments, and the sale
of loans totaling $170.7 million in the second quarter, the balance of
one-to-four family loans declined $239.3 million, or 47.3%, from the
year-end 2004 level to $266.8 million, representing 1.7% of total
loans, at September 30, 2005. The remaining loans in portfolio are
seasoned loans that were originated before the conduit policy was
adopted or that were acquired in the Company's previous merger
transactions.
Asset Quality
Non-performing assets totaled $35.6 million at the close of the
current third quarter, representing a linked-quarter improvement of
$7.2 million, or 16.8%. The September 30, 2005 amount was equivalent
to 0.14% of total assets, an improvement from 0.17% at June 30, 2005.
Included in the September 30, 2005 amount are two non-performing
loans that are currently expected to be satisfied in the fourth
quarter: a $10.7 million construction loan that is still accruing
interest, and a $7.0 million non-accrual construction loan.
Non-accrual loans totaled $23.7 million at the close of the third
quarter, including mortgage loans of $22.5 million and other loans of
$1.2 million.
The allowance for loan losses totaled $78.0 million at September
30, 2005, equivalent to 0.49% and 227.23% of total loans and
non-performing loans, respectively. Since December 31, 2004, the
Company has charged-off $14,000 of consumer loans acquired in merger
transactions, including three thousand dollars in the third quarter;
no provisions for loan losses were recorded during this time.
Other real estate owned totaled $1.3 million at the close of the
third quarter, up from $485,000 at June 30, 2005. The increase
reflects the addition of a single commercial real estate property in
Manhattan that was previously included in non-accrual loans. The
Company is currently in the process of marketing this property for
sale and does not expect to incur a loss when such property is sold.
Securities
In keeping with the Company's focus on enhancing its market and
interest rate risk profile, the balance of securities continued to
decline in the third quarter of 2005. Securities totaled $5.6 billion,
representing 22.6% of total assets, at the end of September, as
compared to $7.1 billion, representing 29.5% of total assets, at
December 31, 2004. Year-over-year, the contrast is even greater, with
securities having totaled $7.5 billion and represented 31.8% of total
assets at September 30, 2004.
Available-for-sale securities represented $2.3 billion, or 40.2%,
of total securities at the close of the current third quarter, and
were down $836.4 million and $995.9 million, respectively, from the
amounts recorded at December 31 and September 30, 2004.
Mortgage-related securities represented $2.1 billion of the September
30, 2005 total, and were down $819.1 million and $989.3 million,
respectively, from the balances recorded at the earlier dates. Other
securities represented the remaining $189.8 million of
available-for-sale securities at the close of the current third
quarter, and were down $17.2 million and $6.6 million, respectively,
from the balances recorded at December 31 and September 30, 2004.
The after-tax net unrealized loss on securities available for sale
was $36.8 million at the close of the current third quarter, as
compared to $17.6 million at June 30, 2005. The difference was
attributable to the increase in market interest rates over the
three-month period.
Held-to-maturity securities represented $3.4 billion, or 59.8%, of
total securities at the close of the current third quarter, and were
down $594.7 million and $872.9 million, respectively, from the amounts
recorded at December 31 and September 30, 2004. Mortgage-related
securities accounted for $1.7 billion of the September 30, 2005 total,
down $439.9 million and $613.1 million, respectively, from the
balances recorded at the earlier dates. Other securities held to
maturity totaled $1.7 billion at the close of the current third
quarter, and were down $154.8 million and $259.8 million,
respectively, from the balances recorded at December 31 and September
30, 2004.
In connection with the prospective acquisitions of Long Island
Financial Corp. (Nasdaq: LICB) ("LICB") and Atlantic Bank of New York
("Atlantic Bank"), the Company has announced its intention of reducing
the pro forma balance of securities by an additional $1.3 billion.
Reflecting the anticipated post-acquisition reduction and the
reductions to be made by the stand-alone company in the current fourth
quarter, the securities portfolio is expected to equal approximately
19% of total assets.
Sources of Funds
The growth of the Company's loan portfolio has been supported by
four primary funding sources: principal repayments and interest on
loans; cash flows from securities redemptions and sales; wholesale
borrowings in the form of FHLB-NY advances and repurchase agreements;
and deposit growth.
In connection with management's focus on reducing securities,
securities generated year-to-date cash flows of approximately $1.4
billion, including $305 million in the third quarter of the year. Loan
repayments generated cash flows of $2.1 billion in the current
nine-month period, including $788.3 million in the three months ended
September 30, 2005.
While the Company's asset mix has changed significantly over the
past several quarters, its liabilities have also been the focus of a
strategic shift. The Company has taken several actions since the
second quarter of 2004 to increase deposits, most recently including a
marketing campaign to attract certificates of deposit ("CDs") and
arranging the prospective acquisitions of LICB and Atlantic Bank. In
addition, the Company has increased deposits by introducing
MyBankingDirect.com, a nationwide online banking service; by forming
The Premier Banking Group to attract deposits from local developers
and property owners; and by partnering with local colleges to develop
depository relationships with students and offering payment solutions
to the colleges themselves.
In anticipation of completing the LICB and Atlantic Bank
acquisitions, which are expected to significantly increase the balance
of low-cost core deposits, management opted to reduce certain types of
deposits in the third quarter of 2005. Specifically, the Company
decided to replace liquid money market accounts with more stable term
deposits, and to allow the run-off of certain brokered deposits and
money-market accounts. Reflecting these actions, deposits totaled
$11.1 billion at the end of September, down $402.3 million from the
balance at the close of the trailing quarter, but up $733.2 million
and $933.1 million, respectively, from the balances recorded at
December 31 and September 30, 2004. The linked-quarter reduction was
largely due to the decline in brokered deposits and the strategic
run-off of certain other NOW and money market accounts.
