-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JpdaINDgDK9eeeXTBEi3Kd76u84H9GsauGaogJkYzzuSnTWyhETQlvDklJKr8dwd M/32qMy5Kr2Nc7ggmnP+LA== 0000950123-06-000504.txt : 20060119 0000950123-06-000504.hdr.sgml : 20060119 20060119162731 ACCESSION NUMBER: 0000950123-06-000504 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060119 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060119 DATE AS OF CHANGE: 20060119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTH FORK BANCORPORATION INC CENTRAL INDEX KEY: 0000352510 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 363154608 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10458 FILM NUMBER: 06538533 BUSINESS ADDRESS: STREET 1: 275 BROAD HOLLOW RD STREET 2: PO BOX 8914 CITY: MELVILLE STATE: NY ZIP: 11747 BUSINESS PHONE: 6318441004 MAIL ADDRESS: STREET 1: 275 BROAD HOLLOW RD STREET 2: PO BOX 8914 CITY: MELVILLE STATE: NY ZIP: 11747 8-K 1 y16694e8vk.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): JANUARY 19, 2006 NORTH FORK BANCORPORATION, INC. (Exact Name of Registrant as Specified in Charter) Delaware 1-10458 36-3154608 (State or Other Jurisdiction (Commission File Number) (I.R.S. Employer of Incorporation) Identification No.)
275 Broadhollow Road Melville, New York 11747 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code (631) 844-1004 Not Applicable (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Page 1 ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On January 19, 2006, North Fork Bancorporation, Inc. (the "Company") issued a press release reporting earnings, per share earnings, commercial loan and deposit growth, improved margins at the Bank and Mortgage Company for the full year and fourth quarter of 2005. 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. Net income for the quarter ended December 31, 2005 was $210 million or $.45 diluted earnings per share as compared to $222 million or diluted earnings per share of $.47 for the comparable period. The full text of the earnings release is included herein as Exhibit 99.1 and is incorporated herein by reference. The press release contains supplemental financial information determined by methods other than in accordance with Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of the Company's performance. The Company's 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. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits:
Exhibit Number Description - ------- ----------- 99.1 Press release issued by North Fork Bancorporation, Inc. on January 19, 2006.
Page 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: January 19, 2006 NORTH FORK BANCORPORATION, INC. /s/ Daniel M. Healy - ------------------------------------- Daniel M. Healy Executive Vice President Chief Financial Officer Page 3 EX-99.1 2 y16694exv99w1.txt EX-99.1: PRESS RELEASE EXHIBIT 99.1 NORTH FORK BANCORP 275 BROADHOLLOW ROAD, MELVILLE, NY 11747 (631) 531-2058 FAX (631) 531-2759 FOR IMMEDIATE RELEASE CONTACT: DANIEL M. HEALY EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER (631) 531-2058 NORTH FORK BANCORP REPORTS EARNINGS, PER SHARE EARNINGS, COMMERCIAL LOAN AND DEPOSIT GROWTH, IMPROVED MARGINS AT THE BANK AND MORTGAGE COMPANY FOR THE FULL YEAR AND FOURTH QUARTER OF 2005 MELVILLE, N.Y. - JANUARY 19, 2006 - 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. Page 4 - 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. Page 5 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. Page 6 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. 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 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. 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, 2005 2004 2005 2004 ------------ ------------ ------------ ------------ (in thousands, except per share amounts) 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 Page 9 NORTH FORK BANCORPORATION, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED)
