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North Fork Bancorporation, Inc. (NYSE: NFB) reported
earnings and earnings per share, strong growth in its commercial
business, improvements in net interest margin, gain on sale margins,
and asset quality as well as continued balance sheet repositioning and
substantial completion of its common share repurchase program.
Highlights in the current period include:
-- A net interest margin of 3.62%, an improvement of 10 basis
points compared to the previous quarter.
-- Stabilized gain on loan sale margins.
-- 27% annualized growth in commercial loans and 23% annualized
growth in total loans, excluding residential mortgages.
-- 54% decline in total non-performing assets, linked quarter.
-- Further reductions in securities and residential mortgages as
the balance sheet repositioning program continued.
-- The purchase of 14.2 million shares of common stock under the
share repurchase program.
-- Returns on average tangible equity and tangible assets of
27.5% and 1.65%, respectively.
-- 14% increase in cash dividends.
"Despite the challenging operating environment, we made
substantial progress toward our goal of transforming our balance sheet
this year leading to a stabilization of our profitability measurements
as we had hoped for," said John Adam Kanas, Chairman, President and
Chief Executive Officer.
Net Earnings and Returns
Net income for the year ended December 31, 2005 was $949 million
or diluted earnings per share of $2.01 compared to $553 million last
year or diluted earnings per share of $1.85 representing increases of
72% and 9%, respectively.
Net income for the quarter ended December 31, 2005 was $210
million or $.45 diluted earnings per share compared to $222 million or
diluted earnings per share of $.47 for the comparable period in 2004.
The decline in year over year quarterly earnings was due to the flat
yield curve and the decision to reposition the balance sheet, thereby
reducing interest earning assets.
The Company's returns on average tangible equity and assets for
the full year were 31% and 1.81%, respectively.
For the quarter ended December 31, 2005, net interest income and
net interest margin were $441.9 million and 3.62%, respectively,
compared to $474.8 million and 3.85% in 2004. On a linked quarter
basis, the net interest margin increased by 10 basis points. Net
interest income increased modestly, linked quarter. The Company
advised that further improvements in its net interest margin are not
expected in the near term considering the inverted yield curve. A
modest decline may occur.
The Company continued its previously disclosed balance sheet
repositioning program in the quarter. Investment securities and
residential mortgages declined by $704 million and $440 million,
respectively. As a result of commercial loan growth, the share
repurchase program, and pay off of brokered time deposits, total
borrowings remained unchanged, linked quarter. No further changes are
expected in the near term relating to the repositioning strategy. "A
stronger, less vulnerable balance sheet is our goal," said John Kanas.
"We are very flexible and can change this strategy if the interest
rate environment should improve. We have little confidence however, of
seeing a more friendly rate environment any time soon," he added.
At quarter end, the Company identified $570 million of investment
securities as other than temporarily impaired that were sold in the
first quarter of 2006. Consequently, a securities loss of
approximately $6 million was recognized. The Company will reinvest the
sales proceeds into higher yielding securities.
Loans
Loans held-for-investment at December 31, 2005 amounted to $33.2
billion compared to $30.4 billion in 2004. On a linked quarter basis,
loans held-for-investment, excluding residential loans, increased by
$992 million, an annualized growth rate of 23%. Total commercial loans
increased 27% on an annualized basis to $10.9 billion. The commercial
and industrial component rose to $4.7 billion, an increase of 36% on
an annualized basis. As planned, in connection with the balance sheet
repositioning, residential loans declined by $440 million in the
quarter. Further reductions are expected in 2006 as the Company
changes its asset mix to a greater proportion of commercial loans.
The demand for the Company's commercial banking services has been
intense with its loan pipeline, excluding residential loans, remaining
at record levels. "We have experienced remarkable growth in every loan
component in our commercial banking model," said John Kanas. "We
expect further advances from the GreenPoint Mortgage commercial
mortgage wholesale channel," he added.
