WESTBURY, N.Y.--(BUSINESS WIRE)--
New York Community Bancorp, Inc. (NYSE: NYB) (the "Company") today
reported first quarter 2009 GAAP and operating earnings of $88.7
million, equivalent to diluted GAAP and operating earnings per share of
$0.26.(1)
On a GAAP basis, the Company's first quarter 2009 earnings were up $16.3
million, or 22.5%, from the year-earlier level; on an operating basis,
the Company's first quarter 2009 earnings were up $18.5 million, or
26.4%, year-over-year. At $0.26, the Company's diluted GAAP and
operating earnings per share were $0.04, or 18.2%, higher than the level
recorded in the first quarter of 2008.(1)
The Company also reported first quarter 2009 cash earnings of $99.9
million, up $18.2 million, or 22.2%, from the level recorded in the
year-earlier three months. The first quarter 2009 amount was equivalent
to $0.29 on a diluted per-share basis, signifying a year-over-year
increase of $0.04, or 16.0%.(2)
Board of Directors Declares $0.25 per
Share Dividend, Payable on May 19th
Commenting on the Company's first quarter 2009 performance, Chairman,
President, and Chief Executive Officer Joseph R. Ficalora stated, "I am
pleased to report that the Company generated solid first quarter
earnings, despite the adverse economic conditions that continue to
challenge us all. Reflecting year-over-year increases in our margin and
net interest income, we reported higher earnings on both a GAAP and
operating basis, as well as higher diluted GAAP and operating earnings
per share.
"In fact, our GAAP and operating earnings were one and the same in the
current first quarter, amounting to $88.7 million, or $0.26 per diluted
share. On an operating basis, our earnings were up 26.4% from the
year-earlier level, and at $0.26, our diluted earnings per share were up
18.2% year-over-year.
"It is worthy of note that these increases were achieved despite an
increase in our FDIC assessment, pension expense, and provision for loan
losses, which together totaled $14.5 million, pre-tax. In addition, our
effective tax rate rose 242 basis points year-over-year to 33.56% in the
quarter, adding $3.2 million to our income tax expense.
"Furthermore, our first quarter cash earnings rose 22.2% year-over-year,
to $99.9 million, equivalent to a 16.0% increase in diluted cash
earnings per share to $0.29. Reflecting the strength of our first
quarter cash earnings, our ratio of adjusted tangible stockholders'
equity to adjusted tangible assets rose to 5.99% at March 31st.(2)(4)
"Given our first quarter earnings growth, and our confidence in our
ability to generate strong earnings going forward, the Board of
Directors last night declared our 21st consecutive quarterly cash
dividend of $0.25 per share. The dividend will be paid on May 19th to
shareholders of record at May 8th.
Asset Quality Measures Continue to Exceed
Industry Averages
"While these continue to be exceedingly difficult times for our region
and our nation, we were very pleased with our first quarter performance,
and with the continued strength of our balance sheet at March 31st.
While non-performing loans rose over the course of the quarter, to
$175.3 million, our level of net charge-offs remained modest, at $5.1
million, and our measures of asset quality thereby continued to exceed
those of our industry peers.
"The notable difference between the volume of non-performing loans and
the volume of charge-offs we record is one of the distinguishing
features that make this Company unique. While non-performing loans
represented 0.79% of total loans at March 31st, net charge-offs
represented a modest 0.02% of average loans in the quarter, consistent
with the measure recorded in the trailing three-month period. Similarly,
our net charge-offs represented a modest 5.37% of our average loan loss
allowance, in contrast to the SNL Bank and Thrift Index measure of
19.23%. (5)
"In view of current economic conditions, we recorded a $6.0 million loan
loss provision during the quarter. Reflecting this provision, and the
aforementioned net charge-offs, our loan loss allowance rose to $95.3
million at the end of March. In contrast to our industry peers, whose
loan loss reserves were approximately five times higher than the volume
of net charge-offs recorded, our allowance for loan losses was nearly 19
times higher than the volume of loans we charged off."
"Although the economic environment will likely remain a challenge in the
coming quarters, we are confident in our ability to generate solid
earnings in 2009. While prepayment penalty income has declined in
concert with the slowdown in refinancing activity, we expect to see
continued net interest income growth and margin expansion, as our
spreads continue to widen and our funding costs continue to decline,"
Mr. Ficalora said.
Balance Sheet Summary at March 31, 2009
Assets totaled $32.4 billion at March 31, 2009, a $64.4 million
reduction from the balance recorded at December 31, 2008.
Loans
Loans represented $22.3 billion, or 68.8%, of total assets at the close
of the first quarter, and were up $101.2 million from the balance
recorded at December 31, 2008. Multi-family loans represented $15.9
billion, or 71.1%, of total loans outstanding, and were up $130.6
million from the balance at year-end 2008. Commercial real estate
("CRE") loans represented $4.6 billion, or 20.7%, of total loans at the
close of the first quarter, signifying a $54.9 million increase from the
year-end 2008 amount.
At March 31st, the average multi-family loan had a principal balance of
$3.9 million; the average CRE loan had a principal balance of $2.5
million at the same date. The multi-family and CRE loan portfolios had
average loan-to-value ratios ("LTVs") of 61.0% and 54.7%, respectively,
at the close of the quarter, and expected weighted average lives of 3.7
and 3.4 years, respectively.