DECEMBER 31, SEPTEMBER 30, DECEMBER 31, 2005 2005 2004 ------------ ------------- ------------ (in thousands, except per share amounts) 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 Page 10 NORTH FORK BANCORPORATION, INC. SELECTED FINANCIAL DATA AND BALANCE SHEET COMPONENTS (UNAUDITED) SELECTED FINANCIAL DATA:
THREE MONTHS ENDED TWELVE MONTHS ENDED --------------------------- --------------------------- DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2005 2004 2005 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 31, SEPTEMBER 30, DECEMBER 31, 2005 2005 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 31, SEPTEMBER 30, DECEMBER 31, 2005 2005 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 Page 11 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 31, SEPTEMBER 30, DECEMBER 31, 2005 2005 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 Page 12 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 31, SEPTEMBER 30, DECEMBER 31, 2005 2005 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 31, SEPTEMBER 30, DECEMBER 31, 2005 2005 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 portfolio segments:
DECEMBER 31, 2005 SEPTEMBER 30, 2005 ------------------------------------------- ------------------------------------------- RESIDENTIAL & COMMERCIAL & RESIDENTIAL & COMMERCIAL & TOTAL MULTI-FAMILY ALL OTHER LOANS TOTAL MULTI-FAMILY ALL OTHER LOANS ----------- ------------- --------------- ----------- ------------- --------------- (dollars in thousands) Loans Held-for-Investment $33,232,236 $19,928,325 $13,303,911 $32,672,962 $20,165,934 $12,507,028 Allowance for Loan Losses Allocated $ 217,939 $ 72,481 $ 145,458 $ 220,347 $ 73,724 $ 146,623 Non-Performing Loans Held-for-Investment $ 31,017 $ 19,865 $ 11,152 $ 65,179 $ 48,592 $ 16,587 Allowance for Loan Losses to Loans Held- for-Investment 0.66% 0.36% 1.09% 0.67% 0.37% 1.17% =========== =========== =========== =========== =========== =========== Allowance for Loan Losses to Non- Performing Loans Held-for-Investment 703% 365% 1304% 338% 152% 884% =========== =========== =========== =========== =========== ===========
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 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 SEPTEMBER 30, 2005 -------------------------------- -------------------------------- AVERAGE AVERAGE AVERAGE AVERAGE BALANCE INTEREST RATE BALANCE INTEREST RATE ----------- -------- ------- ----------- -------- ------- (dollars in thousands) INTEREST EARNING ASSETS: Loans Held-for-Investment $32,846,757 $488,643 5.90% $32,361,793 $471,627 5.78% Loan Held-for-Sale 5,221,652 75,468 5.73% 5,401,495 69,840 5.13% Securities 11,786,052 144,064 4.85% 12,531,822 152,447 4.83% Money Market Investments 35,311 493 5.54% 38,668 529 5.43% ----------- -------- ----------- -------- Total Interest Earning Assets $49,889,772 $708,668 5.64% $50,333,778 $694,443 5.47% ----------- -------- ----------- -------- NON-INTEREST EARNING ASSETS: Cash and Due from Banks $ 1,005,731 $ 1,012,515 Other Assets 7,336,880 7,385,622 ----------- ----------- Total Assets $58,232,383 $58,731,915 ----------- ----------- INTEREST BEARING LIABILITIES: Savings, NOW & Money Market Deposits $21,229,823 $102,255 1.91% $21,419,573 $ 91,316 1.69% Time Deposits 8,138,806 56,376 2.75% 8,223,189 49,397 2.38% ----------- -------- ----------- -------- Total Savings and Time Deposits 29,368,629 158,631 2.14% 29,642,762 140,713 1.88% Fed. Funds Purchased & Collateralized Borrowings 9,740,160 72,842 2.97% 10,057,604 86,343 3.41% Other Borrowings 1,484,866 22,123 5.91% 1,505,651 20,684 5.45% ----------- -------- ----------- -------- Total Borrowings 11,225,026 94,965 3.36% 11,563,255 107,027 