EX-99.1 2 y05150exv99w1.txt PRESS RELEASE NORTH FORK BANCORP 275 BROADHOLLOW ROAD, MELVILLE, NY 11747 (631) 844-1258 FAX (631) 844-1471 FOR IMMEDIATE RELEASE CONTACT: DANIEL M. HEALY EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER (631) 844-1258 NORTH FORK BANCORP REPORTS RECORD EARNINGS FOR THE FOURTH QUARTER OF 2004 FOLLOWING THE ACQUISITION OF GREENPOINT FINANCIAL. LOANS AND DEPOSITS SURGE. MELVILLE, N.Y. - JANUARY 25, 2005 - NORTH FORK BANCORPORATION, INC. (NYSE: NFB) reported record earnings, core deposit and loan growth, progress toward the successful system conversion of GreenPoint and other accomplishments in key performance measurements. Highlights in the current period include: - A 152% increase in operating earnings for the fourth quarter compared to 2003, with a 20% increase in diluted operating earnings per share. - Demand and other core deposits grew at an annualized rate of 46% and 33%, respectively in the quarter. - Quarterly annualized loan growth for the combined portfolio of 43% or $1.7 billion, linked quarter, funded by deposit growth. - Average interest earning assets soared to $50.2 billion in the current quarter and were $51.9 billion at year-end. - Net interest income of $474.8 million for the quarter, 130% more than 2003. - Nearing completion of integrating the operations of GreenPoint. - Declaration of the regular quarterly cash dividend of $.22 per common share. Page 4 "These results for our Company, now a major regional banking franchise, were exceptional, and exceeded our original expectations," said John Adam Kanas, Chairman, President and Chief Executive Officer. "We are just beginning to build momentum as we enter 2005," he said. "Virtually all of GreenPoint's operating systems will be converted in mid-February 2005. All major system conversion testing has been completed and we anticipate a seamless process without any customer service disruptions," said Kanas. The Company advised that it is on track to realize cost savings estimates from the GreenPoint acquisition, following the integration. NET EARNINGS AND RETURNS Net income for the quarter ended December 31, 2004 was $221.8 million or $.47 diluted earnings per share as compared to $102.4 million or diluted earnings per share of $.46 for the same period of 2003. Net income for the fourth quarter 2004 does not include a gain on the sale of mortgage loans that occurred in the quarter. Net operating earnings for the quarter ended December 31, 2004, including all economic gains associated with the sale of mortgage loans, increased 152% to $258.4 million compared to $102.4 million in 2003, while diluted operating earnings per share grew by 20% to $.55 compared to $.46 in 2003. Net operating income for the quarter includes an additional $36.6 million in gains, net of taxes from the sale of mortgage loans ($.08 diluted earnings per share). As previously reported, this economic gain was reflected as a fair value adjustment to the historical carrying value of the mortgage loans designated as held-for-sale by GreenPoint Mortgage as of the date of the acquisition. Tangible equity was unaffected. Net operating earnings for the year ended December 31, 2004 was $589.6 million or diluted operating earnings per share of $1.97 compared to $396.4 million or $1.73 diluted earnings per share in 2003, reflecting growth of 49% and 14%, respectively. Net income for the year ended December 31, 2004 was $553 million or $1.85 diluted earnings per share. Return on average tangible equity in the current quarter and for the full year was 35.2% and 36.1%, respectively, compared to 38.4% and 36.5%, respectively for the prior year. The return on average tangible assets for the current quarter and full year was 1.99% and 1.94%, respectively. Net interest income in the quarter