Company Also Reports 4Q 2009 Diluted
Operating EPS of $0.26 and 4Q 2009 Diluted Cash EPS of $0.51(1)(2)
Board of Directors Declares $0.25 per
Share Quarterly Cash Dividend
4Q 2009 Performance Highlights
-- Higher Net Interest Income:Net interest income rose 26.2% year-over-year
and 12.4% linked-quarter.
-- Expanded Net Interest Margin:At 3.33%, the margin was up 46 basis points
year-over-year and 16 basis points linked-quarter.
-- Above-Average Asset Quality:At $9.2 million, net charge-offs equaled
0.04% of average loans in the quarter, as compared to 0.81% for the SNL
Bank & Thrift Index. Non-performing assets represented 1.41% of total
assets at the end of the quarter, as compared to the SNL Bank & Thrift
Index measure of 3.04%.(3)
-- FDIC-Assisted Acquisition of AmTrust Bank: On December 4th, the Company
enhanced its balance sheet, earnings capacity, and retail branch network
with the acquisition of certain assets and liabilities of AmTrust Bank
("AmTrust"). Before purchase accounting adjustments, the transaction
provided assets of approximately $11 billion, including covered loans of
approximately $6 billion, securities of approximately $1 billion, and
cash of approximately $4 billion; liabilities of approximately $11
billion, including deposits of approximately $8 billion; and 66 branches
in Florida, Ohio, and Arizona.
-- Successful Common Stock Offering: The Company's issuance of 69.0 million
common shares in December generated net proceeds of $864.9 million.
-- Increased Capital Strength:Excluding accumulated other comprehensive
loss, net of tax ("AOCL"), the adjusted ratio of tangible stockholders'
equity to tangible assets rose 103 basis points linked-quarter to 7.28%.
Including AOCL, the ratio of tangible stockholders' equity to tangible
assets rose 114 basis points linked-quarter to 7.17%. In addition,
tangible book value per share rose 27.1% from $5.16 at the end of
September to $6.56 at December 31st.(4)
-- Lower Securities/Assets Ratio:The ratio of securities to total assets
declined to 13.7% at year-end.
-- Improved Operating Efficiency:At 35.60%, the operating efficiency ratio
reflected year-over-year and linked-quarter improvements of 34 and 25
basis points, respectively.(5)
Note: Please see the last page of this release for footnotes
to the text.
WESTBURY, N.Y.--(BUSINESS WIRE)--
New York Community Bancorp, Inc. (NYSE: NYB) (the "Company") today
reported that its fourth quarter 2009 GAAP earnings rose $68.0 million,
or 66.5%, year-over-year to $170.2 million, representing a $0.15, or
50.0%, increase in diluted GAAP earnings per share to $0.45. On a
linked-quarter basis, the Company's fourth quarter 2009 GAAP earnings
rose $71.7 million, equivalent to a $0.17, or 72.7%, increase in diluted
GAAP earnings per share.
The Company's fourth quarter 2009 GAAP earnings included an after-tax
bargain purchase gain (the "gain on AmTrust transaction") of $84.2
million, or $0.22 per diluted share; a $3.1 million, or $0.01 per
diluted share, after-tax gain on the repurchase of certain REIT- and
trust preferred securities; and a $1.9 million after-tax gain on the
termination of an AmTrust-related servicing hedge. The benefit of these
gains was partly offset by a non-cash after-tax charge of $11.1 million,
or $0.03 per diluted share, for the other-than-temporary impairment
("OTTI") of certain investment securities, and by after-tax
acquisition-related costs of $5.5 million, or $0.01 per diluted share,
relating to the AmTrust transaction.
Excluding the various gains and charges, operating earnings equaled
$97.7 million, or $0.26 per diluted share, in the current fourth
quarter, as compared to $90.2 million, or $0.26 per diluted share, in
the trailing quarter and $92.4 million, or $0.27 per diluted share, in
the fourth quarter of 2008. (1) Of particular importance, the
growth of the Company's fourth quarter operating earnings was tempered
by a $30.0 million loan loss provision that exceeded the quarter's net
charge-offs by $20.8 million. In the trailing and year-earlier quarters,
the provisions for loan losses were, respectively, $15.0 million and
$5.6 million, exceeding those quarters' net charge-offs by $8.6 million
and $2.2 million, respectively.
The Company also reported cash earnings of $191.3 million, or $0.51 per
diluted share, in the current fourth quarter, which added $21.1 million,
or 12.4%, more to tangible capital than its fourth quarter GAAP earnings
alone. (2) (4)
Commenting on the Company's current fourth quarter performance,
Chairman, President, and Chief Executive Officer Joseph R. Ficalora
stated, "We naturally are very pleased by the significant growth we
experienced this quarter in our revenues and earnings, our loans and
assets, our core and total deposits, and, perhaps most importantly, our
tangible capital strength.
"These increases can all be attributed to the strategic actions we took
during the quarter, and most notably to our FDIC-assisted acquisition of
$11 billion in assets and liabilities of AmTrust Bank. Although our
fourth quarter results include approximately one month of combined
operations, the merits of the transaction are already quite apparent. In
expanding our footprint beyond our traditional market to encompass
Florida, Ohio, and Arizona, we gained a retail funding platform with 66
branches that is expected to augment the growth of our loan portfolio.
"We also assumed AmTrust's mortgage banking operation, which continues
to operate as a service of the Community Bank. The mortgage banking
operation recommenced loan production in mid-December on a held-for-sale
basis to government-sponsored enterprises. During December, the Company
sold to the GSEs $735 million of one- to four-family loans that were
committed by AmTrust prior to the acquisition date.
"Furthermore, the addition of AmTrust's covered loans, together with our
own originations, increased our loan portfolio to $28 billion at
December 31st. The covered loans are all subject to a loss sharing
agreement with the FDIC that greatly mitigates the associated risk. At
the end of the year, total loans represented 127% of total
deposits--just one of the many improvements that speak to the merits of
our growth-through-acquisition strategy.
"As a result of the acquisition and other strategic actions, we realized
significant GAAP earnings growth in the fourth quarter of the year," Mr.
Ficalora said. "Reflecting an assortment of one-time gains, which more
than offset the impact of certain OTTI and acquisition-related charges,
diluted GAAP earnings per share rose from $0.28 to $0.45 over the course
of the quarter, boosting our twelve-month GAAP earnings to $414.0
million, or $1.17 per diluted share. Excluding the various charges and
gains--and despite our having doubled our loan loss provision to $30
million from the trailing-quarter level--operating earnings rose to
$97.7 million in the fourth quarter, equivalent to $0.26 per diluted
share. For the full year, our operating earnings rose to $364.7 million,
or $1.03 per diluted share." (1)
"Of equal note, our cash earnings rose 67.4% to $191.3 million over the
course of the quarter, equivalent to a 54.5% increase in diluted cash
earnings per share to $0.51. For the full year, our cash earnings
increased to $494.5 million, or $1.41 per diluted share. (2)
"While the increase in cash earnings contributed to the growth of our
tangible stockholders' equity, our successful capital-raising strategies
added $948 million to tangible capital at December 31st. In addition to
net proceeds of $865 million from our common stock offering in December,
we generated $147 million in 2009 through the direct purchase feature of
our dividend reinvestment and stock purchase plan, including $83 million
in the fourth quarter of the year. (4)
"As a result of our actions, tangible stockholders' equity rose $1.0
billion, or 55%, from the September 30th balance to $2.8 billion at
December 31st. Similarly, our ratio of adjusted tangible stockholders'
equity to adjusted tangible assets rose 103 basis points during this
time, to 7.28%. Another sign of the strengthening of our capital
position: Our tangible book value rose 27% over the course of the
quarter, from $5.16 to $6.56 per share. (4)
"The AmTrust transaction was not the sole contributor to our strong
fourth quarter performance," Mr. Ficalora continued. "At least some of
the credit rightly belongs to organic loan production and to the
opportunistic management of our funding costs. Notwithstanding
conditions in the local real estate market, we originated $873.1 million
of loans for portfolio in the current fourth quarter, including $494.8
million of multi-family loans. On the funding side, we utilized the
significant increase in deposits to reduce our wholesale funding,
together with our overall cost of funds.
"As a result of these and other factors--including the policies of the
Federal Open Market Committee--our net interest income rose $28.1
million, or 12.4%, on a linked-quarter basis, and $52.9 million, or
26.2%, year-over-year. Similarly, our net interest margin grew to 3.33%
in the quarter, reflecting three- and twelve-month increases of 16 and
46 basis points. We also saw an improvement in the efficiency of our
operations. Despite the impact of higher FDIC deposit insurance premiums
and the general acquisition-related increase in operating expenses, we
are very pleased to report an operating efficiency ratio of 35.6%.
