Loan Originations Total $15.2 Billion in 2010,
Including 4th Quarter Originations of $5.5 Billion
Board of Directors Declares $0.25 per Share
Quarterly Cash Dividend
4Q 2010 Performance Highlights
-
Operating Earnings Growth: Operating earnings rose 43.4%
year-over-year to $140.1 million, providing a 1.50% return on average
tangible assets and a 19.28% return on average tangible stockholders’
equity. (2)(3)
-
Net Interest Income Growth: Net interest income rose 19.9%
year-over-year and 6.6% linked quarter, to $305.0 million in 4Q 2010.
-
Net Interest Margin Expansion: The margin rose 28 basis points
year-over-year and 25 basis points linked-quarter, to 3.61% in 4Q 2010.
-
Strong Loan Production: Loans produced for investment rose
82.0% year-over-year to $1.6 billion, including a 100% increase in
multi-family loans to $989.6 million.
-
Improved Asset Quality Measures: Net charge-offs declined $2.8
million, or 16.7%, linked-quarter, to $13.9 million and represented
0.05% of average loans in 4Q 2010. Non-performing assets declined
$27.0 million linked-quarter, and represented 1.58% of total assets at
December 31st.
-
Increased Capital Strength: Excluding accumulated other
comprehensive loss, net of tax (“AOCL”), the ratio of adjusted
tangible stockholders’ equity to adjusted tangible assets rose 65
basis points year-over-year and 23 basis points linked-quarter, to
7.90% at December 31st. (3)
-
Increased Efficiency: The operating efficiency ratio improved
to 34.81% from 35.60% in the year-earlier quarter and from 36.12% in
3Q 2010. (4)
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 GAAP earnings of $149.8 million, or $0.34 per diluted share,
for the three months ended December 31, 2010, and $541.0 million, or
$1.24 per diluted share, for the twelve months ended at that date.
The Company also reported that its fourth quarter 2010 operating
earnings rose $42.4 million, or 43.4%, year-over-year, to $140.1
million, equivalent to a $0.06, or 23.1%, increase in diluted operating
earnings per share to $0.32. The Company’s twelve-month operating
earnings rose $165.7 million, or 45.4%, year-over-year, to $530.4
million, equivalent to an $0.18, or 17.5%, increase in diluted operating
earnings per share to $1.21. (2)
In addition, the Company’s cash earnings equaled $162.3 million, or
$0.37 per diluted share, in the current fourth quarter, and $590.7
million, or $1.36 per diluted share, in the twelve months ended December
31, 2010. The Company’s fourth quarter 2010 cash earnings thus
contributed $12.4 million, or 8.3%, more to tangible capital than its
fourth quarter 2010 GAAP earnings, and its full-year cash earnings added
$49.7 million, or 9.2%, more to tangible capital than its full-year GAAP
earnings alone. (1)(3)
Commenting on the Company's full-year results, President and Chief
Executive Officer Joseph R. Ficalora stated, “There are many reasons we
are pleased with our 2010 performance, which demonstrated the benefits
of our business strategies. Reflecting the full-year effect of our
AmTrust acquisition, organic loan growth, and the quality of our assets,
we realized a 45.5% increase in operating earnings to $530.4 million and
a 17.5% increase in diluted operating earnings per share to $1.21.(2)
"Fueled by significant interest-earning asset growth, lower funding
costs, and a rise in prepayment penalty income, net interest income rose
better than 30% to $1.2 billion, while our net interest margin rose 33
basis points year-over-year to 3.45%. Revenue growth was also fueled by
our mortgage banking platform in Cleveland, which generated non-interest
income of $183.9 million in its first year of operation as a service of
NYCB. Notwithstanding a largely expansion-driven increase in operating
expenses, our operating efficiency ratio improved year-over-year to
35.88% from 36.16%. (4)
"Our fourth quarter performance is another good example of what we've
achieved by pursuing our core business model. Operating earnings rose
43.4% year-over-year to $140.1 million, equivalent to a $0.06, or 23.1%,
increase in diluted operating earnings per share to $0.32. Once again,
our earnings growth was primarily driven by net interest income, which
rose 6.6% linked-quarter and 19.9% year-over-year. The linked-quarter
rise reflects, in part, an increase in prepayment penalty income, which
added $15.2 million to interest income and 18 basis points to our
margin. At 3.61%, our fourth quarter margin was 25 basis points higher
than the margin we reported for the third quarter of 2010. (2)
"The strength of our 2010 performance continues with the volume of loans
produced for investment--in other words, the volume of loans we
originated for our own portfolio. In 2010, the volume of such loans was
$4.3 billion--a 27.6% increase from the volume produced in 2009. Fourth
quarter originations accounted for $1.6 billion of the loans produced in
2010 for investment, and were up 82.0% from the year-earlier amount.
Multi-family loans represented $989.6 million, or 62.3%, of the fourth
quarter's volume, and represented $2.5 billion, or 58.6%, of the volume
we produced over the course of the year.
"While the growth of our loan portfolio was constrained by repayments
and refinancings, the quality of our loan portfolio was essentially
maintained. At the end of the year, non-performing assets represented
1.58% of total assets, a 19-basis point improvement from the high of
1.77% at March 31st. Net charge-offs totaled $59.5 million in 2010,
including $13.9 million in the fourth quarter, and represented 0.21% of
average loans for the full year.
"Largely reflecting the meaningful growth of our earnings, our tangible
capital rose nearly 7% over the course of 2010. In a year when our
industry’s capital strength was a subject of much public discussion, our
ratio of adjusted tangible stockholders' equity to adjusted tangible
assets rose 65 basis points to 7.90% at December 31st.”(3)
Board of Directors Declares $0.25 per Share
Dividend, Payable on February 16th
“In recognition of our solid results and our increasingly strong capital
position, the Board of Directors last night declared--for the 28th
consecutive quarter--a quarterly cash dividend of $0.25 per share. The
dividend is payable on February 16, 2011 to shareholders of record at
the close of business on February 7th,” Mr. Ficalora said.
Balance Sheet Summary at December 31, 2010
The Company reduced its balance sheet to $41.2 billion at the end of
December from $42.2 billion at December 31, 2009. Although loans, net,
rose $776.4 million year-over-year to $29.0 billion, the increase was
exceeded by a $953.4 million reduction in the balance of securities to
$4.8 billion, and by the deployment of cash towards the repayment of
wholesale borrowings.
Liabilities declined $1.1 billion year-over-year, to $35.7 billion, as
the balance of borrowed funds fell $628.6 million to $13.5 billion, and
deposits totaled $21.8 billion, representing a $507.4 million decline.
Stockholders' equity increased $159.3 million year-over-year to $5.5
billion.
Loans
At December 31, 2010, loans, net, represented $29.0 billion, or 70.5%,
of total assets, a $776.4 million increase from the year-earlier balance
and a $249.7 million decrease from the balance at September 30, 2010.
Covered loans, net (i.e., loans acquired in the AmTrust Bank (“AmTrust”)
and Desert Hills Bank (“Desert Hills”) transactions that are covered by
FDIC loss sharing agreements), accounted for $4.3 billion, or 14.8%, of
the December 31, 2010 total, reflecting a year-over-year reduction of
$730.1 million and a three-month reduction of $187.8 million.
The remainder of the loan portfolio at December 31, 2010 consisted of
non-covered loans held for investment and non-covered loans held for
sale. Non-covered loans held for investment, net, totaled $23.5 billion
at the end of December, representing a twelve-month increase of $299.4
million and a three-month increase of $99.9 million.
The portfolio of non-covered loans held for sale primarily consisted of
agency-conforming one-to-four family loans that were originated for sale
to government-sponsored enterprises (“GSEs”) by the mortgage banking
operation acquired in the AmTrust transaction on December 4, 2009.
Non-covered loans held for sale totaled $1.2 billion at the end of
December, down $161.8 million from the September 30, 2010 amount.
Loan Production
Loan production rose substantially in 2010, reflecting a $937.1 million,
or 27.6%, increase in loans originated for investment, and a $10.0
billion increase in one-to-four family loans originated for sale to
GSEs. Specifically, loan originations totaled $15.2 billion in the
current twelve-month period, in contrast to $4.3 billion in the twelve
months ended December 31, 2009. Included in the respective amounts were
fourth quarter originations of $5.5 billion and $1.7 billion.
Of the loans originated in 2010, $4.3 billion were originated for
investment, including $1.6 billion that were originated in the fourth
quarter of the year. In 2009, loans originated for investment totaled
$3.4 billion, including fourth quarter originations of $873.1 million.
Multi-family loans represented $2.5 billion, or 58.6%, of loans produced
in 2010 for investment, signifying a $609.9 million, or 31.6%, increase
from the volume produced in 2009. In the fourth quarter of 2010, the
volume of multi-family loans produced was double the year-earlier fourth
quarter’s volume, and 72.9% higher than the volume produced in the
trailing three months. Specifically, multi-family loans represented
$989.6 million, or 62.3%, of loans produced for investment in the
current fourth quarter, as compared to $494.8 million and $572.3
million, respectively, in the fourth quarter of 2009 and the third
quarter of 2010. The increase in multi-family loan production reflects a
pick-up in refinancing activity, and property transactions that resulted
in the origination of new loans.