surged to $474.8 million exceeding last year's comparable quarter by 130%. Net interest income for 2004 rose 44% to $1.2 billion compared to $816 million for 2003. The net interest margin for the quarter was 3.85% compared to 4.23% linked quarter, evidencing the impact of the October 1, 2004 acquisition of GreenPoint. GreenPoint's asset/liability mix resulted in a net interest margin significantly lower than North Fork's historical margin. LOANS Loans held-for-investment at December 31, 2004 amounted to $30.5 billion, considerably exceeding the 2003 year-end balance. This growth was attributable to the 2004 Page 5 bank mergers and sustained, robust loan growth for North Fork. On a linked quarter basis, loans held-for-investment increased by $1.7 billion or 43% annualized. Solid deposit inflows during the fourth quarter funded the organic growth. Commercial loan activity was among the many highlights in the quarter. Portfolio advances were achieved in all loan categories other than indirect auto installment loans; automobile manufacturers are responsible for intense competition in this business. "We are experiencing unprecedented loan and deposit growth by continuing to press forward our relatively simple and highly focused expansion strategy," said Kanas. Another contributing factor in the loan portfolio's performance is the production generated by lending personnel recently hired in New York and New Jersey. These loans carry variable interest rates and are expected to help cushion margin challenges as market interest rates rise. Non performing loans, when combined with GreenPoint on a linked-quarter basis, declined modestly. The allowance for loan losses provides sufficient risk coverage. DEPOSITS At December 31, 2004, total deposits more than doubled to $34.8 billion from $15.1 billion in 2003. Events fueling the deposit surge were the two major acquisitions in 2004 and steady growth in North Fork's commercial banking model. Demand deposits at year-end 2004 were $6.7 billion, increasing 46% on an annualized, linked quarter basis. Other core deposits (defined as Savings, NOW & Money Market deposits) increased in the current quarter by 33%, annualized. "Consumer deposits are already responding to some of our new product initiatives and are expected to grow exponentially this coming year," Kanas said. NON INTEREST INCOME Non-interest income in the quarter amounted to $129.5 million, representing approximately 21% of total revenue for the period. Included in non interest income is the gain on the sale of loans from GreenPoint Mortgage, the Company's mortgage banking subsidiary. Its 2004 originations were substantially equivalent to its 2003 volume and contradict the declining trends experienced by the mortgage banking industry taken as a whole. "This business has proven to be an important component of our total growth strategy," said Kanas. "We are adding to the portfolio higher yielding, quality loans originated by GreenPoint Mortgage funded by our deposit growth," he added. Operating expenses were in line with original estimates for the combined company. The efficiency ratio in the quarter was 36.9%. CASH DIVIDENDS On December 14, 2004, the Board declared its regular quarterly dividend of $.22 per common share. The dividend will be payable February 15, 2005, to shareholders of record at the close of business on January 28, 2005. Page 6 * * * North Fork is a regional bank holding company headquartered in New York conducting commercial and retail banking from 355 branch locations in the Tri-State area, with a complementary national mortgage banking business. * * * Page 7 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 the benefits of the merger between North Fork and GreenPoint Financial Corp. ("GreenPoint"), including future