NOW and money market accounts totaled $3.1 billion at the end of
September, as compared to $4.0 billion at the close of the second
quarter, and to $2.9 billion and $2.5 billion, respectively, at
December 31 and September 30, 2004. Savings accounts declined to $2.5
billion from $2.6 billion at the close of the second quarter and from
$3.1 billion at each of the earlier dates.
The linked-quarter reductions were partly offset by a $23.8
million increase in non-interest-bearing deposits and by a $590.5
million increase in CDs. Non-interest-bearing deposits totaled $771.4
million at September 30, 2005, and were up $32.1 million from the
year-end 2004 balance and up $56.5 million from the September 30, 2004
amount. CDs totaled $4.8 billion at the close of the current third
quarter, and were up $1.0 billion and $954.0 million, respectively,
from the levels recorded at the earlier dates.
Reflecting the temporary shift in deposits, core deposits
(consisting of NOW and money market accounts, savings accounts, and
non-interest-bearing accounts) represented 57.2% of total deposits at
the close of the current third quarter, while CDs represented 42.8%.
In anticipation of the LICB and Atlantic Bank acquisitions, the
Company modestly increased its use of wholesale borrowings in the
third quarter of 2005. Wholesale borrowings totaled $9.4 billion at
the end of September, signifying a $190.0 million increase from the
second quarter-end level, and increases of $113.8 million and $297.3
million from the levels recorded at December 31 and September 30,
2004. The Company expects to utilize the low-cost funding to be
acquired in the LICB and Atlantic Bank transactions, and the cash
flows produced by the sale of securities acquired in conjunction with
these transactions, to reduce its level of higher-cost wholesale funds
over the next three to six months.
Including junior subordinated debentures of $445.5 million and
other borrowings of $358.0 million, the Company had total borrowed
funds of $10.3 billion at September 30, 2005.
Stockholders' Equity
The Company recorded stockholders' equity of $3.3 billion at
September 30, 2005, representing a $65.9 million increase from the
balance recorded at December 31, 2004. The September 30, 2005 amount
was equivalent to 13.00% of total assets, and a book value of $12.43
per share based on 261,654,328 shares. The year-end 2004 amount was
equivalent to 13.26% of total assets, and a book value of $12.23 per
share based on 260,533,784 shares.
Tangible stockholders' equity (defined as total stockholders'
equity less the sum of goodwill and core deposit intangibles, "CDI")
equaled $1.2 billion at September 30, 2005, up $88.4 million from the
balance recorded at December 31, 2004. Excluding net unrealized losses
on securities from the respective totals, tangible stockholders'
equity equaled 5.58% and 5.39% of tangible assets at the corresponding
dates. Including net unrealized losses, tangible stockholders' equity
equaled 5.37% and 5.22% of tangible assets, respectively.
The increase in tangible stockholders' equity reflects the $274.6
million of cash earnings generated by the Company over the nine-month
period, including net income of $255.2 million and additional
contributions to tangible stockholders' equity of $19.4 million. (1)
During this time, the Company paid dividends totaling $195.7 million,
including $65.3 million in the third quarter, and allocated $1.1
million for the repurchase of 59,233 shares in stock-based benefit
plan-related transactions. At September 30, 2005, there were 1,622,694
shares still available for repurchase under the Board of Directors'
share repurchase authorization on April 20, 2004.
At September 30, 2005, the Company's capital ratios continued to
exceed the minimum federal requirements for a bank holding company and
the Bank's capital ratios continued to exceed the minimum levels
required for classification as a "well capitalized" institution under
the FDIC Improvement Act. The Bank's Tier 1 leverage capital ratio
improved to 8.76% at the close of the quarter from 8.63% at December
31, 2004.
Earnings Summary for the Three Months Ended September 30, 2005
Net Interest Income
The Company recorded net interest income of $135.4 million in the
current third quarter, as compared to $149.1 million in the second
quarter of 2005. While intermediate-term interest rates began to rise,
modestly, toward the end of September, short-term rates rose steadily
over the course of the three-month period. As a result, the yield
curve, which started to flatten in the third quarter of 2004, was
essentially flat in the current third quarter; in addition, the volume
of loans produced in the quarter was below the trailing-quarter
volume, as expected, reflecting seasonal factors, market conditions,
and the level of market interest rates. For the first time since the
fourth quarter of 2004, the decline in the average balance of
securities exceeded the growth in the average balance of loans.
As a result of these factors, the interest income produced in the
third quarter of 2005 declined to $287.9 million from $291.1 million
in the second quarter of the year. The reduction was attributable to a
$50.1 million decline in the average balance of interest-earning
assets to $21.8 billion and a five-basis point decline in the average
yield to 5.27%. While average loans rose $475.2 million during this
time to $15.6 billion, the increase was offset by a $533.1 million
reduction in average mortgage-related securities to $4.0 billion. At
the same time, the average yield on mortgage-related securities
declined to 4.20% from 4.48% in the trailing quarter, offsetting a
two-basis point increase in the average yield on loans to 5.50%. While
the five-year Treasury rate rose 46 basis points over the course of
the quarter, the contribution of pre-payment penalties to interest
income declined to $1.8 million from $2.1 million in the second
quarter of the year.