"We also continue to be pleased by the degree to which our asset quality
measures continue to compare favorably with those of our industry peers.
Although non-performing loans were 2.04% of total loans at the end of
December, net charge-offs were a modest $9.2 million in the quarter, and
represented a mere 0.04% of average loans. These measures compare
favorably to the respective SNL Bank & Thrift Index measures of 4.33%
and 0.81%.(3) We are confident in our ability to maintain the
above-average quality of our assets, and in the likelihood that the
significant difference between the volume of non-performing loans and
the volume of net charge-offs recorded will continue, even in this time
of economic malaise."
Board of Directors Declares $0.25 per
Share Dividend, Payable on February 17th
"We ended the year excited by the transformational nature of our
FDIC-assisted transaction, and by the strengthening of our capital and
earnings capacity. In 2010, we look forward to building on the last
quarter's successes--as always, in the interest of enhancing the value
of our investors' shares. Accordingly, and in view of our strong capital
position and the strength of our fourth quarter 2009 cash earnings, the
Board of Directors last night declared a quarterly cash dividend of
$0.25 per share. The dividend is payable on February 17, 2010 to
shareholders of record at the close of business on February 5th," Mr.
Ficalora said.
Earnings for the Twelve Months Ended
December 31, 2009
For the twelve months ended December 31, 2009, the Company reported GAAP
earnings of $414.0 million, or $1.17 per diluted share, in contrast to
$77.9 million, or $0.23 per diluted share, in the twelve months ended
December 31, 2008. Besides the aforementioned gains recorded in the
current fourth quarter, the Company's twelve-month 2009 GAAP earnings
reflect an adjustment to income tax expense recorded in the third
quarter of the year. The benefit of these contributions to the Company's
2009 earnings was partly offset by the impact of OTTI charges and the
FDIC special assessment which equaled $43.2 million and $8.9 million
after-tax, or $0.12 and $0.03 per diluted share, respectively.
The Company's twelve-month 2008 GAAP earnings were reduced by various
charges totaling $244.6 million, or $0.73 per diluted share, including a
$199.2 million, or $0.60 per diluted share, after-tax debt repositioning
charge.
Excluding the aforementioned gains and charges in the respective
periods, the Company's operating earnings rose to $364.7 million in 2009
from $322.5 million in 2008, equivalent to a $0.07 increase in diluted
operating earnings per share to $1.03. The growth of the Company's 2009
operating earnings was tempered by twelve-month loan loss provisions of
$63.0 million, which exceeded the year's net charge-offs by $33.1
million and the prior year's provision by $55.3 million. (1)
In addition, the Company reported cash earnings of $494.5 million in the
current twelve-month period, equivalent to diluted cash earnings per
share of $1.41. (2)
Balance Sheet Summary at December 31,
2009
The Company recorded total assets of $42.2 billion at the end of
December, a $9.7 billion, or 29.9%, increase from the year-earlier
amount. Asset growth was primarily due to the assets acquired in the
AmTrust transaction, which included one- to four-family mortgage and
other loans of $5.0 billion; available-for-sale securities of $760.0
million, primarily comprised of U.S. Treasury securities; and cash and
due from banks of $3.6 billion, including $3.2 billion in cash received
from the FDIC.
Similarly, liabilities rose $8.5 billion, or 30.2%, year-over-year, to
$36.8 billion, primarily reflecting the AmTrust-related assumption of
deposits.
Loans
Loans, net, represented $28.3 billion, or 67.0%, of total assets at the
close of the current fourth quarter, signifying a linked-quarter
increase of $5.3 billion and a year-over-year increase of $6.2 billion,
or 27.9%. Included in the balance at December 31, 2009 were loans of
$5.0 million that were acquired in the AmTrust transaction, hereafter
referred to as "covered loans." Originations totaled $1.7 billion in the
current fourth quarter and included $873.1 million of loans that were
produced for portfolio. Twelve-month originations totaled $4.3 billion,
including $3.4 billion of loans produced for portfolio.
Non-Covered Loans
Multi-family loans represented $16.7 billion, or 71.6%, of non-covered
loans at the end of the current fourth quarter, and were up $263.2
million from the September 30th balance and $1.0 billion, or 6.4%, from
the balance recorded at year-end 2008. In the twelve months ended
December 31, 2009, multi-family loan originations totaled $1.9 billion,
including fourth quarter originations of $494.8 million.
Commercial real estate ("CRE") loans accounted for $5.0 billion, or
21.3%, of non-covered loans at the end of this December, up $114.0
million and $436.4 million, respectively, over the three- and
twelve-month periods. CRE loans represented $673.8 million of the loans
produced in the past four quarters, including $162.9 million in the
three months ended December 31, 2009.
At the end of the year, the average multi-family loan had a principal
balance of $4.0 million and the average CRE loan had a principal balance
of $2.8 million. The multi-family and CRE loan portfolios had current
average loan-to-value ratios ("LTVs") of 61.0% and 54.2%, respectively,
at the end of December, and expected weighted average lives of 4.2 years
and 3.9 years, respectively, at year-end.
Acquisition, development, and construction ("ADC") loans represented
$665.9 million, or 2.8%, of non-covered loans at the end of the current
fourth quarter, down $110.6 million, or 14.2%, from the balance recorded
at December 31, 2008. The Company has generally limited its production
of ADC loans in the past two years to advances that were committed prior
to the onset of the downward credit cycle turn.
Non-covered other loans declined $101.2 million, or 11.6%,
year-over-year, to $771.5 million at December 31, 2009. Included in the
current year-end amount were commercial and industrial ("C&I") loans of
$653.1 million, down $59.3 million from the balance recorded at December
31, 2008.
Covered Loans
The loans acquired in the AmTrust transaction are recorded on the
Company's consolidated statement of condition as "covered loans."
Covered loans are referred to as such because they are subject to a
loss-sharing agreement entered into in connection with the AmTrust
transaction. The loss sharing agreement requires the FDIC to assume 80%
of any losses on the first $907.0 million of losses on the loans that
are covered, and 95% of any losses on covered loans beyond that amount.
The covered loans consist primarily of performing one- to four-family
loans.
Pipeline
Given market conditions and the Company's integration activities during
the weeks preceding this release, the Company believes that the current
pipeline of $1.0 billion is not indicative of the pipeline expected in
future periods.
Asset Quality
The Company recorded net charge-offs of $9.2 million in the current
fourth quarter, as compared to $6.4 million and $3.4 million,
respectively, in the trailing and year-earlier three months. Net
charge-offs represented 0.04% of average loans in the current fourth
quarter, as compared to 0.03% and 0.02%, respectively, in the earlier
periods. In addition, the Company's ratio of net charge-offs to average
loans was substantially lower than the measure for the SNL Bank & Thrift
Index, which was 0.81%. (3)
Multi-family loans and CRE loans accounted for $6.6 million and
$209,000, respectively, of the current fourth quarter's net charge-offs,
with ADC, C&I, and one- to four-family and other loans accounting for
$1.8 million, $267,000, and $329,000, respectively.
Although non-performing assets rose on a linked-quarter basis, the
magnitude of the percentage increase was somewhat smaller than the
linked-quarter increases in the first three quarters of this year. At
December 31, 2009, non-performing assets represented $593.3 million, or
1.41%, of total assets, as compared to $475.7 million, or 1.45%, of
total assets, at the trailing quarter-end. Included in the year-end 2009
amount were non-performing loans of $578.1 million, representing 2.04%
of total loans and a $117.7 million linked-quarter increase, and other
real estate owned ("OREO") of $15.2 million, comparable to the trailing
quarter-end amount. Multi-family loans accounted for $393.1 million of
non-performing loans at the end of the current fourth quarter, with CRE
loans and ADC loans accounting for $70.6 million and $79.2 million,
respectively. In addition, non-performing loans included one- to
four-family loans of $14.2 million and other loans of $20.9 million at
December 31, 2009. Loans 30 to 89 days delinquent totaled $273.0 million
at that date, up $51.8 million from the trailing quarter-end amount.
Both currently and historically, there has been a significant difference
between the volume of loans recorded as non-performing and the actual
losses realized in the final disposition of such loans or the underlying
properties. Accordingly, the Company believes that the significant
increase in non-performing loans it experienced in 2009 will not
necessarily result in a comparable increase in losses.