Non-performing assets declined, linked quarter, by approximately
$56 million or 54% and by $163 million or 77% from the beginning of
the year. Net charge-offs in the quarter were 14 basis points. The
modest increase in net charge-offs of 6 basis points, linked quarter,
was caused primarily by the sale of non-performing loans at a loss of
$2.9 million. The overall allowance for loan losses to non-performing
loans improved to 703%. The allowance for loan losses of $218 million,
when allocated between residential mortgages and all other commercial
loans, was .36% and 1.09%, respectively.
Deposits
At December 31, 2005 total deposits were $36.6 billion,
substantially unchanged from the previous quarter. Commercial deposit
growth, especially in demand deposits, offset declines experienced in
consumer accounts. "We have chosen to concentrate on our commercial
business avoiding the rate war being waged for consumer deposits,"
said John Kanas. "GreenPoint branch business deposit growth is gaining
momentum each day," he added.
Non-Interest Income / Expenses
The efficiency ratio in the final quarter of the year rose
slightly to 41.17%; however, the Company remains among the industry's
most efficient. Consumer related fees and service charges have been
impacted by competition and retail customer attrition. Growth in
business fees have offset in part the declining trend.
Operating expenses in the quarter includes a $15.4 million charge
for facility and branch consolidations relating to the GreenPoint
conversion into North Fork.
Non-interest income include a $15.1 million gain on the sale of a
minor interest in a non-public mortgage finance entity. The previous
earnings contribution of this interest was not significant.
Mortgage Banking Business
The Company's mortgage banking subsidiary, GreenPoint Mortgage,
generated originations of $9.4 billion in the quarter, contrary to
original industry expectations. The spread on loan sales was 105 basis
points, reversing declining trends. Gain on sale of loans was $92
million in the quarter compared to $114 million in the prior quarter.
At December 31, 2005, the mortgage pipeline was $5.3 billion. "We are
on target with our plans to significantly expand commercial mortgage
originations through GreenPoint," said John Kanas. "Changing the
origination mix toward commercial will offset industry declining
origination expectations in residential mortgages while adding
valuable assets to our balance sheet," he said.
In the quarter, the Company recovered approximately $2.3 million
of the temporary impairment on the mortgage servicing rights. At
December 31, 2005, mortgage servicing rights of $267 million, net of
reserve, was 92 basis points of the unpaid principal balance of the
related loans serviced.
Increase in Cash Dividend and Share Repurchases
On December 13, 2005, the Board declared an increase of 14% in its
regular quarterly cash dividend to $.25 per common share. The dividend
will be payable February 15, 2006, to shareholders of record at the
close of business on January 27, 2006.
To date, the Company purchased 14.2 million shares under its
previously announced 16 million common share repurchase program at an
average price of $26.23 per share.
Audio Webcast
A recorded audio webcast reviewing North Fork's results will be
available at 8:30 a.m. Eastern Time on January 19, 2006. It is
available through the Company's website www.northforkbank.com. A
call-in number is also available by dialing toll free (US and Canada)
1-888-350-0137, PIN # 3210 or (International) 1-402-220-5110, PIN #
3210. The webcast will be archived for 5 business days.
North Fork is a regional bank holding company headquartered in New
York conducting commercial and retail banking from approximately 353
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 legislative or regulatory
changes, actual results to differ from those set forth in these
forward-looking statements: changes in the interest rate environment;
changes in the securities and real estate markets; increased
competition and its effect on pricing, changes in monetary and fiscal
policies of the U.S. government, changes in accounting principles,
policies, practices or guidelines. 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 2004 Annual Report on
Form 10-K of North Fork (including under the heading "Forward-Looking
Statements"), 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). 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.
-0-
*T
North Fork Bancorporation, Inc.