Commercial real estate (“CRE”) loan originations represented $947.0
million, or 21.9%, of loans produced for investment in 2010, and
exceeded the year-earlier volume by $273.2 million, or 40.5%. CRE loans
also represented $347.9 million, or 21.9%, of loans produced for
investment in the current fourth quarter, representing a $185.0 million
increase from the year-earlier amount.
The remainder of loans produced for investment in 2010 consisted of
commercial and industrial ("C&I") loans of $703.7 million, and
acquisition, development, and construction ("ADC") loans of $127.2
million. Fourth quarter originations accounted for $194.4 million and
$54.8 million of the respective amounts.
Reflecting the full-year operation of the Company's mortgage banking
platform, one-to-four family loans originated for sale to GSEs totaled
$10.8 billion in 2010. Fourth quarter originations accounted for $3.8
billion of the 2010 total, and exceeded the trailing-quarter volume by
$352.3 million. Rising mortgage interest rates and continuing
weakness in the national housing market contributed to a decline in
refinance application activity in the current fourth quarter and, as a
result, rate-lock volume declined to $2.6 billion from $6.0 billion in
the third quarter of 2010. Rate-lock volume is a leading indicator
of near-term future loan funding levels.
Non-Covered Loans Held for Investment
At December 31, 2010, multi-family loans represented $16.8 billion, or
70.9%, of total non-covered loans held for investment, representing a
$66.2 million increase from the year-earlier balance and a modest $1.8
million decrease from the September 30, 2010 amount. Although the
production of multi-family loans increased substantially over the year
and the quarter, the benefit was largely offset by an increase in
satisfactions.
CRE loans represented $5.4 billion, or 22.9%, of non-covered loans held
for investment at the end of December, and were up $450.9 million from
the year-earlier balance and $154.7 million from the September 30th
amount.
At December 31, 2010, the average multi-family loan had a principal
balance of $4.0 million and the average CRE loan had a principal balance
of $3.1 million. The portfolios of multi-family and CRE loans had
average loan-to-value ratios at origination of 59.76% and 53.76%,
respectively, and expected weighted average lives of 4.1 years and 4.0
years, respectively, at quarter-end.
ADC loans represented $569.2 million, or 2.4%, of non-covered loans held
for investment at the end of this December, and were down $96.7 million
and $38.1 million, respectively, from the balances at December 31, 2009
and September 30, 2010. Other loans, consisting primarily of C&I loans,
totaled $727.8 million at the end of this December, reflecting twelve-
and three-month reductions of $43.7 million and $1.9 million,
respectively.
Pipeline
At the present time, our loan pipeline approximates $2.2 billion,
including loans originated for investment of approximately $1.1 billion
and loans originated for sale of approximately $1.1 billion.
Multi-family loans represent approximately 78% of the current pipeline
of held-for-investment loans.
Asset Quality
At December 31, 2010, the quality of the Company's assets was
demonstrated by linked-quarter reductions in the balance of
non-performing assets, the amount of net charge-offs, and the ratio of
net charge-offs to average loans.
Non-performing assets totaled $652.5 million at the end of December,
representing a $27.0 million reduction from the balance recorded at
September 30, 2010 and a $98.3 million reduction from the high at March
31, 2010. The December 31st amount represented 1.58% of total
assets, an improvement of five basis points from the trailing-quarter
measure and a 19-basis point improvement from the March 31st high of
1.77%.
Non-performing loans represented $624.4 million of total non-performing
assets, and were down $35.5 million from the September 30th amount.
Multi-family loans and CRE loans accounted for $327.9 million and $162.4
million, respectively, of the December 31st balance, as compared to
$357.3 million and $162.4 million, respectively, at the trailing
quarter-end. ADC loans, other loans, and one-to-four family loans
accounted for $91.9 million, $24.5 million, and $17.8 million,
respectively, of non-performing loans at the end of December, and were
down from $95.3 million, $26.7 million, and $18.2 million, respectively,
at September 30, 2010. The decline in non-performing loans was partly
offset by an $8.5 million increase in other real estate owned ("OREO")
to $28.1 million.
It should be noted that the non-performing loans and OREO covered by the
Company’s FDIC loss sharing agreements are excluded from non-performing
loans and non-performing assets.
Although loans 30 to 89 days past due rose $66.9 million on a
linked-quarter basis to $151.0 million, the December 31, 2010 balance
was $122.0 million, or 44.7%, lower than the year-earlier balance and
$66.9 million, or 30.7%, lower than the balance at March 31, 2010. The
December 31, 2010 amount consisted of multi-family loans of $121.2
million; CRE loans of $8.2 million; ADC loans of $5.2 million;
one-to-four family loans of $5.7 million; and other loans of $10.7
million.
The net effect of the linked-quarter increase in loans 30 to 89 days
past due and the linked-quarter reduction in non-performing assets was a
$39.9 million increase in total delinquencies to $803.5 million at
December 31, 2010. The latter amount was $62.7 million lower than the
year-end 2009 balance and $165.2 million lower than the high at March
31, 2010.
Net charge-offs totaled $13.9 million in the current fourth quarter, a
$2.8 million, or 16.7%, reduction from the trailing-quarter amount.
Largely reflecting the linked-quarter decline, the ratio of net
charge-offs to average loans improved to 0.05% in the current fourth
quarter from 0.06% in the third quarter of 2010. Multi-family loans and
CRE loans accounted for $5.7 million and $2.7 million, respectively, of
net charge-offs in the current fourth quarter, while ADC loans,
one-to-four family loans, and other loans represented $97,000, $664,000,
and $4.8 million, respectively.
Reflecting management’s assessment of the allowance for losses on
non-covered loans, the Company recorded a $17.0 million loan loss
provision in the current fourth quarter, as compared to $32.0 million
and $30.0 million, respectively, in the three months ended September 30,
2010 and December 31, 2009. For the twelve months ended December 31,
2010, the provision for losses on non-covered loans totaled $91.0
million, representing a 44.4% increase from $63.0 million in the prior
year.
The twelve-month provision for losses on non-covered loans exceeded the
year’s net charge-offs by $31.5 million; as a result, the allowance for
losses on non-covered loans rose to $158.9 million at December 31, 2010
from $127.5 million at December 31, 2009.
In the fourth quarter of 2010, the Company established an allowance for
losses on covered loans by recording a provision for such losses in the
amount of $11.9 million, as a result of a decrease in the estimated
present value of cash flows from covered loans at December 31st. The
provision was partially offset by an increase in the FDIC
indemnification asset to reflect the associated increase in expected
reimbursements from the FDIC.
Securities
At December 31, 2010, securities represented $4.8 billion, or 11.6%, of
total assets, down $953.4 million, or 16.6%, from the year-earlier
balance and up $62.9 million from the balance at September 30, 2010. The
twelve-month decline in securities was attributable to a combination of
factors, including maturities, accelerated repayments, and GSE
securities being called. The three-month increase reflects the Company's
continued investment in agency debentures.
Funding Sources
Deposits declined $507.4 million and $418.3 million, respectively, over
the year and the quarter, to $21.8 billion at December 31, 2010.
Although core deposits (comprised of NOW and money market accounts,
savings accounts, and non-interest-bearing accounts) rose $711.4 million
year-over-year, to $14.0 billion, this increase was exceeded by a $1.2
billion, or 13.5%, decline in certificates of deposit ("CDs") to $7.8
billion at year-end. On a linked-quarter basis, core deposits and CDs
declined by $44.2 million and $374.1 million, respectively. Core
deposits thus represented 64.1% of total deposits at the end of
December, with CDs representing the remaining 35.9%. The decline in CDs
is attributable to two primary factors: the general reluctance of
customers to extend their CDs at current low rates of interest, and the
reluctance of management to compete for deposits by paying higher rates.
Similarly, the balance of borrowed funds declined $628.6 million and
$59.1 million, respectively, to $13.5 billion, from the balances
recorded at December 31, 2009 and September 30, 2010. Although wholesale
borrowings accounted for the bulk of these reductions, junior
subordinated debentures and other borrowings also declined over these
periods. The balance of wholesale borrowings fell $580.1 million
year-over-year and $54.0 million linked-quarter to $12.5 billion at
December 31, 2010.
Reflecting the respective year-over-year reductions, deposits
represented 52.9% of total assets at the end of this December and
borrowed funds represented 32.9%.
Stockholders’ Equity
At December 31, 2010, stockholders’ equity totaled $5.5 billion,
representing a twelve-month increase of $159.3 million and a three-month
increase of $30.9 million. The December 31, 2010 amount was equivalent
to 13.42% of total assets, a 69-basis point increase from the
year-earlier measure and a 24-basis point increase from the measure at
September 30, 2010. Book value per share rose $0.07 on a linked-quarter
basis and $0.29 year-over-year, to $12.69.
Prior to December 31, 2010, the Company calculated book value per share
by excluding the number of unallocated Employee Stock Ownership Plan
(“ESOP”) shares from the number of shares outstanding. As all of the
shares in the ESOP account have been allocated, the calculation of book
value per share at December 31, 2010 was based on the number of shares
outstanding at that date, 435,646,845. At September 30, 2010 and
December 31, 2009, book value per share was calculated on the basis of
435,511,306 shares and 432,898,084 shares, respectively.