Also included in total loans at the close of the quarter were one- to
four-family loans of $256.4 million; acquisition, development, and
construction ("ADC") loans of $722.9 million; and other loans, primarily
consisting of commercial and industrial ("C&I") loans, of $852.0
million. The respective balances were down $9.9 million, $53.7 million,
and $20.7 million, from the balances recorded at December 31, 2008. The
Company has been strategically reducing these segments of its loan
portfolio.
The increase in the loan portfolio was the net effect of originations
totaling $666.0 million and repayments totaling $564.8 million.
Multi-family and CRE loans represented $317.8 million and $135.3 million
of the first quarter's loan production, as compared to $854.4 million
and $328.9 million in the fourth quarter of 2008.
The linked-quarter decline in multi-family and CRE loan originations was
largely due to the significant volume of loans that were closed in the
trailing quarter, several of which had been expected to close in the
first three months of this year. The reductions in ADC and other loans
were consistent with the Company's actions in recent quarters and
reflect the vulnerability of such loans during a period of economic
uncertainty.
At the present time, the Company has a pipeline of approximately $851
million, including approximately $478 million of multi-family loans.
Asset Quality
In the three months ended March 31, 2009 and December 31, 2008, the
Company recorded net charge-offs of $5.1 million and $3.4 million, both
representing 0.02% of average loans at the respective dates. The first
quarter 2009 amount consisted primarily of ADC and C&I loans.
Non-performing assets totaled $176.8 million at March 31, 2009 and
$114.8 million at the end of December, representing 0.55% and 0.35% of
total assets, respectively. The three-month increase was the result of a
$61.6 million increase in non-performing loans to $175.3 million and a
$360,000 increase in other real estate owned to $1.5 million.
Historically, there has been a significant difference between the volume
of loans that are classified by the Company as non-performing and the
volume of loans that the Company has charged off. Among the factors that
have contributed to this difference are the Company's underwriting
policies, and the active involvement of those directors who serve on the
Board's Mortgage and Credit Committees in the loan review process,
together with executive officers.
In view of the current economic environment, the Company recorded a loan
loss provision of $6.0 million in the first quarter of 2009, as compared
to $5.6 million in the fourth quarter of 2008. Reflecting the loan loss
provision and the net charge-offs recorded in the first quarter, the
allowance for loan losses rose from $94.4 million at the end of December
to $95.3 million at the end of March.
Securities
The securities portfolio declined from $5.9 billion at the end of
December to $5.8 billion, representing 17.8% of total assets, at March
31, 2009. Government-sponsored enterprise ("GSE") securities represented
approximately 90% of the securities portfolio at that date.
The three-month reduction in the securities portfolio was attributable
to a $107.3 million decline in securities held to maturity and a $39.7
million decline in securities available for sale. At $4.8 billion,
held-to-maturity securities represented 83.1% of the total portfolio,
while available-for-sale securities represented the remaining $970.8
million, or 16.9%, at March 31, 2009.
Reflecting the changes in market interest rates and spreads over the
quarter, the after-tax net unrealized loss on available-for-sale
securities declined by $7.9 million, or 24.2%, to $24.6 million at March
31, 2009.
Funding Sources
In addition to the cash flows generated through loan and securities
repayments, the Company's funding primarily stems from deposits and
borrowed funds. Depending on the availability and attractiveness of
wholesale funding sources, the Company has typically refrained from
pricing its retail deposits at the higher end of the market in order to
contain its funding costs. While the Company has the capacity to
increase deposits through its extensive branch network, it opted to
utilize wholesale borrowings to enhance its liquidity during a quarter
when such funding was more attractively priced.
At March 31, 2009, deposits totaled $14.1 billion, a $199.7 million
reduction from the balance recorded at December 31, 2008. While savings
accounts rose $1.6 million to $2.6 billion and non-interest-bearing
accounts rose $20.8 million to $1.1 billion, these increases were offset
by a $203.7 million decline in NOW and money market accounts to $3.6
billion and by an $18.5 million decline in certificates of deposit
("CDs") to $6.8 billion.
Borrowed funds totaled $13.7 billion at the close of the first quarter,
a $209.8 million increase from the year-end 2008 amount. The increase
was largely attributable to a $209.9 million rise in wholesale
borrowings to $12.6 billion, as the Company utilized lower-cost Federal
Home Loan Bank of New York ("FHLB-NY") advances to pay down a portion of
its brokered CDs and money market accounts. As a result, wholesale
borrowings represented 38.7% of total assets at the close of the
quarter, as compared to 38.0% at year-end 2008.
Stockholders' Equity
Stockholders' equity rose $16.6 million from the balance recorded at the
end of December to $4.2 billion at March 31, 2009. The latter balance
was equivalent to 13.07% of total assets and a book value of $12.30 per
share. By comparison, the December 31, 2008 balance was equivalent to
13.00% of total assets and a book value of $12.25 per share. The Company
calculates book value per share by excluding the number of unallocated
Employee Stock Ownership Plan ("ESOP") shares from the number of shares
outstanding. At March 31, 2009 and December 31, 2008, the Company's book
value per share was calculated on the basis of 344,398,362 and
344,353,808 shares, respectively.