Consolidated Statements of Income
(Unaudited)
Three Months Ended Twelve Months Ended
(in thousands, except per December December December December
share amounts) 31, 2005 31, 2004 31, 2005 31, 2004
----------------------------------------
Interest Income:
Loans Held-for-Investment $486,263 $432,826 $1,880,297 $1,078,684
Loans Held-for-Sale 75,468 64,391 285,221 64,391
Mortgage-Backed Securities 104,415 142,561 493,718 352,816
Other Securities 28,934 29,346 116,887 78,743
Money Market Investments 455 662 2,358 3,518
----------------------------------------
Total Interest Income 695,535 669,786 2,778,481 1,578,152
----------------------------------------
Interest Expense:
Savings, NOW & Money Market
Deposits 102,255 56,042 345,622 113,082
Time Deposits 56,376 29,204 179,630 66,056
Federal Funds Purchased &
Collateralized Borrowings 72,842 93,217 363,430 187,008
Other Borrowings 22,123 16,501 79,918 36,785
----------------------------------------
Total Interest Expense 253,596 194,964 968,600 402,931
----------------------------------------
Net Interest Income 441,939 474,822 1,809,881 1,175,221
Provision for Loan Losses 9,000 7,689 36,000 27,189
----------------------------------------
Net Interest Income after
Provision for Loan Losses 432,939 467,133 1,773,881 1,148,032
----------------------------------------
Non-Interest Income:
Mortgage Banking Income (3) 92,648 57,086 420,838 60,842
Customer Related Fees &
Service Charges 40,984 43,901 166,872 114,481
Investment Management,
Commissions & Trust Fees 8,824 12,852 38,962 25,181
Other Operating Income 11,417 11,385 53,592 31,992
Securities (Losses)/Gains, net (6,220) 951 10,139 12,656
Gain on Sale of Other
Investments 15,108 3,351 15,108 3,351
----------------------------------------
Total Non-Interest Income 162,761 129,526 705,511 248,503
----------------------------------------
Non-Interest Expense:
Employee Compensation &
Benefits 139,298 135,568 549,981 306,781
Occupancy & Equipment, net 50,169 46,253 192,079 106,174
Amortization of Identifiable
Intangibles
9,244 9,444 36,643 15,109
Other Operating Expenses 60,310 64,277 230,764 127,738
Facility Closures Expense 15,382 - 15,382 -
----------------------------------------
Total Non-Interest Expense 274,403 255,542 1,024,849 555,802
----------------------------------------
Income Before Income Taxes 321,297 341,117 1,454,543 840,733
Provision for Income Taxes 110,847 119,367 505,696 287,737
----------------------------------------
Net Income $210,450 $221,750 $948,847 $552,996
========================================
Earnings Per Share:
Basic $0.45 $0.48 $2.03 $1.88
Diluted $0.45 $0.47 $2.01 $1.85
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except December 31, September 30, December 31,
per share amounts) 2005 2005 2004
------------ ------------- ------------
Assets:
Cash & Due from Banks $1,037,406 $740,251 $972,506
Money Market Investments 24,843 17,808 90,394
Securities:
Available-for-Sale 11,295,977 11,989,260 15,444,625
Held-to-Maturity 104,210 114,505 142,573
------------ ------------- ------------
Total Securities 11,400,187 12,103,765 15,587,198
------------ ------------- ------------
Loans:
Loans Held-for-Sale 4,359,267 4,701,550 5,775,945
Loans Held-for-Investment 33,232,236 32,672,962 30,453,334
Less: Allowance for Loan
Losses 217,939 220,347 211,097
------------ ------------- ------------
Net Loans Held-for-
Investment 33,014,297 32,452,615 30,242,237
------------ ------------- ------------
Goodwill 5,918,116 5,914,562 5,878,277
Identifiable Intangibles 114,091 123,334 150,734
Premises & Equipment 438,040 433,775 416,003
Mortgage Servicing Rights 267,424 267,347 254,857
Accrued Income Receivable 205,892 198,909 205,189
Other Assets 837,308 946,477 1,093,715
------------ ------------- ------------
Total Assets $57,616,871 $57,900,393 $60,667,055