Tangible stockholders' equity totaled $3.0 billion at the end of this
December, representing a $187.6 million increase from the December 31,
2009 balance and a $38.8 million increase from the balance at September
30, 2010. The December 31, 2010 amount was equivalent to 7.79% of
tangible assets, representing a twelve-month increase of 66 basis points
and a three-month increase of 20 basis points. (3)
Excluding AOCL from the calculation, the ratio of adjusted tangible
equity to adjusted tangible assets rose 65 basis points year-over-year
and 23 basis points linked-quarter, to 7.90%. In addition, tangible book
value per share rose $0.38 and $0.08, respectively, year-over-year and
linked-quarter, to $6.91 at December 31, 2010. The increase in tangible
stockholders' equity and the related measures was primarily due to the
increase in earnings during the respective periods. (3)
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, 2010, New York Community Bank had a
leverage capital ratio of 8.80%, exceeding the minimum required for
“well capitalized” classification by 380 basis points. At the same date,
New York Commercial Bank had a leverage capital ratio of 12.45%,
exceeding the minimum required for such classification by 745 basis
points.
Earnings Summary for the Three Months Ended
December 31, 2010
In the fourth quarter of 2010, the Company generated GAAP earnings of
$149.8 million, or $0.34 per diluted share. Included in the respective
amounts were a $13.5 million, or $0.03 per diluted share, after-tax gain
on the sale of securities, which exceeded the impact of after-tax
acquisition-related costs of $3.8 million, or $0.01 per diluted share.
Excluding these items, the Company generated operating earnings of
$140.1 million, or $0.32 per diluted share, in the three months ended
December 31, 2010. (2)
In the fourth quarter of 2009, the Company generated GAAP earnings of
$154.9 million, equivalent to $0.41 per diluted share. Included in the
respective amounts was an $84.2 million, or $0.24 per diluted share,
after-tax gain on the AmTrust acquisition; a $3.1 million, or $0.01 per
diluted share, after-tax gain on the repurchase of certain
trust-preferred securities (the “gain on debt repurchase”); and a $1.9
million after-tax gain on the termination of an AmTrust-related
servicing hedge. These contributions to the Company's fourth quarter
2009 earnings were partly offset by a non-cash after-tax loss of $26.4
million, or $0.07 per diluted share, on the other-than-temporary
impairment ("OTTI") of certain investment securities, and by
acquisition-related costs of $5.5 million, or $0.01 per diluted share,
relating to the AmTrust transaction. Excluding the various gains and
charges from the Company’s fourth quarter 2009 GAAP earnings, the
Company generated operating earnings of $97.7 million, or $0.26 per
diluted share, in the fourth quarter of 2009. (2)
In the third quarter of 2010, the Company’s GAAP and operating earnings
were $135.6 million and $134.4 million, both of which were equivalent to
$0.31 per diluted share. The nominal difference between the Company’s
third quarter 2010 GAAP and operating earnings was the net effect of a
$2.4 million gain on debt repurchase and after-tax acquisition-related
costs of $1.3 million. (2)
Net Interest Income
The Company generated net interest income of $305.0 million in the
current fourth quarter, representing a $50.5 million, or 19.9%, increase
from the year-earlier level and an $18.8 million, or 6.6%, increase from
the level recorded in the third quarter of 2010.
Year-Over-Year Comparison
While interest income rose $50.9 million, or 11.8%, year-over-year to
$480.8 million in the current fourth quarter, interest expense rose a
nominal $400,000 to $175.8 million during that time.
The Company’s interest income growth was due to a $3.2 billion rise in
the average balance of interest-earning assets to $33.9 billion,
together with a seven-basis point rise in the average yield to 5.67%. In
addition, prepayment penalty income rose to $15.2 million in the current
fourth quarter from $2.0 million in the year-earlier three months.
In addition to the full-year benefit of the AmTrust transaction, the
higher average balance of interest-earning assets reflects the benefit
of the Desert Hills transaction in the first quarter and the organic
production of loans for portfolio. Notably, the average balance of loans
rose $4.4 billion year-over-year, to $29.1 billion, and the average
yield on these assets rose 14 basis points to 5.89%. The increase in the
average yield on loans partly reflects the benefit of the increase in
prepayment penalty income during the three months ended December 31,
2010. The resultant increase in the interest income from loans was
tempered by a decline in the interest income from securities and money
market investments, as the average balance of such assets declined $1.2
billion and the average yield fell 70 basis points.
The Company's ability to maintain its fourth quarter 2010 interest
expense at the year-earlier level largely reflects a reduction in the
cost of its interest-bearing deposits, together with a reduction in the
average balance of borrowed funds. Although the average balance of
interest-bearing deposits rose $4.3 billion year-over-year, to $20.0
billion, the average cost of such funds fell 25 basis points to 0.91%.
During this time, the average balance of borrowed funds declined by
$626.3 million, largely offsetting the impact of a 20-basis point rise
in the average cost of such funds to 3.92%.
Linked-Quarter Comparison
The linked-quarter increase in net interest income was fueled by a $13.4
million rise in interest income together with a $5.4 million decline in
interest expense.
Although the average balance of interest-earning assets declined by
$311.5 million linked-quarter, the average yield rose 21 basis points
during this time. The higher yield was largely driven by an $11.2
million linked-quarter increase in prepayment penalty income, which
contributed to a 24-basis point increase in the average yield on loans.
While the average balance of loans rose $94.5 million from the
trailing-quarter level, the average balance of securities fell $405.9
million during the same time.
The linked-quarter reduction in interest expense was the result of a
$528.4 million decrease in the average balance of interest-bearing
liabilities and a three-basis point decrease in the average cost of
funds. Although the average cost of borrowed funds rose five basis
points linked-quarter, the impact was offset by a reduction in the
average balance of such funds. In addition, the average balance and cost
of interest-bearing deposits each declined over the three-month period.
Interest Rate Spread and Net Interest Margin
In the fourth quarter of 2010, the Company’s interest rate spread and
net interest margin benefited from the same factors that resulted in the
year-over-year and linked-quarter increases in net interest income. At
3.57%, the Company's fourth quarter 2010 spread was 33 basis points
wider than the year-earlier measure and 24 basis points wider than the
measure recorded in the third quarter of 2010. Similarly, the Company's
margin rose to 3.61% in the current fourth quarter, reflecting a
28-basis point increase from the year-earlier margin and a 25-basis
increase from the margin recorded in the trailing three-month period.
Prepayment penalty income added 18 basis points to the Company's spread
and margin in the current fourth quarter, in contrast to two basis
points in the year-earlier quarter and five basis points in the third
quarter of 2010.
Provisions for Loan Losses
In the fourth quarter of 2010, the Company recorded two loan loss
provisions: a provision for losses on non-covered loans and a provision
for losses on covered loans.
The provision for losses on non-covered loans is based on management’s
assessment of the adequacy of the allowance for losses on non-covered
loans which, in turn, is based on its evaluation of inherent losses in
the non-covered loan portfolio in accordance with GAAP. This evaluation
considers several factors, including the current and historical
performance of the non-covered loan portfolio; its inherent risk
characteristics; the level of non-performing non-covered loans and
charge-offs; delinquency levels and trends; local economic and market
conditions; declines in real estate values; and the levels of
unemployment and vacancy rates.
The provision for losses on non-covered loans was $17.0 million in the
current fourth quarter, representing a year-over-year reduction of $13.0
million and a linked-quarter reduction of $15.0 million. The fourth
quarter 2010 provision exceeded the quarter's net charge-offs by $3.1
million, thus increasing the allowance for losses on non-covered loans
to $158.9 million at December 31, 2010. The latter amount was equivalent
to 25.5% of non-performing loans and 0.61% of total loans at that date.
The provision for losses on covered loans equaled $11.9 million in the
current fourth quarter. Recorded due to a decrease in the estimated
present value of cash flows from covered loans at the end of December,
as previously discussed, the provision was partially offset by an $11.3
million increase in the FDIC indemnification asset to reflect the
increase in expected reimbursements from the FDIC. The increase is
recorded in non-interest income for the fourth quarter of 2010.
Non-Interest Income
The Company has four ongoing sources of non-interest income: fee income;
income from bank-owned life insurance (“BOLI”); mortgage banking income
generated by the mortgage banking operation we acquired in the AmTrust
transaction; and other income. Non-interest income from these ongoing
sources totaled $69.5 million in the current fourth quarter, as compared
to $34.3 million in the year-earlier fourth quarter and $104.7 million
in the third quarter of 2010.
Mortgage banking income represented $40.4 million of the fourth quarter
2010 total, as compared to $12.1 million in the year-earlier quarter and
$76.5 million in the trailing three months. Of the mortgage banking
income recorded in the current fourth quarter, income from mortgage
originations accounted for $36.9 million and servicing income accounted
for $3.5 million. In the trailing quarter, income from mortgage
originations and servicing income totaled $58.9 million and $17.6
million, respectively. The linked-quarter decline in servicing income
was due to the expiration of an agreement to sub-service the mortgage
servicing rights the FDIC had acquired in the AmTrust transaction,
whereas the decline in income from originations reflects a seasonal
decline in loan demand and a rise in market interest rates.
In the fourth quarter of 2010, the Company's non-interest income was
increased by FDIC indemnification income of $11.3 million, as previously
noted, and by a $22.4 million net gain on the sale of securities that
were previously recorded as other-than-temporarily impaired. Reflecting
the addition of these items, non-interest income totaled $103.3 million
in the three months ended December 31, 2010.
