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North Fork Bancorporation, Inc. (NYSE: NFB) reported
increases in earnings, and earnings per share, loan growth, asset
quality improvements, a stabilized net interest margin and continued
repositioning of its balance sheet. Highlights in the current period
include:
-- 98% increase in earnings for the third quarter compared to
2004, with a 6% increase in diluted earnings per share.
-- Returns on average tangible equity and tangible assets of
29.43% and 1.83%, respectively.
-- A stabilized net interest margin at 3.52% with only a 7 basis
point decline from the previous quarter.
-- 26% annualized growth in commercial loans.
-- 25% decline in non-performing assets.
-- $1.8 billion reduction in borrowings as the balance sheet
repositioning continued.
-- An increase in the Company's common share repurchase program
to 16 million shares.
"We have been able to improve our earnings quality, strengthen our
capital ratios, and grow our commercial business while meeting
competitive challenges," said John Adam Kanas, Chairman, President and
Chief Executive Officer. The Company's tangible equity to asset ratio
rose to 6.22% at the end of the current quarter.
Net Earnings and Returns
Net income for the quarter ended September 30, 2005 was $237
million or $.50 diluted earnings per share compared to $120 million or
diluted earnings per share of $.47 for the comparable period in 2004,
a 98% increase in earnings and a 6% increase in diluted earnings per
share.
Net income for the nine-month period ended September 30, 2005 was
$738 million or diluted earnings per share of $1.55 compared to $331
million last year or diluted earnings per share of $1.37, representing
increases of 123% and 13%, respectively.
The Company's returns on average tangible equity and assets in the
current quarter were 29.43% and 1.83%, respectively.
For the quarter ended September 30, 2005, net interest income and
net interest margin were $434.6 million and 3.52%, respectively,
compared to $259.5 million and 4.23% in 2004. On a linked quarter
basis, the net interest margin declined by a modest 7 basis points.
The net interest income decline, linked quarter, was due to the
balance sheet repositioning program that reduced average interest
earning assets by approximately $2.7 billion and the rising cost of
funds as the yield curve remained flat.
The Company continued to reposition its balance sheet in the
current environment. It utilized cash flows from securities and 1-4
residential loans to reduce borrowings by $1.8 billion and brokered
deposits by approximately $700 million. The Company advised that it
expects that the net interest margin will remain substantially
unchanged for the remainder of the year.
Loans
Loans held-for-investment at September 30, 2005 amounted to $32.7
billion compared to $15.9 billion at September 30, 2004. Organic
growth and loans acquired from the GreenPoint acquisition account for
the significant increase. On a linked quarter basis, loans
held-for-investment, excluding 1-4 residential and multi-family loans,
increased by $717 million, an annualized growth rate of 25%. Total
commercial loans increased 26% to $10.2 billion, on an annualized
basis. The commercial and industrial component rose to $4.3 billion,
an increase of 46% on an annualized basis. As planned, in connection
with the balance sheet repositioning, 1-4 residential loans declined
by $668 million in the quarter, a trend that will continue. "Our
presence and product offerings have distinguished us in the market,"
said Mr. Kanas.
Non-performing assets declined, linked quarter, by approximately
$35 million or 25%. Net charge-offs in the quarter were 8 basis
points. The overall allowance for loan losses to non-performing loans
improved to 338%. The allowance for loan losses of $220 million, when
allocated between residential mortgages and all other commercial
loans, was .37% and 1.17%, respectively. In the quarter, the Company
sold approximately $24 million of non-performing loans at par.
"Further reductions in non-performing assets are planned through
year-end," said Mr. Kanas.
Deposits
At September 30, 2005 total deposits were $36.8 billion, a linked
quarter decline of approximately $650 million. This decline occurred
in the higher costing broker deposits that were reduced as part of the
balance sheet repositioning program. "We were able to retain our
overall deposit balances in the face of extreme competition for
consumer and commercial accounts," said Mr. Kanas. "We will maintain
our pricing discipline and seek greater commercial relationships," he
added.
Mortgage Banking Business
The Company's mortgage banking subsidiary, GreenPoint Mortgage,
had strong originations of $10.4 billion in the quarter, an increase
of 4%, compared to last year, but declined linked quarter. The spread
on loan sales compressed to 104 basis points, due in part to intense
competition and changing product mix. Gain on the sale of loans was
$114 million in the quarter compared to $121 million in the prior
quarter. At quarter end, the mortgage pipeline was $6.4 billion.
