NFB (NYSE:NFB)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more NFB Charts. Click Here for more NFB Charts.](/p.php?pid=staticchart&s=NY%5ENFB&p=8&t=15)
North Fork Bancorporation, Inc. (NYSE: NFB) Highlights in the
current period include:
Net income of $203 million and diluted earnings per share of $.44.
A net interest margin of 3.26%.
20% annualized growth in commercial loans and 19% annualized growth in
total loans, excluding residential mortgages.
Returns on average tangible equity and average tangible assets of
26.1% and 1.56%, respectively.
Improved margins on residential loan sales.
Declaration of its regular quarterly cash dividend of $.25 cents per
common share.
Continued reductions in the securities portfolio and residential
mortgages held-for- investment.
Net Earnings and Returns
Net income for the quarter ended September 30, 2006 was $203 million or
$.44 diluted earnings per share compared to $237 million or $.50 diluted
earnings per share for the comparable period in 2005.
Net income for the nine-month period ended September 30, 2006 was $634
million or diluted earnings per share of $1.38 compared to $738 million
or diluted earnings per share of $1.55 for the comparable period in 2005.
The Company’s returns on average tangible
equity and assets were 26.1% and 1.56%, respectively in the most recent
quarter.
For the quarter ended September 30, 2006, the net interest income and
net interest margin were $406.9 million and 3.26%, respectively compared
to $429.9 million and 3.53%, respectively for the immediately preceding
quarter.
Net interest income and margin for the nine-months ended September 30,
2006 were $1.3 billion and 3.45%, respectively compared to $1.4 billion
and 3.63%, respectively for 2005. The year over year decline reflects
the challenging banking and interest rate environment.
Loans
Loans held-for-investment at September 30, 2006 amounted to $36.3
billion compared to $35.6 billion at June 30, 2006. On a linked quarter
basis, loans held-for-investment, excluding residential mortgages,
increased by $1.0 billion, an annualized growth rate of 19%. Commercial
loans increased by $652 million, an increase of 20% on an annualized
basis. The Company expects the commercial loan growth momentum will
continue despite intense pricing competition.
Non-performing assets were $62.5 million at September 30, 2006.
Annualized net charge-offs were a modest 6 basis points.
Deposits
Deposits at September 30, 2006 were $36.5 billion, declining slightly
from the previous quarter. Commercial deposits remain a significant
component of total deposits. “We will
concentrate on commercial relationships opting not to pursue high cost
consumer deposits,” said John Adam Kanas,
Chairman, President and Chief Executive Officer.
Mortgage Banking Business
The Company’s mortgage banking subsidiary,
GreenPoint Mortgage, originated loans aggregating $9.5 billion in the
quarter, compared to $9.9 billion, linked quarter. The Company believes
that future origination volume will remain strong. The margin on whole
loan sales was 132 basis points, improving over the previous quarter.
Gain on sale of loans was $123.6 million in the quarter compared to
$102.3 million in the prior quarter. At September 30, 2006, the mortgage
loan pipeline was $5.9 billion.
At September 30, 2006, net mortgage servicing rights were $258 million,
or 93 basis points of the unpaid principal balance of the related
serviced loans. During the quarter, the Company recorded a temporary
impairment charge of approximately $10 million on its mortgage servicing
rights asset.
Cash Dividend
On September 26, 2006, the Board declared its regular quarterly dividend
of $.25 per common share. The dividend will be payable November 15,
2006, to shareholders of record at the close of business on October 27,
2006.
Pending Acquisition
As previously announced, Capital One and North Fork expect the
acquisition of North Fork by Capital One will close in the fourth
quarter of 2006, pending the receipt of approval of the merger by the
Federal Reserve Board, and the expiration of all regulatory waiting
periods.
Capital One and North Fork have not yet set a definitive election
deadline by which North Fork stockholders can elect whether they would
prefer to receive cash or Capital One common stock in the merger. The
election deadline, which is expected to be approximately five business
days prior to the expected closing date, will be announced at least five
business days in advance of the deadline.
North Fork is a regional bank holding company headquartered in New York
with approximately $59 billion in assets conducting commercial and
retail banking from more than 351 branch locations in the Tri-State
area, with a complementary national mortgage banking business.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, statements about North Fork’s
plans, objectives, expectations and intentions and other statements that
are not historical facts. Such statements are based upon the current
beliefs and expectations of North Fork’s
management regarding future events, many of which by their nature are
inherently uncertain and beyond management’s
control. Actual results may differ materially from those set forth in
the forward-looking statements. The following factors, among others,
could cause actual results to differ materially from those set forth in
these forward-looking statements: changes in the interest rate
environment; changes in the securities, real estate markets or the
economy in general, whether nationally, internationally or regionally;
increased competition and its effect on pricing, spending, third-party
relationships and revenues; changes in monetary and fiscal policies of
the U.S. government changes in accounting principles, policies,
practices or guidelines and legislative or regulatory changes.
Additional factors that could cause North Fork’s
results to differ materially from those described in the forward-looking
statements can be found in the 2005 Annual Report on Form 10-K of North
Fork (including under the heading "Forward-Looking Statements" and “Risk
Factors”), and in the Quarterly Reports on
Form 10-Q of North Fork filed with the Securities and Exchange
Commission (“SEC”)
and available at the SEC’s internet site
(http://www.sec.gov). Other risks include the ability to obtain
regulatory approvals for the contemplated transaction with Capital One
on the proposed terms and schedule; the risk that the businesses will
not be integrated successfully; the risk that costs and expenses
relating to the merger and subsequent integration may be greater than
anticipated; the risk that the cost savings and any other synergies from
the transaction may not be fully realized or may take longer to realize
than expected; disruption from the transaction making it more difficult
to maintain relationships with customers, employees or suppliers. The
forward-looking statements in this press release speak only as of the
date of the press release, and North Fork assumes no obligation to
update the forward-looking statements or to update the reasons why
actual results could differ from those contained in the forward-looking
statements.
Additional Information About the Capital
One and North Fork Transaction
In connection with the proposed merger of Capital One and North Fork,
Capital One filed with the Securities and Exchange Commission
(the "SEC") a Registration Statement on Form S-4 that included a joint
proxy statement of Capital One and North Fork that also constitutes a
prospectus of Capital One. Capital One and North Fork mailed the joint
proxy statement/prospectus to their respective stockholders on or about
July 14, 2006. Investors and security holders are urged to read the
definitive joint proxy statement/prospectus regarding the proposed
merger because it contains important information. You may obtain a free
copy of the definitive joint proxy statement/prospectus and other
related documents filed by Capital One and North Fork with the SEC at
the SEC's website at www.sec.gov. The definitive joint proxy
statement/prospectus and the other documents may also be obtained for
free by accessing Capital One's website at www.capitalone.com under the
heading "Investors" and then under the heading "SEC & Regulatory
Filings" or by accessing North Fork's website at www.northforkbank.com
under the tab "Investor Relations" and then under the heading "SEC
Filings.
North Fork Bancorporation, Inc.
Consolidated Statements of Income
(Unaudited)
Three Months
Nine Months
Ended September 30,
Ended September 30,
(in thousands, except per share amounts)
2006
2005
2006
2005
Interest Income:
Loans Held-for-Investment
$ 559,017
$ 469,599
$ 1,596,510
$ 1,394,034
Loans Held-for-Sale
86,885
69,840
226,665
209,753
Mortgage-Backed Securities
92,009
113,921
287,961
389,303
Other Securities
25,986
28,422
83,804
87,953
Money Market Investments
858
508
1,971
1,903
Total Interest Income
764,755
682,290
2,196,911
2,082,946
Interest Expense:
Savings, NOW & Money Market Deposits
144,400
91,316
396,565
243,367
Time Deposits
78,378
49,397
197,827
123,255
Federal Funds Purchased and Collateralized Borrowings
114,591
86,343
287,693
290,588
Other Borrowings
20,482
20,684
60,558
57,794
Total Interest Expense
357,851
247,740
942,643
715,004
Net Interest Income
406,904
434,550
1,254,268
1,367,942
Provision for Loan Losses
9,000
9,000
27,000
27,000
Net Interest Income after Provision for Loan Losses
397,904
425,550
1,227,268
1,340,942
Non-Interest Income:
Mortgage Banking Income
111,990
126,415
313,831
328,190
Customer Related Fees & Service Charges
39,808
41,980
121,203
125,888
Investment Management, Commissions & Trust Fees
9,085
8,780
27,881
30,138
Other Operating Income
13,325
12,719
48,182
42,177
Securities Gains, net
4,461
840
15,282
16,358
Trading Gains/(Losses) (1)
9,674
-
(11,396)
-
Total Non-Interest Income
188,343
190,734
514,983
542,751
Non-Interest Expense:
Employee Compensation & Benefits
148,830
136,300
435,390
410,684
Occupancy & Equipment, net
51,574
49,007
154,121
141,910
Amortization of Identifiable Intangibles
8,859
9,133
26,578
27,400
Other Operating Expenses
54,814
59,560
166,839
170,454
Merger Related Charges - Capital One
13,668
-
18,900
-
Debt Restructuring Costs
5,356
-
5,356
-
Settlement Recovery (2)
-
-
(16,031)
-
Total Non-Interest Expense
283,101
254,000
791,153
750,448
Income Before Income Taxes
303,146
362,284
951,098
1,133,245
Provision for Income Taxes
100,038
124,988
317,046
394,848
Net Income
$ 203,108
$ 237,296
$ 634,052
$ 738,397
Earnings Per Share:
Basic
$ 0.45
$ 0.50
$ 1.39
$ 1.58
Diluted
$ 0.44
$ 0.50
$ 1.38
$ 1.55
See accompanying notes appended to the financial data and summaries.