In the fourth quarter of 2009, the Company's non-interest income was
increased by a $139.6 million gain on the AmTrust acquisition and by a
$4.3 million gain on debt repurchase, which exceeded the impact of a
$43.5 million OTTI loss on securities. As a result, non-interest
income totaled $138.1 million in the three months ended December 31,
2009.
In the third quarter of 2010, non-interest income was increased by a
$2.4 million gain on debt repurchase and totaled $107.1 million.
Non-Interest Expense
Non-interest expense consists of operating expenses (comprised of
compensation and benefits, occupancy and equipment, and general and
administrative, or G&A, expenses); and the amortization of core deposit
intangibles ("CDI").
In the fourth quarter of 2010, non-interest expense totaled $148.3
million, representing a year-over-year increase of $34.0 million.
Operating expenses accounted for $140.6 million of the fourth quarter
2010 total, representing a $32.5 million increase from the year-earlier
level, which was partly attributable to acquisition-related costs of
$6.3 million. The increase in operating expenses largely reflects the
full-year impact of the AmTrust transaction, which added 66 branches to
the Company's franchise at the time of acquisition, and significantly
expanded the Company's branch and back-office staff. To a lesser extent,
the increase reflects the impact of the Desert Hills transaction, which
modestly increased the Company's franchise and staff on March 26, 2010.
As a result of these factors, compensation and benefits expense rose
$16.2 million year-over-year to $67.3 million in the current fourth
quarter, while occupancy and equipment expense rose $2.9 million to
$22.3 million, and G&A expense rose $13.5 million to $51.1 million.
Although the increase in fourth quarter 2010 G&A expense largely
reflects expenses stemming from the Company's expansion, including the
aforementioned acquisition-related costs, it also includes an increase
in expenses incurred in connection with the acquisition and management
of foreclosed properties.
On a linked-quarter basis, operating expenses declined by $2.6 million,
primarily the net effect of a $5.6 million reduction in compensation and
benefits expense and a $2.7 million increase in G&A expense. Included in
G&A expense in the trailing quarter were acquisition-related costs of
$2.1 million.
Income Tax Expense
Income tax expense totaled $81.2 million in the current fourth quarter,
representing a linked-quarter increase of $6.6 million and a
year-over-year decrease of $12.1 million. Pre-tax income rose $20.8
million to $231.0 million on a linked-quarter basis, while the effective
tax rate, at 35.1%, was largely consistent with the trailing quarter's
35.5%.
In the fourth quarter of 2009, the Company recorded pre-tax income of
$248.2 million, and the effective tax rate was 37.6%. The difference
between the effective tax rate in the fourth quarter of 2010 and the
fourth quarter of 2009 primarily reflects the impact of the gain on
acquisition recorded in the earlier fourth quarter in connection with
the AmTrust transaction on December 4, 2009.
About New York Community Bancorp, Inc.
With assets of $41.2 billion at December 31, 2010, 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 242 branches serving customers throughout Metro New York, New
Jersey, Ohio, Florida, and Arizona; and New York Commercial Bank, with
34 branches serving customers in Manhattan, Queens, Brooklyn, Long
Island, and Westchester County in New York.
Reflecting its growth through a series of acquisitions, the Community
Bank operates through seven local divisions, each with a history of
service and strength: 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 17 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 Release Conference Call
The Company will host a conference call on January 26, 2011 at 9:30 a.m.
(ET) to discuss its performance and strategies in the three and twelve
months ended December 31, 2010. 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: 4Q10NYCB.
A replay will be available approximately two hours following completion
of the call through midnight on January 31st, and may be accessed by
calling 800-695-2122 (domestic) or 402-530-9027 (international) and
providing the same access code. The conference call will also be
webcast, and may be accessed by visiting ir.myNYCB.com. The webcast will
be archived through 5:00 p.m. on February 23, 2011.
Earnings Release Dates in 2011
The Company has established the following tentative dates for the
issuance of its first, second, and third quarter earnings releases in
2011: 1st Quarter - Tuesday, April 19, 2011; 2nd Quarter - Thursday,
July 21, 2011; 3rd Quarter - Wednesday, October 19, 2011.
Earnings release dates and conference call details will be announced,
and posted to the Company’s web site, during the last week of March,
June, and September 2011.
Forward-Looking Statements
This earnings release and the associated conference call include
forward-looking statements by the Company and our authorized officers
pertaining to such matters as our goals, intentions, and expectations
regarding revenues, earnings, loan production, asset quality, and
acquisitions, among other matters; our estimates of future costs and
benefits of our strategic actions; our assessments of probable losses on
loans; our assessments of interest rate and other market risks; and our
ability to achieve our financial and other strategic goals.
Forward-looking statements are typically identified by words such as
“believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,”
“forecast,” “project,” and other similar words and expressions, and are
subject to numerous assumptions, risks, and uncertainties, which may
change over time. Additionally, forward-looking statements speak only as
of the date they are made, and we do not assume any duty, nor do we
undertake, to update our forward-looking statements. Furthermore,
because forward-looking statements are subject to assumptions and
uncertainties, actual results or future events could differ, possibly
materially, from those anticipated in our statements. In addition, our
future performance could differ materially from our historical results.
Our forward-looking statements are subject to the following principal
risks and uncertainties: general economic conditions and trends, either
nationally or locally; conditions in the securities markets; changes in
interest rates; changes in deposit flows, and in the demand for deposit,
loan, and investment products and other financial services; changes in
real estate values; changes in the quality or composition of our loan or
investment portfolios; changes in competitive pressures among financial
institutions or from non-financial institutions; our ability to retain
key members of management; our ability to successfully integrate any
assets, liabilities, customers, systems, and management personnel we may
acquire into our operations, and to realize related revenue synergies
and cost savings within expected time frames; our use of derivatives to
mitigate our interest rate exposure; changes in legislation,
regulations, and policies; and a variety of other matters which, by
their nature, are subject to significant uncertainties and/or are beyond
our control.