Nonetheless, in view of the continued severity of the credit cycle, the
Company recorded a $30.0 million provision for loan losses in the
current fourth quarter, bringing the full-year loan loss provision to
$63.0 million. The fourth quarter provision was $15.0 million higher
than the trailing-quarter provision and $24.4 million higher than the
provision recorded in the fourth quarter of 2008. Reflecting the
twelve-month loan loss provision and twelve-month net charge-offs of
$29.9 million, the allowance for loan losses rose 35.1% to $127.5
million at the end of the current fourth quarter from $94.4 million at
December 31, 2008.
Securities
Securities represented $5.8 billion, or 13.7%, of total assets at the
end of this December, a $312.3 million increase from the September 30,
2009 balance and a $134.2 million decrease from the balance recorded at
December 31, 2008. Government-sponsored enterprise ("GSE") securities
represented approximately 91% of the securities portfolio at the current
fourth quarter-end.
Available-for-sale ("AFS") securities represented $1.5 billion, or
26.3%, of total securities at the end of this December, and were up
$705.7 million and $508.1 million, respectively, from the balances at
September 30, 2009 and December 31, 2008. The increase was primarily due
to the AmTrust transaction, which added AFS securities of $760.0 million
to the securities portfolio. Included in the latter amount were $608.0
million of U.S. Treasury notes and $152.0 million of GSE obligations.
Mortgage-related securities thus represented $774.2 million, or 51.0%,
of AFS securities at the end of the current fourth quarter, with other
securities representing $744.4 million, or 49.0%. In contrast,
mortgage-related securities represented $701.2 million, or 86.3%, of AFS
securities at the end of September, with other securities representing
$111.8 million, or 13.7%, of AFS securities at that date.
Held-to-maturity ("HTM") securities declined to $4.2 billion at the end
of the current fourth quarter from $4.6 billion and $4.9 billion,
respectively, at the earlier period-ends. Mortgage-related securities
represented $2.5 billion, or 58.0%, of HTM securities at the end of this
December, with other securities representing the remaining $1.8 billion,
or 42.0%.
The year-over-year reduction in securities, despite the addition of the
AmTrust portfolio, was partly due to repayments and partly due to the
aforementioned OTTI of certain trust preferred and pooled trust
preferred securities.
Funding Sources
Largely reflecting deposits acquired in the AmTrust transaction, the
balance of deposits rose to $22.3 billion at the end of December from
$14.5 billion and $14.4 billion, respectively, at September 30, 2009 and
December 31, 2008.
Certificates of deposit ("CDs") accounted for $9.1 billion, or 40.6%, of
total deposits at the close of the current fourth quarter and were up
$3.3 billion and $2.3 billion, respectively, from the earlier amounts.
Core deposits (defined as all deposits other than CDs) totaled $13.3
billion at the end of this December, and were up $4.6 billion and $5.7
billion, respectively, from the balances recorded at September 30, 2009
and December 31, 2008.
NOW and money market accounts represented the bulk of the increase in
core deposits, rising $3.0 billion and $3.9 billion, respectively, to
$7.7 billion at December 31, 2009. Savings accounts rose $906.9 million
and $1.2 billion, respectively, to $3.8 billion, and
non-interest-bearing deposits rose to $1.8 billion from $1.1 billion at
both September 30, 2009 and December 31, 2008.
Reflecting the benefit of the AmTrust transaction, the ratio of loans to
deposits improved to 127.2% at the close of the current fourth quarter
from 159.2% and 154.4%, respectively, at the earlier period-ends.
Borrowed funds totaled $14.2 billion at the end of this December, and
were up $300.8 million linked-quarter and $668.0 million year-over-year.
Wholesale borrowings represented $13.1 billion of the December 31, 2009
total, and were up $321.6 million and $737.7 million, respectively, from
the balances recorded at September 30, 2009 and December 31, 2008. The
AmTrust transaction accounted for the bulk of these increases, with
wholesale borrowings of $2.6 billion having been acquired. The Company
subsequently deployed a portion of the cash acquired in the transaction
to pay down $865.0 million of acquired wholesale borrowings.
Stockholders' Equity
Stockholders' equity rose to $5.4 billion at December 31, 2009 from $4.3
billion at the end of September and $4.2 billion at December 31, 2008.
The December 31, 2009 amount was equivalent to 12.76% of total assets
and a book value per share of $12.43. At September 30, 2009 and December
31, 2008, stockholders' equity was equivalent to 13.20% and 13.00% of
total assets and book values per share of $12.21 and $12.25,
respectively.
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 December 31, 2009, September 30, 2009,
and December 31, 2008, the Company's book values per share were
calculated on the basis of 432,898,084; 355,457,472; and 344,353,808
shares, respectively. The increase in the number of shares at the end of
the current fourth quarter includes 69.0 million shares that were issued
pursuant to the Company's common stock offering in December, and 7.4
million shares that were issued earlier in the quarter through the
direct purchase feature of the Company's Dividend Reinvestment and Stock
Purchase Plan ("DRP"). A total of 13.2 million shares were issued
through the direct purchase feature of the DRP over the course of the
year.
Tangible stockholders' equity rose to $2.8 billion at the close of the
current fourth quarter, from $1.8 billion and $1.7 billion,
respectively, at the earlier period-ends. The December 31, 2009 amount
was equivalent to 7.17% of tangible assets, up 114 basis points from the
September 30th measure and 151 basis points from the measure at December
31, 2008. Excluding AOCL from the calculation, the Company's adjusted
tangible stockholders' equity represented 7.28% of adjusted tangible
assets at the end of this December, up 103 basis points and 134 basis
points, respectively, from the measures recorded at the earlier dates.
These increases primarily reflect the $864.9 million in net proceeds
from the Company's common stock offering in December, and $147.3 million
that was generated through the issuance of shares through the Company's
DRP in 2009. Included in the latter amount was $82.6 million that was
generated in the fourth quarter of the year.(4)
The Company's subsidiary banks also reported solid levels of capital at
the end of December, and continued to exceed the requirements for
classification as "well capitalized" institutions under the FDIC
Improvement Act. At December 31, 2009, New York Community Bank (the
"Community Bank") had a leverage capital ratio of 9.52%, exceeding the
minimum required for "well capitalized" classification by 452 basis
points. At the same time, New York Commercial Bank had a leverage
capital ratio of 11.39%, exceeding the minimum required for such
classification by 639 basis points. The Community Bank's leverage
capital ratio was 211 basis points higher than the ratio recorded at
September 30, 2009.
Earnings Summary for the Three Months
Ended December 31, 2009
The Company recorded fourth quarter 2009 GAAP earnings of $170.2
million, up from $98.6 million and $102.2 million, respectively, in the
trailing and year-earlier three months. Diluted GAAP earnings per share
rose to $0.45 in the current fourth quarter from $0.28 and $0.30,
respectively, in the earlier periods.
The fourth quarter 2009 amounts reflect the benefit of the gain on the
AmTrust transaction, the debt repurchase gain recorded in connection
with the Company's repurchase of certain REIT- and trust preferred
securities, and the gain on the termination of a servicing hedge. On an
after-tax basis, the combined benefits added $89.1 million to the
Company's fourth quarter 2009 GAAP earnings and $0.23 to its diluted
GAAP earnings per share. The benefit of these contributions to the
Company's fourth quarter 2009 GAAP earnings was only partly reduced by a
non-cash after-tax OTTI charge of $11.1 million and acquisition-related
costs of $5.5 million which, together, were equivalent to $0.04 per
diluted share.
In the third quarter of 2009, the Company's GAAP earnings included a
$13.3 million, or $0.04 per diluted share, adjustment to income tax
expense, primarily reflecting the resolution of various tax audits, and
a $3.4 million, or $0.01 per diluted share, after-tax gain on the
exchange of its Bifurcated Option Note Unit SecuritiESSM
("BONUSES units") in August 2009. These contributions to earnings were
partly offset by a non-cash after-tax charge of $7.9 million, or $0.02
per diluted share, for the OTTI of certain investment securities.
In the fourth quarter of 2008, the Company's GAAP earnings included a
non-taxable gain of $16.0 million, or $0.05 per diluted share, recorded
in connection with the repurchase of $42.2 million of debt, which more
than offset the impact of a $6.2 million, or $0.02 per diluted share,
after-tax OTTI charge.
Excluding the respective gains and charges, the Company recorded
operating earnings of $97.7 million, or $0.26 per diluted share, in the
current fourth quarter, as compared to $90.2 million, or $0.26 per
diluted share, in the trailing quarter and $92.4 million, or $0.27 per
diluted share, in the fourth quarter of 2008. (1) While the
Company's fourth quarter 2009 operating earnings were boosted by
increased net interest income and non-interest income, these increases
were tempered by the higher loan loss provision and by a largely
acquisition-driven increase in non-interest expense.