The modest decline in interest income in the current third quarter
was coupled with a $10.4 million linked-quarter increase in interest
expense, to $152.4 million. While the average balance of
interest-bearing liabilities declined $69.4 million to $20.8 billion,
linked-quarter, the reduction was offset by a 16-basis point increase
in the average cost of funds, to 2.89%. In addition to the steady rise
in short-term interest rates over the course of the quarter, the
higher cost was largely due to a $500.0 million rise in average CDs to
$4.4 billion and a 36-basis point increase in the average cost of such
funds to 2.84%. The increase in average CDs was partly offset by a
$198.2 million reduction in the average balance of core deposits to
$7.0 billion and by a $310.4 million decline in the average balance of
borrowed funds to $10.1 billion. Despite the reduction in the average
balances of these funding sources, the average cost of core deposits
rose 13 basis points to 1.43% and the average cost of borrowed funds
rose 10 basis points to 3.74%.
Reflecting the same combination of factors that contributed to the
linked-quarter reduction in net interest income, the Company's net
interest margin narrowed to 2.52% in the current third quarter from
2.73% in the trailing three-month period. To reduce its exposure to
future short-term interest rate increases, the Company has taken a
series of actions in 2005, including paying down most of its
short-term wholesale borrowings in the first and second quarters, and
extending an additional $2.0 billion of wholesale borrowings to an
average maturity of two years with an average cost of 3.37% during the
same time. In addition, management expects that the addition of LICB
and Atlantic's lower-cost core deposits will benefit the Company's net
interest margin.
Non-interest Income
Non-interest income largely consists of fee income, which
generally includes retail deposit fees, charges on loans, and
prepayment penalties; and other income, which primarily includes the
revenues produced through the sale of third-party investment products,
and the income generated by the Company's investment in Bank-owned
Life Insurance ("BOLI") and by its investment advisory firm, Peter B.
Cannell & Co., Inc. ("PBC").
In the third quarter of 2005, the Company recorded non-interest
income of $33.1 million, signifying a $3.2 million increase from the
level recorded in the second quarter of the year. The increase was
fueled by a rise in fee income, which was attributable to an $8.3
million increase in prepayment penalties to $11.4 million, stemming
from a rise in refinancing activity. Fee income totaled $19.8 million
in the current third quarter, signifying an $8.7 million, or 79.0%,
increase from the level recorded in the trailing three-month period.
Other income totaled $13.2 million in the third quarter of 2005,
as compared to $16.0 million in the second quarter of the year. The
Company recorded a $2.8 million gain on the sale of loans in the
trailing quarter, which accounted for the linked-quarter decline. BOLI
income represented $5.5 million of third quarter 2005 other income, as
compared to $6.2 million in the trailing three months. PBC revenues
rose $557,000 during this time, to $3.1 million, offsetting a $350,000
decline in revenues from the sale of third-party investment products
to $1.8 million.
Non-interest Expense
Non-interest expense consists of operating expenses, which include
compensation and benefits, occupancy and equipment, general and
administrative ("G&A"), and other expenses; and the amortization of
the CDI stemming from the Company's mergers with Richmond County
Financial Corp. and Roslyn Bancorp, Inc.
In the third quarter of 2005, the Company recorded total
non-interest expense of $53.2 million, as compared to $52.2 million in
the second quarter of the year. Operating expenses represented $50.2
million of the third quarter 2005 total and 0.80% of average assets,
as compared to $49.3 million, representing 0.79% of average assets, in
the trailing three-month period.
The linked-quarter increase in operating expenses stemmed from two
components: an $898,000 increase in compensation and benefits expense
to $26.1 million and a $997,000 increase in G&A expense to $12.1
million. The increase in compensation and benefits expense primarily
reflects additional costs relating to retail operations, including
incentive compensation for PBC officers, while the increase in G&A
expense largely reflects the costs of the Bank's deposit-gathering
initiatives. These increases were partly offset by a $199,000 decline
in occupancy and equipment expense to $10.9 million and a $772,000
reduction in other expenses to $1.2 million.
Income Tax Expense
Income tax expense totaled $37.7 million in the current third
quarter, down from $40.3 million in the second quarter of 2005.
Pre-tax income totaled $115.3 million and $126.8 million in the
respective quarters, while the effective tax rate equaled 32.7% and
31.8%, respectively. In the second quarter of 2005, the Company
received a New Markets Tax Credit allocation, which has entitled the
Company to recognize $16.4 million in tax credits from the U.S.
Treasury Department over a period of seven years.
Company Profile
New York Community Bancorp, Inc. is the holding company for New
York Community Bank and the fifth largest thrift in the nation, with
total assets of $25.0 billion at September 30, 2005. The Bank serves
its customers through a network of 141 banking offices in New York
City, Long Island, Westchester County, and northern New Jersey, and
operates through seven divisions: Queens County Savings Bank, Roslyn
Savings Bank, Richmond County Savings Bank, Roosevelt Savings Bank,
CFS Bank, First Savings Bank of New Jersey, and Ironbound Bank. The
Bank is the leading producer of multi-family mortgage loans for
portfolio in New York City and the third largest thrift depository in
the New York metropolitan region. Additional information about the
Company is available at www.myNYCB.com.