financial and operating results, 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 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: the risk that the businesses will not be integrated successfully; the risk that the cost savings and any revenue synergies from the GreenPoint merger may not be fully realized or may take longer to realize than expected; disruption from the GreenPoint merger making it more difficult to maintain relationships with clients, employees or suppliers; increased competition and its effect on pricing, spending, third-party relationships and revenues; 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 2003 Annual Report on Form 10-K of North Fork, 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. Page 8 NORTH FORK BANCORPORATION, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, (in thousands, except per share amounts) 2004 2003 2004 2003 ---- ---- ---- ---- INTEREST INCOME: Loans Held-for-Investment $ 432,826 $ 197,457 $1,078,684 $ 789,136 Loans Held-for-Sale 64,391 -- 64,391 -- Securities 171,907 69,981 431,559 321,127 Money Market Investments 662 282 3,518 640 ---------- ---------- ---------- ---------- Total Interest Income 669,786 267,720 1,578,152 1,110,903 ---------- ---------- ---------- ---------- INTEREST EXPENSE: Savings, NOW & Money Market Deposits 56,042 14,337 113,082 58,008 Time Deposits 29,204 11,709 66,056 54,127 Federal Funds Purchased & Collateralized Borrowings 93,217 28,401 187,008 150,724 Term Borrowings 16,501 6,581 36,785 32,530 ---------- ---------- ---------- ---------- Total Interest Expense 194,964 61,028 402,931 295,389 ---------- ---------- ---------- ---------- Net Interest Income 474,822 206,692 1,175,221 815,514 Provision for Loan Losses 7,689 7,000 27,189 26,250 ---------- ---------- ---------- ---------- Net Interest Income after Provision for Loan Losses 467,133 199,692 1,148,032 789,264 ---------- ---------- ---------- ---------- NON-INTEREST INCOME: Gain on Sale of Loans 52,938 273 53,710 4,822 Mortgage Servicing Fees 4,148 1,006 7,132 5,243 Customer Related Fees & Service Charges 43,901 21,044 114,481 82,406 Investment Management, Commissions & Trust Fees 12,852 3,489 25,181 13,712 Other Operating Income 14,736 5,178 35,343 22,886 Securities Gains, net 951 9,085 12,656 15,762 Gain on Sale of Facilities -- -- -- 10,980 ---------- ---------- ---------- ---------- Total Non-Interest Income 129,526 40,075 248,503 155,811 ---------- ---------- ---------- ---------- NON-INTEREST EXPENSE: Employee Compensation & Benefits 135,568 46,947 306,781 191,758 Occupancy & Equipment 46,253 17,903 106,174 66,929 Amortization of Identifiable Intangibles 9,444 892 15,109 3,567 Other Operating Expenses 64,277 19,600 127,738 71,661 Debt Restructuring Costs -- -- -- 11,955 ---------- ---------- ---------- ---------- Total Non-Interest Expense 255,542 85,342 555,802 345,870 ---------- ---------- ---------- ---------- Income Before Income Taxes 341,117 154,425 840,733 599,205 Provision for Income Taxes 119,367 52,042 287,737 202,840 ---------- ---------- ---------- ---------- Net Income $ 221,750 $ 102,383 $ 552,996 $ 396,365 ========== ========== ========== ========== EARNINGS PER SHARE: Basic $ 0.48 $ 0.46 $ 1.88 $ 1.75 Diluted $ 0.47 $ 0.46 $ 1.85 $ 1.73
See accompanying notes appended to the financial data and summaries Page 9 NORTH FORK BANCORPORATION, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED)