============ ============= ============
Liabilities and Stockholders'
Equity:
Deposits:
Demand $7,639,231 $7,478,359 $6,738,302
Savings, NOW & Money Market 20,910,161 21,115,093 20,598,994
Time 8,067,181 8,218,634 7,475,132
------------ ------------- ------------
Total Deposits 36,616,573 36,812,086 34,812,428
------------ ------------- ------------
Federal Funds Purchased &
Collateralized Borrowings 9,700,621 9,572,995 14,593,027
Other Borrowings 1,477,364 1,485,392 1,506,318
------------ ------------- ------------
Total Borrowings 11,177,985 11,058,387 16,099,345
------------ ------------- ------------
Accrued Interest Payable 102,229 91,376 70,029
Dividends Payable 116,754 105,153 104,025
Accrued Expenses & Other
Liabilities 601,089 568,846 700,149
------------ ------------- ------------
Total Liabilities $48,614,630 $48,635,848 $51,785,976
------------ ------------- ------------
Stockholders' Equity:
Common Stock, par value $0.01;
authorized 1,000,000,000
shares; issued 480,592,358
shares at December 31, 2005 $4,806 $4,799 $4,745
Additional Paid in Capital 7,035,314 7,020,325 6,968,493
Retained Earnings 2,581,047 2,486,847 2,064,148
Accumulated Other Comprehensive
(Loss)/Income (108,898) (89,052) 240
Deferred Compensation (154,772) (109,111) (125,174)
Treasury Stock at Cost;
13,576,252 shares at
December 31, 2005 (355,256) (49,263) (31,373)
------------ ------------- ------------
Total Stockholders'
Equity 9,002,241 9,264,545 8,881,079
------------ ------------- ------------
Total Liabilities and
Stockholders' Equity $57,616,871 $57,900,393 $60,667,055
============ ============= ============
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Selected Financial Data and Balance Sheet Components
(Unaudited)
Three Months Ended Twelve Months Ended
December December December December
SELECTED FINANCIAL DATA: 31, 2005 31, 2004 31, 2005 31, 2004
----------------------------------------
(in thousands, except ratios
and per share amounts)
Per Share:
Net Income - Basic $0.45 $0.48 $2.03 $1.88
Net Income - Diluted $0.45 $0.47 $2.01 $1.85
Average Shares Outstanding
- Basic 463,336 463,909 467,306 294,491
Average Shares Outstanding
- Diluted 467,868 471,651 472,791 299,219
Cash Dividends $0.25 $0.22 $0.91 $0.84
Dividend Payout Ratio 55% 47% 46% 47%
Tangible Book Value $6.36 $6.03 $6.36 $6.03
Selected Financial Data:
Return on Average Total
Assets 1.43% 1.50% 1.59% 1.68%
Return on Average Tangible
Assets (1) 1.65% 1.71% 1.81% 1.82%
Return on Average Equity 9.12% 10.00% 10.36% 15.01%
Return on Average Tangible
Equity (1) 27.50% 30.35% 31.02% 33.88%
Tangible Equity to
Tangible Assets 5.76% 5.22% 5.76% 5.22%
Efficiency Ratio (2) 41.17% 40.31% 37.98% 37.56%
Yield on Interest Earning
Assets 5.64% 5.39% 5.52% 5.46%
Cost of Funds 2.48% 1.82% 2.28% 1.71%
Net Interest Margin 3.62% 3.85% 3.63% 4.09%
December September December
31, 2005 30, 2005 31, 2004
------------------------------
Risk Based Capital:
Tier 1 10.26% 11.00% 9.90%
Total 12.73% 13.57% 12.50%
Leverage Ratio 6.70% 7.09% 6.22%
December September December
31, 2005 30, 2005 31, 2004
-------------------------------------
Quarterly Average Balance Sheet:
Total Assets $58,232,383 $58,731,915 $58,746,739
Securities 11,786,052 12,531,822 15,315,473
Loans Held-for-Sale 5,221,652 5,401,495 4,887,454
Loans Held-for-Investment 32,846,757 32,361,793 29,883,578
Goodwill & Identifiable
Intangibles 6,034,399 6,014,839 5,833,655
Demand Deposits 7,771,142 7,547,759 6,593,969
Interest Bearing Deposits 29,368,629 29,642,762 27,302,465
Federal Funds Purchased &
Collateralized Borrowings 9,740,160 10,057,604 13,859,327
Other Borrowings 1,484,866 1,505,651 1,516,032
Stockholders' Equity 9,157,876 9,293,861 8,820,845
Tangible Stockholders' Equity 3,123,477 3,279,022 2,987,190