Net Interest Income
The Company recorded net interest income of $254.5 million in the
current fourth quarter, representing a three-month increase of $28.1
million, or 12.4%, and a year-over-year increase of $52.9 million, or
26.2%. The linked-quarter and year-over-year increases were driven by
several factors, including an increase in the average balance of loans,
partly reflecting organic loan production; a general decline in retail
and wholesale funding costs; the extinguishment of certain trust
preferred securities in connection with the aforementioned exchange of
BONUSES units in the third quarter; the repurchase of certain REIT- and
trust preferred securities in the fourth quarter of 2009; and the
benefit of the AmTrust acquisition on December 4th.
Year-over-Year Comparison
Interest income rose $18.8 million year-over-year, to $429.9 million as
the average balance of interest-earning assets rose $2.5 billion, or
8.8%, to $30.7 billion, exceeding the impact of a 23-basis point decline
in the average yield to 5.60%.
The interest income produced by loans rose $35.0 million year-over-year,
to $355.1 million, as the average balance of such assets rose $3.1
billion to $24.7 billion, more than offsetting the impact of a 17-basis
point drop in the average yield to 5.75%. The interest income produced
by loans was reduced by the reversal of interest income on loans that
transitioned to non-accrual status over the past four quarters. In
addition, with refinancing activity constrained by continued economic
weakness, prepayment penalty income contributed a modest $2.0 million to
the interest income produced by loans in the current fourth quarter, as
compared to the already modest $2.4 million contributed in the
year-earlier three months.
The interest income produced by securities and money market investments
fell $16.2 million year-over-year, to $74.8 million, as a $611.9 million
decline in the average balance to $6.0 billion combined with a 52-basis
point decline in the average yield on such assets to 5.02%.
Interest expense fell $34.1 million year-over-year, to $175.4 million,
as the impact of a $3.1 billion increase in the average balance of
interest-bearing liabilities to $29.5 billion was exceeded by the benefit
of a 79-basis point decrease in the average cost of funds, to 2.36%.
In addition to the historically low level of the federal funds rate, the
lower cost reflects the run-off of higher-cost CDs throughout the year,
the exchange of BONUSES units for common stock in the third quarter, and
the repurchase of REIT- and trust preferred securities in the fourth
quarter of 2009.
While the average balance of interest-bearing deposits rose $2.4 billion
year-over-year, to $15.8 billion, the cost of such funds dropped 124
basis points during this time to 1.16%. As a result, the interest
expense produced by interest-bearing deposits fell $34.1 million, or
42.5%, to $46.3 million in the fourth quarter of 2009.
Borrowed funds generated interest expense of $129.1 million in the
current fourth quarter, comparable to the interest expense produced by
such funds in the fourth quarter of 2008. Although the average balance
of borrowed funds rose $607.9 million year-over-year, to $13.8 billion,
the average cost of such funds fell 18 basis points during this time, to
3.72%.
The same factors that contributed to the year-over-year increase in
fourth quarter 2009 net interest income contributed to the expansion of
the Company's interest rate spread and net interest margin during this
time. At 3.24%, the Company's current fourth quarter spread was 56 basis
points wider than the year-earlier measure and, at 3.33%, its margin was
up 46 basis points. Prepayment penalty income contributed two basis
points to the current fourth quarter spread and margin, as compared to
three basis points in the year-earlier three months.
Linked-Quarter Comparison
While the average balance of interest-earning assets rose $1.9 billion
over the course of the quarter, the average yield held steady at 5.60%.
As a result, the linked-quarter increase in fourth quarter 2009 interest
income was a modest $26.9 million, or 6.7%. The interest income produced
by loans rose $28.0 million in the current fourth quarter, as the
average balance of loans rose $1.9 billion and the average yield held
steady at 5.75%. During this time, the interest income produced by
securities and money market investments fell a modest $1.1 million, as a
$32.4 million decline in the average balance of such assets combined
with a four-basis point decline in the average yield.
The linked-quarter reduction in interest expense was a modest $1.2
million, as the average balance of interest-bearing liabilities rose
$2.3 billion and the average cost of funds declined 22 basis points.
The interest expense produced by interest-bearing deposits fell $281,000
during the quarter, as the impact of a $2.8 billion increase in the
average balance was tempered by a 27-basis point decline in the average
cost of such funds. On a linked-quarter basis, the interest expense
produced by borrowed funds fell $886,000, the net effect of a $494.0
million decline in the average balance and a ten-basis point rise in the
average cost of such funds.
Reflecting the same factors that contributed to the linked-quarter
increase in net interest income, the Company's interest rate spread rose
22 basis points and its net interest margin rose 16 basis points during
this time.
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 $30.0 million provision for loan losses in the
current fourth quarter, doubling the provision recorded in the trailing
quarter and exceeding the year-earlier provision by $24.4 million.
Reflecting the provision and the $9.2 million of net charge-offs
recorded in the quarter, the allowance for loan losses totaled $127.5
million at the end of December, up $20.8 million from the level recorded
at September 30, 2009. Year-over-year, the loan loss allowance was up
$33.1 million.
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. The combined non-interest income from these revenue sources
totaled $37.4 million in the current fourth quarter, up from $22.6
million and $23.5 million, respectively, in the trailing and
year-earlier three months.
Fee income totaled $11.8 million in the current fourth quarter and was
modestly higher than the levels recorded in the third quarter of 2009
and the fourth quarter of 2008. At $6.9 million, BOLI income was
essentially consistent with the trailing-quarter level, and down
$820,000 from the year-earlier amount. Other non-interest income totaled
$18.6 million in the current fourth quarter, up from $6.0 million and
$5.8 million, respectively, in the earlier periods. The latter increases
were primarily due to a $3.1 million pre-tax gain on the termination of
a servicing hedge, other AmTrust-related income, and an increase in
revenues from the Company's investment advisory subsidiary, Peter B.
Cannell & Co., Inc.
In the fourth quarter of 2009, the combined revenues from these three
components of non-interest income were tempered by a pre-tax OTTI charge
of $18.5 million, as compared to OTTI charges of $13.3 million and $10.6
million, respectively, in the trailing and year-earlier three months.
However, the Company also recorded a pre-tax gain on the AmTrust
transaction of $139.6 million and a $4.3 million pre-tax gain on debt
repurchase in the current fourth quarter, which more than offset the
impact of the OTTI charge.
In the three months ended September 30, 2009 and December 31, 2008, the
Company's non-interest income included pre-tax gains on debt redemption
of $5.7 million and $16.0 million, respectively.
The Company thus recorded total non-interest income of $163.2 million in
the current fourth quarter, as compared to $15.1 million and $29.0
million, respectively, in the trailing and year-earlier three-month
periods.
Non-Interest Expense
Non-interest expense totaled $114.3 million in the current fourth
quarter, up $18.9 million and $27.7 million, respectively, from the
levels recorded in the trailing and year-earlier three months. Operating
expenses accounted for $108.1 million of non-interest expense in the
current fourth quarter, representing a linked-quarter increase of $18.0
million and a year-over-year increase of $27.2 million.
Compensation and benefits expense represented $51.1 million of total
operating expenses in the current fourth quarter, up $5.0 million and
$10.3 million, respectively, from the trailing-quarter and year-earlier
amounts. The linked-quarter increase was primarily due to the addition
of branch and back-office staff as a result of the AmTrust transaction;
the year-over-year increase also reflects normal salary increases and
the expansion of certain back-office departments.
Primarily reflecting the added costs of operating AmTrust's 66 branches
in December, occupancy and equipment expense grew to $19.4 million in
the current fourth quarter from $17.7 million and $18.1 million,
respectively, in the trailing quarter and year-earlier three months.
General and administrative ("G&A") expense rose $11.3 million
linked-quarter and $15.6 million year-over-year, to $37.6 million,
reflecting acquisition-related costs of $5.2 million, travel and other
expenses stemming from the AmTrust transaction and the Company's active
engagement in the due diligence process, and, on a year-over-year basis,
increased FDIC insurance premiums.
Income Tax Expense
The Company recorded income tax expense of $103.1 million in the current
fourth quarter, as compared to $32.4 million and $36.1 million,
respectively, in the three months ended September 30, 2009 and December
31, 2008. The increase was largely due to the significant increase in
pre-tax income, which totaled $273.3 million in the current fourth
quarter as compared to $131.0 million in the trailing quarter and $138.4
million in the three months ended December 31, 2008. In addition, the
effective tax rate was 37.71% in the current fourth quarter, as compared
to 24.73% and 26.12%, respectively, in the trailing and year-earlier
three months.