DECEMBER 31, SEPTEMBER 30, DECEMBER 31, (in thousands, except per share amounts) 2004 2004 2003 ---- ---- ---- ASSETS: Cash & Due from Banks $ 972,506 $ 456,458 $ 510,354 Money Market Investments 90,394 768,580 21,037 Securities: Available-for-Sale 15,412,850 8,648,172 7,136,275 Held-to-Maturity 142,573 149,103 190,285 Retained Interest In Securitizations 31,775 -- -- ------------ ------------ ------------ Total Securities 15,587,198 8,797,275 7,326,560 ------------ ------------ ------------ Loans: Held-For-Sale 5,775,945 2,388 4,074 Held-for-Investment, Net of Unearned Income & Deferred Costs 30,453,334 15,871,222 12,341,199 Less: Allowance for Loan Losses 211,097 138,797 122,733 ------------ ------------ ------------ Net Loans Held-for-Investment 30,242,237 15,732,425 12,218,466 ------------ ------------ ------------ Goodwill 5,878,277 1,003,927 410,494 Identifiable Intangibles 150,734 46,452 12,765 Premises & Equipment 416,003 227,280 150,875 Mortgage Servicing Rights 254,857 -- -- Other Assets 1,298,904 468,023 314,749 ------------ ------------ ------------ Total Assets $ 60,667,055 $ 27,502,808 $ 20,969,374 ============ ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY: Deposits: Demand $ 6,738,302 $ 5,574,161 $ 4,080,134 Savings, NOW & Money Market 20,598,994 11,059,036 8,290,159 Time 7,475,132 3,515,007 2,745,822 ------------ ------------ ------------ Total Deposits 34,812,428 20,148,204 15,116,115 ------------ ------------ ------------ Federal Funds Purchased & Collateralized Borrowings 14,593,027 3,739,734 3,221,154 Term Borrowings 1,506,318 746,195 743,476 ------------ ------------ ------------ Total Borrowings 16,099,345 4,485,929 3,964,630 Dividends Payable 104,025 57,088 45,757 Accrued Expenses & Other Liabilities 770,178 348,788 364,383 ------------ ------------ ------------ Total Liabilities $ 51,785,976 $ 25,040,009 $ 19,490,885 ------------ ------------ ------------ STOCKHOLDERS' EQUITY: Common Stock, par value $0.01; authorized 500,000,000 shares; issued 474,476,655 shares at December 31, 2004 4,745 1,931 1,746 Additional Paid in Capital 6,968,493 1,116,841 378,793 Retained Earnings 2,064,148 1,992,873 1,816,458 Accumulated Other Comprehensive Income/(Loss) 240 4,806 (2,044) Deferred Compensation (125,174) (84,073) (91,789) Treasury Stock at Cost; 1,633,891 shares at December 31, 2004 (31,373) (569,579) (624,675) ------------ ------------ ------------ Total Stockholders' Equity 8,881,079 2,462,799 1,478,489 ------------ ------------ ------------ Total Liabilities and Stockholders' Equity $ 60,667,055 $ 27,502,808 $ 20,969,374 ============ ============ ============
See accompanying notes appended to the financial data and summaries Page 10 NORTH FORK BANCORPORATION, INC. SELECTED FINANCIAL DATA AND BALANCE SHEET COMPONENTS (UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, SELECTED FINANCIAL DATA: 2004 2003 2004 2003 ---- ---- ---- ---- (in thousands, except ratios and per share amounts) PER SHARE: Net Income, As Reported - Basic $ 0.48 $ 0.46 $ 1.88 $ 1.75 Net Income, As Reported - Diluted $ 0.47 $ 0.46 $ 1.85 $ 1.73 Net Operating Income - Basic (4) $ 0.56 $ 0.46 $ 2.00 $ 1.75 Net Operating Income - Diluted (4) $ 0.55 $ 0.46 $ 1.97 $ 1.73 Average Shares Outstanding - Basic 463,909 221,810 294,491 226,304 Average Shares Outstanding - Diluted 471,651 224,603 299,219 228,774 Cash Dividends $ 0.22 $ 0.20 $ 0.84 $ 0.74 Dividend Payout Ratio 47% 45% 47% 43% Book Value $ 18.78 $ 6.46 $ 18.78 $ 6.46 Tangible Book Value $ 6.03 $ 4.61 $ 6.03 $ 4.61 SELECTED FINANCIAL DATA: Return on Average Total Assets 1.50% 1.98% 1.68% 1.86% Return on Average Tangible Assets (2) 1.99% 2.03% 1.94% 1.91% Return on Average Stockholders' Equity 10.00% 27.45% 15.01% 26.52% Return on Average Tangible Stockholders' Equity (2) 35.23% 38.42% 36.08% 36.54% Efficiency Ratio (3) 36.86% 34.43% 36.14% 34.30% Yield on Interest Earning Assets (1) 5.39% 5.64% 5.46% 5.73% Cost of Funds 1.82% 1.65% 1.71% 1.87% Net Interest Margin (1) 3.85% 4.39% 4.09% 4.24%