At March 31, 2009, tangible stockholders' equity totaled $1.7 billion,
up $22.3 million from the balance at December 31, 2008. The March 31,
2009 amount was equivalent to 5.75% of tangible assets, representing a
nine-basis point improvement from the measure recorded at December 31,
2008. Excluding AOCL from the calculation, the Company's adjusted
tangible stockholders' equity represented 5.99% of tangible assets at
the close of the first quarter, up from 5.94% of tangible assets at
December 31, 2008. The three-month improvement in tangible stockholders'
equity reflects the contribution to capital of the Company's cash
earnings and a $9.2 million reduction in AOCL. (4)
The Company's subsidiary banks also reported solid levels of capital at
the close of the first quarter, and continued to exceed the requirements
for classification as "well capitalized" institutions under the FDIC
Improvement Act. At March 31, 2009, New York Community Bank had a
leverage capital ratio of 7.11%, exceeding the minimum required for
"well capitalized" classification by 211 basis points. At the same time,
New York Commercial Bank had a leverage capital ratio of 11.28%,
exceeding the minimum required for such classification by 628 basis
points.
Earnings Summary for the Three Months
Ended March 31, 2009
The Company generated GAAP earnings of $88.7 million in the current
first quarter, as compared to $72.4 million in the three months ended
March 31, 2008. Included in the first quarter 2008 amount were a $1.6
million gain stemming from the Company's membership interest in Visa
Inc. (the "Visa-related gain") and a $926,000 gain on the repurchase of
certain debt. Together, these gains were equivalent to $2.2 million
after-tax.
Excluding these items, the Company reported first quarter 2008 operating
earnings of $70.2 million, or $0.22 per diluted share. In the first
quarter of 2009, the Company's operating earnings and diluted operating
earnings per share were equivalent to its GAAP earnings of $88.7
million, or $0.26 per diluted share. (1)
Net Interest Income
In the first quarter of 2009, net interest income totaled $206.9
million, representing a $45.5 million, or 28.2%, increase from the
year-earlier amount. The increase was driven by a marked reduction in
the average costs of borrowed funds and interest-bearing deposits, and
by the substantial growth of the Company's loan portfolio during this
time.
While the average balance of interest-earning assets rose $1.6 billion
year-over-year to $28.3 billion, the benefit was tempered by a 38-basis
point decline in the average yield, to 5.66%. As a result, the interest
income produced by interest-earning assets in the current first quarter,
$400.1 million, was down $2.2 million from the interest income produced
in the first quarter of 2008. The latter decline was exceeded by a $47.7
million reduction in interest expense to $193.2 million, thus resulting
in the year-over-year improvement in net interest income.
Loans generated $321.7 million of first quarter 2009 interest income, up
$8.7 million from the year-earlier amount. The increase was the net
effect of a $1.9 billion rise in the average balance to $22.1 billion
and a 36-basis point reduction in the average yield to 5.83%. The
reduction in the average yield was partially due to a $9.1 million
decline in prepayment penalty income on multi-family and CRE loans to
$1.2 million, as economic uncertainty discouraged many borrowers from
refinancing their loans.
Meanwhile, the interest income produced by securities fell $8.6 million
to $78.4 million, as a $64.0 million increase in the average balance of
such assets to $6.2 billion was offset by a 61-basis point reduction in
the average yield to 5.07%. In the first quarter of 2009, the Company
reinvested the substantial cash flows from accelerated repayments that
were received toward the end of the trailing quarter into securities
that featured lower yields.
Largely reflecting the Company's focus on lending over the past four
quarters, the average balance of money market investments fell to $11.3
million in the current first quarter from $293.2 million in the first
quarter of 2008. As a result, the interest income produced by such
assets declined to $6,000 from $2.4 million during this time.
Interest expense declined by $47.7 million, or 19.8%, from the
year-earlier level to $193.2 million in the first quarter of 2009. While
the average balance of interest-bearing liabilities rose $1.8 billion
year-over-year to $26.8 billion, the average cost of such funds fell 93
basis points to 2.92%. Borrowed funds accounted for $128.7 million of
interest expense in the current first quarter, a $15.4 million reduction
from the year-earlier amount. While the average balance of such funds
rose $1.2 billion year-over-year to $14.0 billion, the impact was offset
by a 78-basis point decline in the average cost to 3.71%. Similarly,
interest-bearing deposits accounted for $64.5 million of the interest
expense produced in the current first quarter, a $32.2 million reduction
from the year-earlier amount. While the average balance of such funds
rose $582,000 year-over-year to $12.8 billion, the average cost fell 113
basis points during this time, to 2.05%. The reduction in funding costs
not only reflects the decline in the federal funds rate over the past
four quarters, but also the Company's strategic replacement of
higher-cost retail and wholesale deposits with lower-cost retail
deposits and wholesale borrowings.
NOW and money market accounts generated interest expense of $7.6 million
in the current first quarter, a year-over-year reduction of $6.6
million. Although the balance of NOW and money market accounts rose $1.0
billion year-over-year, to $3.7 billion, the cost of such funds fell 133
basis points, to 0.84%. In addition, the interest expense produced by
CDs fell $23.9 million year-over-year to $52.7 million, as the average
balance of such funds declined $580.1 million to $6.4 billion and the
average cost of such funds fell 106 basis points. With $6.0 billion of
CDs with an average interest rate of 2.80% scheduled to mature in the
next four quarters, the Company expects to see a further decline in the
cost of such funds in the next twelve months.