3.67% ----------- -------- ----------- -------- Total Interest Bearing Liabilities $40,593,655 $253,596 2.48% $41,206,017 $247,740 2.39% ----------- -------- ----------- -------- Interest Rate Spread 3.16% 3.08% NON-INTEREST BEARING LIABILITIES: Demand Deposits $ 7,771,142 $ 7,547,759 Other Liabilities 709,710 684,278 ----------- ----------- Total Liabilities 49,074,507 49,438,054 Stockholders' Equity 9,157,876 9,293,861 ----------- ----------- Total Liabilities and Stockholders' Equity $58,232,383 $58,731,915 ----------- ----------- Net Interest Income and Net Interest Margin $455,072 3.62% $446,703 3.52% Less: Tax Equivalent Adjustment (13,133) (12,153) -------- -------- Net Interest Income $441,939 $434,550 -------- --------
See accompanying notes appended to the financial data and summaries Page 14 NORTH FORK BANCORPORATION, INC. MORTGAGE BANKING - FINANCIAL HIGHLIGHTS (UNAUDITED)
QUARTERLY HIGHLIGHTS YEAR-TO-DATE -------------------------------------------------------- DECEMBER 31, DECEMBER 31, SEPTEMBER 30, JUNE 30, MARCH 31, 2005 2005 2005 2005 2005 ------------ ----------- ------------- ------------ ----------- (dollars in thousands) COMPARATIVE MORTGAGE LOAN VOLUMES Total Applications Received $72,345,985 $15,613,973 $17,254,701 $21,195,474 $18,281,837 ----------- ----------- ----------- ----------- ----------- LOANS ORIGINATED: Specialty Products (a) $19,148,814 $ 4,787,403 $ 4,827,831 $ 5,302,469 $ 4,231,111 Home Equity 5,450,355 1,114,617 1,280,684 1,566,306 1,488,748 Jumbo/Agency 17,657,230 3,488,135 4,302,550 5,553,487 4,313,058 ----------- ----------- ----------- ----------- ----------- Total Loans Originated $42,256,399 $ 9,390,155 $10,411,065 $12,422,262 $10,032,917 =========== =========== =========== =========== =========== Pipeline (b) $ 5,325,629 $ 5,325,629 $ 6,376,081 $ 7,594,398 $ 7,407,671 Interest Rate Lock Commitments (c) 2,386,809 2,386,809 2,349,097 2,891,179 2,523,344 Loans Held-for-Sale 4,359,267 4,359,267 4,701,550 6,398,119 5,350,823 LOAN SALES (3): Specialty Products $18,360,430 $ 4,570,651 $ 5,061,097 $ 4,394,898 $ 4,333,784 Home Equity 5,413,700 865,665 1,500,767 1,466,771 1,580,497 Jumbo/Agency 13,338,986 3,277,851 4,381,960 3,240,177 2,438,998 ----------- ----------- ----------- ----------- ----------- Total Loan Sales $37,113,116 $ 8,714,167 $10,943,824 $ 9,101,846 $ 8,353,279 =========== =========== =========== =========== =========== AVERAGE MARGIN ON LOAN SALES: Specialty Products 1.27% 1.18% 1.13% 1.35% 1.45% Home Equity 1.74% 1.49% 1.88% 2.05% 1.45% Jumbo/Agency 0.78% 0.76% 0.65% 0.92% 0.84% ----------- ----------- ----------- ----------- ----------- Average Margin on Loan Sales 1.16% 1.05% 1.04% 1.31% 1.27% =========== =========== =========== =========== =========== GAINS ON SALE OF LOANS (3): Specialty Products $ 233,028 $ 53,867 $ 56,956 $ 59,455 $ 62,750 Home Equity 94,098 12,929 28,172 30,139 22,858 Jumbo/Agency 103,484 24,819 28,459 29,655 20,551 ----------- ----------- ----------- ----------- ----------- Total Gain on Sale of Loans (d) $ 430,610 $ 91,615 $ 113,587 $ 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 Page 15 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 31, DECEMBER 31 DECEMBER 31, DECEMBER 31 2005 2004 2005 2004 ------------ ----------- ------------ ----------- (dollars in thousands) 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. Page 16 (3) The table below represents the components of mortgage banking income for the periods indicated:
THREE MONTHS ENDED TWELVE MONTHS ENDED --------------------------- --------------------------- DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2005 2004 2005 2004 ------------ ------------ ------------ ------------ (dollars in thousands) 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. Page 17 -----END PRIVACY-ENHANCED MESSAGE-----