Greater detail regarding some of these factors is provided in our Form
10-K for the year ended December 31, 2009 and our Forms 10-Q for the
quarters ended March 31, 2010, June 30, 2010 and September 30, 2010,
including in the Risk Factors section of those and our other SEC
reports. Our forward-looking statements may also be subject to other
risks and uncertainties, including those we may discuss elsewhere in
this news release, our conference call, our investor presentations, or
in our SEC filings, which are accessible on our web site and at the
SEC’s web site, www.sec.gov.
- Financial Statements and Highlights Follow -
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2010
|
|
2009
|
|
|
|
(unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,927,542
|
|
|
$
|
2,670,857
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
652,956
|
|
|
|
1,518,646
|
|
|
Held-to-maturity
|
|
|
4,135,935
|
|
|
|
4,223,597
|
|
|
Total securities
|
|
|
4,788,891
|
|
|
|
5,742,243
|
|
|
Loans held for sale
|
|
|
1,207,077
|
|
|
|
--
|
|
|
Non-covered mortgage loans held for investment:
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
16,801,868
|
|
|
|
16,735,684
|
|
|
Commercial real estate
|
|
|
5,438,270
|
|
|
|
4,987,410
|
|
|
Acquisition, development, and construction
|
|
|
569,193
|
|
|
|
665,912
|
|
|
One-to-four family
|
|
|
170,392
|
|
|
|
216,078
|
|
|
Total non-covered mortgage loans held for investment
|
|
|
22,979,723
|
|
|
|
22,605,084
|
|
|
Non-covered other loans held for investment
|
|
|
727,771
|
|
|
|
771,515
|
|
|
Total non-covered loans held for investment
|
|
|
23,707,494
|
|
|
|
23,376,599
|
|
|
Less: Allowance for losses on non-covered loans
|
|
|
(158,942
|
)
|
|
|
(127,491
|
)
|
|
Non-covered loans held for investment, net
|
|
|
23,548,552
|
|
|
|
23,249,108
|
|
|
Covered loans (includes $351,322 of loans held for sale at December
31, 2009)
|
|
|
4,297,869
|
|
|
|
5,016,100
|
|
|
Less: Allowance for losses on covered loans
|
|
|
(11,903
|
)
|
|
|
--
|
|
|
Covered loans, net
|
|
|
4,285,966
|
|
|
|
5,016,100
|
|
|
Total loans, net
|
|
|
29,041,595
|
|
|
|
28,265,208
|
|
|
Federal Home Loan Bank stock, at cost
|
|
|
446,014
|
|
|
|
496,742
|
|
|
Premises and equipment, net
|
|
|
233,694
|
|
|
|
205,165
|
|
|
FDIC loss share receivable
|
|
|
814,088
|
|
|
|
743,276
|
|
|
Goodwill
|
|
|
2,436,159
|
|
|
|
2,436,401
|
|
|
Core deposit intangibles, net
|
|
|
77,734
|
|
|
|
105,764
|
|
|
Other assets (includes $62,412 of other real estate owned ("OREO")
covered by FDIC loss sharing agreements at December 31, 2010)
|
|
|
1,424,972
|
|
|
|
1,488,213
|
|
|
Total assets
|
|
$
|
41,190,689
|
|
|
$
|
42,153,869
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
$
|
8,235,825
|
|
|
$
|
7,706,288
|
|
|
Savings accounts
|
|
|
3,885,785
|
|
|
|
3,788,294
|
|
|
Certificates of deposit
|
|
|
7,835,161
|
|
|
|
9,053,891
|
|
|
Non-interest-bearing accounts
|
|
|
1,852,280
|
|
|
|
1,767,938
|
|
|
Total deposits
|
|
|
21,809,051
|
|
|
|
22,316,411
|
|
|
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
Wholesale borrowings
|
|
|
12,500,659
|
|
|
|
13,080,769
|
|
|
Junior subordinated debentures
|
|
|
426,992
|
|
|
|
427,371
|
|
|
Other borrowings
|
|
|
608,465
|
|
|
|
656,546
|
|
|
Total borrowed funds
|
|
|
13,536,116
|
|
|
|
14,164,686
|
|
|
Other liabilities
|
|
|
319,302
|
|
|
|
305,870
|
|
|
Total liabilities
|
|
|
35,664,469
|
|
|
|
36,786,967
|
|
|
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;
435,646,845 and 433,197,332 shares issued and outstanding,
respectively)
|
|
|
4,356
|
|
|
|
4,332
|
|
|
Paid-in capital in excess of par
|
|
|
5,285,715
|
|
|
|
5,238,231
|
|
|
Retained earnings
|
|
|
281,844
|
|
|
|
175,193
|
|
|
Unallocated common stock held by Employee Stock Ownership Plan
("ESOP")
|
|
|
--
|
|
|
|
(951
|
)
|
|
Accumulated other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
Net unrealized gain (loss) on securities available for sale, net of
tax
|
|
|
12,600
|
|
|
|
(457
|
)
|
|
Net unrealized loss on the non-credit portion of
other-than-temporary impairment (“OTTI”) losses and securities
transferred from available for sale to held to maturity, net of tax
|
|
|
(20,572
|
)
|
|
|
(9,744
|
)
|
|
Pension and post-retirement obligations, net of tax
|
|
|
(37,723
|
)
|
|
|
(39,702
|
)
|
|
Total accumulated other comprehensive loss, net of tax
|
|
|
(45,695
|
)
|
|
|
(49,903
|
)
|
|
Total stockholders’ equity
|
|
|
5,526,220
|
|
|
|
5,366,902
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
41,190,689
|
|
|
$
|
42,153,869
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Twelve Months Ended
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans
|
|
$
|
428,850
|
|
|
$
|
410,178
|
|
|
$
|
355,124
|
|
|
$
|
1,669,871
|
|
|
$
|
1,325,601
|
|
|
Securities and money market investments
|
|
|
51,949
|
|
|
|
57,252
|
|
|
|
74,750
|
|
|
|
243,923
|
|
|
|
309,011
|
|
|
Total interest income
|
|
|
480,799
|
|
|
|
467,430
|
|
|
|
429,874
|
|
|
|
1,913,794
|
|
|
|
1,634,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
|
11,605
|
|
|
|
12,542
|
|
|
|
11,531
|
|
|
|
56,991
|
|
|
|
33,788
|
|
|
Savings accounts
|
|
|
4,464
|
|
|
|
4,824
|
|
|
|
4,391
|
|
|
|
20,833
|
|
|
|
15,859
|
|
|
Certificates of deposit
|
|
|
29,989
|
|
|
|
33,847
|
|
|
|
30,346
|
|
|
|
138,716
|
|
|
|
163,168
|
|
|
Borrowed funds
|
|
|
129,751
|
|
|
|
130,029
|
|
|
|
129,141
|
|
|
|
517,291
|
|
|
|
516,472
|
|
|
Total interest expense
|
|
|
175,809
|
|
|
|
181,242
|
|
|
|
175,409
|
|
|
|
733,831
|
|
|
|
729,287
|
|
|
Net interest income
|
|
|
304,990
|
|
|
|
286,188
|
|
|
|
254,465
|
|
|
|
1,179,963
|
|
|
|
905,325
|
|
|
Provision for losses on non-covered loans
|
|
|
17,000
|
|
|
|
32,000
|
|
|
|
30,000
|
|
|
|
91,000
|
|
|
|
63,000
|
|
|
Provision for losses on covered loans
|
|
|
11,903
|
|
|
|
--
|
|
|
|
--
|
|
|
|
11,903
|
|
|
|
--
|
|
|
Net interest income after provisions for loan losses
|
|
|
276,087
|
|
|
|
254,188
|
|
|
|
224,465
|
|
|
|
1,077,060
|
|
|
|
842,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee income
|
|
|
13,128
|
|
|
|
13,403
|
|
|
|
11,819
|
|
|
|
54,584
|
|
|
|
40,074
|
|
|
Bank-owned life insurance
|
|
|
7,047
|
|
|
|
6,792
|
|
|
|
6,924
|
|
|
|
28,015
|
|
|
|
27,406
|
|
|
Net gain on sales of securities
|
|
|
22,438
|
|
|
|
--
|
|
|
|
338
|
|
|
|
22,430
|
|
|
|
338
|
|
|
Gain on business acquisitions
|
|
|
--
|
|
|
|
--
|
|
|
|
139,607
|
|
|
|
2,883
|
|
|
|
139,607
|
|
|
FDIC indemnification income
|
|
|
11,308
|
|
|
|
--
|
|
|
|
--
|
|
|
|
11,308
|
|
|
|
--
|
|
|
Mortgage banking income
|
|
|
40,386
|
|
|
|
76,465
|
|
|
|
12,129
|
|
|
|
183,883
|
|
|
|
12,129
|
|
|
Other income (loss)
|
|
|
8,953
|
|
|
|
10,443
|
|
|
|
(32,715
|
)
|
|
|
34,820
|
|
|
|
(61,915
|
)
|
|
Total non-interest income
|
|
|
103,260
|
|
|
|
107,103
|
|
|
|
138,102
|
|
|
|
337,923
|
|
|
|
157,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
67,293
|
|
|
|
72,874
|
|
|
|
51,132
|
|
|
|
274,864
|
|
|
|
184,692
|
|
|
Occupancy and equipment
|
|
|
22,271
|
|
|
|
22,019
|
|
|
|
19,381
|
|
|
|
88,070
|
|
|
|
73,724
|
|
|
General and administrative
|
|
|
51,068
|
|
|
|
48,378
|
|
|
|
37,585
|
|
|
|
183,312
|
|
|
|
125,587
|
|
|
Total operating expenses
|
|
|
140,632
|
|
|
|
143,271
|
|
|
|
108,098
|
|
|
|
546,246
|
|
|
|
384,003
|
|
|
Amortization of core deposit intangibles
|
|
|
7,673
|
|
|
|
7,818
|
|
|
|
6,237
|
|
|
|
31,266
|
|
|
|
22,812
|