Post-Earnings Release Conference Call
The Company will host a conference call on October 19, 2005 at
9:30 a.m. (ET) to discuss the highlights of its third quarter 2005
performance and the anticipated benefits of its prospective
acquisitions of LICB and Atlantic Bank. The conference call may be
accessed by phoning 800-946-0713 (for domestic calls) or 719-457-2642
(for international calls) and providing the following access code:
7851341. A replay of the conference call will be available 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 approximately two hours following completion of the call
through 5:00 p.m. on November 2, 2005.
New York Community Bancorp, Inc. has filed a registration
statement with the Securities and Exchange Commission (the "SEC")
containing a proxy statement/prospectus and other documents regarding
its proposed transaction with Long Island Financial Corp. Investors
are urged to read the proxy statement/prospectus because it contains
important information about New York Community Bancorp, Inc. and Long
Island Financial Corp., and the prospective transaction. Copies of
this proxy statement/prospectus have been mailed to Long Island
Financial Corp. shareholders and, together with other documents filed
by New York Community Bancorp, Inc. or Long Island Financial Corp.
with the SEC, may be obtained free of charge at the SEC's website
(www.sec.gov) or by directing a request to New York Community Bancorp,
Inc. c/o the Investor Relations Department, 615 Merrick Avenue,
Westbury, N.Y. 11590 or the Corporate Secretary, Long Island Financial
Corp., 1601 Veterans Highway, Suite 120, Islandia, N.Y. 11749.
Long Island Financial Corp. and its directors, executive officers
and certain other members of management, and employees may be
soliciting proxies from their shareholders in favor of the proposed
transaction. Information regarding such persons who may, under the
rules of the SEC, be considered to be participants in the solicitation
of Long Island Financial Corp.'s shareholders in connection with the
proposed transaction is set forth in Long Island Financial Corp.'s
proxy statement filed with the SEC on March 25, 2005 relating to its
annual meeting of shareholders held on April 20, 2005. Additional
information is set forth in the proxy statement/prospectus filed with
the SEC.
Forward-looking Statements and Associated Risk Factors
This release and the associated conference call, like other
written and oral communications presented by the Company and its
authorized officers, may contain certain forward-looking statements
regarding the Company's prospective performance and strategies within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
The Company intends such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995, and is including
this statement for purposes of said safe harbor provisions.
Forward-looking statements, which are based on certain assumptions
and describe future plans, strategies, and expectations of the
Company, are generally identified by use of the words "anticipate,"
"believe," "estimate," "expect," "intend," "plan," "project," "seek,"
"strive," "try," or future or conditional verbs such as "will,"
"would," "should," "could," "may," or similar expressions. The
Company's ability to predict results or the actual effects of its
plans or strategies is inherently uncertain. Accordingly, actual
results may differ materially from anticipated results.
There are a number of factors, many of which are beyond the
Company's control, that could cause actual conditions, events, or
results to differ significantly from those described in the
forward-looking statements. These factors include, but are not limited
to, general economic conditions, either nationally or locally in some
or all of the areas in which we conduct our business; conditions in
the securities markets or the banking industry; changes in interest
rates, which may affect our net income or future cash flows; changes
in deposit flows, and in the demand for deposit, loan, and investment
products and other financial services in our local markets; changes in
real estate values, which could impact the quality of the assets
securing our loans; changes in the quality or composition of the loan
or investment portfolios; changes in competitive pressures among
financial institutions or from non-financial institutions; the ability
to successfully integrate any assets, liabilities, customers, systems,
and management personnel we may acquire into our operations and our
ability to realize related revenue synergies and cost savings within
expected time frames; the Company's timely development of new and
competitive products or services in a changing environment, and the
acceptance of such products or services by our customers; the outcome
of pending or threatened litigation or of other matters before
regulatory agencies, whether currently existing or commencing in the
future; changes in accounting principles, policies, practices, or
guidelines; changes in legislation and regulation; operational issues
and/or capital spending necessitated by the potential need to adapt to
industry changes in information technology systems, on which we are
highly dependent; changes in the monetary and fiscal policies of the
U.S. Government, including policies of the U.S. Treasury and the
Federal Reserve Board; war or terrorist activities; and other
economic, competitive, governmental, regulatory, and geopolitical
factors affecting the Company's operations, pricing, and services.
Additionally, the timing and occurrence or non-occurrence of events
may be subject to circumstances beyond the Company's control.
In addition, the following factors, among others, could cause the
actual results of the transactions with Long Island Financial Corp.
and Atlantic Bank of New York to differ materially from the
expectations stated in this release and the associated conference
call: the ability of the companies involved to obtain the required
regulatory approvals; the ability of the companies involved to
consummate the transactions; a materially adverse change in the
financial condition of New York Community Bancorp, Inc., Long Island
Financial Corp., or Atlantic Bank of New York; the ability of New York
Community Bancorp, Inc. to successfully integrate the assets,
liabilities, customers, systems, and any management personnel it may
acquire into its operations pursuant to the transactions; and the
ability to realize the related revenue synergies and cost savings
within the expected time frames.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release and the associated conference call. Except as required by
applicable law or regulation, the Company undertakes no obligation to
update these forward-looking statements to reflect events or
circumstances that occur after the date on which such statements were
made.