North Fork Bancorporation, Inc.
Consolidated Balance Sheets
(Unaudited)
September 30,
June 30,
December 31,
September 30,
(in thousands, except per share amounts)
2006
2006
2005
2005
Assets:
Cash & Due from Banks
$ 961,425
$ 1,000,195
$ 1,037,406
$ 740,251
Money Market Investments
114,832
22,295
24,843
17,808
Securities:
Available-for-Sale
9,500,424
9,867,618
11,295,977
11,989,260
Held-to-Maturity
93,265
97,344
104,210
114,505
Total Securities
9,593,689
9,964,962
11,400,187
12,103,765
Loans:
Loans Held-for-Sale
4,672,939
5,406,341
4,359,267
4,701,550
Loans Held-for-Investment
36,258,634
35,551,560
33,232,236
32,672,962
Less: Allowance for Loan Losses
228,544
224,571
217,939
220,347
Net Loans Held-for-Investment
36,030,090
35,326,989
33,014,297
32,452,615
Goodwill
5,918,116
5,918,116
5,918,116
5,914,562
Identifiable Intangibles
87,513
96,373
114,091
123,334
Premises & Equipment
448,762
447,633
438,040
433,775
Mortgage Servicing Rights
258,190
272,543
267,424
267,347
Accrued Income Receivable
218,934
213,492
205,892
198,909
Other Assets
584,823
712,896
837,308
946,477
Total Assets
$ 58,889,313
$ 59,381,835
$ 57,616,871
$ 57,900,393
Liabilities and Stockholders' Equity:
Deposits:
Demand
$ 7,300,158
$ 7,561,888
$ 7,639,231
$ 7,478,359
Savings, NOW & Money Market
21,129,366
21,377,573
20,910,161
21,115,093
Time
8,118,045
7,875,144
8,067,181
8,218,634
Total Deposits
36,547,569
36,814,605
36,616,573
36,812,086
Federal Funds Purchased & Collateralized Borrowings
10,732,348
11,249,615
9,700,621
9,572,995
Other Borrowings
1,469,761
1,463,066
1,477,364
1,485,392
Total Borrowings
12,202,109
12,712,681
11,177,985
11,058,387
Accrued Interest Payable
133,893
135,351
102,229
91,376
Dividends Payable
116,530
116,437
116,754
105,153
Accrued Expenses & Other Liabilities
631,105
540,184
601,089
568,846
Total Liabilities
$ 49,631,206
$ 50,319,258
$ 48,614,630
$ 48,635,848
Stockholders' Equity:
Common Stock, par value $0.01; authorized 1,000,000,000 shares;
issued 480,682,118 shares at September 30, 2006
$ 4,807
$ 4,807
$ 4,806
$ 4,799
Additional Paid in Capital
6,881,364
6,875,810
7,035,314
7,020,325
Retained Earnings
2,866,058
2,779,501
2,581,047
2,486,847
Accumulated Other Comprehensive Loss
(114,346)
(207,161)
(108,898)
(89,052)
Deferred Compensation
-
-
(154,772)
(109,111)
Treasury Stock at Cost, 14,562,066 shares at September 30, 2006
(379,776)
(390,380)
(355,256)
(49,263)
Total Stockholders' Equity
9,258,107
9,062,577
9,002,241
9,264,545
Total Liabilities and Stockholders' Equity
$ 58,889,313
$ 59,381,835
$ 57,616,871
$ 57,900,393
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Selected Financial Data and Balance Sheet Components
(Unaudited)
Three Months
Nine Months
Ended September 30,
Ended September 30,
SELECTED FINANCIAL DATA:
2006
2005
2006
2005
(in thousands, except ratios and per share amounts)
Per Share:
Net Income - Basic
$0.45
$0.50
$1.39
$1.58
Net Income - Diluted
$0.44
$0.50
$1.38
$1.55
Average Shares Outstanding - Basic
456,100
470,004
455,107
468,644
Average Shares Outstanding - Diluted
460,872
475,627
460,083
474,957
Cash Dividends
$0.25
$0.22
$0.75
$0.66
Dividend Payout Ratio
57%
44%
55%
43%
Tangible Book Value
$6.98
$6.75
$6.98
$6.75
Selected Financial Data:
Return on Average Total Assets
1.36%
1.60%
1.45%
1.64%
Return on Average Tangible Assets (3)
1.56%
1.83%
1.67%
1.87%
Return on Average Equity
8.77%
10.13%
9.35%
10.78%
Return on Average Tangible Equity (3)
26.12%
29.43%
28.59%
32.21%
Tangible Equity to Tangible Assets
6.15%
6.22%
6.15%
6.22%
Efficiency Ratio (4)
42.13%
39.15%
42.03%
37.14%
Yield on Interest Earning Assets
6.03%
5.47%
5.96%
5.48%
Cost of Funds
3.38%
2.39%
3.06%
2.22%
Net Interest Margin
3.26%
3.52%
3.45%
3.63%
September 30,
June 30,
December 31,
September 30,
2006
2006
2005
2005
Risk Based Capital:
Tier 1
10.60%
10.26%
10.26%
11.00%
Total
12.98%
12.61%
12.73%
13.57%
Leverage Ratio
7.14%
7.04%
6.70%
7.09%
September 30,
June 30,
December 31,
September 30,
2006
2006
2005
2005
Quarterly Average Balance Sheet:
Total Assets
$59,193,751
$58,400,693
$58,232,383
$58,731,915
Securities
10,066,545
10,718,973
11,786,052
12,531,822
Loans Held-for-Sale
5,329,621
4,978,945
5,221,652
5,401,495
Loans Held-for-Investment
35,788,526
34,654,439
32,846,757
32,361,793
Goodwill & Identifiable Intangibles
6,011,167
6,019,964
6,034,399
6,014,839
Demand Deposits
7,315,287
7,414,598
7,771,142
7,547,759
Interest Bearing Deposits
29,229,550
29,907,110
29,368,629
29,642,762
Federal Funds Purchased & Collateralized Borrowings
11,299,427
9,845,733
9,740,160
10,057,604
Other Borrowings
1,461,561
1,454,216
1,484,866
1,505,651
Stockholders' Equity
9,186,913
9,044,461
9,157,876
9,293,861
Tangible Stockholders' Equity
3,175,746
3,024,497
3,123,477
3,279,022
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Selected Financial Data and Balance Sheet Components
(Unaudited)
BALANCE SHEET COMPONENTS:
The following table presents the composition of the securities
portfolio for the periods ended:
(in thousands)
September 30,
June 30,
December 31,
September 30,
Securities - Available-for-Sale:
2006
2006
2005
2005
Collateralized Mortgage Obligations
$6,032,854
$6,215,558
$6,921,074
$7,391,107
Agency Pass-Through Certificates
1,638,178
1,685,025
1,956,487
2,138,524
State & Municipal Obligations
669,488
663,997
881,238
844,866
Equity Securities
618,751
724,836
675,525
669,072
U.S. Treasury & Government Agencies
211,113
184,003
231,152
272,247
Other Securities
330,040
394,199
630,501
673,444
Total Securities Available-for-Sale
$9,500,424
$9,867,618
$11,295,977
$11,989,260
Total Securities Held-to-Maturity
93,265
97,344
104,210
114,505
Total Securities
$9,593,689
$9,964,962
$11,400,187
$12,103,765
The following table presents the components of the held-for-sale and
held-for-investment loan portfolios for the periods ended:
(in thousands)
September 30,
June 30,
December 31,
September 30,
Loans Held-For-Sale:
2006
2006
2005
2005
Residential Mortgages
$4,228,290
$4,319,709
$3,824,547
$4,225,128
Home Equity
399,629
1,035,928
496,656
434,824
Total
4,627,919
5,355,637
4,321,203
4,659,952
Deferred Origination Costs
45,020
50,704
38,064
41,598
Total Loans Held-For-Sale
$4,672,939
$5,406,341
$4,359,267
$4,701,550
(in thousands)
September 30,
June 30,
December 31,
September 30,
Loans Held-For-Investment:
2006
2006
2005
2005
Commercial Mortgages
$7,465,052
$7,079,501
$6,206,416
$5,896,835
Commercial & Industrial
6,073,098
5,806,928
4,709,440
4,324,758
Total Commercial
13,538,150
12,886,429
10,915,856
10,221,593
Residential Mortgages
14,237,428
14,519,282
15,068,443
15,508,008
Multi-Family Mortgages
5,272,860
5,134,232
4,821,642
4,626,777
Consumer
1,894,712
1,749,383
1,558,782
1,569,386
Construction and Land
1,272,784
1,222,981
829,273
716,049
Total
$36,215,934
$35,512,307
$33,193,996
$32,641,813
Deferred Origination Costs, net
42,700
39,253
38,240
31,149
Total Loans Held-For-Investment
$36,258,634
$35,551,560
$33,232,236
$32,672,962
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Selected Financial Data and Balance Sheet Components
(Unaudited)
The following tables presents the components of non-performing
assets for the periods ended:
September 30,
June 30,
December 31,
September 30,
(in thousands)
2006
2006
2005
2005
Non-Performing Assets:
Commercial Mortgages
$2,119
$1,833
$498
$5,451
Commercial & Industrial
7,338
9,384
7,970
8,137
Total Commercial
9,457
11,217
8,468
13,588
Residential Mortgages
11,478
14,219
19,315
48,257
Multi-Family Mortgages
-
-
550
335
Consumer
2,743
1,837
2,684
2,399
Construction and Land
-
-
-
600
Non-Performing Loans Held-For-Investment
$23,678
$27,273
$31,017
$65,179
Non-Performing Loans Held-For-Sale
34,753
27,148
13,931
33,137
Other Real Estate
4,098
3,255
4,101
7,149
Total Non-Performing Assets
$62,529
$57,676
$49,049
$105,465
Ratios:
Allowance for Loan Losses to Non-Performing Loans
Held-for-Investment
965%
823%
703%
338%
Allowance for Loan Losses to Total Loans Held-for-Investment
0.63%
0.63%
0.66%
0.67%
Non-Performing Loans to Total Loans Held-for-Investment
0.07%
0.08%
0.09%
0.20%
Non-Performing Assets to Total Assets
0.11%
0.10%
0.09%
0.18%
Quarterly Net Charge-offs to Average Loans Held-for-Investment
0.06%
0.07%
0.14%
0.08%
The following table presents the impact of allocating the allowance
for loan losses as of September 30, 2006 into our two primary
portfolio segments:
September 30, 2006
Total
Residential & Multi-Family
Commercial & All Other Loans
(dollars in thousands)
Loans Held-for-Investment
$36,258,634
$19,552,988
$16,705,646
Allowance for Loan Losses
228,544
60,526
168,018
Non-Performing Loans Held-for-Investment
23,678
11,478
12,200
Allowance for Loan Losses to Loans-Held-for-Investment
0.63%
0.31%
1.01%
Allowance for Loan Losses to Non-Performing
Loans Held-for-Investment
965%
527%
1377%
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Net Interest Margin Analysis
(Unaudited)
The following table presents on a linked quarter basis, an analysis
of net interest income by each major category of interest earning
assets and interest bearing liabilities:
For the Three Months Ended:
September 30, 2006
June 30, 2006
Average
Average
Average
Average
(dollars in thousands )
Balance
Interest
Rate
Balance
Interest
Rate
Interest Earning Assets:
Loans Held-for-Investment
$35,788,526
$563,239
6.24%
$34,654,439
$534,972
6.19%
Loans Held-for-Sale
5,329,621
86,885
6.47%
4,978,945
76,088
6.13%
Securities
10,066,545
127,599
5.03%
10,718,973
136,500
5.11%
Money Market Investments
68,730
1,054
6.08%
47,343
670
5.68%
Total Interest Earning Assets
51,253,422
778,777
6.03%
50,399,700
748,230
5.95%
Non-Interest Earning Assets:
Cash and Due from Banks
$980,630
$999,159
Other Assets
6,959,699
7,001,834
Total Assets
$59,193,751
$58,400,693
Interest Bearing Liabilities:
Savings, NOW & Money Market Deposits
$21,117,805
$144,400
2.71%
$21,707,006
$134,731
2.49%
Time Deposits
8,111,745
78,378
3.83%
8,200,104
59,658
2.92%
Total Savings and Time Deposits
29,229,550
222,778
3.02%
29,907,110
194,389
2.61%
Fed. Funds Purchased & Collateralized Borrowings
11,299,427
114,591
4.02%
9,845,733
89,628
3.65%
Other Borrowings
1,461,561
20,482
5.56%
1,454,216
20,119
5.55%
Total Borrowings
12,760,988
135,073
4.20%
11,299,949
109,747
3.90%
Total Interest Bearing Liabilities
41,990,538
357,851
3.38%
41,207,059
304,136
2.96%
Interest Rate Spread
2.65%
2.99%
Non-Interest Bearing Liabilities:
Demand Deposits
$7,315,287
$7,414,598
Other Liabilities
701,013
734,575
Total Liabilities
50,006,838
49,356,232
Stockholders' Equity
9,186,913
9,044,461
Total Liabilities and Stockholders' Equity
$59,193,751
$58,400,693
Net Interest Income and Net Interest Margin
$420,926
3.26%
$444,094
3.53%
Less: Tax Equivalent Adjustment
(14,022)
(14,206)
Net Interest Income
$406,904
$429,888
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Mortgage Banking - Quarterly Highlights
(Unaudited)
The following table presents the components of the mortgage
origination and sales volume for the periods indicated:
Quarterly Highlights
(Dollars in thousands)
September 30,
June 30,
March 31,
December 31,
September 30,
Comparative Mortgage Loan Volumes
2006
2006
2006
2005
2005
Total Applications Received
$17,732,328
$18,409,983
$15,278,074
$15,613,973
$17,254,701
Loans Originated:
Specialty Products (a)
$4,717,198
$4,861,775
$4,034,289
$4,787,403
$4,827,831
Home Equity
1,219,465
1,281,321
1,002,615
1,114,617
1,280,684
Jumbo/Agency
3,524,084
3,746,581
2,734,867
3,488,135
4,302,550
Total Loans Originated
$9,460,747
$9,889,677
$7,771,771
$9,390,155
$10,411,065
Pipeline (b)
$5,887,000
$6,246,558
$5,722,902
$5,325,629
$6,376,081
Interest Rate Lock Commitments (c)
2,560,499
2,670,377
2,498,841
2,386,809
2,349,097
Loans Held-for-Sale
4,672,939
5,406,341
4,190,165
4,359,267
4,701,550
Loan Sales (3):
Specialty Products
$4,224,073
$4,162,568
$4,032,031
$4,570,651
$5,061,097
Home Equity
1,664,800
755,613
916,017
865,665
1,500,767
Jumbo/Agency
3,449,499
2,925,437
2,188,749
3,277,851
4,381,960
Total Loan Sales
$9,338,372
$7,843,618
$7,136,797
$8,714,167
$10,943,824
Average Margin on Loan Sales:
Specialty Products
1.76%
1.64%
1.23%
1.18%
1.13%
Home Equity
1.23%
1.25%
1.69%
1.49%
1.88%
Jumbo/Agency
0.83%
0.84%
0.77%
0.76%
0.65%
Average Margin on Loan Sales
1.32%
1.30%
1.15%
1.05%
1.04%
Gain on Sale of Loans: (3)
Specialty Products
$74,477
$68,419
$49,426
$53,867
$56,956
Home Equity
20,399
9,413
15,499
12,929
28,172
Jumbo/Agency
28,748
24,484
16,824
24,819
28,459
Total Gain on Sale of Loans
$123,624
$102,316
$81,749
$91,615
$113,587
(a) Specialty products include: Alt A, No Doc and A minus programs.