In the quarter, the Company recovered approximately $9.5 million
of the temporary impairment on the mortgage servicing rights. It
expects further recovery if rates continue to rise and prepayment
speeds slow.
At September 30, 2005, mortgage servicing rights of $267 million,
net of reserve, was 87 basis points of the unpaid principal balance of
the related loans serviced.
Share Repurchase and Cash Dividend
On October 7, 2005, the Company announced an increase in its share
repurchase program of up to 16 million common shares. Approximately 1
million shares have been purchased to date under the new program.
On September 27, 2005, the Board declared its regular quarterly
dividend of $.22 per common share. The dividend will be payable
November 15, 2005, to shareholders of record at the close of business
on October 28, 2005.
Audio Webcast
A recorded audio webcast reviewing North Fork's results will be
available at 8:30 a.m. Eastern Time on October 19, 2005. It is
available through the Company's website www.northforkbank.com. From
the homepage, click on Quarterly Earnings Announcement, October 19,
2005. A call-in number is also available by dialing toll free (US and
Canada) 1-877-519-4471, PIN # 6620117 or (International)
1-973-341-3080, PIN # 6620117. 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 362
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
and are subject to significant risks and uncertainties. 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 from those set forth in the forward-looking
statements: changes in the interest rate environment; changes in the
securities and real estate markets; increased competition and its
effect on pricing, spending, third-party relationships and revenues;
and the risk of new and changing regulation in the U.S. and
internationally. 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 Nine Months Ended
September September September September
(in thousands, except per 30, 2005 30, 2004 30, 2005 30, 2004
share amounts) ----------------------------------------
Interest Income:
Loans Held-for-Investment $469,599 $238,656 $1,394,034 $645,858
Loans Held-for-Sale 69,840 - 209,753 -
Mortgage-Backed Securities 113,921 79,087 389,303 210,255
Other Securities 28,422 17,400 87,953 49,397
Money Market Investments 508 2,186 1,903 2,856
----------------------------------------
Total Interest Income 682,290 337,329 2,082,946 908,366
----------------------------------------
Interest Expense:
Savings, NOW & Money Market
Deposits 91,316 22,921 243,367 57,040
Time Deposits 49,397 13,805 123,255 36,852
Federal Funds Purchased &
Collateralized Borrowings 86,343 33,880 290,588 93,791
Other Borrowings 20,684 7,248 57,794 20,284
----------------------------------------
Total Interest Expense 247,740 77,854 715,004 207,967
----------------------------------------
Net Interest Income 434,550 259,475 1,367,942 700,399
Provision for Loan Losses 9,000 6,500 27,000 19,500
----------------------------------------
Net Interest Income after
Provision for Loan Losses 425,550 252,975 1,340,942 680,899
----------------------------------------
Non-Interest Income:
Gain on Sale of Loans Held-
for-Sale 113,587 181 339,532 772
Customer Related Fees &
Service Charges 41,980 25,392 125,888 70,580
Mortgage Servicing Fees 3,142 1,097 12,754 2,985
Investment Management,
Commissions & Trust Fees 8,780 4,306 30,138 12,329
Other Operating Income 11,333 6,804 37,688 20,606
----------------------------------------
Subtotal 178,822 37,780 546,000 107,272
----------------------------------------
Temporary
Recovery/(Impairment) -
Mortgage Servicing Rights 9,540 - (25,431) -
Securities Gains, net 840 4,292 16,358 11,704
Gain on Sale of Loans Held-
for-Investment 1,532 - 5,824 -
----------------------------------------
Total Non-Interest Income 190,734 42,072 542,751 118,976
----------------------------------------
Non-Interest Expense:
Employee Compensation &
Benefits 136,300 64,912 410,684 171,214
Occupancy & Equipment, net 49,007 22,222 141,910 59,921
Amortization of Identifiable
Intangibles 9,133 2,995 27,400 5,665