(1) Please see the discussion and reconciliation of GAAP and cash
earnings on page 14 of this release.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
September 30, December 31,
2005 2004
(unaudited)
------------- -------------
Assets
Cash and due from banks $ 204,887 $ 188,850
Securities available for sale:
Mortgage-related securities 2,081,894 2,901,039
Other securities 189,827 207,070
Securities held to maturity:
Mortgage-related securities (fair market
value of $1,647,130 and $2,091,748,
respectively) 1,726,551 2,166,416
Other securities (fair market value of
$1,673,644 and $1,826,063, respectively) 1,651,355 1,806,198
------------- -------------
Total securities 5,649,627 7,080,723
Mortgage loans:
Multi-family 11,994,019 9,842,444
Commercial real estate 2,610,979 2,140,727
Construction 900,266 804,219
1-4 family 266,806 506,116
------------- ------------
Total mortgage loans 15,772,070 13,293,506
Other loans 83,466 102,538
------------- -------------
Total loans 15,855,536 13,396,044
Less: Allowance for loan losses (78,043) (78,057)
------------- -------------
Loans, net 15,777,493 13,317,987
Federal Home Loan Bank of New York stock,
at cost 312,694 232,215
Premises and equipment, net 138,035 148,263
Goodwill 1,937,680 1,951,438
Core deposit intangibles 78,750 87,553
Other assets 915,778 1,030,797
------------- -------------
Total assets $ 25,014,944 $ 24,037,826
============= =============
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 3,146,858 $ 2,850,218
Savings accounts 2,455,166 3,060,334
Certificates of deposit 4,761,873 3,752,327
Non-interest-bearing accounts 771,382 739,238
------------- -------------
Total deposits 11,135,279 10,402,117
------------- -------------
Official checks outstanding 40,047 16,831
Borrowed funds:
Wholesale borrowings 9,448,793 9,334,953
Junior subordinated debentures 445,525 446,084
Other borrowings 358,048 361,504
------------- -------------
Total borrowed funds 10,252,366 10,142,541
Mortgagors' escrow 101,155 54,555
Other liabilities 233,802 235,368
------------- -------------
Total liabilities 21,762,649 20,851,412
------------- -------------
Stockholders' equity:
Preferred stock at par $0.01 (5,000,000
shares authorized; none issued) -- --
Common stock at par $0.01 (600,000,000
shares authorized; 273,396,452
shares issued; 266,010,822 and
265,190,635 shares outstanding,
respectively) 2,734 2,734
Paid-in capital in excess of par 3,019,445 3,013,241
Retained earnings (partially restricted) 505,332 452,134
Less: Treasury stock (7,385,630 and
8,205,817 shares, respectively) (207,812) (223,230)
Unallocated common stock held by
ESOP (13,711) (14,655)
Common stock held by SERP and
Deferred Compensation Plans (3,113) (3,113)
Net unrealized loss on securities
available for sale, net of tax (36,751) (20,443)
Net unrealized loss on securities
transferred to held to maturity, net of
tax (13,829) (20,254)
------------- -------------
Total stockholders' equity 3,252,295 3,186,414
------------- -------------
Total liabilities and stockholders' equity $ 25,014,944 $ 24,037,826
============= =============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the Nine
For the Three Months Ended Months Ended
----------------------------- -------------------
September June September September September
30, 30, 30, 30, 30,
2005 2005 2004 2005 2004
--------- --------- --------- --------- ---------
Interest Income:
Mortgage and other
loans $215,251 $207,826 $167,713 $611,369 $484,734
Mortgage-related
securities 42,354 51,139 75,332 153,490 313,249
Other securities 30,050 32,027 34,474 95,978 104,287
Money market
investments 217 137 79 558 376
--------- --------- --------- --------- ---------
Total interest
income 287,872 291,129 277,598 861,395 902,646
--------- --------- --------- --------- ---------
Interest Expense:
NOW and money
market accounts 22,087 20,015 6,725 54,493 18,944
Savings accounts 3,061 3,346 4,677 10,410 12,208
Certificates of
deposit 31,285 24,049 14,557 75,422 32,271
Borrowed funds 95,939 94,521 79,580 277,550 218,306
Mortgagors' escrow 60 67 66 193 181
--------- --------- --------- --------- ---------
Total interest
expense 152,432 141,998 105,605 418,068 281,910
--------- --------- --------- --------- ---------
Net interest
income 135,440 149,131 171,993 443,327 620,736
Provision for loan
losses -- -- -- -- --
--------- --------- --------- --------- ---------
Net interest
income after
provision for
loan losses 135,440 149,131 171,993 443,327 620,736
--------- --------- --------- --------- ---------
Non-interest Income
(Loss):
Fee income 19,779 11,049 13,915 43,739 45,873
Net securities
gains (losses) 83 2,868 412 2,999 (146,859)
Other 13,200 15,969 12,182 48,218 38,742
--------- --------- --------- --------- ---------
Total non-interest
income (loss) 33,062 29,886 26,509 94,956 (62,244)
--------- --------- --------- --------- ---------
Non-interest
Expense:
Operating expenses:
Compensation and
benefits 26,057 25,159 23,254 76,617 72,049
Occupancy and
equipment 10,886 11,085 10,834 33,359 30,142
General and
administrative 12,116 11,119 11,235 35,223 34,180
Other 1,181 1,953 2,134 4,990 5,784
--------- --------- --------- --------- ---------
Total operating
expenses 50,240 49,316 47,457 150,189 142,155
Amortization of
core deposit
intangibles 2,930 2,930 2,860 8,803 8,580
--------- --------- --------- --------- ---------
Total non-interest
expense 53,170 52,246 50,317 158,992 150,735
--------- --------- --------- --------- ---------
Income before income
taxes 115,332 126,771 148,185 379,291 407,757
Income tax expense 37,717 40,299 49,353 124,122 136,147
--------- --------- --------- --------- ---------
Net Income $ 77,615 $ 86,472 $ 98,832 $255,169 $271,610
========= ========= ========= ========= =========
Basic earnings
per share $0.30 $0.33 $0.38 $0.98 $1.05
========= ========= ========= ========= =========
Diluted
earnings per
share $0.30 $0.33 $0.38 $0.97 $1.01
========= ========= ========= ========= =========
NEW YORK COMMUNITY BANCORP, INC.