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 shows the securities portfolio composition for the
periods ended:
December September December
31, 2005 30, 2005 31, 2004
(in thousands) -------------------------------------
Securities - Available-for-Sale:
Collateralized Mortgage
Obligations $6,921,074 $7,391,107 $9,820,056
Agency Pass-Through
Certificates 1,956,487 2,138,524 2,737,067
State & Municipal
Obligations 881,238 844,866 920,112
Equity Securities 670,673 669,072 794,005
U.S. Treasury & Government
Agencies 231,152 272,247 363,775
Other Securities 635,353 673,444 809,610
-------------------------------------
Total Securities
Available-for-Sale $11,295,977 $11,989,260 $15,444,625
Securities Held-to-Maturity 104,210 114,505 142,573
-------------------------------------
Total Securities $11,400,187 $12,103,765 $15,587,198
=====================================
The following tables represent the components of the loans held-for-
sale and held-for-investment portfolios for the periods ended:
December 31, September 30, December 31,
2005 2005 2004
(in thousands) ------------ ------------- ------------
Loans Held-for-Sale:
Residential Mortgages $3,824,547 $4,225,128 $4,339,581
Home Equity 496,656 434,824 1,380,247
------------ ------------- ------------
Total $4,321,203 $4,659,952 $5,719,828
Deferred Origination Costs 38,064 41,598 56,117
------------ ------------- ------------
Total Loans Held-for-Sale $4,359,267 $4,701,550 $5,775,945
============ ============= ============
December 31, September 30, December 31,
2005 2005 2004
(in thousands) ------------ ------------- ------------
Loans Held-for-Investment:
Commercial Mortgages $6,206,416 $5,896,835 $5,369,656
Commercial & Industrial 4,709,440 4,324,758 3,046,820
------------ ------------- ------------
Total Commercial 10,915,856 10,221,593 8,416,476
Residential Mortgages 15,068,443 15,508,008 15,668,938
Multi-Family Mortgages 4,821,642 4,626,777 4,254,405
Consumer 1,558,782 1,569,386 1,604,863
Construction and Land 829,273 716,049 480,162
------------ ------------- ------------
Total $33,193,996 $32,641,813 $30,424,844
Deferred Origination Costs,
net 38,240 31,149 28,490
------------ ------------- ------------
Total Loans Held-for-
Investment $33,232,236 $32,672,962 $30,453,334
============ ============= ============
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 represent the components of non-performing assets
for the periods ended:
December September December
31, 2005 30, 2005 31, 2004
(dollars in thousands) --------- --------- ---------
Non-Performing Assets:
Commercial Mortgages $498 $5,451 $16,890
Commercial & Industrial 7,970 8,137 8,730
--------- --------- ---------
Total Commercial 8,468 13,588 25,620
Residential Mortgages 19,315 48,257 103,745
Multi-Family Mortgages 550 335 1,290
Consumer 2,684 2,399 3,178
Construction and Land - 600 -
--------- --------- ---------
Non-Performing Loans Held-for-
Investment $31,017 $65,179 $133,833
Non-Performing Loans Held-for-Sale 13,931 33,137 60,858
Other Real Estate 4,101 7,149 17,410
--------- --------- ---------
Total Non-Performing Assets $49,049 $105,465 $212,101
========= ========= =========
December September December
31, 2005 30, 2005 31, 2004
--------- --------- ---------
Allowance for Loan Losses to Non-
Performing Loans Held-for-Investment 703% 338% 158%
Allowance for Loan Losses to Total Loans
Held-for-Investment 0.66 0.67 0.69
Non-Performing Loans Held-for-Investment
to Total Loans Held-for-Investment 0.09 0.20 0.44
Non-Performing Assets to Total Assets 0.09 0.18 0.35
Quarterly Net Charge-offs to Average
Loans Held-for-Investment 0.14 0.08 0.14
The following table represents the impact of allocating the allowance
for loan losses as of December 31, 2005 and September 30, 2005, into
our two primary portfolio segments:
December 31, 2005