The same factors that contributed to the year-over-year increase in
first quarter 2009 net interest income contributed to the expansion of
the Company's interest rate spread and net interest margin during this
time. At 2.74%, the Company's spread was 55 basis points wider than the
year-earlier measure; at 2.89%, its margin was up 48 basis points
year-over-year. Prepayment penalty income contributed one basis point to
the current first quarter margin, as compared to 15 basis points in the
first quarter of 2008.
Provision for Loan Losses
The provision for loan losses is based on management's assessment of the
adequacy of the loan loss allowance. This assessment is made
periodically and considers several factors, including the current and
historical performance of the loan portfolio and its inherent risk
characteristics; the level of non-performing loans and charge-offs;
local economic conditions; the direction of real estate values; and
current trends in regulatory supervision.
The Company recorded a loan loss provision of $6.0 million in the
current first quarter; no loan loss provision was recorded in the first
quarter of 2008. Reflecting the current first quarter provision and net
charge-offs of $5.1 million, the allowance for loan losses rose to $95.3
million at March 31, 2009 from $94.4 million at December 31, 2008. For
additional information about the provision for loan losses and the loan
loss allowance, please see the discussion of Asset Quality earlier in
this release.
Non-interest Income
The Company has three primary components of non-interest income: fee
income, income from Bank-owned Life Insurance ("BOLI"), and other
income, primarily consisting of revenues from the sale of third-party
investment products and revenues from the Company's investment
subsidiary, Peter B. Cannell & Co., Inc. ("PBC"). Together, these three
ongoing revenue sources totaled $22.2 million in the current first
quarter, as compared to $27.6 million in the year-earlier three months.
The year-over-year reduction was primarily due to a $4.2 million decline
in other income to $6.0 million, including a $1.5 million reduction in
revenues from PBC. In addition, the Company recorded a $1.6 million
Visa-related gain in the year-earlier first quarter, and no such gain
was recorded in the first quarter of 2009. Fee income also fell
year-over-year, to $9.3 million from $10.6 million, more than offsetting
a modest rise in BOLI income to $6.8 million.
In addition to these three ongoing components of non-interest income,
the Company recorded a $926,000 gain on debt repurchase in the first
quarter of 2008. As a result, the Company recorded total non-interest
income of $28.5 million during that period.
Non-interest Expense
Non-interest expense totaled $89.6 million in the current first quarter,
up $4.7 million year-over-year. Included in the first quarter 2009
amount was compensation and benefits expense of $42.4 million,
representing a year-over-year reduction of $644,000. The year-over-year
reduction reflects the benefit of certain cost control initiatives that
were taken, and that offset the impact of additional pension expense,
normal salary increases, and expenses relating to incentive stock
awards. Occupancy and equipment expense rose $1.0 million
year-over-year, to $18.7 million, while general and administrative
("G&A") expense rose $4.7 million to $22.8 million. The latter increase
was attributable to the expected rise in FDIC insurance premiums.
Income Tax Expense
The Company recorded income tax expense of $44.8 million in the current
first quarter, up $12.1 million from the level recorded in the
year-earlier three months. The year-over-year rise in income tax expense
was the result of a $28.4 million increase in pre-tax income to $133.5
million and an increase in the effective tax rate to 33.56% from 31.14%.
About New York Community Bancorp, Inc.
With assets of $32.4 billion at March 31, 2009, New York Community
Bancorp, Inc. is the 24th largest bank holding company in the nation and
a leading producer of multi-family loans in New York City, with an
emphasis on apartment buildings that feature below-market rents. The
Company has two bank subsidiaries: New York Community Bank, the nation's
second largest thrift, with 178 branches serving customers throughout
Metro New York and New Jersey; and New York Commercial Bank, with 37
branches serving customers in Manhattan, Queens, Brooklyn, Long Island,
and Westchester County in New York.
Reflecting its growth through a series of accretive acquisitions, the
Community Bank operates through five local divisions: Queens County
Savings Bank in Queens, Roslyn Savings Bank on Long Island, Richmond
County Savings Bank on Staten Island, Roosevelt Savings Bank in
Brooklyn, and Garden State Community Bank in New Jersey. Similarly, the
Commercial Bank operates 18 of its branches under the name Atlantic
Bank. Information about the Company 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 April 29, 2009 at 9:30 a.m.
(ET) to discuss its first quarter 2009 performance and strategies. The
conference call may be accessed by dialing 800-895-1085 (for domestic
calls) or 785-424-1055 (for international calls) and providing the
following access code: 7NYCB. A replay will be available approximately
two hours following completion of the call through midnight on May 4th,
and may be accessed by calling 800-283-4605 (domestic) or 402-220-0874
(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 webcast
will be archived through 5:00 p.m. on May 27, 2009.