DISCUSSION AND RECONCILIATION OF GAAP AND CASH EARNINGS
Although cash earnings are not a measure of performance calculated
in accordance with GAAP, the Company believes that cash earnings are
an important measure because of their contribution to tangible
stockholders' equity. (1)
The Company calculates cash earnings by adding back to net income
certain items that have been charged against earnings, net of income
taxes, but that have been added back to tangible stockholders' equity.
These items typically fall into four categories: expenses related to
the amortization and appreciation of shares held in the Company's
stock-related benefit plan; the associated tax benefits; dividends on
unallocated ESOP shares; and the amortization of the CDI stemming from
the Company's mergers with Roslyn Bancorp, Inc. and Richmond County
Financial Corp. on October 31, 2003 and July 31, 2001, respectively.
Unlike other expenses incurred by the Company, the aforementioned
charges do not reduce the Company's tangible stockholders' equity. For
this reason, the Company believes that cash earnings are useful to
investors seeking to evaluate its operating performance and to compare
its performance with other companies in the banking industry that also
report cash earnings.
Cash earnings should not be considered in isolation or as a
substitute for net income, cash flows from operating activities, or
other income or cash flow statement data prepared in accordance with
GAAP. Moreover, the manner in which the Company calculates cash
earnings may differ from that of other companies reporting measures
with similar names.
A reconciliation of the Company's GAAP and cash earnings for the
three months ended September 30, 2005, June 30, 2005, and September
30, 2004 and the nine months ended September 30, 2005 and 2004
follows:
For the Nine
For the Three Months Ended Months Ended
----------------------------- -------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
(in thousands,
except per
share data) 2005 2005 2004 2005 2004
--------- --------- --------- --------- ---------
Net income $77,615 $86,472 $ 98,832 $255,169 $271,610
Additional
contributions to
tangible
stockholders'
equity:
Amortization and
appreciation of
shares held in
stock-related
benefit plan 1,775 1,792 2,132 5,411 7,463
Associated tax
benefits 346 242 840 1,737 26,371
Dividends on
unallocated ESOP
shares 1,164 1,164 1,268 3,492 3,599
Amortization of
core deposit
intangibles 2,930 2,930 2,860 8,803 8,580
--------- --------- --------- --------- ---------
Total additional
contributions to
tangible
stockholders'
equity 6,215 6,128 7,100 19,443 46,013
--------- --------- --------- --------- ---------
Cash earnings $83,830 $92,600 $105,932 $274,612 $317,623
========= ========= ========= ========= =========
Adjustments to cash
earnings:
Net loss on sale
of securities
relating to
balance sheet
repositioning -- -- -- -- 157,215
Income tax
benefit on
adjustment -- -- -- -- (62,336)
--------- --------- --------- --------- ---------
Cash earnings
excluding
repositioning
charge $83,830 $92,600 $105,932 $274,612 $412,502
========= ========= ========= ========= =========
CASH EARNINGS DATA:
Basic cash earnings
per share $0.32 $0.36 $0.41 $1.06 $1.22
Diluted cash
earnings per share 0.32 0.35 0.40 1.05 1.18
Cash return on
average assets 1.34% 1.48% 1.78% 1.48% 1.67%
Cash return on
average tangible
assets 1.46 1.61 1.94 1.61 1.81
Cash return on
average
stockholders'
equity 10.42 11.54 13.83 11.45 13.37
Cash return on
average tangible
stockholders'
equity 27.98 31.13 41.59 31.20 37.48
Cash efficiency
ratio 28.76 26.55 22.83 26.90 24.12
CASH EARNINGS DATA
EXCLUDING 2Q 2004
REPOSITIONING
CHARGE:
Basic cash earnings
per share $1.59
Diluted cash
earnings per share 1.54
Cash return on
average assets 2.16%
Cash return on
average tangible
assets 2.35
Cash return on
average
stockholders'
equity 17.37
Cash return on
average tangible
stockholders'
equity 48.68
Cash efficiency
ratio 18.82
(1) Tangible stockholders' equity is calculated by subtracting the sum
of goodwill and CDI from total stockholders' equity.