(b) The pipeline represents applications received, but not funded.
(c) Represents commitments to lend where the rates are guaranteed to
the borrower for a specific period of time.
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Notes to the Financial Data and Summaries
The table below presents the components of mortgage banking income
for the periods indicated:
Three Months
Nine Months
Ended September 30,
Ended September 30,
(in thousands)
2006
2005
2006
2005
Gain on Sale of Loans Held-for-Sale (a)
$123,624
$113,587
$307,688
$339,531
Mortgage Banking Fees, net
20,526
26,471
65,122
77,853
Amortization of Mortgage Servicing Rights
(21,526)
(23,183)
(66,939)
(63,763)
Temporary (Impairment Charge)/Recovery - Mortgage Servicing Rights
(10,634)
9,540
7,960
(25,431)
Total Mortgage Banking Income
$111,990
$126,415
$313,831
$328,190
(a) Gain on sale margins on loan sales include the impact of the
valuation of mortgage loans held-for-sale and interest rate lock
commitments, valuation of derivatives utilized to manage interest
rate risk associated with mortgage loan commitments and mortgage
loans held-for-sale, and adjustments related to reserves established
for representations and warranties.
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Notes to the Financial Data and Summaries
(1) We have reviewed our accounting treatment for all derivative
transactions and determined that certain transactions did not meet the
requirements of the “short cut”
method of accounting under SFAS No. 133, “Accounting
for Derivative Instruments and Hedging Activities”.
As a result, hedge accounting was not appropriate for these transactions
since inception and have been reclassified as trading instruments a
component of other assets on the accompanying balance sheet. The
cumulative market value fluctuation of these derivatives upon
reclassification and subsequent fluctuations of market value has been
recorded as trading gains/(losses) on the accompanying statement of
income.
(2) Represents a release of certain accrued liabilities on corporate
guarantees pertaining to the discontinued manufactured housing business
we acquired from GreenPoint.
(3) This press release contains certain supplemental financial
information, described in the following notes, which has been determined
by methods other than Generally Accepted Accounting Principles (“GAAP”)
that management uses in its analysis of the Company’s
performance. Management believes these non-GAAP financial measures
provide information useful to investors in understanding the underlying
operational performance of the Company, its business and performance
trends and facilitates comparisons with the performance of others in the
financial services industry.
Return on average tangible assets and return on average tangible equity,
which represent non-GAAP measures are computed, on an annualized basis,
as follows:
Return on average tangible assets is computed by dividing net income,
plus amortization of identifiable intangible assets, net of taxes by
average total assets less average goodwill and average identifiable
intangible assets.
Return on average tangible equity is computed by dividing net income,
plus amortization of identifiable intangible assets, net of taxes by
average total stockholders’ equity less
average goodwill and average identifiable intangible assets.
Three Months
Nine Months
Ended September 30,
Ended September 30,
(dollars in thousands)
2006
2005
2006
2005
Net Income, as Reported
$203,108
$237,296
$634,052
$738,397
Add: Amortization of Identifiable Intangible Assets, Net of Taxes
5,936
5,982
17,720
17,854
Net Income, as Adjusted
$209,044
$243,278
$651,772
$756,251
Average Total Assets
$59,193,751
$58,731,915
$58,329,760
$60,134,351
Less: Average Goodwill
5,918,111
5,885,957
5,918,115
5,884,029
Less: Average Identifiable Intangible Assets
93,056
128,882
101,818
138,103
Average Total Tangible Assets
$53,182,584
$52,717,076
$52,309,827
$54,112,219
Average Stockholders' Equity
$9,186,913
$9,293,861
$9,068,415
$9,161,643
Less: Average Goodwill
5,918,111
5,885,957
5,918,115
5,884,029
Less: Average Identifiable Intangible Assets
93,056
128,882
101,818
138,103
Average Total Tangible Stockholders' Equity
$3,175,746
$3,279,022
$3,048,482
$3,139,511
Return on Average Tangible Assets
1.56%
1.83%
1.67%
1.87%
Return on Average Tangible Stockholders' Equity
26.12%
29.43%
28.59%
32.21%
(4) The efficiency ratio, which represents a non-GAAP measure, is
defined as the ratio of non-interest expense net of amortization of
identifiable intangibles, manufactured housing recourse settlement, debt
restructuring costs and merger expenses to net interest income on a tax
equivalent basis and other non-interest income net of securities
gains/(losses), (temporary impairment)/recovery on mortgage servicing
rights and trading losses on derivative instruments.
North Fork Bancorporation, Inc. (NYSE: NFB) Highlights in the
current period include:
-- Net income of $203 million and diluted earnings per share of
$.44.
-- A net interest margin of 3.26%.
-- 20% annualized growth in commercial loans and 19% annualized
growth in total loans, excluding residential mortgages.
-- Returns on average tangible equity and average tangible assets
of 26.1% and 1.56%, respectively.
-- Improved margins on residential loan sales.
-- Declaration of its regular quarterly cash dividend of $.25
cents per common share.
-- Continued reductions in the securities portfolio and
residential mortgages held-for- investment.
Net Earnings and Returns
Net income for the quarter ended September 30, 2006 was $203
million or $.44 diluted earnings per share compared to $237 million or
$.50 diluted earnings per share for the comparable period in 2005.
Net income for the nine-month period ended September 30, 2006 was
$634 million or diluted earnings per share of $1.38 compared to $738
million or diluted earnings per share of $1.55 for the comparable
period in 2005.
The Company's returns on average tangible equity and assets were
26.1% and 1.56%, respectively in the most recent quarter.
For the quarter ended September 30, 2006, the net interest income
and net interest margin were $406.9 million and 3.26%, respectively
compared to $429.9 million and 3.53%, respectively for the immediately
preceding quarter.
Net interest income and margin for the nine-months ended September
30, 2006 were $1.3 billion and 3.45%, respectively compared to $1.4
billion and 3.63%, respectively for 2005. The year over year decline
reflects the challenging banking and interest rate environment.
Loans
Loans held-for-investment at September 30, 2006 amounted to $36.3
billion compared to $35.6 billion at June 30, 2006. On a linked
quarter basis, loans held-for-investment, excluding residential
mortgages, increased by $1.0 billion, an annualized growth rate of
19%. Commercial loans increased by $652 million, an increase of 20% on
an annualized basis. The Company expects the commercial loan growth
momentum will continue despite intense pricing competition.
Non-performing assets were $62.5 million at September 30, 2006.
Annualized net charge-offs were a modest 6 basis points.
Deposits
Deposits at September 30, 2006 were $36.5 billion, declining
slightly from the previous quarter. Commercial deposits remain a
significant component of total deposits. "We will concentrate on
commercial relationships opting not to pursue high cost consumer
deposits," said John Adam Kanas, Chairman, President and Chief
Executive Officer.
Mortgage Banking Business
The Company's mortgage banking subsidiary, GreenPoint Mortgage,
originated loans aggregating $9.5 billion in the quarter, compared to
$9.9 billion, linked quarter. The Company believes that future
origination volume will remain strong. The margin on whole loan sales
was 132 basis points, improving over the previous quarter. Gain on
sale of loans was $123.6 million in the quarter compared to $102.3
million in the prior quarter. At September 30, 2006, the mortgage loan
pipeline was $5.9 billion.
At September 30, 2006, net mortgage servicing rights were $258
million, or 93 basis points of the unpaid principal balance of the
related serviced loans. During the quarter, the Company recorded a
temporary impairment charge of approximately $10 million on its
mortgage servicing rights asset.
Cash Dividend
On September 26, 2006, the Board declared its regular quarterly
dividend of $.25 per common share. The dividend will be payable
November 15, 2006, to shareholders of record at the close of business
on October 27, 2006.
Pending Acquisition
As previously announced, Capital One and North Fork expect the
acquisition of North Fork by Capital One will close in the fourth
quarter of 2006, pending the receipt of approval of the merger by the
Federal Reserve Board, and the expiration of all regulatory waiting
periods.