Other Operating Expenses 59,560 24,334 170,454 63,461
----------------------------------------
Total Non-Interest Expense 254,000 114,463 750,448 300,261
----------------------------------------
Income Before Income Taxes 362,284 180,584 1,133,245 499,614
Provision for Income Taxes 124,988 60,856 394,848 168,370
----------------------------------------
Net Income $237,296 $119,728 $738,397 $331,244
========================================
Earnings Per Share:
Basic $0.50 $0.47 $1.58 $1.39
Diluted $0.50 $0.47 $1.55 $1.37
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Consolidated Balance Sheets
(Unaudited)
September June December September
(in thousands, except 30, 2005 30, 2005 31, 2004 30, 2004
per share amounts) ------------------------------------------------
Assets:
Cash & Due from Banks $740,251 $826,921 $972,506 $456,458
Money Market
Investments 17,808 38,023 90,394 768,580
Securities:
Available-for-Sale 11,989,260 12,924,780 15,444,625 8,648,172
Held-to-Maturity 114,505 118,429 142,573 149,103
------------------------------------------------
Total Securities 12,103,765 13,043,209 15,587,198 8,797,275
------------------------------------------------
Loans:
Loans Held-for-Sale 4,701,550 6,398,119 5,775,945 2,388
Loans Held-for-
Investment 32,672,962 32,482,774 30,453,334 15,871,222
Less: Allowance
for Loan Losses 220,347 217,872 211,097 138,797
------------------------------------------------
Net Loans Held-
for-Investment 32,452,615 32,264,902 30,242,237 15,732,425
------------------------------------------------
Goodwill 5,914,562 5,888,195 5,878,277 1,003,927
Identifiable Intangibles 123,334 132,468 150,734 46,452
Premises & Equipment 433,775 426,099 416,003 227,280
Mortgage Servicing
Rights 267,347 253,482 254,857 -
Accrued Income
Receivable 198,909 205,678 205,189 111,061
Other Assets 946,477 908,593 1,093,715 356,962
------------------------------------------------
Total Assets $57,900,393 $60,385,689 $60,667,055 $27,502,808
================================================
Liabilities and
Stockholders' Equity:
Deposits:
Demand $7,478,359 $7,586,939 $6,738,302 $5,574,161
Savings, NOW &
Money Market 21,115,093 21,659,890 20,598,994 11,059,036
Time 8,218,634 8,219,517 7,475,132 3,515,007
------------------------------------------------
Total Deposits 36,812,086 37,466,346 34,812,428 20,148,204
------------------------------------------------
Federal Funds Purchased
& Collateralized
Borrowings 9,572,995 11,387,571 14,593,027 3,739,734
Other Borrowings 1,485,392 1,506,337 1,506,318 746,195
------------------------------------------------
Total Borrowings 11,058,387 12,893,908 16,099,345 4,485,929
------------------------------------------------
Accrued Expenses &
Other Liabilities 765,375 809,155 874,203 405,876
------------------------------------------------
Total
Liabilities $48,635,848 $51,169,409 $51,785,976 $25,040,009
------------------------------------------------
Stockholders' Equity:
Common Stock, par value
$0.01; authorized
1,000,000,000 shares;
issued 479,869,221
shares at September 30,
2005 $4,799 $4,792 $4,745 $1,931
Additional Paid in
Capital 7,020,325 7,007,286 6,968,493 1,116,841
Retained Earnings 2,486,847 2,354,784 2,064,148 1,992,873
Accumulated Other
Comprehensive
(Loss)/Income (89,052) (21,076) 240 4,806
Deferred Compensation (109,111) (115,160) (125,174) (84,073)
Treasury Stock at
Cost; 1,902,044
shares at September
30, 2005 (49,263) (14,346) (31,373) (569,579)
------------------------------------------------
Total
Stockholders'
Equity 9,264,545 9,216,280 8,881,079 2,462,799
------------------------------------------------
Total
Liabilities and
Stockholders'
Equity $57,900,393 $60,385,689 $60,667,055 $27,502,808
================================================
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 Nine Months Ended
September September September September
SELECTED FINANCIAL DATA: 30, 2005 30, 2004 30, 2005 30, 2004
(in thousands, except ratios ---------------------------------------
and per share amounts)
Per Share:
Net Income - Basic $0.50 $0.47 $1.58 $1.39
Net Income - Diluted $0.50 $0.47 $1.55 $1.37