DECEMBER 31, SEPTEMBER 30, DECEMBER 31, 2004 2004 2003 ---- ---- ---- RISK BASED CAPITAL: Tier 1 9.90% 10.12% 10.49% Total 12.50% 14.04% 15.53% Leverage Ratio 6.22% 6.32% 6.47% QUARTERLY AVERAGE BALANCE SHEET: Total Assets $58,746,739 $27,185,413 $20,554,912 Securities 15,315,473 8,823,732 7,001,865 Loans Held-for-Sale, net 4,887,454 -- -- Loans Held-for-Investment, net 29,883,578 15,659,594 12,126,302 Goodwill & Identifiable Intangibles 5,833,655 1,051,335 423,632 Demand Deposits 6,593,969 5,444,217 4,098,276 Interest Bearing Deposits 27,302,465 14,702,349 10,894,793 Federal Funds Purchased & Collateralized Borrowings 13,859,327 3,534,757 2,980,436 Term Borrowings 1,516,032 724,181 754,213 Stockholders' Equity $ 8,820,845 $ 2,422,116 $ 1,487,049
BALANCE SHEET COMPONENTS: The following table shows the securities portfolio composition for the periods ended: SECURITIES:
(in thousands) DECEMBER 31, SEPTEMBER 30 DECEMBER 31, SECURITIES - AVAILABLE-FOR-SALE: 2004 2004 2003 ---- ---- ---- Collateralized Mortgage Obligations $ 9,820,057 $ 4,736,457 $ 4,386,479 Agency Pass-Through Certificates 2,737,067 2,066,500 1,246,994 State & Municipal Obligations 920,112 797,701 707,015 Equity Securities 794,004 189,656 194,345 U.S. Treasury & Government Agencies 363,775 209,869 58,090 Other Securities 777,835 647,989 543,352 ----------- ----------- ----------- Total Available-for-Sale Securities $15,412,850 $ 8,648,172 $ 7,136,275 Held-to-Maturity Securities 142,573 149,103 190,285 Retained Interest in Securitizations 31,775 -- -- ----------- ----------- ----------- TOTAL SECURITIES $15,587,198 $ 8,797,275 $ 7,326,560 =========== =========== ===========
See accompanying notes appended to the financial data and summaries Page 11 NORTH FORK BANCORPORATION, INC. SELECTED FINANCIAL DATA AND BALANCE SHEET COMPONENTS, CONTINUED (UNAUDITED) LOANS: The following table represents the components of the loan portfolio for the periods ended:
DECEMBER 31, SEPTEMBER 30, DECEMBER 31, (in thousands) 2004 2004 2003 ---- ---- ---- LOANS HELD-FOR-INVESTMENT: Commercial Mortgages $ 5,185,270 $ 3,606,650 $ 2,814,103 Commercial & Industrial 3,046,820 2,679,759 2,145,798 ------------ ------------ ------------ Total Commercial 8,232,090 6,286,409 4,959,901 Multi-Family Mortgages 4,346,599 3,945,171 3,634,533 Residential Mortgages 15,761,130 3,485,009 2,399,232 Consumer 1,604,863 1,686,614 1,095,529 Construction and Land 480,162 501,296 283,243 ------------ ------------ ------------ Total $ 30,424,844 $ 15,904,499 $ 12,372,438 Unearned Income & Deferred Costs 28,490 (33,277) (31,239) ------------ ------------ ------------ Total Loans Held-For-Investment, net $ 30,453,334 $ 15,871,222 $ 12,341,199 ============ ============ ============
The following table represents the components of the loan portfolio for the periods ended: NON-PERFORMING ASSETS:
DECEMBER 31, SEPTEMBER 30, DECEMBER 31, (in thousands) 2004 2004 2003 ---- ---- ---- NON-PERFORMING LOANS: Commercial Mortgages $ 13,865 $ 228 $ 557 Commercial & Industrial 8,730 10,032 5,632 -------- -------- -------- Total Commercial 22,595 10,260 6,189 Multi-Family Mortgages 2,803 -- -- Residential Mortgages 105,257 3,783 4,808 Consumer 3,178 2,986 2,343 Construction and Land -- -- -- -------- -------- -------- Total Non-Performing Loans (1) $133,833 $ 17,029 $ 13,340 Other Real Estate Owned (1) 17,410 222 313 -------- -------- -------- Total Non-Performing Assets (1) $151,243 $ 17,251 $ 13,653 ======== ======== ======== Allowance for Loan Losses to Non-Performing Loans Held-For-Investment 158% 815% 920% Allowance for Loan Losses to Total Loans Held-for-Investment 0.69% 0.87% 0.99% Non-Performing Loans to Total Loans Held-for-Investment 0.44% 0.11% 0.11% Quarterly Net Charge-offs to Average Loans Held-for-Investment 0.14% 0.15% 0.14%