---------------------------------------
Commercial &
Residential & All Other
(dollars in thousands) Total Multi-Family Loans
------------ ------------- ------------
Loans Held-for-Investment $33,232,236 $19,928,325 $13,303,911
Allowance for Loan Losses
Allocated $217,939 $72,481 $145,458
Non-Performing Loans Held-for-
Investment $31,017 $19,865 $11,152
Allowance for Loan Losses to
Loans Held-for-Investment 0.66 % 0.36 % 1.09 %
============ ============= ============
Allowance for Loan Losses to
Non-Performing Loans
Held-for-Investment 703% 365% 1304%
============ ============= ============
September 30, 2005
---------------------------------------
Commercial &
Residential & All Other
(dollars in thousands) Total Multi-Family Loans
------------ ------------- ------------
Loans Held-for-Investment $32,672,962 $20,165,934 $12,507,028
Allowance for Loan Losses
Allocated $220,347 $73,724 $146,623
Non-Performing Loans Held-for-
Investment $65,179 $48,592 $16,587
Allowance for Loan Losses to
Loans Held-
for-Investment 0.67 % 0.37 % 1.17 %
============ ============= ============
Allowance for Loan Losses to
Non-
Performing Loans Held-for-
Investment 338% 152% 884%
============ ============= ============
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Net Interest Margin Analysis
(Unaudited)
The following table presents a linked quarter analysis of net interest
income, on a tax equivalent basis, by each major category of interest
earning assets and interest bearing liabilities:
For the Three Months Ended: December 31, 2005
----------------------------
Average Average
Balance Interest Rate
(dollars in thousands) ----------------------------
Interest Earning Assets:
Loans Held-for-Investment $32,846,757 $488,643 5.90%
Loan Held-for-Sale 5,221,652 75,468 5.73%
Securities 11,786,052 144,064 4.85%
Money Market Investments 35,311 493 5.54%
---------------------
Total Interest Earning Assets $49,889,772 $708,668 5.64%
---------------------
Non-Interest Earning Assets:
Cash and Due from Banks $1,005,731
Other Assets 7,336,880
------------
Total Assets $58,232,383
------------
Interest Bearing Liabilities:
Savings, NOW & Money Market Deposits $21,229,823 $102,255 1.91%
Time Deposits 8,138,806 56,376 2.75%
---------------------
Total Savings and Time Deposits 29,368,629 158,631 2.14%
Fed. Funds Purchased & Collateralized
Borrowings 9,740,160 72,842 2.97%
Other Borrowings 1,484,866 22,123 5.91%
---------------------
Total Borrowings 11,225,026 94,965 3.36%
---------------------
Total Interest Bearing Liabilities $40,593,655 $253,596 2.48%
---------------------
Interest Rate Spread 3.16%
Non-Interest Bearing Liabilities:
Demand Deposits $7,771,142
Other Liabilities 709,710
------------
Total Liabilities 49,074,507
Stockholders' Equity 9,157,876
------------
Total Liabilities and Stockholders'
Equity $58,232,383
------------
Net Interest Income and Net Interest
Margin $455,072 3.62%
Less: Tax Equivalent Adjustment (13,133)
---------
Net Interest Income $441,939
---------
For the Three Months Ended: September 30, 2005
----------------------------
Average Average
Balance Interest Rate
(dollars in thousands) ----------------------------
Interest Earning Assets:
Loans Held-for-Investment $32,361,793 $471,627 5.78%
Loan Held-for-Sale 5,401,495 69,840 5.13%
Securities 12,531,822 152,447 4.83%
Money Market Investments 38,668 529 5.43%
---------------------
Total Interest Earning Assets $50,333,778 $694,443 5.47%
---------------------
Non-Interest Earning Assets:
Cash and Due from Banks $1,012,515
Other Assets 7,385,622
------------
Total Assets $58,731,915
------------
Interest Bearing Liabilities:
Savings, NOW & Money Market Deposits $21,419,573 $91,316 1.69%
Time Deposits 8,223,189 49,397 2.38%
---------------------
Total Savings and Time Deposits 29,642,762 140,713 1.88%