Capital One and North Fork have not yet set a definitive election
deadline by which North Fork stockholders can elect whether they would
prefer to receive cash or Capital One common stock in the merger. The
election deadline, which is expected to be approximately five business
days prior to the expected closing date, will be announced at least
five business days in advance of the deadline.
North Fork is a regional bank holding company headquartered in New
York with approximately $59 billion in assets conducting commercial
and retail banking from more than 351 branch locations in the
Tri-State area, with a complementary national mortgage banking
business.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, statements about North
Fork's plans, objectives, expectations and intentions and other
statements that are not historical facts. Such statements are based
upon the current beliefs and expectations of North Fork's management
regarding future events, many of which by their nature are inherently
uncertain and beyond management's control. Actual results may differ
materially from those set forth in the forward-looking statements. The
following factors, among others, could cause actual results to differ
materially from those set forth in these forward-looking statements:
changes in the interest rate environment; changes in the securities,
real estate markets or the economy in general, whether nationally,
internationally or regionally; increased competition and its effect on
pricing, spending, third-party relationships and revenues; changes in
monetary and fiscal policies of the U.S. government changes in
accounting principles, policies, practices or guidelines and
legislative or regulatory changes. Additional factors that could cause
North Fork's results to differ materially from those described in the
forward-looking statements can be found in the 2005 Annual Report on
Form 10-K of North Fork (including under the heading "Forward-Looking
Statements" and "Risk Factors"), and in the Quarterly Reports on Form
10-Q of North Fork filed with the Securities and Exchange Commission
("SEC") and available at the SEC's internet site (http://www.sec.gov).
Other risks include the ability to obtain regulatory approvals for the
contemplated transaction with Capital One on the proposed terms and
schedule; the risk that the businesses will not be integrated
successfully; the risk that costs and expenses relating to the merger
and subsequent integration may be greater than anticipated; the risk
that the cost savings and any other synergies from the transaction may
not be fully realized or may take longer to realize than expected;
disruption from the transaction making it more difficult to maintain
relationships with customers, employees or suppliers. The
forward-looking statements in this press release speak only as of the
date of the press release, and North Fork assumes no obligation to
update the forward-looking statements or to update the reasons why
actual results could differ from those contained in the
forward-looking statements.
Additional Information About the Capital One and North Fork
Transaction
In connection with the proposed merger of Capital One and North
Fork, Capital One filed with the Securities and Exchange Commission
(the "SEC") a Registration Statement on Form S-4 that included a joint
proxy statement of Capital One and North Fork that also constitutes a
prospectus of Capital One. Capital One and North Fork mailed the joint
proxy statement/prospectus to their respective stockholders on or
about July 14, 2006. Investors and security holders are urged to read
the definitive joint proxy statement/prospectus regarding the proposed
merger because it contains important information. You may obtain a
free copy of the definitive joint proxy statement/prospectus and other
related documents filed by Capital One and North Fork with the SEC at
the SEC's website at www.sec.gov. The definitive joint proxy
statement/prospectus and the other documents may also be obtained for
free by accessing Capital One's website at www.capitalone.com under
the heading "Investors" and then under the heading "SEC & Regulatory
Filings" or by accessing North Fork's website at www.northforkbank.com
under the tab "Investor Relations" and then under the heading "SEC
Filings.
-0-
*T
North Fork Bancorporation, Inc.
Consolidated Statements of Income
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
------------------- -----------------------
(in thousands, except per
share amounts) 2006 2005 2006 2005
--------- --------- ----------- -----------
Interest Income:
Loans Held-for-Investment $559,017 $469,599 $1,596,510 $1,394,034
Loans Held-for-Sale 86,885 69,840 226,665 209,753
Mortgage-Backed Securities 92,009 113,921 287,961 389,303
Other Securities 25,986 28,422 83,804 87,953
Money Market Investments 858 508 1,971 1,903
--------- --------- ----------- -----------
Total Interest Income 764,755 682,290 2,196,911 2,082,946
--------- --------- ----------- -----------
Interest Expense:
Savings, NOW & Money
Market Deposits 144,400 91,316 396,565 243,367
Time Deposits 78,378 49,397 197,827 123,255
Federal Funds Purchased
and Collateralized
Borrowings 114,591 86,343 287,693 290,588
Other Borrowings 20,482 20,684 60,558 57,794
--------- --------- ----------- -----------
Total Interest Expense 357,851 247,740 942,643 715,004
--------- --------- ----------- -----------
Net Interest Income 406,904 434,550 1,254,268 1,367,942
Provision for Loan Losses 9,000 9,000 27,000 27,000
--------- --------- ----------- -----------
Net Interest Income
after Provision for
Loan Losses 397,904 425,550 1,227,268 1,340,942
--------- --------- ----------- -----------
Non-Interest Income:
Mortgage Banking Income 111,990 126,415 313,831 328,190
Customer Related Fees &
Service Charges 39,808 41,980 121,203 125,888
Investment Management,
Commissions & Trust Fees 9,085 8,780 27,881 30,138
Other Operating Income 13,325 12,719 48,182 42,177
Securities Gains, net 4,461 840 15,282 16,358
Trading Gains/(Losses) (1) 9,674 - (11,396) -
--------- --------- ----------- -----------
Total Non-Interest
Income 188,343 190,734 514,983 542,751
--------- --------- ----------- -----------
Non-Interest Expense:
Employee Compensation &
Benefits 148,830 136,300 435,390 410,684
Occupancy & Equipment, net 51,574 49,007 154,121 141,910
Amortization of
Identifiable Intangibles 8,859 9,133 26,578 27,400
Other Operating Expenses 54,814 59,560 166,839 170,454
Merger Related Charges -
Capital One 13,668 - 18,900 -
Debt Restructuring Costs 5,356 - 5,356 -
Settlement Recovery (2) - - (16,031) -
--------- --------- ----------- -----------
Total Non-Interest
Expense 283,101 254,000 791,153 750,448
--------- --------- ----------- -----------
Income Before Income Taxes 303,146 362,284 951,098 1,133,245
Provision for Income Taxes 100,038 124,988 317,046 394,848
--------- --------- ----------- -----------
Net Income $203,108 $237,296 $634,052 $738,397
========= ========= =========== ===========
Earnings Per Share:
Basic $0.45 $0.50 $1.39 $1.58
Diluted $0.44 $0.50 $1.38 $1.55
*T
See accompanying notes appended to the financial data and
summaries.
-0-
*T
North Fork Bancorporation, Inc.