|
|
Total non-interest expense
|
|
|
148,305
|
|
|
|
151,089
|
|
|
|
114,335
|
|
|
|
577,512
|
|
|
|
406,815
|
|
|
Income before income taxes
|
|
|
231,042
|
|
|
|
210,202
|
|
|
|
248,232
|
|
|
|
837,471
|
|
|
|
593,149
|
|
|
Income tax expense
|
|
|
81,210
|
|
|
|
74,593
|
|
|
|
93,296
|
|
|
|
296,454
|
|
|
|
194,503
|
|
|
Net Income
|
|
$
|
149,832
|
|
|
$
|
135,609
|
|
|
$
|
154,936
|
|
|
$
|
541,017
|
|
|
$
|
398,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
$0.34
|
|
|
|
$0.31
|
|
|
|
$0.41
|
|
|
|
$1.24
|
|
|
|
$1.13
|
|
|
Diluted earnings per share
|
|
|
$0.34
|
|
|
|
$0.31
|
|
|
|
$0.41
|
|
|
|
$1.24
|
|
|
|
$1.13
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATIONS 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. Nor should operating revenues be considered
in isolation or as a substitute for total revenues or any other
data calculated in accordance with GAAP. Moreover, the manner in
which we calculate our operating earnings and our operating
revenues 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, 2010, September 30, 2010, and December
31, 2009 and for the twelve months ended December 31, 2010 and
2009 follow:
|
|
|
|
|
|
|
|
|
|
|
|
For the
|
|
|
|
For the Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
(in thousands, except per share data)
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
GAAP Earnings
|
|
$
|
149,832
|
|
|
$
|
135,609
|
|
|
$
|
154,936
|
|
|
$
|
541,017
|
|
|
$
|
398,646
|
|
|
Adjustments to GAAP earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of securities
|
|
|
(22,438
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
(22,438
|
)
|
|
|
--
|
|
|
Gain on debt repurchases/exchange
|
|
|
--
|
|
|
|
(2,441
|
)
|
|
|
(4,337
|
)
|
|
|
(2,441
|
)
|
|
|
(10,054
|
)
|
|
Acquisition-related costs
|
|
|
6,317
|
|
|
|
2,090
|
|
|
|
7,530
|
|
|
|
11,545
|
|
|
|
7,530
|
|
|
Gain on business acquisitions
|
|
|
--
|
|
|
--
|
|
|
|
(139,607
|
)
|
|
|
(2,883
|
)
|
|
|
(139,607
|
)
|
|
Loss on OTTI of securities
|
|
|
--
|
|
|
|
--
|
|
|
|
43,530
|
|
|
|
--
|
|
|
|
96,533
|
|
|
FDIC special assessment
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
14,753
|
|
|
Gain on termination of servicing hedge
|
|
|
--
|
|
|
|
--
|
|
|
|
(3,078
|
)
|
|
|
--
|
|
|
|
(3,078
|
)
|
|
Resolution of tax audits
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
(14,337
|
)
|
|
Income tax effect
|
|
|
6,422
|
|
|
|
(838
|
)
|
|
|
38,741
|
|
|
|
5,570
|
|
|
|
14,264
|
|
|
Operating earnings
|
|
$
|
140,133
|
|
|
$
|
134,420
|
|
|
$
|
97,715
|
|
|
$
|
530,370
|
|
|
$
|
364,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted GAAP Earnings per Share
|
|
|
$0.34
|
|
|
|
$0.31
|
|
|
|
$0.41
|
|
|
|
$1.24
|
|
|
|
$1.13
|
|
|
Adjustments to diluted GAAP earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of securities
|
|
|
(0.03
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
(0.03
|
)
|
|
|
--
|
|
|
Gain on debt repurchases/exchange
|
|
|
--
|
|
|
|
--
|
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
|
(0.02
|
)
|
|
Acquisition-related costs
|
|
|
0.01
|
|
|
|
--
|
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
0.01
|
|
|
Gain on business acquisitions
|
|
|
--
|
|
|
--
|
|
|
|
(0.22
|
)
|
|
|
(0.01
|
)
|
|
|
(0.24
|
)
|
|
Loss on OTTI of securities
|
|
|
--
|
|
|
|
--
|
|
|
|
0.07
|
|
|
|
--
|
|
|
|
0.16
|
|
|
FDIC special assessment
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
0.03
|
|
|
Gain on termination of servicing hedge
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
Resolution of tax audits
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
(0.04
|
)
|
|
Diluted operating earnings per share
|
|
|
$0.32
|
|
|
|
$0.31
|
|
|
|
$0.26
|
|
|
|
$1.21
|
|
|
|
$1.03
|
|
|
|
|
|
|
|
|
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 they are important
because of their 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, 2010, September 30, 2010, and December 31, 2009
and for the twelve months ended December 31, 2010 and 2009 follow:
|
|
|
|
|
|
|
|
|
|
|
|
For the
|
|
|
|
For the Three Months Ended
|
|
Twelve Months Ended
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Dec. 31,
|
Dec. 31,
|
|
Dec. 31,
|
|
(in thousands, except per share data)
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
GAAP Earnings
|
|
$
|
149,832
|
|
|
$
|
135,609
|
|
|
$
|
154,936
|
|
|
$
|
541,017
|
|
|
$
|
398,646
|
|
|
Additional contributions to tangible stockholders’ equity:(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and appreciation of shares held in stock-related
benefit plans
|
|
|
3,880
|
|
|
|
3,821
|
|
|
|
3,355
|
|
|
|
15,764
|
|
|
|
13,252
|
|
|
Associated tax effects
|
|
|
815
|
|
|
|
431
|
|
|
|
216
|
|
|
|
2,349
|
|
|
|
4,010
|
|
|
Dividends on unallocated ESOP shares
|
|
|
74
|
|
|
|
75
|
|
|
|
158
|
|
|
|
299
|
|
|
|
631
|
|
|
Amortization of core deposit intangibles
|
|
|
7,673
|
|
|
|
7,818
|
|
|
|
6,237
|
|
|
|
31,266
|
|
|
|
22,812
|
|
|
Gain on debt exchange
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
(3,381
|
)
|
|
Loss on OTTI of securities
|
|
|
--
|
|
|
|
--
|
|
|
|
26,441
|
|
|
|
--
|
|
|
|
58,513
|
|
|
Total additional contributions to tangible stockholders’ equity (1)
|
|
|
12,442
|
|
|
|
12,145
|
|
|
|
36,407
|
|
|
|
49,678
|
|
|
|
95,837
|
|
|
Cash earnings
|
|
$
|
162,274
|
|
|
$
|
147,754
|
|
|
$
|
191,343
|
|
|
$
|
590,695
|
|
|
$
|
494,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted GAAP Earnings per Share
|
|
|
$0.34
|
|
|
|
$0.31
|
|
|
|
$0.45
|
|
|
|
$1.24
|
|
|
|
$1.13
|
|
|
Additional contributions to diluted GAAP earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and appreciation of shares held in stock-related
benefit plans
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.04
|
|
|
|
0.04
|
|
|
Associated tax effects
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
0.01
|
|
|
|
0.02
|
|
|
Dividends on unallocated ESOP shares
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
Amortization of core deposit intangibles
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.07
|
|
|
|
0.07
|
|
|
Gain on debt exchange
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
(0.01
|
)
|
|
Loss on OTTI of securities
|
|
|
--
|
|
|
|
--
|
|
|
|
0.03
|
|
|
|
--
|
|
|
|
0.16
|
|
|
Total additional contributions to diluted GAAP earnings per share
|
|
|
0.03
|
|
|
|
0.03
|
|
|
|
0.06
|
|
|
|
0.12
|
|
|
|
0.28
|
|
|
Diluted cash earnings per share
|
|
|
$0.37
|
|
|
|
$0.34
|
|
|
|
$0.51
|
|
|
|
$1.36
|
|
|
|
$1.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Earnings Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash return on average assets
|
|
|
1.58
|
%
|
|
|
1.43
|
%
|
|
|
2.14
|
%
|
|
|
1.41
|
%
|
|
|
1.49
|
%
|
|
Cash return on average tangible assets (1)
|
|
|
1.68
|
|
|
|
1.52
|
|
|
|
2.31
|
|
|
|
1.50
|
|
|
|
1.61
|
|
|
Cash return on average stockholders’ equity
|
|
|
11.75
|
|
|
|
11.05
|
|
|
|
16.65
|
|
|
|
10.95
|
|
|
|
11.53
|
|
|
Cash return on average tangible stockholders’ equity (1)
|
|
|
21.61
|
|
|
|
20.94
|
|
|
|
36.81
|
|
|
|
20.64
|
|
|
|
27.89
|
|
|
Cash efficiency ratio (2)
|
|
|
33.50
|
|
|
|
35.46
|
|
|
|
24.02
|
|
|
|
34.95
|
|
|
|
32.13
|
|
|
(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,
2010, September 30, 2010, and December 31, 2009 and the twelve
months ended December 31, 2010 and 2009 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,