Fed. Funds Purchased & Collateralized
Borrowings 10,057,604 86,343 3.41%
Other Borrowings 1,505,651 20,684 5.45%
---------------------
Total Borrowings 11,563,255 107,027 3.67%
---------------------
Total Interest Bearing Liabilities $41,206,017 $247,740 2.39%
---------------------
Interest Rate Spread 3.08%
Non-Interest Bearing Liabilities:
Demand Deposits $7,547,759
Other Liabilities 684,278
------------
Total Liabilities 49,438,054
Stockholders' Equity 9,293,861
------------
Total Liabilities and Stockholders'
Equity $58,731,915
------------
Net Interest Income and Net Interest
Margin $446,703 3.52%
Less: Tax Equivalent Adjustment (12,153)
---------
Net Interest Income $434,550
---------
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Mortgage Banking - Financial Highlights
(Unaudited)
Year-to-Date Quarterly Highlights
--------------------------
(dollars in thousands) December 31, December 31, September 30,
2005 2005 2005
---------------------------------------
Comparative Mortgage Loan
Volumes
-------------------------------
Total Applications Received $72,345,985 $15,613,973 $17,254,701
------------ ------------ -------------
Loans Originated:
Specialty Products (a) $19,148,814 $4,787,403 $4,827,831
Home Equity 5,450,355 1,114,617 1,280,684
Jumbo/Agency 17,657,230 3,488,135 4,302,550
------------ ------------ -------------
Total Loans Originated $42,256,399 $9,390,155 $10,411,065
============ ============ =============
Pipeline (b) $5,325,629 $5,325,629 $6,376,081
Interest Rate Lock Commitments
(c) 2,386,809 2,386,809 2,349,097
Loans Held-for-Sale 4,359,267 4,359,267 4,701,550
Loan Sales (3):
Specialty Products $18,360,430 $4,570,651 $5,061,097
Home Equity 5,413,700 865,665 1,500,767
Jumbo/Agency 13,338,986 3,277,851 4,381,960
------------ ------------ -------------
Total Loan Sales $37,113,116 $8,714,167 $10,943,824
============ ============ =============
Average Margin on Loan Sales:
Specialty Products 1.27% 1.18% 1.13%
Home Equity 1.74% 1.49% 1.88%
Jumbo/Agency 0.78% 0.76% 0.65%
------------ ------------ -------------
Average Margin on Loan
Sales 1.16% 1.05% 1.04%
============ ============ =============
Gains on Sale of Loans (3):
Specialty Products $233,028 $53,867 $56,956
Home Equity 94,098 12,929 28,172
Jumbo/Agency 103,484 24,819 28,459
------------ ------------ -------------
Total Gain on Sale of
Loans (d) $430,610 $91,615 $113,587
============ ============ =============
Quarterly Highlights
------------------------------
(dollars in thousands) June 30, March 31,
2005 2005
------------------------------
Comparative Mortgage Loan Volumes
----------------------------------------
Total Applications Received $21,195,474 $18,281,837
------------------------------
Loans Originated:
Specialty Products (a) $5,302,469 $4,231,111
Home Equity 1,566,306 1,488,748
Jumbo/Agency 5,553,487 4,313,058
------------------------------
Total Loans Originated $12,422,262 $10,032,917
==============================
Pipeline (b) $7,594,398 $7,407,671
Interest Rate Lock Commitments (c) 2,891,179 2,523,344
Loans Held-for-Sale 6,398,119 5,350,823
Loan Sales (3):
Specialty Products $4,394,898 $4,333,784
Home Equity 1,466,771 1,580,497
Jumbo/Agency 3,240,177 2,438,998
------------------------------
Total Loan Sales $9,101,846 $8,353,279
==============================
Average Margin on Loan Sales:
Specialty Products 1.35% 1.45%
Home Equity 2.05% 1.45%
Jumbo/Agency 0.92% 0.84%
------------------------------
Average Margin on Loan Sales 1.31% 1.27%
==============================
Gains on Sale of Loans (3):
Specialty Products $59,455 $62,750
Home Equity 30,139 22,858
Jumbo/Agency 29,655 20,551
------------------------------
Total Gain on Sale of Loans (d) $119,249 $106,159
==============================
(a) Specialty products include: Alt A, No Doc and A minus programs.