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended
--------------------------------------
September 30, 2005
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $15,634,545 $215,251 5.50%
Mortgage-related securities 4,031,985 42,354 4.20
Other securities 2,142,098 30,050 5.61
Money market investments 29,893 217 2.88
------------ ------------ ------------
Total interest-earning assets 21,838,521 287,872 5.27
Non-interest-earning assets 3,171,742
------------
Total assets $25,010,263
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 3,683,615 $ 22,087 2.38%
Savings accounts 2,540,224 3,061 0.48
Certificates of deposit 4,371,220 31,285 2.84
Mortgagors' escrow 86,253 60 0.28
------------ ------------ ------------
Total interest-bearing deposits 10,681,312 56,493 2.10
Borrowed funds 10,070,162 95,939 3.74
------------ ------------ ------------
Total interest-bearing
liabilities 20,751,474 152,432 2.89
Non-interest-bearing deposits 742,346
Other liabilities 299,650
------------
Total liabilities 21,793,470
Stockholders' equity 3,216,793
------------
Total liabilities and
stockholders' equity $25,010,263
============
Net interest income/interest
rate spread $135,440 2.38%
============ ============
Net interest-earning assets/net
interest margin $1,087,047 2.52%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.05x
============
Core deposits $6,966,185 $25,148 1.43%
============ ============ ============
Three Months Ended
--------------------------------------
June 30, 2005
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $15,159,345 $207,826 5.48%
Mortgage-related securities 4,565,084 51,139 4.48
Other securities 2,138,316 32,027 5.99
Money market investments 25,839 137 2.12
------------ ------------ ------------
Total interest-earning assets 21,888,584 291,129 5.32
Non-interest-earning assets 3,183,082
------------
Total assets $25,071,666
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 3,716,640 $ 20,015 2.15%
Savings accounts 2,711,365 3,346 0.49
Certificates of deposit 3,871,262 24,049 2.48
Mortgagors' escrow 141,046 67 0.19
------------ ------------ ------------
Total interest-bearing deposits 10,440,313 47,477 1.82
Borrowed funds 10,380,575 94,521 3.64
------------ ------------ ------------
Total interest-bearing
liabilities 20,820,888 141,998 2.73
Non-interest-bearing deposits 736,350
Other liabilities 303,490
------------
Total liabilities 21,860,728
Stockholders' equity 3,210,938
------------
Total liabilities and
stockholders' equity $25,071,666
============
Net interest income/interest
rate spread $149,131 2.59%
============ ============
Net interest-earning assets/net
interest margin $1,067,696 2.73%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.05x
============
Core deposits $7,164,355 $23,361 1.30%
============ ============ ============
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Three Months Ended September 30,
--------------------------------------
2005
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $15,634,545 $215,251 5.50%
Mortgage-related securities 4,031,985 42,354 4.20
Other securities 2,142,098 30,050 5.61
Money market investments 29,893 217 2.88
------------ ------------ ------------
Total interest-earning assets 21,838,521 287,872 5.27
Non-interest-earning assets 3,171,742
------------
Total assets $25,010,263
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 3,683,615 $ 22,087 2.38%
Savings accounts 2,540,224 3,061 0.48
Certificates of deposit 4,371,220 31,285 2.84
Mortgagors' escrow 86,253 60 0.28
------------ ------------ ------------
Total interest-bearing deposits 10,681,312 56,493 2.10
Borrowed funds 10,070,162 95,939 3.74
------------ ------------ ------------
Total interest-bearing
liabilities 20,751,474 152,432 2.89
Non-interest-bearing deposits 742,346
Other liabilities 299,650
------------
Total liabilities 21,793,470
Stockholders' equity 3,216,793
------------
Total liabilities and
stockholders' equity $25,010,263
============
Net interest income/interest
rate spread $135,440 2.38%
============ ============
Net interest-earning assets/net
interest margin $1,087,047 2.52%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.05x
============
Core deposits $6,966,185 $25,148 1.43%
============ ============ ============
Three Months Ended September 30,
--------------------------------------
2004
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $12,095,799 $167,713 5.55%
Mortgage-related securities 6,011,255 75,332 5.01
Other securities 2,433,443 34,474 5.67
Money market investments 30,165 79 1.05
------------ ------------ ------------
Total interest-earning assets 20,570,662 277,598 5.40
Non-interest-earning assets 3,290,315
------------
Total assets $23,860,977
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 2,551,665 $ 6,725 1.05%
Savings accounts 3,015,101 4,677 0.62
Certificates of deposit 3,846,389 14,557 1.51
Mortgagors' escrow 67,762 66 0.39
------------ ------------ ------------
Total interest-bearing deposits 9,480,917 26,025 1.10
Borrowed funds 10,386,390 79,580 3.06
------------ ------------ ------------
Total interest-bearing
liabilities 19,867,307 105,605 2.13
Non-interest-bearing deposits 726,148
Other liabilities 204,366
------------
Total liabilities 20,797,821
Stockholders' equity 3,063,156
------------
Total liabilities and
stockholders' equity $23,860,977
============
Net interest income/interest
rate spread $171,993 3.27%
============ ============
Net interest-earning assets/net
interest margin $703,355 3.34%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.04x
============
Core deposits $6,292,914 $11,402 0.72%
============ ============ ============
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
Nine Months Ended September 30,
--------------------------------------
2005
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $14,855,006 $611,369 5.49%
Mortgage-related securities 4,517,406 153,490 4.53
Other securities 2,161,131 95,978 5.92
Money market investments 29,009 558 2.57
------------ ------------ ------------
Total interest-earning assets 21,562,552 861,395 5.33
Non-interest-earning assets 3,218,251
------------