(1) At September 30, 2004, GreenPoint had non-performing loans of $132.7 million and other real estate owned of $19.8 million that are not reflected in the above table. See accompanying notes appended to the financial data and summaries Page 12 NORTH FORK BANCORPORATION, INC. SELECTED FINANCIAL DATA AND BALANCE SHEET COMPONENTS, CONTINUED (UNAUDITED) The following table represents loans acquired from GreenPoint at fair value and core growth during the quarter: (in thousands)
ACTUAL NFB DEC. 31, 2004 CORE GROWTH GREENPOINT SEPT. 30, 2004 ------------- ----------- ---------- -------------- LOANS HELD-FOR-INVESTMENT: Commercial Mortgages $ 5,185,270 $ 204,990 $ 1,373,630 $ 3,606,650 Commercial & Industrial 3,046,820 367,061 -- 2,679,759 ------------- ----------- ---------- -------------- Total Commercial 8,232,090 572,051 1,373,630 $ 6,286,409 Multi-Family Mortgages 4,346,599 242,664 158,764 3,945,171 Residential Mortgages 15,761,130 1,016,219 11,259,902 3,485,009 Consumer 1,604,863 (108,913) 27,162 1,686,614 Construction & Land 480,162 (21,134) -- 501,296 ------------- ----------- ---------- -------------- Total 30,424,844 1,700,887 12,819,458 $15,904,499 Unearned Income & Deferred Costs 28,490 8,543 53,224 (33,277) ------------- ----------- ---------- -------------- Total Loans Held-For-Investment, net $30,453,334 $1,709,430 $12,872,682 $15,871,222 ============ =========== =========== ============
The following table represents the deposits acquired from GreenPoint at fair value and core growth during the quarter:
(in thousands) ACTUAL NFB DEC. 31, 2004 CORE GROWTH GREENPOINT SEPT. 30, 2004 ------------- ----------- ---------- -------------- Demand $ 6,738,302 $ 644,508 $ 519,633 $ 5,574,161 Savings, NOW & Money Market 20,598,994 898,569 8,641,389 11,059,036 Time Deposits 7,475,132 215,017 3,745,108 3,515,007 ------------ ---------- ---------- ----------- Total Deposits $34,812,428 $1,758,094 $12,906,130 $20,148,204 ============ ========== =========== ===========
See accompanying notes appended to the financial data and summaries Page 13 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: DECEMBER 31, 2004 SEPTEMBER 30, 2004 ----------------- ------------------ AVERAGE AVERAGE AVERAGE AVERAGE (dollars in thousands) BALANCE INTEREST RATE BALANCE INTEREST RATE ------- -------- ---- ------- -------- ---- INTEREST EARNING ASSETS: Loans Held-for-Investment, net $29,883,578 $433,954 5.78% $15,659,594 $239,080 6.07% Loans Held-for-Sale, net 4,887,454 64,391 5.24% - - - Securities (1) 15,315,473 181,187 4.70% 8,823,732 103,113 4.65% Money Market Investments (1) 87,504 691 3.14% 574,036 2,210 1.53% ----------- -------- ----------- -------- Total Interest Earning Assets $50,174,009 $680,223 5.39% $25,057,362 $344,403 5.47% ----------- -------- ----------- -------- NON-INTEREST EARNING ASSETS: Cash and Due from Banks $947,502 $ 612,732 Other Assets 7,625,228 1,515,319 ----------- ----------- Total Assets $58,746,739 $27,185,413 ----------- ----------- INTEREST BEARING LIABILITIES: Savings, NOW & Money Market Deposits $19,982,763 $ 56,042 1.12% $11,017,089 $ 22,921 0.83% Time Deposits 7,319,702 29,204 1.59% 3,685,260 13,805 1.49% ----------- -------- ----------- -------- Total Savings and Time Deposits 27,302,465 85,246 1.24% 14,702,349 36,726 0.99% Fed. Funds Purchased & Collateralized Borrowings 13,859,327 93,217 2.68% 3,534,757 33,880 3.81% Term Borrowings 1,516,032 16,501 4.33% 724,181 7,248 3.98% ----------- -------- ----------- -------- Total Borrowings 15,375,359 109,718 2.84% 4,258,938 41,128 3.84% ----------- -------- ----------- -------- Total Interest Bearing Liabilities $42,677,824 $194,964 1.82% $18,961,287 $ 77,854 1.63% ----------- -------- ----------- -------- Interest Rate Spread 3.57% 3.84% NON-INTEREST BEARING LIABILITIES: Demand Deposits $6,593,969 $ 5,444,217 Other Liabilities 654,101 357,793 ----------- ----------- Total Liabilities 49,925,894 24,763,297 Stockholders' Equity 8,820,845 2,422,116 ----------- ----------- Total Liabilities and Stockholders' Equity $58,746,739 $27,185,413 ----------- ----------- Net Interest Income and Net Interest Margin $485,259 3.85% $266,549 4.23% Less: Tax Equivalent Adjustment (10,437) (7,074) -------- -------- Net Interest Income $474,822 $259,475 -------- --------
