-----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, KrWa1Riihj0wpqVZ1Mh/9EjujlpiRWoxrBmHyshXpXZhY7UAPqDFbQA49hyYWH42 3hGDM7u5OzmEU9w8PfS9+Q== 0000950123-02-007031.txt : 20020719 0000950123-02-007031.hdr.sgml : 20020719 20020717171410 ACCESSION NUMBER: 0000950123-02-007031 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020715 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020717 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: 02704990 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 y62333e8vk.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 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) - JULY 15, 2002 NORTH FORK BANCORPORATION, INC. (Exact name of Registrant as specified in its charter) DELAWARE 1-10458 36-3154608 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) 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 Page 1 ITEM 5. OTHER EVENTS North Fork Bancorporation, Inc. issued a press release reporting net income for the quarter ended June 30, 2002 of $104.5 million or diluted earnings per share of $.64 as compared to net income of $78.2 million or diluted earnings per share of $.49 for the quarter ended June 30, 2001, representing increases of 34% and 31%, respectively. The full text of the earnings release is included herein as Exhibit 99.1. On July 16, 2002, Standard and Poor's announced that the Company will replace Immunex Corp. in the S&P 500 Index after the close of trading on July 16, 2002. Additionally, on July 16, 2002, Moody's Investors Service announced that it upgraded the long-term ratings of the Company and its subsidiaries and affirmed their Prime-1 short-term ratings. The issuer rating was raised to A2 (from A3). The deposit and bank financial strength ratings of North Fork Bank, the Company's primary subsidiary, were raised to A1 (from A2) and B- (from C+), respectively. The full text of the Moody's Investors Service press release is included herein as Exhibit 99.2. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Financial Statements of the Business Acquired. Not Applicable (b) Pro Forma Financial Information Not Applicable (c) Exhibits 99.1 Press Release dated July 15, 2002 99.2 Moody's Investors Service Press Release dated July 16, 2002 Page 2 SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 17, 2002 NORTH FORK BANCORPORATION,INC. By: /s/ Daniel M. Healy ------------------------ Daniel M. Healy Executive Vice President Chief Financial Office EX-99.1 3 y62333exv99w1.txt PRESS RELEASE EXHIBIT 99.1 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 EARNINGS INCREASES BY 34% FOR THE SECOND QUARTER OF 2002 MELVILLE, N.Y. - JULY 15, 2002 - NORTH FORK BANCORPORATION, INC. (NYSE: NFB) again reported record earnings and growth for the period ended June 30, 2002. Highlights of this quarter's results are: - - A 34% quarterly increase in net income compared to last year - - A 30% year to date increase in net income over last year - - The maintenance of our record net interest margin - - A 17% annualized growth rate of loans - - A 21% annualized increase in deposits - - An increase of our quarterly dividend to $.25 - - A Standard & Poor's credit upgrade for both the bank and the company - - A continuation of our outstanding asset quality - - The Company will be added to the S & P 500 Index Net income for the quarter ended June 30, 2002 amounted to $104.5 million or diluted earnings per share of $.64 as compared to $78.2 million or diluted earnings per share of $.49 for the quarter ended June 30, 2001. The Company's returns on average assets and equity for the current quarter were 2.3% and 26.1%, respectively, compared to returns of 2.1% and 23.3% for 2001. Page 4 Net income for the six months ended June 30, 2002 amounted to $202.8 million or $1.25 diluted earnings per share compared to $156.6 million and diluted earnings per share of $.97 for the comparable period in the prior year. The returns on average assets and equity for the six-month period ended June 30, 2002, rose to 2.3% and 25.9%, respectively. "We continue to balance growth with industry leading profitability and rigid expense control," said John Adam Kanas, Chairman, President and Chief Executive Officer. The Company's core efficiency ratio declined to 31.7% and its leverage ratio increased to 7.91%. NET INTEREST INCOME INCREASES BY 5% IN THE QUARTER A comparison of the net interest income and net interest margin follows: QUARTER ENDED
(dollars in thousands) JUNE 30, 2002 MARCH 31, 2002 JUNE 30, 2001 ------------- -------------- ------------- Interest Income $293,159 $285,799 $272,860 Interest Expense 78,049 81,802 108,833 ------------- -------------- ------------- Net Interest Income $215,110 $203,997 $164,027 ============= ============== ============= NET INTEREST MARGIN 5.29% 5.32% 4.77% ============= ============== =============
Net interest income increased by $11.1 million or 5% on a linked quarter basis as the margin remained substantially unchanged. Contributing to the improvement was the growth in average interest earning assets, funded with deposit growth, notably demand deposits, and the low interest rate environment. A major portion of the net interest income increase in the quarter was derived from core growth in earning assets, deposits and lower funding costs. The average cost of funds in the current quarter was 2.45% compared to 2.67% and 2.99%, for the quarters ended March 31, 2002 and December 31, 2001, respectively. The Company had previously reported that, considering its sound capital position, it would add approximately $1 billion of securities to its bond portfolio in the current quarter, funded in part by short and medium term borrowings. This program was