Consolidated Balance Sheets
(Unaudited)
September 30, June 30,
(in thousands, except per share amounts) 2006 2006
------------- ------------
Assets:
Cash & Due from Banks $961,425 $1,000,195
Money Market Investments 114,832 22,295
Securities:
Available-for-Sale 9,500,424 9,867,618
Held-to-Maturity 93,265 97,344
------------- ------------
Total Securities 9,593,689 9,964,962
------------- ------------
Loans:
Loans Held-for-Sale 4,672,939 5,406,341
Loans Held-for-Investment 36,258,634 35,551,560
Less: Allowance for Loan Losses 228,544 224,571
------------- ------------
Net Loans Held-for-
Investment 36,030,090 35,326,989
------------- ------------
Goodwill 5,918,116 5,918,116
Identifiable Intangibles 87,513 96,373
Premises & Equipment 448,762 447,633
Mortgage Servicing Rights 258,190 272,543
Accrued Income Receivable 218,934 213,492
Other Assets 584,823 712,896
------------- ------------
Total Assets $58,889,313 $59,381,835
============= ============
Liabilities and Stockholders' Equity:
Deposits:
Demand $7,300,158 $7,561,888
Savings, NOW & Money Market 21,129,366 21,377,573
Time 8,118,045 7,875,144
------------- ------------
Total Deposits 36,547,569 36,814,605
------------- ------------
Federal Funds Purchased & Collateralized
Borrowings 10,732,348 11,249,615
Other Borrowings 1,469,761 1,463,066
------------- ------------
Total Borrowings 12,202,109 12,712,681
------------- ------------
Accrued Interest Payable 133,893 135,351
Dividends Payable 116,530 116,437
Accrued Expenses & Other Liabilities 631,105 540,184
------------- ------------
Total Liabilities $49,631,206 $50,319,258
------------- ------------
Stockholders' Equity:
Common Stock, par value $0.01; authorized
1,000,000,000 shares; issued 480,682,118
shares at September 30, 2006 $4,807 $4,807
Additional Paid in Capital 6,881,364 6,875,810
Retained Earnings 2,866,058 2,779,501
Accumulated Other Comprehensive Loss (114,346) (207,161)
Deferred Compensation - -
Treasury Stock at Cost, 14,562,066 shares
at September 30, 2006 (379,776) (390,380)
------------- ------------
Total Stockholders' Equity 9,258,107 9,062,577
------------- ------------
Total Liabilities and Stockholders'
Equity $58,889,313 $59,381,835
============= ============
December 31, September 30,
(in thousands, except per share amounts) 2005 2005
------------ -------------
Assets:
Cash & Due from Banks $1,037,406 $740,251
Money Market Investments 24,843 17,808
Securities:
Available-for-Sale 11,295,977 11,989,260
Held-to-Maturity 104,210 114,505
------------ -------------
Total Securities 11,400,187 12,103,765
------------ -------------
Loans:
Loans Held-for-Sale 4,359,267 4,701,550
Loans Held-for-Investment 33,232,236 32,672,962
Less: Allowance for Loan Losses 217,939 220,347
------------ -------------
Net Loans Held-for-
Investment 33,014,297 32,452,615
------------ -------------
Goodwill 5,918,116 5,914,562
Identifiable Intangibles 114,091 123,334
Premises & Equipment 438,040 433,775
Mortgage Servicing Rights 267,424 267,347
Accrued Income Receivable 205,892 198,909
Other Assets 837,308 946,477
------------ -------------
Total Assets $57,616,871 $57,900,393
============ =============
Liabilities and Stockholders' Equity:
Deposits:
Demand $7,639,231 $7,478,359
Savings, NOW & Money Market 20,910,161 21,115,093
Time 8,067,181 8,218,634
------------ -------------
Total Deposits 36,616,573 36,812,086
------------ -------------
Federal Funds Purchased & Collateralized
Borrowings 9,700,621 9,572,995
Other Borrowings 1,477,364 1,485,392
------------ -------------
Total Borrowings 11,177,985 11,058,387
------------ -------------
Accrued Interest Payable 102,229 91,376
Dividends Payable 116,754 105,153
Accrued Expenses & Other Liabilities 601,089 568,846
------------ -------------
Total Liabilities $48,614,630 $48,635,848
------------ -------------
Stockholders' Equity:
Common Stock, par value $0.01; authorized
1,000,000,000 shares; issued 480,682,118
shares at September 30, 2006 $4,806 $4,799
Additional Paid in Capital 7,035,314 7,020,325
Retained Earnings 2,581,047 2,486,847
Accumulated Other Comprehensive Loss (108,898) (89,052)
Deferred Compensation (154,772) (109,111)
Treasury Stock at Cost, 14,562,066 shares
at September 30, 2006 (355,256) (49,263)
------------ -------------
Total Stockholders' Equity 9,002,241 9,264,545
------------ -------------
Total Liabilities and Stockholders'
Equity $57,616,871 $57,900,393
============ =============
*T
See accompanying notes appended to the financial data and
summaries
-0-
*T
North Fork Bancorporation, Inc.
Selected Financial Data and Balance Sheet Components
(Unaudited)
Three Months Nine Months
Ended September Ended September
30, 30,
----------------- -----------------
SELECTED FINANCIAL DATA: 2006 2005 2006 2005
-------- -------- -------- --------
(in thousands, except ratios and
per share amounts)
Per Share:
Net Income - Basic $0.45 $0.50 $1.39 $1.58
Net Income - Diluted $0.44 $0.50 $1.38 $1.55
Average Shares Outstanding -
Basic 456,100 470,004 455,107 468,644
Average Shares Outstanding -
Diluted 460,872 475,627 460,083 474,957
Cash Dividends $0.25 $0.22 $0.75 $0.66
Dividend Payout Ratio 57% 44% 55% 43%
Tangible Book Value $6.98 $6.75 $6.98 $6.75
Selected Financial Data:
Return on Average Total Assets 1.36% 1.60% 1.45% 1.64%
Return on Average Tangible
Assets (3) 1.56% 1.83% 1.67% 1.87%
Return on Average Equity 8.77% 10.13% 9.35% 10.78%
Return on Average Tangible
Equity (3) 26.12% 29.43% 28.59% 32.21%
Tangible Equity to Tangible
Assets 6.15% 6.22% 6.15% 6.22%
Efficiency Ratio (4) 42.13% 39.15% 42.03% 37.14%
Yield on Interest Earning
Assets 6.03% 5.47% 5.96% 5.48%
Cost of Funds 3.38% 2.39% 3.06% 2.22%
Net Interest Margin 3.26% 3.52% 3.45% 3.63%
September June December September
30, 30, 31, 30,
2006 2006 2005 2005
--------- ------ -------- ---------
Risk Based Capital:
Tier 1 10.60% 10.26% 10.26% 11.00%
Total 12.98% 12.61% 12.73% 13.57%
Leverage Ratio 7.14% 7.04% 6.70% 7.09%
September 30, June 30,
2006 2006
------------- ------------
Quarterly Average Balance Sheet:
Total Assets $59,193,751 $58,400,693
Securities 10,066,545 10,718,973
Loans Held-for-Sale 5,329,621 4,978,945
Loans Held-for-Investment 35,788,526 34,654,439
Goodwill & Identifiable Intangibles 6,011,167 6,019,964
Demand Deposits 7,315,287 7,414,598
Interest Bearing Deposits 29,229,550 29,907,110
Federal Funds Purchased & Collateralized
Borrowings 11,299,427 9,845,733
Other Borrowings 1,461,561 1,454,216
Stockholders' Equity 9,186,913 9,044,461
Tangible Stockholders' Equity 3,175,746 3,024,497
December 31, September 30,
2005 2005
------------ -------------
Quarterly Average Balance Sheet:
Total Assets $58,232,383 $58,731,915
Securities 11,786,052 12,531,822
Loans Held-for-Sale 5,221,652 5,401,495
Loans Held-for-Investment 32,846,757 32,361,793
Goodwill & Identifiable Intangibles 6,034,399 6,014,839
Demand Deposits 7,771,142 7,547,759
Interest Bearing Deposits 29,368,629 29,642,762
Federal Funds Purchased & Collateralized
Borrowings 9,740,160 10,057,604
Other Borrowings 1,484,866 1,505,651
Stockholders' Equity 9,157,876 9,293,861
Tangible Stockholders' Equity 3,123,477 3,279,022
*T
See accompanying notes appended to the financial data and
summaries
-0-
*T
North Fork Bancorporation, Inc.