See accompanying notes appended to the financial data and summaries Page 14 NORTH FORK BANCORPORATION, INC. GAIN ON SALE OF LOANS - QUARTERLY HIGHLIGHTS (UNAUDITED)
GREENPOINT MORTGAGE PRE-ACQUISITION FINANCIAL INFORMATION (In thousands) DECEMBER 31, SEPTEMBER 30, JUNE 30, MARCH 31, 2004 2004 2004 2004 ---- ---- ---- ---- COMPARATIVE MORTGAGE LOAN VOLUMES Total Applications Received 16,403,008 17,001,566 19,868,351 18,306,711 ----------- ----------- ----------- ----------- Loans Originated: Specialty Products (1) $ 4,494,452 $ 3,860,338 $ 3,452,674 $ 2,772,195 Home Equity/Seconds 1,630,798 1,613,625 1,255,026 874,590 Jumbo/Agency 4,316,658 4,513,854 6,460,685 4,564,646 ----------- ----------- ----------- ----------- Total Loans Originated $10,441,908 $ 9,987,817 $11,168,385 $ 8,211,431 =========== =========== =========== =========== Pipeline (2) $ 6,264,104 $ 7,623,547 $ 8,641,744 $ 9,488,257 Interest Rate Lock Commitments (3) 1,950,504 2,512,433 2,559,331 2,722,844 MORTGAGE LOANS SOLD AND AVERAGE MARGINS (4) Whole Loan Sales: Specialty Products $ 3,783,245 $ 3,262,425 $ 3,029,038 $ 2,693,523 Home Equity/Seconds 953,463 1,288,899 588,597 504,254 Jumbo/Agency 2,753,521 3,349,777 3,904,792 3,911,844 ----------- ----------- ----------- ----------- Total Whole Loan Sales $ 7,490,229 $ 7,901,101 $ 7,522,427 $ 7,109,621 =========== =========== =========== =========== Gain on Sale of Whole Loans (5) $ 109,297 $ 105,104 $ 123,332 $ 120,351 Margins on Whole Loans: Specialty Products 1.84% 1.64% 2.60% 2.59% Home Equity/Seconds 1.30% 1.55% 1.81% 2.02% Jumbo/Agency 0.99% 0.94% 0.87% 1.04% ----------- ----------- ----------- ----------- Total Whole Loan Sales (5) 1.46% 1.33% 1.64% 1.69% =========== =========== =========== =========== Gain on Sale of Whole Loans: Specialty Products $ 69,759 $ 53,530 $ 78,698 $ 69,664 Home Equity/Seconds 12,395 20,031 10,636 10,164 Jumbo/Agency 27,143 31,543 33,998 40,523 ----------- ----------- ----------- ----------- Gain on Sale of Whole Loans (5) $ 109,297 $ 105,104 $ 123,332 $ 120,351 =========== =========== =========== ===========
(1) Specialty products include: Alt A, No Doc and A minus programs. (2) The pipeline represents applications received, but not yet funded. (3) Represents commitments to lend where the terms are guaranteed to the borrower for a specific period of time. (4) Gain on sale of whole loans and the margins on the whole loan sales include the net 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 the loan sale. (5) December 31, 2004 results include the fair value adjustment on loans held-for-sale at October 1, 2004 and sold during the quarter, totaling $56.4 million. Page 15 NORTH FORK BANCORPORATION, INC. NOTES TO THE FINANCIAL DATA AND SUMMARIES (1) Presented on a tax equivalent basis. (2) Return on average tangible assets and return on average tangible stockholders' 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, as reported plus amortization of identifiable intangible assets and the fair value adjustment on loans held-for-sale (See note 4), net of taxes by average total assets less average goodwill and average identifiable intangible assets. Return on average tangible stockholders' equity is computed by dividing net income, as reported plus amortization of identifiable intangible assets and the fair value adjustment on loans held-for-sale (See note 4), net of taxes by average total stockholders' equity less average goodwill and average identifiable intangible assets.