Average Shares Outstanding -
Basic 470,004 252,162 468,644 237,398
Average Shares Outstanding -
Diluted 475,627 255,485 474,957 241,082
Cash Dividends $0.22 $0.22 $0.66 $0.62
Dividend Payout Ratio 44% 48% 43% 47%
Tangible Book Value $6.75 $5.44 $6.75 $5.44
Selected Financial Data:
Return on Average Total Assets 1.60% 1.75% 1.64% 1.82%
Return on Average Tangible
Assets (1) 1.83% 1.85% 1.87% 1.90%
Return on Average Tangible
Assets excluding MSR
Recovery/(Impairment) (1) 1.78% 1.85% 1.91% 1.90%
Return on Average Equity 10.13% 19.66% 10.78% 22.53%
Return on Average Tangible
Equity (1) 29.43% 35.32% 32.21% 36.67%
Return on Average Tangible
Equity excluding MSR
Recovery/(Impairment) (1) 28.68% 35.32% 32.91% 36.67%
Tangible Equity to Tangible
Assets 6.22% 5.34% 6.22% 5.34%
Efficiency Ratio (2) 39.15% 37.62% 37.14% 36.27%
Yield on Interest Earning
Assets (3) 5.47% 5.47% 5.48% 5.51%
Cost of Funds 2.39% 1.63% 2.22% 1.62%
Net Interest Margin (3) 3.52% 4.23% 3.63% 4.27%
September June December September
30, 2005 30, 2005 31, 2004 30, 2004
----------------------------------------
Risk Based Capital:
Tier 1 11.00% 10.50% 9.90% 10.12%
Total 13.57% 13.01% 12.50% 14.04%
Leverage Ratio 7.09% 6.56% 6.22% 6.32%
September June December September
30, 2005 30, 2005 31, 2004 30, 2004
------------------------------------------------
Quarterly Average
Balance Sheet:
Total Assets $58,731,915 $61,480,463 $58,746,739 $27,185,413
Securities 12,531,822 14,556,278 15,315,473 8,823,732
Loans Held-for-Sale 5,401,495 5,754,088 4,887,454 -
Loans Held-for-
Investment 32,361,793 32,631,577 29,883,578 15,659,594
Goodwill &
Identifiable
Intangibles 6,014,839 6,024,208 5,833,655 1,051,335
Demand Deposits 7,547,759 7,290,545 6,593,969 5,444,217
Interest Bearing
Deposits 29,642,762 29,670,895 27,302,465 14,702,349
Federal Funds
Purchased &
Collateralized
Borrowings 10,057,604 13,095,195 13,859,327 3,534,757
Other Borrowings 1,505,651 1,484,336 1,516,032 724,181
Stockholders' Equity 9,293,861 9,170,671 8,820,845 2,422,116
Tangible Stockholders'
Equity 3,279,022 3,146,463 2,987,190 1,370,781
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:
(in thousands) September June December September
Securities - 30, 2005 30, 2005 31,2004 30, 2004
Available-for-Sale: -----------------------------------------------
Collateralized
Mortgage
Obligations $7,391,107 $8,158,319 $9,820,056 $4,736,457
Agency Pass-Through
Certificates 2,138,524 2,335,485 2,737,067 2,066,500
State & Municipal
Obligations 844,866 771,349 920,112 797,701
Equity Securities 669,072 693,509 794,005 189,656
U.S. Treasury &
Government
Agencies 272,247 277,806 363,775 209,869
Other Securities (4) 673,444 688,312 809,610 647,989
-----------------------------------------------
Total Securities
Available-for-
Sale $11,989,260 $12,924,780 $15,444,625 $8,648,172
Securities Held-to-
Maturity 114,505 118,429 142,573 149,103
-----------------------------------------------
Total Securities $12,103,765 $13,043,209 $15,587,198 $8,797,275
===============================================
The following tables represent the components of the loans held-for-
sale and held-for-investment portfolios for the periods ended:
September June December September
(in thousands) 30, 2005 30, 2005 31, 2004 30, 2004
------------------------------------------------
Loans Held-for-Sale:
Residential Mortgages $4,225,128 $5,481,104 $4,339,581 $2,388
Home Equity 434,824 852,137 1,380,247 -
------------------------------------------------
Total 4,659,952 6,333,241 5,719,828 2,388
Deferred Origination
Costs 41,598 64,878 56,117 -
------------------------------------------------
Total Loans Held-
for-Sale $4,701,550 $6,398,119 $5,775,945 $2,388
================================================
September June December September
(in thousands) 30, 2005 30, 2005 31, 2004 30, 2004
------------------------------------------------
Loans Held-for-
Investment:
Commercial Mortgages $5,896,835 $5,725,316 $5,369,656 $3,606,650
Commercial &
Industrial 4,324,758 3,879,830 3,046,820 2,679,759
------------------------------------------------
Total Commercial 10,221,593 9,605,146 8,416,476 6,286,409