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 and real estate markets or the banking
industry; changes in interest rates, which may affect our net income,
prepayment penalty income, and other future cash flows, or the market
value of our assets, including our investment securities; 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 securities portfolios; changes in competitive
pressures among financial institutions or from non-financial
institutions; changes in our customer base or in the financial or
operating performances of our customers' businesses; changes in the
demand for our deposit, loan, and investment products and other
financial services in the markets we serve; changes in deposit flows and
wholesale borrowing facilities; changes in our credit ratings or in our
ability to access the capital markets; changes in our estimates of
future reserves based upon the periodic review thereof under relevant
regulatory and accounting requirements; changes in our capital
management policies, including those regarding business combinations,
dividends, and share repurchases, among others; our ability to retain
key members of management; changes in legislation, regulation, and
policies, including, but not limited to, those pertaining to banking,
securities, taxation, environmental protection, and insurance, and the
ability to comply with such changes in a timely manner; changes in
accounting principles, policies, practices, or guidelines; changes in
the monetary and fiscal policies of the U.S. Government, including
policies of the U.S. Treasury and the Federal Reserve Board of
Governors; 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; 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; 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; potential exposure to unknown or contingent liabilities of
companies we target for acquisition; 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; war or terrorist activities; and other economic,
competitive, governmental, regulatory, and geopolitical factors
affecting our operations, pricing, and services.
In addition, it should be noted that we routinely evaluate opportunities
to expand through acquisition and frequently conduct due diligence
activities in connection with such opportunities. As a result,
acquisition discussions and, in some cases, negotiations, may take place
at any time, 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 our control.
Readers are cautioned not to place undue reliance on the forward-looking
statements contained herein, which speak only as of the date of this
release. Except as required by applicable law or regulation, we
undertake no obligation to update these forward-looking statements to
reflect events or circumstances that occur after the date on which such
statements were made.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
March 31, December 31,
2009 2008
(unaudited)
Assets
Cash and cash equivalents $ 167,281 $ 203,216
Securities available for sale:
Mortgage-related 814,112 833,684
Other 156,680 176,818
Total available-for-sale securities 970,792 1,010,502
Securities held to maturity:
Mortgage-related 3,017,364 3,164,856
Other 1,766,344 1,726,135
Total held-to-maturity securities 4,783,708 4,890,991
Total securities 5,754,500 5,901,493
Mortgage loans:
Multi-family 15,856,272 15,725,654
Commercial real estate 4,605,878 4,551,025
Acquisition, development, and construction 722,894 776,559
1-4 family 256,358 266,307
Total mortgage loans 21,441,402 21,319,545
Other loans 852,011 872,667
Total loans 22,293,413 22,192,212
Less: Allowance for loan losses (95,302 ) (94,368 )
Loans, net 22,198,111 22,097,844
Federal Home Loan Bank of New York stock, at 416,724 400,979
cost
Premises and equipment, net 213,395 217,762
Goodwill 2,436,401 2,436,401
Core deposit intangibles, net 82,093 87,780
Other assets 1,134,047 1,121,431
Total assets $ 32,402,552 $ 32,466,906
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 3,615,300 $ 3,818,952
Savings accounts 2,630,724 2,629,168
Certificates of deposit 6,778,509 6,796,971
Non-interest-bearing accounts 1,068,210 1,047,363
Total deposits 14,092,743 14,292,454
Borrowed funds:
Wholesale borrowings 12,552,946 12,343,064
Junior subordinated debentures 484,102 484,216
Other borrowings 669,459 669,430
Total borrowed funds 13,706,507 13,496,710
Mortgagors' escrow 159,521 83,194
Other liabilities 207,895 375,302
Total liabilities 28,166,666 28,247,660
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; 344,985,111 shares 3,450 3,450
issued; 344,946,651 and 344,985,111 shares
outstanding at the respective dates)
Paid-in capital in excess of par 4,186,602 4,181,599
Retained earnings 126,121 123,511
Treasury stock (38,460 and 0 shares at the (467 ) --
respective dates)
Unallocated common stock held by ESOP (1,734 ) (1,995 )
Accumulated other comprehensive loss, net of
tax:
Net unrealized loss on available-for-sale (24,633 ) (32,506 )
securities, net of tax
Net unrealized loss on securities transferred
from available for sale to held (4,549 ) (4,706 )
to maturity, net of tax
Net unrealized loss on pension and (48,904 ) (50,107 )
post-retirement obligations, net of tax
Total accumulated other comprehensive loss, net (78,086 ) (87,319 )
of tax
Total stockholders' equity 4,235,886 4,219,246
Total liabilities and stockholders' equity $ 32,402,552 $ 32,466,906
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the Three Months Ended
March 31, December 31, March 31,
2009 2008 2008
Interest Income:
Mortgage and other loans $321,717 $320,127 $312,988
Securities 78,383 90,921 86,974
Money market investments 6 58 2,362
Total interest income 400,106 411,106 402,324
Interest Expense:
NOW and money market accounts 7,563 13,941 14,168
Savings accounts 4,181 4,466 5,979
Certificates of deposit 52,723 61,968 76,574
Borrowed funds 128,689 129,099 144,118
Mortgagors' escrow 35 25 26
Total interest expense 193,191 209,499 240,865
Net interest income 206,915 201,607 161,459
Provision for loan losses 6,000 5,600 --
Net interest income after
provision for loan losses 200,915 196,007 161,459
Non-interest Income:
Fee income 9,291 9,995 10,584
Bank-owned life insurance 6,840 7,744 6,745
Net gain on sale of securities -- 5 --
Loss on other-than-temporary
impairment of securities -- (10,562 ) --
Gain on debt repurchase -- 16,036 926
Other 6,045 5,805 10,242
Total non-interest income 22,176 29,023 28,497
Non-interest Expense:
Operating expenses:
Compensation and benefits 42,422 40,795 43,066
Occupancy and equipment 18,736 18,147 17,710
General and administrative 22,753 21,980 18,042
Total operating expenses 83,911 80,922 78,818
Amortization of core deposit
intangibles 5,687 5,733 6,032
Total non-interest expense 89,598 86,655 84,850
Income before income taxes 133,493 138,375 105,106
Income tax expense 44,804 36,143 32,735
Net Income $ 88,689 $102,232 $ 72,371
Basic earnings per share $0.26 $0.30 $0.22
Diluted earnings per share $0.26 $0.30 $0.22
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 U.S. generally accepted accounting principles ("GAAP"), we
believe that operating earnings are an important indication of our ability to
generate earnings through our fundamental banking business. Since operating
earnings exclude the effects of certain items that are unusual and/or difficult
to predict, we believe that our operating earnings provide useful supplemental
information to both management and investors in evaluating the Company's
financial results.