(b) The pipeline represents applications received, but not yet funded.
(c) Represents commitments to lend where the rates are guaranteed to
the borrower for a specific period of time.
(d) Gain on sale of loans differ from amounts reported under generally
accepted accounting principles on the accompanying income
statement due to the fair value adjustment on loans held-for-sale
totaling $(.5) million.
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Notes to the Financial Data and Summaries
(1) 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 Ended Twelve Months Ended
December December December December
(dollars in thousands) 31, 2005 31, 2004 31, 2005 31, 2004
------------------------------------------------
Net Income, as
Reported $210,450 $221,750 $948,847 $552,996
Add: Amortization
of identifiable
Intangibles Assets,
Net of Taxes 6,054 6,139 23,902 9,939
------------------------------------------------
Net Income adjusted
for Intangible Assets $216,504 $227,889 $972,749 $562,935
------------------------------------------------
Average Total Assets $58,232,383 $58,746,739 $59,654,950 $32,900,141
Less: Average
Goodwill 5,914,615 5,677,527 5,891,738 1,960,559
Less: Average
Identifiable
Intangible Assets 119,784 156,128 133,486 62,374
------------------------------------------------
Average Total
Tangible Assets $52,197,984 $52,913,084 $53,629,726 $30,877,208
------------------------------------------------
Average Stockholders'
Equity $9,157,876 $8,820,845 $9,160,693 $3,684,525
Less: Average
Goodwill 5,914,615 5,677,527 5,891,738 1,960,559
Less: Average
Identifiable
Intangible Assets 119,784 156,128 133,486 62,374
------------------------------------------------
Average Tangible
Stockholders'
Equity $3,123,477 $2,987,190 $3,135,469 $1,661,592
------------------------------------------------
Return on Average
Tangible Assets 1.65% 1.71% 1.81% 1.82%
Return on Average
Tangible
Stockholders' Equity 27.50% 30.35% 31.02% 33.88%
(2) The efficiency ratio, which represents a non-GAAP measure, is
defined as the ratio of non-interest expense net of amortization
of identifiable intangibles and facility closures expense to net
interest income on a tax equivalent basis and other non-interest
income net of securities gains/(losses), temporary
recovery/(impairment) charge on mortgage servicing rights and gain
on sale of other investments.
(3) The table below represents the components of mortgage banking
income for the periods indicated:
Three Months Ended Twelve Months Ended
December December December December
(dollars in thousands) 31, 2005 31, 2004 31, 2005 31, 2004
----------------------------------------
Mortgage Banking Income:
Gain on Sale of Loans Held-
for-Sale (a) $91,615 $52,938 $431,145 $53,710
Mortgage Banking Fees, net 22,318 25,006 100,173 27,990
Amortization of Mortgage
Servicing Rights (23,590) (20,858) (87,354) (20,858)
Temporary
Recovery/(Impairment) -
Mortgage Servicing Rights 2,305 - (23,126) -
----------------------------------------
Total Mortgage Banking Income $92,648 $57,086 $420,838 $60,842
========================================
(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, the impact of the valuation of derivatives utilized
to manage the exposure to interest rate risk associated with
mortgage loan commitments and mortgage loans held-for-sale, and
the impact of adjustments related to reserves established for
representations and warranties made in conjunction with loan
sales.
*T