The level of income tax expense and the effective tax rate in the third
quarter of 2009 reflect a downward adjustment of $13.3 million,
primarily in connection with the resolution of various tax audits during
this period.
About New York Community Bancorp, Inc.
With assets of $42.2 billion at December 31, 2009, New York Community
Bancorp, Inc. is the 22nd largest bank holding company in the nation and
a leading producer of multi-family mortgage 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, a thrift
with 243 branches serving customers throughout Metro New York, New
Jersey, Florida, Ohio, and Arizona; and New York Commercial Bank, with
35 branches serving customers in Manhattan, Queens, Brooklyn, Long
Island, and Westchester County in New York.
Reflecting its growth through a series of acquisitions, including the
recent AmTrust transaction, the Community Bank now operates through
seven local divisions, each with a history of strength and service in
its community: Queens County Savings Bank in Queens, Roslyn Savings Bank
on Long Island, Richmond County Savings Bank on Staten Island, Roosevelt
Savings Bank in Brooklyn; Garden State Community Bank in New Jersey;
Ohio Savings Bank in Ohio; and AmTrust Bank in Florida and Arizona.
Similarly, the Commercial Bank operates 18 of its branches under the
divisional name Atlantic Bank. Additional 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 January 27, 2010 at 9:30 a.m.
(ET) to discuss its fourth quarter 2009 performance and strategies,
including its FDIC-assisted acquisition of the deposits and certain
assets of AmTrust Bank. The conference call may be accessed by dialing
800-862-9098 (for domestic calls) or 785-424-1051 (for international
calls) and providing the following access code: 4QNYCB. A replay will be
available approximately two hours following completion of the call
through midnight on February 1st, and may be accessed by calling
800-839-4012 (domestic) or 402-220-2981 (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 February 24, 2010.
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 the forward-looking statements.
These factors include, but are not limited to: general economic
conditions, either nationally or in some or all of the areas in which we
and our customers conduct our respective businesses; conditions in the
securities markets 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 deposit flows
and wholesale borrowing facilities; changes in the demand for deposit,
loan, and investment products and other financial services in the
markets we serve; changes in our credit ratings or in our ability to
access the capital markets; changes in our customer base or in the
financial or operating performances of our customers' businesses;
changes in real estate values, which could impact the quality of the
assets securing the loans in our portfolio; changes in the quality or
composition of our loan or securities 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,
including those acquired in the AmTrust transaction, into our
operations and our ability to realize related revenue synergies and cost
savings within expected time frames; our ability to retain key members
of management; our timely development of new lines of business and
competitive products or services in a changing environment, and the
acceptance of such products or services by our customers; any
interruption or breach of security resulting in failures or disruptions
in customer account management, general ledger, deposit, loan or other
systems; any interruption in customer service due to circumstances
beyond our control; potential exposure to unknown or contingent
liabilities of companies we have acquired or target for acquisition,
including those of AmTrust; the outcome of pending or threatened
litigation, or of other matters before regulatory agencies, 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; 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; 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; changes in legislation, regulation, policies, or
administrative practices, whether by judicial, governmental, or
legislative action, including, but not limited to, those pertaining to
banking, securities, taxation, rent regulation and housing,
environmental protection, and insurance, and the ability to comply with
such changes in a timely manner; additional FDIC special assessments or
required assessment prepayments; changes in accounting principles,
policies, practices, or guidelines; the ability to keep pace with, and
implement on a timely basis, technological changes; changes in the
monetary and fiscal policies of the U.S. Government, including policies
of the U.S. Department of the Treasury and the Board of Governors of the
Federal Reserve System; 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.
- Financial Statements and Highlights Follow -
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
December 31, December 31,
2009 2008
(unaudited)
Assets
Cash and cash equivalents $ 2,670,857 $ 203,216
Securities available for sale:
Mortgage-related 774,205 833,684
Other 744,441 176,818
Total available-for-sale securities 1,518,646 1,010,502
Securities held to maturity:
Mortgage-related 2,465,956 3,164,856
Other 1,782,706 1,726,135
Total held-to-maturity securities 4,248,662 4,890,991
Total securities 5,767,308 5,901,493
Non-covered mortgage loans:
Multi-family 16,735,684 15,725,654
Commercial real estate 4,987,410 4,551,025
Acquisition, development, and construction 665,912 776,559
1-4 family 216,078 266,307
Total non-covered mortgage loans 22,605,084 21,319,545
Non-covered other loans 771,515 872,667
Total non-covered loans 23,376,599 22,192,212
Less: Allowance for loan losses (127,491 ) (94,368 )
Non-covered loans, net 23,249,108 22,097,844
Covered loans 4,664,778 --
Covered loans held for sale 351,322 --
Total loans, net 28,265,208 22,097,844
Federal Home Loan Bank stock, at cost 496,742 400,979
Premises and equipment, net 205,165 217,762
FDIC loss share receivable 743,276 --
Goodwill 2,436,401 2,436,401
Core deposit intangibles, net 105,764 87,780
Other assets 1,478,453 1,121,431
Total assets $ 42,169,174 $ 32,466,906
Liabilities and Stockholders' Equity
Deposits:
NOW and money market accounts $ 7,706,288 $ 3,818,952
Savings accounts 3,788,294 2,632,078
Certificates of deposit 9,053,891 6,796,971
Non-interest-bearing accounts 1,767,938 1,127,647
Total deposits 22,316,411 14,375,648
Borrowed funds:
Wholesale borrowings 13,080,769 12,343,064
Junior subordinated debentures 427,371 484,216
Other borrowings 656,546 669,430
Total borrowed funds 14,164,686 13,496,710
Other liabilities 305,870 375,302
Total liabilities 36,786,967 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; 433,197,332
and 344,985,111 shares issued, respectively; 4,332 3,450
433,197,332 and
344,985,111 shares outstanding at the respective
dates)
Paid-in capital in excess of par 5,238,231 4,181,599
Retained earnings 190,498 123,511
Unallocated common stock held by ESOP (951 ) (1,995 )
Accumulated other comprehensive loss, net of
tax:
Net unrealized loss on securities and non-credit
portion of (6,274 ) (32,506 )
other-than-temporary impairment ("OTTI") losses,
net of tax
Net unrealized loss on securities transferred
from available for sale to (3,927 ) (4,706 )
held to maturity, net of tax
Pension and post-retirement obligations, net of (39,702 ) (50,107 )
tax
Total accumulated other comprehensive loss, net (49,903 ) (87,319 )
of tax
Total stockholders' equity 5,382,207 4,219,246
Total liabilities and stockholders' equity $ 42,169,174 $ 32,466,906
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Three Months Ended For the
Twelve Months Ended
December 31, September 30, December 31, December 31, December 31,
2009 2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Interest Income:
Mortgage and other $ 355,124 $ 327,120 $ 320,127 $ 1,325,601 $ 1,260,291
loans
Securities and money 74,750 75,816 90,979 309,011 344,838
market investments
Total interest 429,874 402,936 411,106 1,634,612 1,605,129
income
Interest Expense:
NOW and money market 11,531 7,380 13,941 33,788 54,599
accounts
Savings accounts 4,391 3,687 4,491 15,859 22,179
Certificates of 30,346 35,482 61,968 163,168 271,615
deposit
Borrowed funds 129,141 130,027 129,099 516,472 581,241
Total interest 175,409 176,576 209,499 729,287 929,634
expense
Net interest income 254,465 226,360 201,607 905,325 675,495
Provision for loan 30,000 15,000 5,600 63,000 7,700
losses
Net interest income
after provision for 224,465 211,360 196,007 842,325 667,795
loan losses
Non-Interest Income:
Total loss on OTTI (7,559 ) (22,550 ) (10,562 ) (81,182 ) (104,317 )
of securities
Less: Non-credit
portion of OTTI
(reversal) loss
recorded in (10,905 ) 9,275 -- 9,715 --
other comprehensive
income
(before taxes)
Net loss on OTTI
recognized in (18,464 ) (13,275 ) (10,562 ) (71,467 ) (104,317 )
earnings
Fee income 11,819 9,682 9,995 40,074 41,191
Bank-owned life 6,924 6,914 7,744 27,406 28,644
insurance
Net gain on sale of 338 -- 5 338 573
securities
Gain on debt 4,337 5,717 16,036 10,054 16,962
repurchases/exchange
Gain on AmTrust 139,607 -- -- 139,607 --
transaction
Other 18,607 6,034 5,805 36,693 32,476
Total non-interest 163,168 15,072 29,023 182,705 15,529
income
Non-Interest
Expense:
Operating expenses:
Compensation and 51,132 46,093 40,795 184,692 169,970
benefits
Occupancy and 19,381 17,700 18,147 73,724 70,654
equipment
General and 37,585 26,274 21,980 125,587 80,194
administrative
Total operating 108,098 90,067 80,922 384,003 320,818
expenses
Debt repositioning -- -- -- -- 285,369
charge
Amortization of core 6,237 5,412 5,733 22,812 23,343
deposit intangibles
Total non-interest 114,335 95,479 86,655 406,815 629,530
expense
Income before income 273,298 130,953 138,375 618,215 53,794
taxes
Income tax expense 103,057 32,380 36,143 204,264 (24,090 )
(benefit)
Net Income $ 170,241 $ 98,573 $ 102,232 $ 413,951 $ 77,884
Basic earnings per $ 0.45 $ 0.28 $ 0.30 $ 1.17 $ 0.23
share
Diluted earnings per $ 0.45 $ 0.28 $ 0.30 $ 1.17 $ 0.23
share
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 our 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 our GAAP and operating earnings for the three months ended December
31, 2009, September 30, 2009, and December 31, 2008 and for the twelve months ended
December 31, 2009 and 2008 follow:
For the Three Months Ended For the Twelve Months
Ended
(in thousands, Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
except per share 2009 2009 2008 2009 2008
data)
GAAP Earnings $ 170,241 $ 98,573 $ 102,232 $ 413,951 $ 77,884
Adjustments to GAAP
earnings:
Gain on AmTrust (139,607 ) -- -- (139,607 ) --
transaction
Loss on OTTI of 18,464 13,275 10,562 71,467 104,317
securities
Gain on debt (4,337 ) (5,717 ) (16,036 ) (10,054 ) (16,962 )
repurchases/exchange
Acquisition-related 7,530 -- -- 7,530 --
costs
Gain on termination (3,078 ) -- -- (3,078 ) --
of servicing hedge
FDIC special -- 801 -- 14,753 --
assessment
Resolution of tax -- (13,316 ) -- (14,337 ) --
audits
Debt repositioning -- -- -- -- 325,016
charge
Litigation -- -- -- -- 3,365
settlement charge
Visa-related gain -- -- -- -- (1,647 )
Income tax effect 48,502 (3,401 ) (4,316 ) 24,025 (169,467 )
Operating earnings $ 97,715 $ 90,215 $ 92,442 $ 364,650 $ 322,506
Diluted GAAP $ 0.45 $ 0.28 $ 0.30 $ 1.17 $ 0.23
Earnings per Share
Adjustments to
diluted GAAP
earnings per share:
Gain on AmTrust (0.22 ) -- -- (0.24 ) --
transaction
Loss on OTTI of 0.03 0.02 0.02 0.12 0.19
securities
Gain on debt (0.01 ) (0.01 ) (0.05 ) (0.02 ) (0.06 )
repurchases/exchange
Acquisition-related 0.01 -- -- 0.01 --
costs
Gain on termination -- -- -- -- --
of servicing hedge
FDIC special -- -- -- 0.03 --
assessment
Resolution of tax -- (0.04 ) -- (0.04 ) --
audits
Debt repositioning -- -- -- -- 0.60
charge
Litigation -- -- -- -- 0.01
settlement charge
Visa-related gain -- -- -- -- (0.01 )
Diluted operating $ 0.26 $ 0.26 $ 0.27 $ 1.03 $ 0.96
earnings per share
Note: Footing differences in the table are due to rounding.
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATION OF GAAP AND CASH EARNINGS
(unaudited)
Although cash earnings are not a measure of performance calculated in accordance
with GAAP, we believe that this measure is important because of its contribution
to tangible stockholders' equity. (Please see the discussion and reconciliations
of stockholders' equity and tangible stockholders' equity that appear on the
following page.) We calculate cash earnings by adding back to GAAP earnings
certain items that have been charged against them but that are added to, rather
than subtracted from, tangible stockholders' equity. For this reason, we believe
that cash earnings are useful to investors seeking to evaluate our financial
performance and to compare our 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
we calculate cash earnings may differ from that of other companies reporting
measures with similar names.
Reconciliations of our GAAP and cash earnings for the three months ended
December 31, 2009, September 30, 2009, and December 31, 2008 and for the twelve
months ended December 31, 2009 follow:
For the Three Months Ended
(in thousands, For the Twelve
except per share Months Ended
data) Dec. 31, 2009 Sept. 30, 2009 Dec. 31, 2008 Dec. 31, 2009
GAAP Earnings $ 170,241 $ 98,573 $ 102,232 $ 413,951
Additional
contributions to
tangible
stockholders'
equity: (1)
Amortization and
appreciation of
shares held in 3,355 3,219 3,236 13,252
stock-related
benefit plans
Associated tax 216 2,473 (2,071 ) 4,010
effects
Dividends on
unallocated ESOP 158 157 245 631
shares
Amortization of
core deposit 6,237 5,412 5,733 22,812
intangibles
Gain on debt -- (3,381 ) -- (3,381 )
exchange
Loss on OTTI of 11,136 7,851 6,246 43,208
securities
Total additional
contributions to
tangible 21,102 15,731 13,389 80,532
stockholders'
equity (1)
Cash earnings $ 191,343 $ 114,304 $ 115,621 $ 494,483
Diluted GAAP $ 0.45 $ 0.28 $ 0.30 $ 1.17
Earnings per Share
Additional
contributions to
diluted GAAP
earnings per
share:
Amortization and
appreciation of
shares held in 0.01 0.01 0.01 0.04
stock-related
benefit plans
Associated tax -- 0.01 (0.01 ) 0.02
effects
Dividends on
unallocated ESOP -- -- -- --
shares
Amortization of
core deposit 0.02 0.02 0.02 0.07
intangibles
Gain on debt -- (0.01 ) -- (0.01 )
exchange
Loss on OTTI of 0.03 0.02 0.02 0.12
securities
Total additional
contributions to 0.06 0.05 0.04 0.24
diluted GAAP
earnings per share
Diluted cash $ 0.51 $ 0.33 $ 0.34 $ 1.41
earnings per share
Cash Earnings
Data:
Cash return on 2.14 % 1.39 % 1.44 % 1.49 %
average assets
Cash return on
average tangible 2.31 1.51 1.56 1.61
assets (1)
Cash return on
average 16.65 10.87 11.05 11.53
stockholders'
equity
Cash return on
average tangible 36.81 26.98 27.90 27.89
stockholders'
equity (1)
Cash efficiency 24.02 34.88 32.21 32.13
ratio (2)
(1) Please see the reconciliations of stockholders' equity and tangible
stockholders' equity, total assets and tangible assets, and the related measures
that appear on the following page.
(2) We calculate our cash efficiency ratio by dividing our operating expenses by
the sum of our net interest income and non-interest income after excluding the
pertinent non-cash items from our operating expenses and non-interest income.
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 their analysis of our performance. We
believe that these non-GAAP measures are an important indication of our ability to grow both
organically and through business combinations, and, with respect to tangible stockholders'
equity and adjusted tangible stockholders' equity, our ability to pay dividends and to
engage in various capital management strategies.