Selected Financial Data and Balance Sheet Components
(Unaudited)
BALANCE SHEET COMPONENTS:
The following table presents the composition of the securities
portfolio for the periods ended:
(in thousands) September 30, June 30,
Securities - Available-for-Sale: 2006 2006
------------- -----------
Collateralized Mortgage Obligations $6,032,854 $6,215,558
Agency Pass-Through Certificates 1,638,178 1,685,025
State & Municipal Obligations 669,488 663,997
Equity Securities 618,751 724,836
U.S. Treasury & Government Agencies 211,113 184,003
Other Securities 330,040 394,199
------------- -----------
Total Securities Available-for-Sale $9,500,424 $9,867,618
Total Securities Held-to-Maturity 93,265 97,344
------------- -----------
Total Securities $9,593,689 $9,964,962
============= ===========
(in thousands) December 31, September 30,
Securities - Available-for-Sale: 2005 2005
------------ -------------
Collateralized Mortgage Obligations $6,921,074 $7,391,107
Agency Pass-Through Certificates 1,956,487 2,138,524
State & Municipal Obligations 881,238 844,866
Equity Securities 675,525 669,072
U.S. Treasury & Government Agencies 231,152 272,247
Other Securities 630,501 673,444
------------ -------------
Total Securities Available-for-Sale $11,295,977 $11,989,260
Total Securities Held-to-Maturity 104,210 114,505
------------ -------------
Total Securities $11,400,187 $12,103,765
============ =============
The following table presents the components of the held-for-sale and
held-for-investment loan portfolios for the periods ended:
(in thousands) September 30, June 30,
Loans Held-For-Sale: 2006 2006
------------- ------------
Residential Mortgages $4,228,290 $4,319,709
Home Equity 399,629 1,035,928
------------- ------------
Total 4,627,919 5,355,637
Deferred Origination Costs 45,020 50,704
------------- ------------
Total Loans Held-For-Sale $4,672,939 $5,406,341
============= ============
(in thousands) September 30, June 30,
Loans Held-For-Investment: 2006 2006
------------- ------------
Commercial Mortgages $7,465,052 $7,079,501
Commercial & Industrial 6,073,098 5,806,928
------------- ------------
Total Commercial 13,538,150 12,886,429
Residential Mortgages 14,237,428 14,519,282
Multi-Family Mortgages 5,272,860 5,134,232
Consumer 1,894,712 1,749,383
Construction and Land 1,272,784 1,222,981
------------- ------------
Total $36,215,934 $35,512,307
Deferred Origination Costs, net 42,700 39,253
------------- ------------
Total Loans Held-For-Investment $36,258,634 $35,551,560
============= ============
(in thousands) December 31, September 30,
Loans Held-For-Sale: 2005 2005
------------ -------------
Residential Mortgages $3,824,547 $4,225,128
Home Equity 496,656 434,824
------------ -------------
Total 4,321,203 4,659,952
Deferred Origination Costs 38,064 41,598
------------ -------------
Total Loans Held-For-Sale $4,359,267 $4,701,550
============ =============
(in thousands) December 31, September 30,
Loans Held-For-Investment: 2005 2005
------------ -------------
Commercial Mortgages $6,206,416 $5,896,835
Commercial & Industrial 4,709,440 4,324,758
------------ -------------
Total Commercial 10,915,856 10,221,593
Residential Mortgages 15,068,443 15,508,008
Multi-Family Mortgages 4,821,642 4,626,777
Consumer 1,558,782 1,569,386
Construction and Land 829,273 716,049
------------ -------------
Total $33,193,996 $32,641,813
Deferred Origination Costs, net 38,240 31,149
------------ -------------
Total Loans Held-For-Investment $33,232,236 $32,672,962
============ =============
*T
See accompanying notes appended to the financial data and
summaries
-0-
*T
North Fork Bancorporation, Inc.
Selected Financial Data and Balance Sheet Components
(Unaudited)
The following tables presents the components of non-performing assets
for the periods ended:
September December September
30, June 30, 31, 30,
(in thousands) 2006 2006 2005 2005
--------- -------- -------- ---------
Non-Performing Assets:
Commercial Mortgages $2,119 $1,833 $498 $5,451
Commercial & Industrial 7,338 9,384 7,970 8,137
--------- -------- -------- ---------
Total Commercial 9,457 11,217 8,468 13,588
Residential Mortgages 11,478 14,219 19,315 48,257
Multi-Family Mortgages - - 550 335
Consumer 2,743 1,837 2,684 2,399
Construction and Land - - - 600
--------- -------- -------- ---------
Non-Performing Loans Held-For-
Investment $23,678 $27,273 $31,017 $65,179
Non-Performing Loans Held-For-
Sale 34,753 27,148 13,931 33,137
Other Real Estate 4,098 3,255 4,101 7,149
--------- -------- -------- ---------
Total Non-Performing
Assets $62,529 $57,676 $49,049 $105,465
========= ======== ======== =========
Ratios:
Allowance for Loan Losses to
Non-Performing Loans Held-for-
Investment 965% 823% 703% 338%
Allowance for Loan Losses to
Total Loans Held-for-Investment 0.63% 0.63% 0.66% 0.67%
Non-Performing Loans to Total
Loans Held-for-Investment 0.07% 0.08% 0.09% 0.20%
Non-Performing Assets to Total
Assets 0.11% 0.10% 0.09% 0.18%
Quarterly Net Charge-offs to
Average Loans Held-for-
Investment 0.06% 0.07% 0.14% 0.08%
*T
-0-
*T
The following table presents the impact of allocating the allowance
for loan losses as of September 30, 2006 into our two primary
portfolio segments:
September 30, 2006
--------------------------------------
Residential Commercial &
& Multi- All Other
(dollars in thousands) Total Family Loans
------------ ------------ ------------
Loans Held-for-Investment $36,258,634 $19,552,988 $16,705,646
Allowance for Loan Losses 228,544 60,526 168,018
Non-Performing Loans Held-for-
Investment 23,678 11,478 12,200
Allowance for Loan Losses to
Loans-Held-for-Investment 0.63% 0.31% 1.01%
============ ============ ============
Allowance for Loan Losses to
Non-Performing
Loans Held-for-Investment 965% 527% 1377%
============ ============ ============
*T
See accompanying notes appended to the financial data and
summaries
-0-
*T
North Fork Bancorporation, Inc.
Net Interest Margin Analysis
(Unaudited)
The following table presents on a linked quarter basis, an analysis of
net interest income by each major category of interest earning assets
and interest bearing liabilities:
For the Three Months Ended: September 30, 2006
------------------------------
Average Average
(dollars in thousands ) Balance Interest Rate
------------ --------- -------
Interest Earning Assets:
Loans Held-for-Investment $35,788,526 $563,239 6.24%
Loans Held-for-Sale 5,329,621 86,885 6.47%
Securities 10,066,545 127,599 5.03%
Money Market Investments 68,730 1,054 6.08%
------------ ---------
Total Interest Earning Assets 51,253,422 778,777 6.03%
------------ ---------
Non-Interest Earning Assets:
Cash and Due from Banks $980,630
Other Assets 6,959,699
------------
Total Assets $59,193,751
============
Interest Bearing Liabilities:
Savings, NOW & Money Market Deposits $21,117,805 $144,400 2.71%
Time Deposits 8,111,745 78,378 3.83%
------------ ---------
Total Savings and Time Deposits 29,229,550 222,778 3.02%
Fed. Funds Purchased & Collateralized
Borrowings 11,299,427 114,591 4.02%
Other Borrowings 1,461,561 20,482 5.56%
------------ ---------
Total Borrowings 12,760,988 135,073 4.20%
------------ ---------
Total Interest Bearing Liabilities 41,990,538 357,851 3.38%
------------ ---------
Interest Rate Spread 2.65%
Non-Interest Bearing Liabilities:
Demand Deposits $7,315,287
Other Liabilities 701,013
------------
Total Liabilities 50,006,838
Stockholders' Equity 9,186,913
------------
Total Liabilities and Stockholders'
Equity $59,193,751
============
Net Interest Income and Net Interest
Margin $420,926 3.26%
Less: Tax Equivalent Adjustment (14,022)
---------
Net Interest Income $406,904
=========
For the Three Months Ended: June 30, 2006
------------------------------
Average Average
(dollars in thousands ) Balance Interest Rate
------------ --------- -------
Interest Earning Assets:
Loans Held-for-Investment $34,654,439 $534,972 6.19%
Loans Held-for-Sale 4,978,945 76,088 6.13%
Securities 10,718,973 136,500 5.11%
Money Market Investments 47,343 670 5.68%
------------ ---------
Total Interest Earning Assets 50,399,700 748,230 5.95%
------------ ---------
Non-Interest Earning Assets:
Cash and Due from Banks $999,159
Other Assets 7,001,834
------------
Total Assets $58,400,693
============
Interest Bearing Liabilities:
Savings, NOW & Money Market Deposits $21,707,006 $134,731 2.49%
Time Deposits 8,200,104 59,658 2.92%
------------ ---------
Total Savings and Time Deposits 29,907,110 194,389 2.61%
Fed. Funds Purchased & Collateralized
Borrowings 9,845,733 89,628 3.65%
Other Borrowings 1,454,216 20,119 5.55%
------------ ---------
Total Borrowings 11,299,949 109,747 3.90%
------------ ---------
Total Interest Bearing Liabilities 41,207,059 304,136 2.96%
------------ ---------
Interest Rate Spread 2.99%
Non-Interest Bearing Liabilities:
Demand Deposits $7,414,598
Other Liabilities 734,575
------------
Total Liabilities 49,356,232
Stockholders' Equity 9,044,461
------------
Total Liabilities and Stockholders'
Equity $58,400,693
============
Net Interest Income and Net Interest
Margin $444,094 3.53%
Less: Tax Equivalent Adjustment (14,206)
---------
Net Interest Income $429,888
=========
*T
See accompanying notes appended to the financial data and
summaries
-0-
*T
North Fork Bancorporation, Inc.
