NFB North Fork Bancorporation Ny

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