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
we calculate our 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 March 31, 2009, December 31, 2008, and March 31, 2008 follow:
For the Three Months Ended
March 31, December 31, March 31,
(in thousands, except per share data) 2009 2008 2008
GAAP Earnings $88,689 $102,232 $72,371
Adjustments to GAAP earnings:
Loss on other-than-temporary impairment of -- 10,562 --
securities
Visa-related gain -- -- (1,647 )
Gain on debt repurchase -- (16,036 ) (926 )
Income tax effect -- (4,316 ) 371
Operating earnings $88,689 $ 92,442 $70,169
Diluted GAAP Earnings per Share $0.26 $ 0.30 $0.22
Adjustments to diluted GAAP earnings per
share:
Loss on other-than-temporary impairment of -- 0.02 --
securities
Visa-related gain -- -- --
Gain on debt repurchase -- (0.05 ) --
Diluted operating earnings per share $0.26 $ 0.27 $0.22
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATION OF GAAP AND CASH EARNINGS
(unaudited)
While cash earnings are not a measure of performance calculated in accordance
with GAAP, the Company believes that this measure is important because of its
contribution to tangible stockholders' equity. (Please see the discussion and
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.
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 calculated 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.
Reconciliations of the Company's GAAP and cash earnings for the three months
ended March 31, 2009, December 31, 2008, and March 31, 2008 follow:
For the
Three Months Ended
March 31, December 31, March 31,
(in thousands, except per share data) 2009 2008 2008
GAAP Earnings $88,689 $102,232 $72,371
Additional contributions to tangible
stockholders' equity:
Amortization and appreciation of shares held 3,484 3,236 3,138
in stock-related benefit plans
Associated tax effects 1,887 (2,071 ) 277
Dividends on unallocated ESOP shares 158 245 244
Amortization of core deposit intangibles 5,687 5,733 6,032
Loss on other-than-temporary impairment of -- 6,246 --
securities
Visa-related gain -- -- (325 )
Total additional contributions to tangible 11,216 13,389 9,366
stockholders' equity
Cash earnings $99,905 $115,621 $81,737
Diluted GAAP Earnings per Share $0.26 $ 0.30 $0.22
Additional contributions to diluted GAAP
earnings per share:
Amortization and appreciation of shares held 0.01 0.01 0.01
in stock-related benefit plans
Associated tax effects -- (0.01 ) --
Dividends on unallocated ESOP shares -- -- --
Amortization of core deposit intangibles 0.02 0.02 0.02
Loss on other-than-temporary impairment of -- 0.02 --
securities
Visa-related gain -- -- --
Total additional contributions to diluted 0.03 0.04 0.03
GAAP earnings per share
Diluted cash earnings per share $0.29 $ 0.34 $0.25
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATIONS 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 measures that are
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 the accumulated other comprehensive loss,
net of tax ("AOCL"). The AOCL consists of after-tax net unrealized losses on
securities and pension and post-retirement obligations, and is recorded in the
Company's Consolidated Statements of Condition. The Company also calculates its
ratio of tangible stockholders' equity to tangible assets excluding the AOCL, as
its components are impacted by changes in market conditions, including interest
rates, which fluctuate. This ratio is referred to as the ratio of "adjusted
tangible stockholders' equity to adjusted tangible assets." The Company
calculates tangible book value per share 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 capital 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,
adjusted tangible stockholders' equity, tangible assets, adjusted 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 March 31,
2009, December 31, 2008, and March 31, 2008 follow:
At or for the
Three Months Ended
March 31, December 31, March 31,
2009 2008 2008
(in thousands)
Total Stockholders' Equity $ 4,235,886 $ 4,219,246 $ 4,158,173
Less: Goodwill (2,436,401 ) (2,436,401 ) (2,436,933 )
Core deposit intangibles (82,093 ) (87,780 ) (105,091 )
Tangible stockholders' equity $ 1,717,392 $ 1,695,065 $ 1,616,149
Total Assets $32,402,552 $32,466,906 $30,910,081
Less: Goodwill (2,436,401 ) (2,436,401 ) (2,436,933 )
Core deposit intangibles (82,093 ) (87,780 ) (105,091 )
Tangible assets $29,884,058 $29,942,725 $28,368,057
Tangible Stockholders' Equity $1,717,392 $1,695,065 $1,616,149
Add back: Accumulated other 78,086 87,319 32,766
comprehensive loss, net of tax