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2004 2003 2004 2003 ---- ---- ---- ---- (in thousands) Net Income, as Reported $ 221,750 $ 102,383 $ 552,996 $ 396,365 Add: Amortization of Identifiable Intangibles, Net of taxes 6,139 591 9,939 2,359 Fair Value Adjustment on Loans Held-for-Sale at October 1, 2004 and Sold during the Fourth Quarter of 2004, Net of taxes 36,633 -- 36,633 ----------- ----------- ----------- ----------- Net Income, as Adjusted $ 264,522 $ 102,974 $ 599,568 $ 398,724 ----------- ----------- ----------- ----------- Average Total Assets $58,746,739 $20,554,912 $32,900,141 $21,336,070 Less: Average Goodwill 5,677,527 410,385 1,960,559 409,900 Less: Average Identifiable Intangible Assets 156,128 13,246 62,374 14,574 ----------- ----------- ----------- ----------- Average Total Tangible Assets $52,913,084 $20,131,281 $30,877,208 $20,911,596 ----------- ----------- ----------- ----------- Average Stockholders' Equity $ 8,820,845 $ 1,487,049 $ 3,684,525 $ 1,515,772 Less: Average Goodwill 5,677,527 410,385 1,960,559 409,900 Less: Average Identifiable Intangible Assets 156,128 13,246 62,374 14,574 ----------- ----------- ----------- ----------- Average Tangible Stockholders' Equity $ 2,987,190 $ 1,063,418 $ 1,661,592 $ 1,091,298 ----------- ----------- ----------- ----------- Return on Average Tangible Assets 1.99% 2.03% 1.94% 1.91% Return on Average Tangible Stockholders' Equity 35.23% 38.42% 36.08% 36.54%
(3) The efficiency ratio is defined as the ratio of non-interest expense net of debt restructuring costs, amortization of identifiable intangibles, other real estate related expenses and other non-recurring charges, to net interest income on a tax equivalent basis and other non-interest income net of securities gains, facilities gains and other non-recurring items plus the fair value adjustment on loans held-for-sale (See Note-4). (4) Net operating income and net operating earnings per share, which represent non GAAP measures are computed as follows:
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2004 2003 2004 2003 ---- ---- ---- ---- (in thousands) Net Income, as Reported $221,750 $102,383 $552,996 $396,365 Add: Fair Value Adjustment on Loans Held-for-Sale at October 1, 2004 and Sold during the Fourth Quarter of 2004, Net of taxes 36,633 -- 36,633 -- -------- -------- -------- -------- Net Operating Income, as Adjusted $258,383 $102,383 $589,629 $396,365 -------- -------- -------- -------- Average Shares Outstanding - Basic 463,909 221,810 294,491 226,304 Average Shares Outstanding - Diluted 471,651 224,603 299,219 228,774 Per Share: Net Operating Earnings - Basic $ 0.56 $ 0.46 $ 2.00 $ 1.75 Net Operating Earnings- Diluted $ 0.55 $ 0.46 $ 1.97 $ 1.73
(5) All periods have been adjusted for the 3-for-2 stock split and certain reclassifications have been made to GreenPoint's financial information in order to conform to North Fork's financial information. Page 16