Neither tangible stockholders' equity, adjusted tangible stockholders' equity, tangible
assets, adjusted tangible assets, nor the related measures should be considered in isolation
or as a substitute for stockholders' equity, total assets, or any other measure calculated
in accordance with GAAP. Moreover, the manner in which we calculate our 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 our 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 December 31, 2009, September 30,
2009, and December 31, 2008 and the twelve months ended December 31, 2009 and 2008 follow:
At or for the At or for the
Three Months Ended Twelve Months Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
2009 2009 2008 2009 2008
(in
thousands)
Total
Stockholders' $ 5,382,207 $ 4,340,539 $ 4,219,246 $ 5,382,207 $ 4,219,246
Equity
Less: (2,436,401 ) (2,436,401 ) (2,436,401 ) (2,436,401 ) (2,436,401 )
Goodwill
Core deposit (105,764 ) (71,205 ) (87,780 ) (105,764 ) (87,780 )
intangibles
Tangible
stockholders' $ 2,840,042 $ 1,832,933 $ 1,695,065 $ 2,840,042 $ 1,695,065
equity
Total Assets $ 42,169,174 $ 32,884,468 $ 32,466,906 $ 42,169,174 $ 32,466,906
Less: (2,436,401 ) (2,436,401 ) (2,436,401 ) (2,436,401 ) (2,436,401 )
Goodwill
Core deposit (105,764 ) (71,205 ) (87,780 ) (105,764 ) (87,780 )
intangibles
Tangible $ 39,627,009 $ 30,376,862 $ 29,942,725 $ 39,627,009 $ 29,942,725
assets
Tangible
Stockholders' $ 2,840,042 $ 1,832,933 $ 1,695,065 $ 2,840,042 $ 1,695,065
Equity
Add back:
Accumulated
other 49,903 68,394 87,319 49,903 87,319
comprehensive
loss, net of
tax
Adjusted
tangible $ 2,889,945 $ 1,901,327 $ 1,782,384 $ 2,889,945 $ 1,782,384
stockholders'
equity
Tangible $ 39,627,009 $ 30,376,862 $ 29,942,725 $ 39,627,009 $ 29,942,725
Assets
Add back:
Accumulated
other 49,903 68,394 87,319 49,903 87,319
comprehensive
loss, net of
tax
Adjusted
tangible $ 39,676,912 $ 30,445,256 $ 30,030,044 $ 39,676,912 $ 30,030,044
assets
Average
Stockholders' $ 4,597,636 $ 4,206,036 $ 4,185,087 $ 4,290,067 $ 4,177,332
Equity
Less: Average
goodwill and (2,518,149 ) (2,511,174 ) (2,527,650 ) (2,516,993 ) (2,536,966 )
core deposit
intangibles
Average
tangible $ 2,079,487 $ 1,694,862 $ 1,657,437 $ 1,773,074 $ 1,640,366
stockholders'
equity
Average $ 35,716,185 $ 32,813,508 $ 32,116,431 $ 33,284,331 $ 31,159,776
Assets
Less: Average
goodwill and (2,518,149 ) (2,511,174 ) (2,527,650 ) (2,516,993 ) (2,536,966 )
core deposit
intangibles
Average
tangible $ 33,198,036 $ 30,302,334 $ 29,588,781 $ 30,767,338 $ 28,622,810
assets
Net Income $ 170,241 $ 98,573 $ 102,232 $ 413,951 $ 77,884
Add back:
Amortization
of core 3,804 3,302 3,497 13,915 14,183
deposit
intangibles,
net of tax
Adjusted net $ 174,045 $ 101,875 $ 105,729 $ 427,866 $ 92,067
income
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
For the Three Months Ended December 31,
2009 2008
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
Assets:
Interest-earning
assets:
Mortgage and other $ 24,705,898 $ 355,124 5.75 % $ 21,608,984 $ 320,127 5.92 %
loans, net
Securities and money 5,959,190 74,750 5.02 6,571,055 90,979 5.54
market investments
Total
interest-earning 30,665,088 429,874 5.60 28,180,039 411,106 5.83
assets
Non-interest-earning 5,051,097 3,936,392
assets
Total assets $ 35,716,185 $ 32,116,431
Liabilities and
Stockholders'
Equity:
Interest-bearing
deposits:
NOW and money market $ 5,928,202 $ 11,531 0.77 % $ 3,751,383 $ 13,941 1.48 %
accounts
Savings accounts 3,198,211 4,391 0.54 2,641,887 4,491 0.68
Certificates of 6,645,878 30,346 1.81 6,931,005 61,968 3.56
deposit
Total
interest-bearing 15,772,291 46,268 1.16 13,324,275 80,400 2.40
deposits
Borrowed funds 13,771,132 129,141 3.72 13,163,191 129,099 3.90
Total
interest-bearing 29,543,423 175,409 2.36 26,487,466 209,499 3.15
liabilities
Non-interest-bearing 1,394,761 1,242,200
deposits
Other liabilities 180,365 201,678
Total liabilities 31,118,549 27,931,344
Stockholders' equity 4,597,636 4,185,087
Total liabilities
and stockholders' $ 35,716,185 $ 32,116,431
equity
Net interest
income/interest rate $ 254,465 3.24 % $ 201,607 2.68 %
spread
Net interest-earning
assets/net interest $ 1,121,665 3.33 % $ 1,692,573 2.87 %
margin
Ratio of
interest-earning
assets to 1.04 x 1.06 x
interest-bearing
liabilities
Core deposits (1) $ 10,521,174 $ 15,922 0.60 % $ 7,635,470 $ 18,432 0.96 %
(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
December 31, 2009 September 30, 2009
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
Assets:
Interest-earning
assets:
Mortgage and other $ 24,705,898 $ 355,124 5.75 % $ 22,763,695 $ 327,120 5.75 %
loans, net
Securities and money 5,959,190 74,750 5.02 5,991,637 75,816 5.06
market investments
Total
interest-earning 30,665,088 429,874 5.60 28,755,332 402,936 5.60
assets
Non-interest-earning 5,051,097 4,058,176
assets
Total assets $ 35,716,185 $ 32,813,508
Liabilities and
Stockholders'
Equity:
Interest-bearing
deposits:
NOW and money market $ 5,928,202 $ 11,531 0.77 % $ 4,273,603 $ 7,380 0.69 %
accounts
Savings accounts 3,198,211 4,391 0.54 2,810,906 3,687 0.52
Certificates of 6,645,878 30,346 1.81 5,854,953 35,482 2.40
deposit
Total
interest-bearing 15,772,291 46,268 1.16 12,939,462 46,549 1.43
deposits
Borrowed funds 13,771,132 129,141 3.72 14,265,133 130,027 3.62
Total
interest-bearing 29,543,423 175,409 2.36 27,204,595 176,576 2.58
liabilities
Non-interest-bearing 1,394,761 1,129,061
deposits
Other liabilities 180,365 273,816
Total liabilities 31,118,549 28,607,472
Stockholders' equity 4,597,636 4,206,036
Total liabilities
and stockholders' $ 35,716,185 $ 32,813,508
equity
Net interest
income/interest rate $ 254,465 3.24 % $ 226,360 3.02 %
spread
Net interest-earning
assets/net interest $ 1,121,665 3.33 % $ 1,550,737 3.17 %
margin
Ratio of
interest-earning
assets to 1.04 x 1.06 x
interest-bearing
liabilities
Core deposits (1) $ 10,521,174 $ 15,922 0.60 % $ 8,213,570 $ 11,067 0.53 %
(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 Twelve Months Ended December 31,
2009 2008
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
Assets:
Interest-earning
assets:
Mortgage and other $ 22,996,752 $ 1,325,601 5.76 % $ 20,843,714 $ 1,260,291 6.05 %
loans, net
Securities and money 6,046,085 309,011 5.11 6,354,826 344,838 5.43
market investments
Total
interest-earning 29,042,837 1,634,612 5.63 27,198,540 $ 1,605,129 5.90
assets
Non-interest-earning 4,241,494 3,961,236
assets
Total assets $ 33,284,331 $ 31,159,776
Liabilities and
Stockholders'
Equity:
Interest-bearing
deposits:
NOW and money market $ 4,481,377 $ 33,788 0.75 % $ 3,131,137 $ 54,599 1.74 %
accounts
Savings accounts 2,829,237 15,859 0.56 2,620,864 22,179 0.85
Certificates of 6,296,344 163,168 2.59 6,811,031 271,615 3.99
deposit
Total
interest-bearing 13,606,958 212,815 1.56 12,563,032 348,393 2.77
deposits
Borrowed funds 13,943,594 516,472 3.70 12,890,813 581,241 4.51
Total
interest-bearing 27,550,552 729,287 2.65 25,453,845 929,634 3.65
liabilities
Non-interest-bearing 1,221,709 1,316,237
deposits
Other liabilities 222,003 212,362
Total liabilities 28,994,264 26,982,444
Stockholders' equity 4,290,067 4,177,332
Total liabilities
and stockholders' $ 33,284,331 $ 31,159,776
equity
Net interest
income/interest rate $ 905,325 2.98 % $ 675,495 2.25 %
spread
Net interest-earning
assets/net interest $ 1,492,285 3.12 % $ 1,744,695 2.48 %
margin
Ratio of
interest-earning
assets to 1.05 x 1.07 x
interest-bearing
liabilities
Core deposits (1) $ 8,532,323 $ 49,647 0.58 % $ 7,068,238 $ 76,778 1.09 %
(1) Refers to all deposits other than certificates of deposit.
Please see the following page for an analysis of our net interest income for the twelve
months ended December 31, 2008 excluding the impact of a $39.6 million debt repositioning
charge that was recorded in the second quarter of that year, as compared to our net
interest income for the twelve months ended December 31, 2009.
NEW YORK COMMUNITY BANCORP, INC.