Adjusted tangible stockholders' $1,795,478 $1,782,384 $1,648,915
equity
Tangible Assets $29,884,058 $29,942,725 $28,368,057
Add back: Accumulated other 78,086 87,319 32,766
comprehensive loss, net of tax
Adjusted tangible assets $29,962,144 $30,030,044 $28,400,823
Average Stockholders' Equity $ 4,162,211 $ 4,185,087 $ 4,107,436
Less: Average goodwill (2,436,401 ) (2,436,173 ) (2,437,301 )
Average core deposit intangibles (85,790 ) (91,477 ) (109,046 )
Average tangible stockholders' $ 1,640,020 $ 1,657,437 $ 1,561,089
equity
Average Assets $32,196,921 $32,116,431 $30,660,666
Less: Average goodwill (2,436,401 ) (2,436,173 ) (2,437,301 )
Average core deposit intangibles (85,790 ) (91,477 ) (109,046 )
Average tangible assets $29,674,730 $29,588,781 $28,114,319
Net Income $88,689 $102,232 $72,371
Add back: Amortization of core 3,469 3,497 3,660
deposit intangibles, net of tax
Adjusted net income $92,158 $105,729 $76,031
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
For the Three Months Ended March 31,
2009 2008
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
Assets:
Interest-earning
assets:
Mortgage and other $ 22,108,647 $ 321,717 5.83 % $ 20,244,263 $ 312,988 6.19 %
loans, net
Securities 6,189,513 78,383 5.07 6,125,558 86,974 5.68
Money market 11,263 6 0.22 293,229 2,362 3.23
investments
Total
interest-earning 28,309,423 400,106 5.66 26,663,050 402,324 6.04
assets
Non-interest-earning 3,887,498 3,997,616
assets
Total assets $ 32,196,921 $ 30,660,666
Liabilities and
Stockholders'
Equity:
Interest-bearing
deposits:
NOW and money market $ 3,662,920 $ 7,563 0.84 % $ 2,616,675 $ 14,168 2.17 %
accounts
Savings accounts 2,599,310 4,181 0.65 2,485,517 5,979 0.96
Certificates of 6,390,655 52,723 3.35 6,970,738 76,574 4.41
deposit
Mortgagors' escrow 125,279 35 0.11 122,922 26 0.08
Total
interest-bearing 12,778,164 64,502 2.05 12,195,852 96,747 3.18
deposits
Borrowed funds 14,041,521 128,689 3.71 12,869,126 144,118 4.49
Total
interest-bearing 26,819,685 193,191 2.92 25,064,978 240,865 3.85
liabilities
Non-interest-bearing 1,021,458 1,226,621
deposits
Other liabilities 193,567 261,631
Total liabilities 28,034,710 26,553,230
Stockholders' equity 4,162,211 4,107,436
Total liabilities
and stockholders' $ 32,196,921 $ 30,660,666
equity
Net interest
income/interest rate $ 206,915 2.74 % $ 161,459 2.19 %
spread
Net interest-earning
assets/net interest $ 1,489,738 2.89 % $ 1,598,072 2.41 %
margin
Ratio of
interest-earning
assets to
interest-bearing 1.06 x 1.06 x
liabilities
Core deposits(1) $ 7,283,688 $ 11,744 0.65 % $ 6,328,813 $ 20,147 1.28 %
(1) Refers to all deposits other than certificates of deposit.
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
For the Three Months Ended
March 31, 2009 December 31, 2008
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
Assets:
Interest-earning
assets:
Mortgage and other $ 22,108,647 $ 321,717 5.83 % $ 21,608,984 $ 320,127 5.92 %
loans, net
Securities 6,189,513 78,383 5.07 6,547,368 90,921 5.55
Money market 11,263 6 0.22 23,687 58 0.97
investments
Total
interest-earning 28,309,423 400,106 5.66 28,180,039 411,106 5.83
assets
Non-interest-earning 3,887,498 3,936,392
assets
Total assets $ 32,196,921 $ 32,116,431
Liabilities and
Stockholders'
Equity:
Interest-bearing
deposits:
NOW and money market $ 3,662,920 $ 7,563 0.84 % $ 3,751,383 $ 13,941 1.48 %
accounts
Savings accounts 2,599,310 4,181 0.65 2,638,730 4,466 0.67
Certificates of 6,390,655 52,723 3.35 6,931,005 61,968 3.56
deposit
Mortgagors' escrow 125,279 35 0.11 182,571 25 0.05
Total
interest-bearing 12,778,164 64,502 2.05 13,503,689 80,400 2.37
deposits
Borrowed funds 14,041,521 128,689 3.71 13,163,191 129,099 3.90
Total
interest-bearing 26,819,685 193,191 2.92 26,666,880 209,499 3.13
liabilities
Non-interest-bearing 1,021,458 1,062,786
deposits
Other liabilities 193,567 201,678
Total liabilities 28,034,710 27,931,344
Stockholders' equity 4,162,211 4,185,087
Total liabilities
and stockholders' $ 32,196,921 $ 32,116,431
equity
Net interest
income/interest rate $ 206,915 2.74 % $ 201,607 2.70 %
spread
Net interest-earning
assets/net interest $ 1,489,738 2.89 % $ 1,513,159 2.87 %
margin
Ratio of
interest-earning
assets to
interest-bearing 1.06 x 1.06 x
liabilities
Core deposits(1) $ 7,283,688 $ 11,744 0.65 % $ 7,452,899 $ 18,407 0.98 %
(1) Refers to all deposits other than certificates of deposit.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
(unaudited)
For the Three Months Ended
March 31, December 31, March 31,
2009 2008 2008
GAAP EARNINGS DATA:
Net income $88,689 $102,232 $72,371
Basic earnings per share 0.26 0.30 0.22