Residential Mortgages 15,508,008 16,176,829 15,668,938 3,485,009
Multi-Family Mortgages 4,626,777 4,485,420 4,254,405 3,945,171
Consumer 1,569,386 1,521,869 1,604,863 1,686,614
Construction and Land 716,049 653,002 480,162 501,296
------------------------------------------------
Total $32,641,813 $32,442,266 $30,424,844 $15,904,499
Unearned Income &
Deferred Origination
Costs 31,149 40,508 28,490 (33,277)
------------------------------------------------
Total Loans Held-
for-Investment $32,672,962 $32,482,774 $30,453,334 $15,871,222
================================================
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:
September June December September
30, 30, 31, 30,
(dollars in thousands) 2005 2005 2004 2004
------------------------------------
Non-Performing Assets:
Commercial Mortgages $5,451 $6,409 $16,890 $228
Commercial & Industrial 8,137 7,768 8,730 10,032
------------------------------------
Total Commercial 13,588 14,177 25,620 10,260
Residential Mortgages 48,257 63,979 103,745 3,783
Multi-Family Mortgages 335 44 1,290 -
Consumer 2,399 2,179 3,178 2,986
Construction and Land 600 308 - -
------------------------------------
Non-Performing Loans Held-for-
Investment $65,179 $80,687 $133,833 $17,029
Non-Performing Loans Held-for-
Sale 33,137 45,377 60,858 -
Other Real Estate 7,149 14,557 17,410 222
------------------------------------
Total Non-Performing Assets $105,465 $140,621 $212,101 $17,251
====================================
September June December September
30, 30, 31, 30,
2005 2005 2004 2004
------------------------------------
Allowance for Loan Losses to Non-
Performing Loans Held-for-
Investment 338% 270% 158% 815%
Allowance for Loan Losses to Total
Loans Held-for-Investment 0.67% 0.67% 0.69% 0.87%
Non-Performing Loans Held-for-
Investment to Total Loans Held-
for-Investment 0.20% 0.25% 0.44% 0.11%
Non-Performing Assets to Total
Assets 0.18% 0.23% 0.35% 0.06%
Quarterly Net Charge-offs to
Average Loans Held-for-Investment 0.08% 0.08% 0.14% 0.15%
The following table represents the impact of allocating the allowance
for loan losses as of September 30, 2005 and June 30, 2005, into our
two primary portfolio segments:
September 30, 2005
---------------------------------------
Residential Commercial
& & All Other
(dollars in thousands) Total Multi-Family Loans
---------------------------------------
Loans Held-for-Investment $32,641,813 $20,134,785 $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%
=======================================
June 30, 2005
---------------------------------------
Residential Commercial
& & All Other
(dollars in thousands) Total Multi-Family Loans
---------------------------------------
Loans Held-for-Investment $32,442,266 $20,662,249 $11,780,017
Allowance for Loan Losses
Allocated $217,872 $74,304 $143,568
Non-Performing Loans Held-for-
Investment $80,687 $64,023 $16,664
Allowance for Loan Losses to
Loans Held-for-Investment 0.67% 0.36% 1.22%
=======================================
Allowance for Loan Losses to
Non-Performing Loans Held-for-
Investment 270% 116% 862%
=======================================
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, 2005
---------------------------------
Average Average
(dollars in thousands) Balance Interest Rate
---------------------------------
Interest Earning Assets:
Loans Held-for-Investment (3) $32,361,793 $471,627 5.78%
Loan Held-for-Sale 5,401,495 69,840 5.13%
Securities (3) 12,531,822 152,447 4.83%
Money Market Investments (3) 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
----------
For the Three Months Ended: June 30, 2005
---------------------------------
Average Average
(dollars in thousands) Balance Interest Rate
---------------------------------
Interest Earning Assets:
Loans Held-for-Investment (3) $32,631,577 $473,933 5.83%
Loan Held-for-Sale 5,754,088 73,065 5.09%
Securities (3) 14,556,278 173,698 4.79%
Money Market Investments (3) 87,406 684 3.14%
-------------------------
Total Interest Earning Assets $53,029,349 $721,380 5.46%
-------------------------
Non-Interest Earning Assets:
Cash and Due from Banks $1,015,667
Other Assets 7,435,447
---------------
Total Assets $61,480,463
---------------
Interest Bearing Liabilities:
Savings, NOW & Money Market Deposits $21,794,356 $82,455 1.52%
Time Deposits 7,876,539 40,391 2.06%
-------------------------
Total Savings and Time Deposits 29,670,895 122,846 1.66%
Fed. Funds Purchased & Collateralized
Borrowings 13,095,195 105,238 3.22%
Other Borrowings 1,484,336 19,286 5.21%
-------------------------
Total Borrowings 14,579,531 124,524 3.43%
-------------------------
Total Interest Bearing
Liabilities $44,250,426 $247,370 2.24%
-------------------------
Interest Rate Spread 3.22%
Non-Interest Bearing Liabilities:
Demand Deposits $7,290,545
Other Liabilities 768,821
---------------
Total Liabilities 52,309,792
Stockholders' Equity 9,170,671
---------------
Total Liabilities and Stockholders'
Equity $61,480,463
---------------
Net Interest Income and Net Interest
Margin $474,010 3.59%
Less: Tax Equivalent Adjustment (11,937)
----------
Net Interest Income $462,073
----------
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Mortgage Banking - Quarterly Highlights
(Unaudited)
(dollars in thousands) September 30, June 30, March 31,
2005 2005 2005
---------------------------------------
Comparative Mortgage Loan
Volumes
-------------------------
Total Applications Received $17,254,701 $21,195,474 $18,281,837
---------------------------------------
Loans Originated:
Specialty Products (5) $4,827,831 $5,302,469 $4,231,111
Home Equity/Seconds 1,280,684 1,566,306 1,488,748
Jumbo/Agency 4,302,550 5,553,487 4,302,340
---------------------------------------
$10,411,065 $12,422,262 $10,022,199
=======================================
Pipeline (6) $6,376,081 $7,594,398 $7,407,671
Interest Rate Lock
Commitments (7) 2,349,097 2,891,179 2,523,344
Loans Held-for-Sale 4,701,550 6,398,119 5,350,823
Whole Loan Sales (8):
Specialty Products $5,061,097 $4,394,898 $4,333,784
Home Equity/Seconds 1,500,767 1,466,771 1,580,497
Jumbo/Agency 4,381,960 3,240,177 2,438,998
---------------------------------------
Total Whole Loan Sales $10,943,824 $9,101,846 $8,353,279
=======================================
Margins on Whole Loans:
Specialty Products 1.13% 1.35% 1.45%
Home Equity/Seconds 1.88% 2.05% 1.45%
Jumbo/Agency 0.65% 0.92% 0.84%
---------------------------------------
Total Whole Loan Sales 1.04% 1.31% 1.27%
=======================================
Gains on Sale of Whole Loans (9):
Specialty Products $56,956 $59,455 $62,750
Home Equity/Seconds 28,172 30,139 22,858
Jumbo/Agency 28,459 29,655 20,551
---------------------------------------
Total Whole Loan Sales $113,587 $119,249 $106,159
=======================================
GreenPoint
Mortgage
Pre-
Acquisition
Financial
Information
-------------
(dollars in thousands) December 31, September 30,
2004 2004
-------------------------
Comparative Mortgage Loan Volumes
---------------------------------
Total Applications Received $16,403,008 $17,001,566
-------------------------
Loans Originated:
Specialty Products (5) $4,494,452 $3,860,338
Home Equity/Seconds 1,630,798 1,613,625
Jumbo/Agency 4,316,658 4,513,854
-------------------------
$10,441,908 $9,987,817
=========================
Pipeline (6) $6,264,104 $7,623,547
Interest Rate Lock Commitments (7) 1,950,504 2,512,433
Loans Held-for-Sale 5,775,945 5,060,115
Whole Loan Sales (8):
Specialty Products $3,783,245 $3,262,425
Home Equity/Seconds 953,463 1,288,899
Jumbo/Agency 2,753,521 3,349,777
-------------------------
Total Whole Loan Sales $7,490,229 $7,901,101
=========================
Margins on Whole Loans:
Specialty Products 1.84% 1.64%
Home Equity/Seconds 1.30% 1.55%
Jumbo/Agency 0.99% 0.94%
-------------------------
Total Whole Loan Sales 1.46% 1.33%
=========================
Gains on Sale of Whole Loans (9):
Specialty Products $69,759 $53,530
Home Equity/Seconds 12,395 20,031
Jumbo/Agency 27,143 31,543
-------------------------
Total Whole Loan Sales $109,297 $105,104
=========================
See accompanying notes appended to the financial data and summaries
North Fork Bancorporation, Inc.