ADJUSTED NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
The following table presents an analysis of our net interest income for the twelve months
ended December 31, 2008 as if the $39.6 million debt repositioning charge recorded in the
second quarter of that year had not been recorded. Although such adjusted net interest
income is not a measure of performance calculated in accordance with GAAP, we believe that
it is an important indication of our ability to generate net interest income through our
fundamental banking business and therefore provides useful supplemental information to both
management and investors in evaluating our financial results.
The following line items are presented in the adjusted net interest income analysis for the
twelve months ended December 31, 2008 excluding the impact of the debt repositioning
charge: interest expense produced by borrowed funds; average cost of borrowed funds;
interest expense produced by average interest-bearing liabilities; average cost of
interest-bearing liabilities; net interest income; interest rate spread; and net interest
margin. No adjustments have been made to these items for the twelve months ended December
31, 2009.
None of the adjusted items should be considered in isolation or as a substitute for net
interest income or its component measures. Moreover, the manner in which we have calculated
our adjusted net interest income may differ from that of other companies that may report a
measure with a similar name.
For the Twelve Months Ended December 31,
2009 2008
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
Assets:
Interest-earning
assets:
Mortgage and other $ 22,996,752 $ 1,325,601 5.76 % $ 20,843,714 $ 1,260,291 6.05 %
loans, net
Securities and money 6,046,085 309,011 5.11 6,354,826 344,838 5.43
market investments
Total
interest-earning 29,042,837 1,634,612 5.63 27,198,540 1,605,129 5.90
assets
Non-interest-earning 4,241,494 3,961,236
assets
Total assets $ 33,284,331 $ 31,159,776
Liabilities and
Stockholders'
Equity:
Interest-bearing
deposits:
NOW and money market $ 4,481,377 $ 33,788 0.75 % $ 3,131,137 $ 54,599 1.74 %
accounts
Savings accounts 2,829,237 15,859 0.56 2,620,864 22,179 0.85
Certificates of 6,296,344 163,168 2.59 6,811,031 271,615 3.99
deposit
Total
interest-bearing 13,606,958 212,815 1.56 12,563,032 348,393 2.77
deposits
Borrowed funds 13,943,594 516,472 3.70 12,890,813 541,594 4.20
Total
interest-bearing 27,550,552 729,287 2.65 25,453,845 889,987 3.50
liabilities
Non-interest-bearing 1,221,709 1,316,237
deposits
Other liabilities 222,003 212,362
Total liabilities 28,994,264 26,982,444
Stockholders' equity 4,290,067 4,177,332
Total liabilities
and stockholders' $ 33,284,331 $ 31,159,776
equity
Net interest
income/interest rate $ 905,325 2.98 % $ 715,142 2.40 %
spread
Net interest-earning
assets/net interest $ 1,492,285 3.12 % $ 1,744,695 2.63 %
margin
Ratio of
interest-earning
assets to 1.05 x 1.07 x
interest-bearing
liabilities
Core deposits (1) $ 8,532,323 $ 49,647 0.58 % $ 7,068,238 $ 76,778 1.09 %
(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 For the Twelve Months Ended
Dec. 31, Sept. 30, Dec 31, Dec. 31, Dec. 31,
2009 2009 2008 2009 2008
GAAP EARNINGS
DATA:
Net income $ 170,241 $ 98,573 $ 102,232 $ 413,951 $ 77,884
Basic
earnings per 0.45 0.28 0.30 1.17 0.23
share
Diluted
earnings per 0.45 0.28 0.30 1.17 0.23
share
Return on
average 1.91 % 1.20 % 1.27 % 1.24 % 0.25 %
assets
Return on
average 2.10 1.34 1.43 1.39 0.32
tangible
assets (1)
Return on
average 14.81 9.37 9.77 9.65 1.86
stockholders'
equity
Return on
average
tangible 33.48 24.04 25.52 24.13 5.61
stockholders'
equity (1)
Efficiency 25.88 37.31 35.09 35.29 46.43
ratio (2)
Operating
expenses to 1.21 1.10 1.01 1.15 1.03
average
assets
Interest rate 3.24 3.02 2.68 2.98 2.25
spread
Net interest 3.33 3.17 2.87 3.12 2.48
margin
Shares used
for basic EPS 374,178,949 346,176,162 342,500,098 351,869,427 334,657,211
computation
Shares used
for diluted 374,256,016 346,251,189 342,653,466 351,939,053 335,371,065
EPS
computation
OPERATING
EARNINGS
DATA:(3)
Operating $ 97,715 $ 90,215 $ 92,442 $ 364,650 $ 322,506
earnings
Basic
operating 0.26 0.26 0.27 1.03 0.96
earnings per
share
Diluted
operating 0.26 0.26 0.27 1.03 0.96
earnings per
share
Return on
average 1.09 % 1.10 % 1.15 % 1.10 % 1.04 %
assets
Return on
average 1.22 1.23 1.30 1.23 1.18
tangible
assets (1)
Return on
average 8.50 8.58 8.84 8.50 7.72
stockholders'
equity
Return on
average
tangible 19.53 22.07 23.15 21.35 20.53
stockholders'
equity (1)
Operating
efficiency 35.60 35.85 35.94 36.16 38.89
ratio (2)
Interest rate 3.24 3.02 2.68 2.98 2.40 (4)
spread
Net interest 3.33 3.17 2.87 3.12 2.63 (4)
margin
Shares used
for basic 374,178,949 346,176,162 342,500,098 351,869,427 334,657,211
operating EPS
computation
Shares used
for diluted 374,256,016 346,251,189 342,653,466 351,939,053 335,371,065
operating EPS
computation
(1) Please see the reconciliations of stockholders' equity and tangible stockholders' equity, total
assets and tangible assets, and the related measures earlier in this release.
(2) We calculate our GAAP and operating efficiency ratios by dividing the respective operating
expenses by the respective sums of net interest income and non-interest income. Please see the
reconciliations of GAAP and operating earnings earlier in this release.
(3) Please see the reconciliations of GAAP and operating earnings earlier in this release.
(4) Please see the reconciliations of our interest rate spread and net interest margin to our
adjusted interest rate spread and adjusted net interest margin for the twelve months ended December
31, 2008 earlier in this release.
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
At or for the Three Months Ended
December 31, September 30, December 31,
2009 2009 2008
BALANCE SHEET DATA:
Book value per share $ 12.43 $ 12.21 $ 12.25
Tangible book value per share 6.56 5.16 4.92
(1)
Stockholders' equity to total 12.76 % 13.20 % 13.00 %
assets
Tangible stockholders' equity 7.17 6.03 5.66
to tangible assets (1)
Tangible stockholders' equity
to tangible assets
excluding accumulated other 7.28 6.25 5.94
comprehensive loss, net
of tax (1)
Shares used for book value
and tangible book value 432,898,084 355,457,472 344,353,808
per share computations (1)
Total shares issued and 433,197,332 355,839,733 344,985,111
outstanding
ASSET QUALITY RATIOS:
Non-performing loans to total 2.04 % 2.00 % 0.51 %
loans
Non-performing assets to 1.41 1.45 0.35
total assets
Allowance for loan losses to 22.05 23.17 83.00
non-performing loans
Allowance for loan losses to 0.45 0.46 0.43
total loans
Net charge-offs during the
period to average loans 0.04 0.03 0.02
outstanding during the period
Net charge-offs during the
period to the average 8.58 6.56 3.65
allowance for loan losses
during the period
(1) Please see the reconciliations of stockholders' equity and tangible
stockholders' equity, total assets and tangible assets, and the related measures
earlier in this release.
Footnotes to the Text
(1) Please see the reconciliations of our GAAP and operating earnings
that appear elsewhere in this release.
(2) Please see the reconciliations of our GAAP and cash earnings that
appear elsewhere in this release.
(3) The SNL Bank & Thrift Index data referenced in this release is
calculated by consolidating the December 31, 2009 data for 138 U.S.
banks and thrifts into a single entity at January 26, 2010.
(4) Please see the reconciliations of our stockholders' equity and
tangible stockholders' equity, total assets and tangible assets, and the
related measures that appear elsewhere in this release.
(5) We calculate our GAAP and operating efficiency ratios by dividing
the respective operating expenses by the respective sums of net interest
income and non-interest income. Please see the reconciliations of GAAP
and operating earnings that appear elsewhere in this release.
Source: New York Community Bancorp, Inc.
Contact: New York Community Bancorp, Inc.
Ilene A. Angarola, 516-683-4420
Executive Vice President &
Director Investor Relations and Corp. Communications