Mortgage Banking - Quarterly Highlights
(Unaudited)
The following table presents the components of the mortgage
origination and sales volume for the periods indicated:
Quarterly Highlights
----------------------------------------
(Dollars in thousands) September 30, June 30, March 31,
Comparative Mortgage Loan
Volumes 2006 2006 2006
------------- ------------ -------------
Total Applications Received $17,732,328 $18,409,983 $15,278,074
============= ============ =============
Loans Originated:
Specialty Products (a) $4,717,198 $4,861,775 $4,034,289
Home Equity 1,219,465 1,281,321 1,002,615
Jumbo/Agency 3,524,084 3,746,581 2,734,867
------------- ------------ -------------
Total Loans Originated $9,460,747 $9,889,677 $7,771,771
============= ============ =============
Pipeline (b) $5,887,000 $6,246,558 $5,722,902
Interest Rate Lock
Commitments (c) 2,560,499 2,670,377 2,498,841
Loans Held-for-Sale 4,672,939 5,406,341 4,190,165
Loan Sales (3):
Specialty Products $4,224,073 $4,162,568 $4,032,031
Home Equity 1,664,800 755,613 916,017
Jumbo/Agency 3,449,499 2,925,437 2,188,749
------------- ------------ -------------
Total Loan Sales $9,338,372 $7,843,618 $7,136,797
============= ============ =============
Average Margin on Loan Sales:
Specialty Products 1.76% 1.64% 1.23%
Home Equity 1.23% 1.25% 1.69%
Jumbo/Agency 0.83% 0.84% 0.77%
------------- ------------ -------------
Average Margin on Loan
Sales 1.32% 1.30% 1.15%
============= ============ =============
Gain on Sale of Loans: (3)
Specialty Products $74,477 $68,419 $49,426
Home Equity 20,399 9,413 15,499
Jumbo/Agency 28,748 24,484 16,824
------------- ------------ -------------
Total Gain on Sale of
Loans $123,624 $102,316 $81,749
============= ============ =============
Quarterly Highlights
----------------------------
(Dollars in thousands) December 31, September 30,
Comparative Mortgage Loan Volumes 2005 2005
------------ -------------
Total Applications Received $15,613,973 $17,254,701
============ =============
Loans Originated:
Specialty Products (a) $4,787,403 $4,827,831
Home Equity 1,114,617 1,280,684
Jumbo/Agency 3,488,135 4,302,550
------------ -------------
Total Loans Originated $9,390,155 $10,411,065
============ =============
Pipeline (b) $5,325,629 $6,376,081
Interest Rate Lock Commitments (c) 2,386,809 2,349,097
Loans Held-for-Sale 4,359,267 4,701,550
Loan Sales (3):
Specialty Products $4,570,651 $5,061,097
Home Equity 865,665 1,500,767
Jumbo/Agency 3,277,851 4,381,960
------------ -------------
Total Loan Sales $8,714,167 $10,943,824
============ =============
Average Margin on Loan Sales:
Specialty Products 1.18% 1.13%
Home Equity 1.49% 1.88%
Jumbo/Agency 0.76% 0.65%
------------ -------------
Average Margin on Loan Sales 1.05% 1.04%
============ =============
Gain on Sale of Loans: (3)
Specialty Products $53,867 $56,956
Home Equity 12,929 28,172
Jumbo/Agency 24,819 28,459
------------ -------------
Total Gain on Sale of Loans $91,615 $113,587
============ =============
(a) Specialty products include: Alt A, No Doc and A minus programs.
(b) The pipeline represents applications received, but not funded.
(c) Represents commitments to lend where the rates are guaranteed to
the borrower for a specific period of time.
*T
See accompanying notes appended to the financial data and
summaries
-0-
*T
North Fork Bancorporation, Inc.
Notes to the Financial Data and Summaries
The table below presents the components of mortgage banking income for
the periods indicated:
Three Months Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
(in thousands) 2006 2005 2006 2005
--------- --------- --------- ---------
Gain on Sale of Loans Held-
for-Sale (a) $123,624 $113,587 $307,688 $339,531
Mortgage Banking Fees, net 20,526 26,471 65,122 77,853
Amortization of Mortgage
Servicing Rights (21,526) (23,183) (66,939) (63,763)
Temporary (Impairment
Charge)/Recovery - Mortgage
Servicing Rights (10,634) 9,540 7,960 (25,431)
--------- --------- --------- ---------
Total Mortgage Banking
Income $111,990 $126,415 $313,831 $328,190
========= ========= ========= =========
(a) Gain on sale margins on loan sales include the impact of the
valuation of mortgage loans held-for-sale and interest rate lock
commitments, valuation of derivatives utilized to manage interest
rate risk associated with mortgage loan commitments and mortgage
loans held-for-sale, and adjustments related to reserves established
for representations and warranties.
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Notes to the Financial Data and Summaries
*T
(1) We have reviewed our accounting treatment for all derivative
transactions and determined that certain transactions did not meet the
requirements of the "short cut" method of accounting under SFAS No.
133, "Accounting for Derivative Instruments and Hedging Activities".
As a result, hedge accounting was not appropriate for these
transactions since inception and have been reclassified as trading
instruments a component of other assets on the accompanying balance
sheet. The cumulative market value fluctuation of these derivatives
upon reclassification and subsequent fluctuations of market value has
been recorded as trading gains/(losses) on the accompanying statement
of income.
(2) Represents a release of certain accrued liabilities on
corporate guarantees pertaining to the discontinued manufactured
housing business we acquired from GreenPoint.
(3) This press release contains certain supplemental financial
information, described in the following notes, which has been
determined by methods other than Generally Accepted Accounting
Principles ("GAAP") that management uses in its analysis of the
Company's performance. Management believes these non-GAAP financial
measures provide information useful to investors in understanding the
underlying operational performance of the Company, its business and
performance trends and facilitates comparisons with the performance of
others in the financial services industry.
Return on average tangible assets and return on average tangible
equity, which represent non-GAAP measures are computed, on an
annualized basis, as follows:
-- Return on average tangible assets is computed by dividing net
income, plus amortization of identifiable intangible assets,
net of taxes by average total assets less average goodwill and
average identifiable intangible assets.
-- Return on average tangible equity is computed by dividing net
income, plus amortization of identifiable intangible assets,
net of taxes by average total stockholders' equity less
average goodwill and average identifiable intangible assets.
-0-
*T
Three Months Nine Months
Ended September 30, Ended September 30,
------------------------- -------------------------
(dollars in
thousands) 2006 2005 2006 2005
------------ ------------ ------------ ------------
Net Income, as
Reported $203,108 $237,296 $634,052 $738,397
Add: Amortization
of Identifiable
Intangible
Assets, Net of
Taxes 5,936 5,982 17,720 17,854
------------ ------------ ------------ ------------
Net Income, as
Adjusted $209,044 $243,278 $651,772 $756,251
============ ============ ============ ============
Average Total
Assets $59,193,751 $58,731,915 $58,329,760 $60,134,351
Less: Average
Goodwill 5,918,111 5,885,957 5,918,115 5,884,029
Less: Average
Identifiable
Intangible Assets 93,056 128,882 101,818 138,103
------------ ------------ ------------ ------------
Average Total
Tangible
Assets $53,182,584 $52,717,076 $52,309,827 $54,112,219
============ ============ ============ ============
Average
Stockholders'
Equity $9,186,913 $9,293,861 $9,068,415 $9,161,643
Less: Average
Goodwill 5,918,111 5,885,957 5,918,115 5,884,029
Less: Average
Identifiable
Intangible Assets 93,056 128,882 101,818 138,103
------------ ------------ ------------ ------------
Average Total
Tangible
Stockholders'
Equity $3,175,746 $3,279,022 $3,048,482 $3,139,511
============ ============ ============ ============
Return on
Average
Tangible
Assets 1.56% 1.83% 1.67% 1.87%
Return on
Average
Tangible
Stockholders'
Equity 26.12% 29.43% 28.59% 32.21%
*T
(4) The efficiency ratio, which represents a non-GAAP measure, is
defined as the ratio of non-interest expense net of amortization of
identifiable intangibles, manufactured housing recourse settlement,
debt restructuring costs and merger expenses to net interest income on
a tax equivalent basis and other non-interest income net of securities
gains/(losses), (temporary impairment)/recovery on mortgage servicing
rights and trading losses on derivative instruments.