Notes to the Financial Data and Summaries
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.
(1) 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.
Return on average tangible assets excluding the Mortgage Servicing
Rights (MSR) recovery/(impairment) is computed by dividing net
income, plus amortization of identifiable intangible assets and
the MSR recovery/(impairment) charge, 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 and
the MSR recovery/(impairment) charge, net of taxes by average
total stockholders' equity less average goodwill and average
identifiable intangible assets.
Three Months Ended Nine Months Ended
September September September September
30, 2005 30, 2004 30, 2005 30, 2004
-----------------------------------------------
(in thousands)
Net Income, as Reported $237,296 $119,728 $738,397 $331,244
Add: Amortization of
Identifiable
Intangibles, Net of
taxes 5,982 1,986 17,854 3,756
-----------------------------------------------
Net Income, as
Adjusted $243,278 $121,714 $756,251 $335,000
-----------------------------------------------
Less/(add): Temporary
Recovery/(Impairment)
- MSR, net of taxes 6,248 - (16,571) -
-----------------------------------------------
Net Income - as
adjusted $237,030 $121,714 $772,822 $335,000
-----------------------------------------------
Average Total Assets: $58,731,915 $27,185,413 $60,134,350 $24,291,901
Less: Average
Goodwill 5,885,957 1,003,007 5,884,029 712,529
Less: Average
Identifiable
Intangible Assets 128,882 48,328 138,103 30,896
-----------------------------------------------
Average Total
Tangible
Assets $52,717,076 $26,134,078 $54,112,218 $23,548,476
-----------------------------------------------
Average Equity: $9,293,861 $2,422,116 $9,161,643 $1,963,594
Less: Average
Goodwill 5,885,957 1,003,007 5,884,029 712,529
Less: Average
Identifiable
Intangible Assets 128,882 48,328 138,103 30,896
-----------------------------------------------
Average
Tangible
Equity $3,279,022 $1,370,781 $3,139,511 $1,220,169
-----------------------------------------------
Return on Average
Tangible Assets 1.83% 1.85% 1.87% 1.90%
Return on Average
Tangible Equity 29.43% 35.32% 32.21% 36.67%
Return on Average Tangible
Assets excluding MSR
Recovery/(Impairment) 1.78% 1.85% 1.91% 1.90%
Return on Average Tangible
Equity excluding MSR
Recovery/(Impairment) 28.68% 35.32% 32.91% 36.67%
(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 other real estate related
expenses, to net interest income on a tax equivalent basis and
other non-interest income net of securities gains, gains on sale
of loans held-for-investment and temporary recovery/(impairment)
charge on mortgage servicing rights.
(3) Presented on a tax equivalent basis.
(4) Includes retained interests in securitizations of $9.5 million,
$10.0 million and $31.8 million at September 30, 2005, June 30,
2005 and December 31, 2004, respectively.
(5) Specialty products include: Alt A, No Doc and A minus programs.
(6) The pipeline represents applications received, but not yet funded.
(7) Represents commitments to lend where the rates are guaranteed to
the borrower for a specific period of time.
(8) Gain on sale of whole loans and the margins on the whole 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.
(9) The gain on sale of whole loans for the quarters ended June 30,
2005, March 31, 2005 and December 31, 2004, differ from the
amounts reported under generally accepted accounting principles on
the accompanying income statement due to the fair value adjustment
of loans held-for-sale at October 1, 2004 and sold during each
quarter. For the quarters ended June 30, 2005, March 31, 2005 and
December 31, 2004, fair value (loss)/gain adjustments totaled
$(1.3) million, $0.8 million and $56.4 million, respectively.
*T