|
|
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stockholders’ Equity
|
|
$
|
5,526,220
|
|
|
$
|
5,495,298
|
|
|
$
|
5,366,902
|
|
|
$
|
5,526,220
|
|
|
$
|
5,366,902
|
|
|
Less: Goodwill
|
|
|
(2,436,159
|
)
|
|
|
(2,436,325
|
)
|
|
|
(2,436,401
|
)
|
|
|
(2,436,159
|
)
|
|
|
(2,436,401
|
)
|
|
Core deposit intangibles
|
|
|
(77,734
|
)
|
|
|
(85,407
|
)
|
|
|
(105,764
|
)
|
|
|
(77,734
|
)
|
|
|
(105,764
|
)
|
|
Tangible stockholders’ equity
|
|
$
|
3,012,327
|
|
|
$
|
2,973,566
|
|
|
$
|
2,824,737
|
|
|
$
|
3,012,327
|
|
|
$
|
2,824,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
41,190,689
|
|
|
$
|
41,706,438
|
|
|
$
|
42,153,869
|
|
|
$
|
41,190,689
|
|
|
$
|
42,153,869
|
|
|
Less: Goodwill
|
|
|
(2,436,159
|
)
|
|
|
(2,436,325
|
)
|
|
|
(2,436,401
|
)
|
|
|
(2,436,159
|
)
|
|
|
(2,436,401
|
)
|
|
Core deposit intangibles
|
|
|
(77,734
|
)
|
|
|
(85,407
|
)
|
|
|
(105,764
|
)
|
|
|
(77,734
|
)
|
|
|
(105,764
|
)
|
|
Tangible assets
|
|
$
|
38,676,796
|
|
|
$
|
39,184,706
|
|
|
$
|
39,611,704
|
|
|
$
|
38,676,796
|
|
|
$
|
39,611,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Stockholders’ Equity
|
|
$
|
3,012,327
|
|
|
$
|
2,973,566
|
|
|
$
|
2,824,737
|
|
|
$
|
3,012,327
|
|
|
$
|
2,824,737
|
|
|
Add back: Accumulated other comprehensive loss, net of tax
|
|
|
45,695
|
|
|
|
35,611
|
|
|
|
49,903
|
|
|
|
45,695
|
|
|
|
49,903
|
|
|
Adjusted tangible stockholders’ equity
|
|
$
|
3,058,022
|
|
|
$
|
3,009,177
|
|
|
$
|
2,874,640
|
|
|
$
|
3,058,022
|
|
|
$
|
2,874,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Assets
|
|
$
|
38,676,796
|
|
|
$
|
39,184,706
|
|
|
$
|
39,611,704
|
|
|
$
|
38,676,796
|
|
|
$
|
39,611,704
|
|
|
Add back: Accumulated other comprehensive loss, net of tax
|
|
|
45,695
|
|
|
|
35,611
|
|
|
|
49,903
|
|
|
|
45,695
|
|
|
|
49,903
|
|
|
Adjusted tangible assets
|
|
$
|
38,722,491
|
|
|
$
|
39,220,317
|
|
|
$
|
39,661,607
|
|
|
$
|
38,722,491
|
|
|
$
|
39,661,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Stockholders’ Equity
|
|
$
|
5,522,942
|
|
|
$
|
5,349,356
|
|
|
$
|
4,597,470
|
|
|
$
|
5,392,305
|
|
|
$
|
4,290,025
|
|
|
Less: Average goodwill and core deposit intangibles
|
|
|
(2,519,028
|
)
|
|
|
(2,526,878
|
)
|
|
|
(2,518,149
|
)
|
|
|
(2,529,993
|
)
|
|
|
(2,516,993
|
)
|
|
Average tangible stockholders’ equity
|
|
$
|
3,003,914
|
|
|
$
|
2,822,478
|
|
|
$
|
2,079,321
|
|
|
$
|
2,862,312
|
|
|
$
|
1,773,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets
|
|
$
|
41,047,792
|
|
|
$
|
41,399,339
|
|
|
$
|
35,716,019
|
|
|
$
|
41,843,613
|
|
|
$
|
33,284,289
|
|
|
Less: Average goodwill and core deposit intangibles
|
|
|
(2,519,028
|
)
|
|
|
(2,526,878
|
)
|
|
|
(2,518,149
|
)
|
|
|
(2,529,993
|
)
|
|
|
(2,516,993
|
)
|
|
Average tangible assets
|
|
$
|
38,528,764
|
|
|
$
|
38,872,461
|
|
|
$
|
33,197,870
|
|
|
$
|
39,313,620
|
|
|
$
|
30,767,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
149,832
|
|
|
$
|
135,609
|
|
|
$
|
154,936
|
|
|
$
|
541,017
|
|
|
$
|
398,646
|
|
|
Add back: Amortization of core deposit intangibles, net of tax
|
|
|
4,681
|
|
|
|
4,769
|
|
|
|
3,804
|
|
|
|
19,073
|
|
|
|
22,812
|
|
|
Adjusted net income
|
|
$
|
154,513
|
|
|
$
|
140,378
|
|
|
$
|
158,740
|
|
|
$
|
560,090
|
|
|
$
|
421,458
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
(dollars in thousands)
(unaudited)
|
|
|
|
|
|
|
|
For the Three Months Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Yield/
|
|
|
Average
|
|
|
|
Yield/
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans, net
|
|
$
|
|
29,093,967
|
|
$
|
|
428,850
|
|
5.89
|
%
|
|
|
$
|
|
24,705,898
|
|
$
|
|
355,124
|
|
5.75
|
%
|
|
Securities and money market investments
|
|
|
|
4,806,688
|
|
|
|
51,949
|
|
4.32
|
|
|
|
|
|
5,958,918
|
|
|
|
74,750
|
|
5.02
|
|
|
Total interest-earning assets
|
|
|
|
33,900,655
|
|
|
|
480,799
|
|
5.67
|
|
|
|
|
|
30,664,816
|
|
|
|
429,874
|
|
5.60
|
|
|
Non-interest-earning assets
|
|
|
|
7,147,137
|
|
|
|
|
|
|
|
|
|
5,051,203
|
|
|
|
|
|
|
Total assets
|
|
$
|
|
41,047,792
|
|
|
|
|
|
|
|
$
|
|
35,716,019
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
$
|
|
8,209,423
|
|
$
|
|
11,605
|
|
0.56
|
%
|
|
|
$
|
|
5,928,202
|
|
$
|
|
11,531
|
|
0.77
|
%
|
|
Savings accounts
|
|
|
|
3,892,312
|
|
|
|
4,464
|
|
0.46
|
|
|
|
|
|
3,198,211
|
|
|
|
4,391
|
|
0.54
|
|
|
Certificates of deposit
|
|
|
|
7,934,080
|
|
|
|
29,989
|
|
1.50
|
|
|
|
|
|
6,645,878
|
|
|
|
30,346
|
|
1.81
|
|
|
Total interest-bearing deposits
|
|
|
|
20,035,815
|
|
|
|
46,058
|
|
0.91
|
|
|
|
|
|
15,772,291
|
|
|
|
46,268
|
|
1.16
|
|
|
Borrowed funds
|
|
|
|
13,144,827
|
|
|
|
129,751
|
|
3.92
|
|
|
|
|
|
13,771,132
|
|
|
|
129,141
|
|
3.72
|
|
|
Total interest-bearing liabilities
|
|
|
|
33,180,642
|
|
|
|
175,809
|
|
2.10
|
|
|
|
|
|
29,543,423
|
|
|
|
175,409
|
|
2.36
|
|
|
Non-interest-bearing deposits
|
|
|
|
1,963,577
|
|
|
|
|
|
|
|
|
|
1,394,761
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
380,631
|
|
|
|
|
|
|
|
|
|
180,365
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
35,524,850
|
|
|
|
|
|
|
|
|
|
31,118,549
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
5,522,942
|
|
|
|
|
|
|
|
|
|
4,597,470
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
|
41,047,792
|
|
|
|
|
|
|
|
$
|
|
35,716,019
|
|
|
|
|
|
|
Net interest income/interest rate spread
|
|
|
|
$
|
|
304,990
|
|
3.57
|
%
|
|
|
|
|
$
|
|
254,465
|
|
3.24
|
%
|
|
Net interest margin
|
|
|
|
|
|
3.61
|
%
|
|
|
|
|
|
|
3.33
|
%
|
|
Ratio of interest-earning assets to interest-bearing liabilities
|
|
|
|
|
|
1.02
|
x
|
|
|
|
|
|
|
1.04
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits (1)
|
|
$
|
|
14,065,312
|
|
|
|
$16,069
|
|
0.45
|
%
|
|
|
$
|
|
10,521,174
|
|
|
|
$15,922
|
|
0.60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2010
|
|
September 30, 2010
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans, net
|
|
$
|
|
29,093,967
|
|
$
|
|
428,850
|
|
5.89
|
%
|
|
$
|
|
28,999,495
|
|
$
|
|
410,178
|
|
5.65
|
%
|
|
Securities and money market investments
|
|
|
|
4,806,688
|
|
|
|
51,949
|
|
4.32
|
|
|
|
|
5,212,610
|
|
|
|
57,252
|
|
4.39
|
|
|
Total interest-earning assets
|
|
|
|
33,900,655
|
|
|
|
480,799
|
|
5.67
|
|
|
|
|
34,212,105
|
|
|
|
467,430
|
|
5.46
|
|
|
Non-interest-earning assets
|
|
|
|
7,147,137
|
|
|
|
|
|
|
|
|
7,187,234
|
|
|
|
|
|
|
Total assets
|
|
$
|
|
41,047,792
|
|
|
|
|
|
|
$
|
|
41,399,339
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
$
|
|
8,209,423
|
|
$
|
|
11,605
|
|
0.56
|
%
|
|
$
|
|
8,045,495
|
|
$
|
|
12,542
|
|
0.62
|
%
|
|
Savings accounts
|
|
|
|
3,892,312
|
|
|
|
4,464
|
|
0.46
|
|
|
|
|
3,900,662
|
|
|
|
4,824
|
|
0.49
|
|
|
Certificates of deposit
|
|
|
|
7,934,080
|
|
|
|
29,989
|
|
1.50
|
|
|
|
|
8,406,674
|
|
|
|
33,847
|
|
1.60
|
|
|
Total interest-bearing deposits
|
|
|
|
20,035,815
|
|
|
|
46,058
|
|
0.91
|
|
|
|
|
20,352,831
|
|
|
|
51,213
|
|
1.00
|
|
|
Borrowed funds
|
|
|
|
13,144,827
|
|
|
|
129,751
|
|
3.92
|
|
|
|
|
13,356,185
|
|
|
|
130,029
|
|
3.87
|
|
|
Total interest-bearing liabilities
|
|
|
|
33,180,642
|
|
|
|
175,809
|
|
2.10
|
|
|
|
|
33,709,016
|
|
|
|
181,242
|
|
2.13
|
|
|
Non-interest-bearing deposits
|
|
|
|
1,963,577
|
|
|
|
|
|
|
|
|
1,818,911
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
380,631
|
|
|
|
|
|
|
|
|
522,056
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