Total assets $24,780,803
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 3,470,270 $ 54,493 2.10%
Savings accounts 2,723,074 10,410 0.51
Certificates of deposit 3,995,786 75,422 2.52
Mortgagors' escrow 105,665 193 0.24
------------ ------------ ------------
Total interest-bearing deposits 10,294,795 140,518 1.82
Borrowed funds 10,250,119 277,550 3.57
------------ ------------ ------------
Total interest-bearing
liabilities 20,544,914 418,068 2.70
Non-interest-bearing deposits 735,791
Other liabilities 301,084
------------
Total liabilities 21,581,789
Stockholders' equity 3,199,014
------------
Total liabilities and
stockholders' equity $24,780,803
============
Net interest income/interest
rate spread $443,327 2.63%
============ ============
Net interest-earning assets/net
interest margin $1,017,638 2.76%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.05x
============
Core deposits $6,929,135 $64,903 1.25%
============ ============ ============
Nine Months Ended September 30,
--------------------------------------
2004
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ ------------
Assets:
Interest-earning assets:
Mortgage and other loans,
net $11,267,414 $484,734 5.74%
Mortgage-related securities 8,279,071 313,249 5.04
Other securities 2,474,345 104,287 5.62
Money market investments 24,611 376 2.04
------------ ------------ ------------
Total interest-earning assets 22,045,441 902,646 5.46
Non-interest-earning assets 3,363,653
------------
Total assets $25,409,094
============
Liabilities and Stockholders'
Equity:
Interest-bearing deposits:
NOW and money market
accounts $ 2,478,170 $ 18,944 1.02%
Savings accounts 2,914,385 12,208 0.56
Certificates of deposit 3,916,079 32,271 1.10
Mortgagors' escrow 78,976 181 0.31
------------ ------------ ------------
Total interest-bearing deposits 9,387,610 63,604 0.90
Borrowed funds 11,935,988 218,306 2.44
------------ ------------ ------------
Total interest-bearing
liabilities 21,323,598 281,910 1.76
Non-interest-bearing deposits 702,044
Other liabilities 216,430
------------
Total liabilities 22,242,072
Stockholders' equity 3,167,022
------------
Total liabilities and
stockholders' equity $25,409,094
============
Net interest income/interest
rate spread $620,736 3.70%
============ ============
Net interest-earning assets/net
interest margin $721,843 3.75%
============ ============
Ratio of interest-earning
assets to interest-bearing
liabilities 1.03x
============
Core deposits $6,094,599 $31,152 0.68%
============ ============ ============
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
(unaudited)
For the Three Months Ended
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Sept. 30, June 30, Sept. 30,
2005 2005 2004
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GAAP EARNINGS DATA:
Net income $77,615 $86,472 $98,832
Basic earnings per share 0.30 0.33 0.38
Diluted earnings per share 0.30 0.33 0.38
Return on average assets 1.24% 1.38% 1.66%
Return on average tangible
assets (1) 1.38 1.53 1.84
Return on average
stockholders' equity 9.65 10.77 12.91
Return on average tangible
stockholders' equity (1) 26.49 29.66 39.48
Efficiency ratio 29.82 27.55 23.91
Operating expenses to
average assets 0.80 0.79 0.80
Interest rate spread 2.38 2.59 3.27
Net interest margin 2.52 2.73 3.34
Shares used for basic EPS
computation 260,580,328 260,203,948 259,123,652
Shares used for diluted EPS
computation 262,615,785 262,349,662 262,473,373
For the Nine Months Ended
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Sept. 30, Sept. 30,
2005 2004
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GAAP EARNINGS DATA:
Net income $255,169 $271,610
Basic earnings per share 0.98 1.05
Diluted earnings per share 0.97 1.01
Return on average assets 1.37% 1.43%
Return on average tangible assets (1) 1.53 1.58
Return on average stockholders' equity 10.64 11.43
Return on average tangible stockholders'
equity (1) 29.59 32.66
Efficiency ratio 27.90 25.45
Operating expenses to average assets 0.81 0.75
Interest rate spread 2.63 3.70
Net interest margin 2.76 3.75
Shares used for basic EPS computation 260,221,487 259,909,843
Shares used for diluted EPS computation 262,363,539 268,120,962
EARNINGS DATA EXCLUDING 2Q 2004
REPOSITIONING CHARGE (2) :
Net income $366,489
Basic earnings per share 1.41
Diluted earnings per share 1.37
Return on average assets 1.92%
Return on average tangible assets (1) 2.12
Return on average stockholders' equity 15.43
Return on average tangible stockholders'
equity (1) 43.86
Efficiency ratio (3) 19.86
At At
September 30, December 31,
2005 2004
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BALANCE SHEET DATA:
Book value per share $12.43 $12.23
Tangible book value per share 4.72 4.40
Stockholders' equity to total assets 13.00% 13.26%
Tangible stockholders' equity to tangible
assets (1) 5.37 5.22
Tangible stockholders' equity to tangible
assets excluding net unrealized losses
on securities (1) 5.58 5.39
Shares used for book value computation 261,654,328 260,533,784
Total shares issued and outstanding 266,010,822 265,190,635
ASSET QUALITY RATIOS:
Non-performing loans to total loans 0.22% 0.21%
Non-performing assets to total assets 0.14 0.12
Allowance for loan losses to
non-performing loans 227.23 277.31
Allowance for loan losses to total loans 0.49 0.58
(1) Tangible assets and tangible stockholders' equity are calculated
by subtracting from total assets and total stockholders' equity
the sum of goodwill and CDI. Average tangible assets and average
tangible stockholders' equity are calculated by subtracting from
average assets and average stockholders' equity the sum of average
goodwill and average CDI.
(2) Amounts for the nine months ended September 30, 2004 exclude the
impact of a $94.9 million, or $0.35 per diluted share, after-tax
loss on the sale of securities relating to the repositioning of
the balance sheet (the "repositioning charge").
(3) The ratio for the nine months ended September 30, 2004 excludes a
$157.2 million net loss on the sale of securities relating to the
balance sheet repositioning.
CONTACT: New York Community Bancorp, Inc.
Investor Relations:
Ilene A. Angarola, 516-683-4420