Diluted earnings per share 0.26 0.30 0.22
Return on average assets 1.10 % 1.27 % 0.94 %
Return on average tangible assets 1.24 1.43 1.08
(1)
Return on average stockholders' 8.52 9.77 7.05
equity
Return on average tangible 22.48 25.52 19.48
stockholders' equity(1)
Efficiency ratio(2) 36.63 35.09 41.49
Operating expenses to average 1.04 1.01 1.03
assets
Interest rate spread 2.74 2.70 2.19
Net interest margin 2.89 2.87 2.41
Shares used for basic EPS 343,323,162 342,500,098 322,719,037
computation
Shares used for diluted EPS 343,401,009 342,653,466 323,988,429
computation
OPERATING EARNINGS DATA:(3)
Operating earnings $88,689 $92,442 $70,169
Basic operating earnings per share 0.26 0.27 0.22
Diluted operating earnings per 0.26 0.27 0.22
share
Return on average assets 1.10 % 1.15 % 0.92 %
Return on average tangible assets 1.24 1.30 1.05
(1)
Return on average stockholders' 8.52 8.84 6.83
equity
Return on average tangible 22.48 23.15 18.92
stockholders' equity(1)
Operating efficiency ratio(2) 36.63 35.94 42.06
CASH EARNINGS DATA:(4)
Cash earnings $99,905 $115,621 $81,737
Basic cash earnings per share 0.29 0.34 0.25
Diluted cash earnings per share 0.29 0.34 0.25
Return on average assets 1.24 % 1.44 % 1.07 %
Return on average tangible assets 1.35 1.56 1.16
(1)
Return on average stockholders' 9.60 11.05 7.96
equity
Return on average tangible 24.37 27.90 20.94
stockholders' equity(1)
Cash efficiency ratio(5) 35.11 32.21 39.95
Please see the reconciliations of stockholders' equity and tangible
(1) stockholders' equity, total assets and tangible assets, and the related
capital measures elsewhere in this release.
The Company calculates its GAAP and operating efficiency ratios by dividing
(2) 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 elsewhere in this release.
(3) Please see the reconciliations of GAAP and operating earnings elsewhere in
this release.
(4) Please see the reconciliations of GAAP and cash earnings elsewhere in this
release.
The Company calculates its cash efficiency ratio by dividing its operating
(5) expenses by the sum of its net interest income and non-interest income
after excluding the pertinent non-cash items from its operating expenses
and non-interest income.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
At March 31, At December 31, At March 31,
2009 2008 2008
BALANCE SHEET DATA:
Book value per share $12.30 $12.25 $12.83
Tangible book value per share 4.99 4.92 4.99
(1)
Stockholders' equity to total 13.07 % 13.00 % 13.45 %
assets
Tangible stockholders' equity 5.75 5.66 5.70
to tangible assets(1)
Tangible stockholders' equity
to tangible assets excluding 5.99 5.94 5.78
accumulated other comprehensive
loss, net of tax(1)
Shares used for book value and
tangible book value per share 344,398,362 344,353,808 324,061,691
computations(1)
Total shares issued and 344,946,651 344,985,111 324,952,866
outstanding
ASSET QUALITY RATIOS:
Non-performing loans to total 0.79 % 0.51 % 0.11 %
loans
Non-performing assets to total 0.55 0.35 0.07
assets
Allowance for loan losses to 54.35 83.00 421.66
non-performing loans
Allowance for loan losses to 0.43 0.43 0.45
total loans
Net charge-offs during the
period to average loans 0.02 0.02 0.00
outstanding during the period
Net charge-offs during the
period to the average allowance 5.37 3.65 0.43
for loan losses during the
period
Please see the reconciliations of stockholders' equity and tangible
(1) stockholders' equity, total assets and tangible assets, and the related
capital measures elsewhere in this release.
Footnotes to the Text
Please see the reconciliations of the Company's GAAP and operating earnings
(1) for the three months ended March 31, 2009 and 2008 elsewhere in this
release.
(2) Please see the reconciliations of the Company's GAAP and cash earnings for
the three months ended March 31, 2009 and 2008 elsewhere in this release.
The Company calculates its GAAP and operating efficiency ratios by dividing
(3) 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 elsewhere in this release.
Please see the reconciliations of the Company's stockholders' equity and
(4) tangible stockholders' equity, its total assets and tangible assets, and
the related capital measures elsewhere in this release.
The SNL Bank & Thrift Index data referenced in this release is
(5) size-weighted and calculated by consolidating the March 31, 2009 data for
270 U.S. banks and thrifts into a single entity on April 28, 2009.
Source: New York Community Bancorp, Inc.
Contact: New York Community Bancorp, Inc.
Ilene A. Angarola, 516-683-4420
Executive Vice President &
Director, Investor Relations