35,524,850
|
|
|
|
|
|
|
|
|
36,049,983
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
5,522,942
|
|
|
|
|
|
|
|
|
5,349,356
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
|
41,047,792
|
|
|
|
|
|
|
$
|
|
41,399,339
|
|
|
|
|
|
|
Net interest income/interest rate spread
|
|
|
|
$
|
|
304,990
|
|
3.57
|
%
|
|
|
|
$
|
|
286,188
|
|
3.33
|
%
|
|
Net interest margin
|
|
|
|
|
|
3.61
|
%
|
|
|
|
|
|
3.36
|
%
|
|
Ratio of interest-earning assets to interest-bearing liabilities
|
|
|
|
|
|
1.02
|
x
|
|
|
|
|
|
1.01
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits (1)
|
|
$
|
|
14,065,312
|
|
$
|
|
16,069
|
|
0.45
|
%
|
|
$
|
|
13,765,068
|
|
$
|
|
17,366
|
|
0.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans, net
|
|
$
|
28,735,155
|
|
$
|
1,669,871
|
|
5.81
|
%
|
|
$
|
22,996,752
|
|
$
|
1,325,601
|
|
5.76
|
%
|
|
Securities and money market investments
|
|
|
5,437,610
|
|
|
243,923
|
|
4.49
|
|
|
|
6,046,016
|
|
|
309,011
|
|
5.11
|
|
|
Total interest-earning assets
|
|
|
34,172,765
|
|
|
1,913,794
|
|
5.60
|
|
|
|
29,042,768
|
|
|
1,634,612
|
|
5.63
|
|
|
Non-interest-earning assets
|
|
|
7,670,848
|
|
|
|
|
|
|
|
4,241,521
|
|
|
|
|
|
|
Total assets
|
|
$
|
41,843,613
|
|
|
|
|
|
|
$
|
33,284,289
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
$
|
8,210,197
|
|
$
|
56,991
|
|
0.69
|
%
|
|
$
|
4,481,377
|
|
$
|
33,788
|
|
0.75
|
%
|
|
Savings accounts
|
|
|
3,883,327
|
|
|
20,833
|
|
0.54
|
|
|
|
2,829,237
|
|
|
15,859
|
|
0.56
|
|
|
Certificates of deposit
|
|
|
8,575,238
|
|
|
138,716
|
|
1.62
|
|
|
|
6,296,344
|
|
|
163,168
|
|
2.59
|
|
|
Total interest-bearing deposits
|
|
|
20,668,762
|
|
|
216,540
|
|
1.05
|
|
|
|
13,606,958
|
|
|
212,815
|
|
1.56
|
|
|
Borrowed funds
|
|
|
13,535,790
|
|
|
517,291
|
|
3.82
|
|
|
|
13,943,594
|
|
|
516,472
|
|
3.70
|
|
|
Total interest-bearing liabilities
|
|
|
34,204,552
|
|
|
733,831
|
|
2.15
|
|
|
|
27,550,552
|
|
|
729,287
|
|
2.65
|
|
|
Non-interest-bearing deposits
|
|
|
1,816,384
|
|
|
|
|
|
|
|
1,221,709
|
|
|
|
|
|
|
Other liabilities
|
|
|
430,372
|
|
|
|
|
|
|
|
222,003
|
|
|
|
|
|
|
Total liabilities
|
|
|
36,451,308
|
|
|
|
|
|
|
|
28,994,264
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
5,392,305
|
|
|
|
|
|
|
|
4,290,025
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
41,843,613
|
|
|
|
|
|
|
$
|
33,284,289
|
|
|
|
|
|
|
Net interest income/interest rate spread
|
|
|
|
$
|
1,179,963
|
|
3.45
|
%
|
|
|
|
$
|
905,325
|
|
2.98
|
%
|
|
Net interest margin
|
|
|
|
|
|
3.45
|
%
|
|
|
|
|
|
3.12
|
%
|
|
Ratio of interest-earning assets to interest-bearing liabilities
|
|
|
|
|
|
1.00
|
x
|
|
|
|
|
|
1.05
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits (1)
|
|
$
|
13,909,908
|
|
|
$77,824
|
|
0.56
|
%
|
|
|
$8,532,323
|
|
|
$49,647
|
|
0.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Twelve Months
|
|
|
|
For the Three Months Ended
|
|
Ended
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
GAAP EARNINGS DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$149,832
|
|
|
|
$135,609
|
|
|
|
$154,936
|
|
|
|
$541,017
|
|
|
|
$398,646
|
|
|
Basic earnings per share
|
|
|
0.34
|
|
|
|
0.31
|
|
|
|
0.41
|
|
|
|
1.24
|
|
|
|
1.13
|
|
|
Diluted earnings per share
|
|
|
0.34
|
|
|
|
0.31
|
|
|
|
0.41
|
|
|
|
1.24
|
|
|
|
1.13
|
|
|
Return on average assets
|
|
|
1.46
|
%
|
|
|
1.31
|
%
|
|
|
1.74
|
%
|
|
|
1.29
|
%
|
|
|
1.20
|
%
|
|
Return on average tangible assets (1)
|
|
|
1.60
|
|
|
|
1.44
|
|
|
|
1.91
|
|
|
|
1.42
|
|
|
|
1.34
|
|
|
Return on average stockholders’ equity
|
|
|
10.85
|
|
|
|
10.14
|
|
|
|
13.48
|
|
|
|
10.03
|
|
|
|
9.29
|
|
|
Return on average tangible stockholders’ equity (1)
|
|
|
20.57
|
|
|
|
19.89
|
|
|
|
30.54
|
|
|
|
19.57
|
|
|
|
23.27
|
|
|
Efficiency ratio (2)
|
|
|
34.45
|
|
|
|
36.43
|
|
|
|
27.54
|
|
|
|
35.99
|
|
|
|
36.13
|
|
|
Operating expenses to average assets
|
|
|
1.37
|
|
|
|
1.38
|
|
|
|
1.21
|
|
|
|
1.31
|
|
|
|
1.15
|
|
|
Interest rate spread
|
|
|
3.57
|
|
|
|
3.33
|
|
|
|
3.24
|
|
|
|
3.45
|
|
|
|
2.98
|
|
|
Net interest margin
|
|
|
3.61
|
|
|
|
3.36
|
|
|
|
3.33
|
|
|
|
3.45
|
|
|
|
3.12
|
|
|
Shares used for basic EPS computation
|
|
|
434,398,158
|
|
|
|
434,375,863
|
|
|
|
374,178,949
|
|
|
|
433,740,639
|
|
|
|
351,869,427
|
|
|
Shares used for diluted EPS computation
|
|
|
435,061,383
|
|
|
|
434,843,872
|
|
|
|
374,256,016
|
|
|
|
434,186,499
|
|
|
|
351,939,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EARNINGS DATA: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
|
|
$140,133
|
|
|
|
$134,420
|
|
|
|
$97,715
|
|
|
|
$530,370
|
|
|
|
$364,650
|
|
|
Basic operating earnings per share
|
|
|
0.32
|
|
|
|
0.31
|
|
|
|
0.26
|
|
|
|
1.22
|
|
|
|
1.03
|
|
|
Diluted operating earnings per share
|
|
|
0.32
|
|
|
|
0.31
|
|
|
|
0.26
|
|
|
|
1.21
|
|
|
|
1.03
|
|
|
Return on average assets
|
|
|
1.37
|
%
|
|
|
1.30
|
%
|
|
|
1.09
|
%
|
|
|
1.27
|
%
|
|
|
1.10
|
%
|
|
Return on average tangible assets (1)
|
|
|
1.50
|
|
|
|
1.43
|
|
|
|
1.22
|
|
|
|
1.40
|
|
|
|
1.23
|
|
|
Return on average stockholders’ equity
|
|
|
10.15
|
|
|
|
10.05
|
|
|
|
8.50
|
|
|
|
9.84
|
|
|
|
8.50
|
|
|
Return on average tangible stockholders’ equity (1)
|
|
|
19.28
|
|
|
|
19.73
|
|
|
|
19.53
|
|
|
|
19.20
|
|
|
|
21.35
|
|
|
Operating efficiency ratio (2)
|
|
|
34.81
|
|
|
|
36.12
|
|
|
|
35.60
|
|
|
|
35.88
|
|
|
|
36.16
|
|
|
(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.
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
|
|
|
|
|
|
|
|
At or for the Three Months Ended
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
|
2010
|
|
2010
|
|
2009
|
|
BALANCE SHEET DATA:
|
|
|
|
|
|
|
|
|
|
|
Book value per share
|
|
|
$12.69
|
|
|
|
$12.62
|
|
|
|
$12.40
|
|
|
Tangible book value per share (1)
|
|
|
6.91
|
|
|
|
6.83
|
|
|
|
6.53
|
|
|
Stockholders’ equity to total assets
|
|
|
13.42
|
%
|
|
|
13.18
|
%
|
|
|
12.73
|
%
|
|
Tangible stockholders’ equity to tangible assets (1)
|
|
|
7.79
|
|
|
|
7.59
|
|
|
|
7.13
|
|
|
Tangible stockholders’ equity to tangible assets excluding
accumulated other comprehensive loss, net of tax (1)
|
|
|
7.90
|
|
|
|
7.67
|
|
|
|
7.25
|
|
|
Shares used for book value and tangible book value per share
computations (1)
|
|
|
435,646,845
|
|
|
|
435,511,306
|
|
|
|
432,898,084
|
|
|
Total shares issued and outstanding
|
|
|
435,646,845
|
|
|
|
435,586,117
|
|
|
|
433,197,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS:
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans
|
|
|
2.23
|
%
|
|
|
2.35
|
%
|
|
|
2.04
|
%
|
|
Non-performing assets to total assets
|
|
|
1.58
|
|
|
|
1.63
|
|
|
|
1.41
|
|
|
Allowance for loan losses to non-performing loans (2)
|
|
|
25.45
|
|
|
|
23.62
|
|
|
|
22.05
|
|
|
Allowance for loan losses to total loans
|
|
|
0.61
|
|
|
|
0.56
|
|
|
|
0.45
|
|
|
Net charge-offs during the period to average loans outstanding
during the period
|
|
|
0.05
|
|
|
|
0.06
|
|
|
|
0.04
|
|
|
Net charge-offs during the period to the average allowance for loan
losses during the period
|
|
|
8.91
|
|
|
|
11.87
|
|
|
|
8.58
|
|
|
(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)
|
|
Excludes covered loans.
|
|
|
|
|
|
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)
|
|
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.
|
|
|
|
|
|
(4)
|
|
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.