completed late in the second quarter, contributing approximately $2.4 million in net interest income and lowering the net interest margin by 8 basis points for the current period. The full effect of the aforementioned securities and funding strategy will impact net interest income and margin in subsequent quarters. LOAN GROWTH CONTINUES - ASSET QUALITY SOUND Loans, net of unearned income, increased to $11.0 billion at June 30, 2002, for an annualized growth rate in the quarter of 17%. The Company consistently attracts new business opportunities by offering customized relationship banking. Moreover, despite several signs of a local economic downturn, loan demand for its products remains strong. "We see no signs of change in this pattern as our competitors pursue a business model distinctly different from our own," said John Kanas. Page 5 Non-performing assets of $15.3 million were .14% of total loans at June 30, 2002. The allowance for loan losses to non-performing loans at the end of the current quarter was 738%, substantially unchanged from previous quarters. The Company has kept a prudent risk profile, preferring to avoid complicated high-risk lending relationships and remaining totally focused in the geographic area of its branch network. The quarterly provision for loan losses of $6.25 million has been established to keep pace with present loan growth. The reserve for loan losses to net loans outstanding at June 30, 2002 was 1%, while net charge-offs for the quarter and six-month periods in 2002 were 10 and 12 basis points, respectively. DEPOSITS GROW BY 21.2% - MANHATTAN BRANCHES BY 34.3% Total deposits of $12.2 billion increased by $618 million on a linked quarter basis for annualized growth rate of 21.2%. This growth has been fueled in part by the Company's Manhattan locations, which with an annualized growth rate of 34.3%, contributed $148.3 million or 24% of the overall increase. The Company is in the midst of a de novo branch expansion program heavily concentrated in the borough of Manhattan. The Company regards the New York metropolitan area as one which continues to present great prospects for expansion. A summary and comparison of deposit growth in Manhattan and other regions follow.
(in thousands) DEPOSIT GROWTH ----------------- LINKED QUARTER (JUNE 30, 2002 VS. MARCH 31, 2002) MANHATTAN ALL OTHER TOTAL ---------- --------- ---------- Demand Deposits $ 41,189 $ 270,077 $ 311,266 All Other Deposits 107,152 199,702 306,854 ---------- --------- ---------- Total Increase $148,341 $ 469,779 $ 618,120 ---------- --------- ----------
YEAR OVER YEAR (JUNE 30, 2002 VS. JUNE 30, 2001) MANHATTAN ALL OTHER TOTAL ---------- --------- ---------- Demand Deposits $ 268,970 $ 594,210 $ 863,180 All Other Deposits 882,092 304,900 1,186,992 ----------- --------- ----------- Total Increase $1,151,062 $ 899,110 $2,050,172 ----------- --------- -----------
At June 30, 2002, the Company has 167 branch locations with 19 located in Manhattan. The Company plans to open 9 branches by December 31, 2002, with 6 scheduled for Manhattan. At June 30, 2002, the Company's Manhattan deposits comprise 15.4% of total deposits or $1.9 billion. DEMAND DEPOSITS EXCEED $3 BILLION FOR FIRST TIME As a commercial bank, the Company attracts demand deposits as a key element in its stable funding base, utilizing its diverse incentive compensation programs and business development initiatives. Demand deposit balances at June 30, 2002 exceeded $3 billion for the first time and comprised 25% of total deposits. Page 6 A comparison of deposit balances bankwide and for Manhattan follows:
(in millions) BANKWIDE MANHATTAN -------- --------- DEMAND DEMAND PERIOD ENDED DEPOSITS TOTAL DEPOSITS TOTAL - ------------ -------- ----- -------- ----- June 30, 2002 $ 3,026 $ 12,232 $ 541 $1,880 December 31, 2001 2,703 11,303 479 1,636 June 30, 2001 2,163 10,182 272 729
CAPITAL MANAGEMENT AND RECENT DIVIDEND ANNOUNCEMENT In June, the Company announced a 4% increase in its quarterly cash dividend to $.25 per share. This mid-year increase was made based upon the Company's capital position, its earnings capacity and to keep pace with the Company's expressed dividend payout target of 40-45% of earnings. Dividend increases are customarily reviewed by the Board at its December meeting and will be considered once again at that time. The present dividend will be payable on August 15, 2002 to shareholders of record at the close of business on July 26, 2002. S & P CREDIT RATING UPGRADE On July 3, 2002, Standard & Poor's raised the Company's credit rating and the credit ratings of its primary subsidiary, North Fork Bank to the following: North Fork Bancorporation, Inc. New Rating ---------- Counterparty credit ratings BBB+/A-2 North Fork Bank Counterparty credit ratings A-/A-2 CDs A-/A-2 "We are particularly pleased with our credit upgrade given the current state of the economy and the uncertainty presently being expressed toward many public companies," said John Kanas. STEADY GROWTH IN NON-INTEREST INCOME Non-interest income, excluding the effects of securities and other non-recurring gains, rose to $29.4 million and $57 million for the three and six-month periods ended June 30, 2002, reflecting increases of 30% over the prior year. The primary source of the increase was in customer-related fees and service charges reflective of the Company's expanding customer base and its diverse set of new product offerings. Page 7 OPERATING EFFICIENCY MAINTAINED AS EXPANSION PLAN CONTINUES The Company's core efficiency ratios for the three and six-month periods ended June 30, 2002, were 31.7% and 31.9%, respectively, remaining substantially unchanged when compared to prior year levels. The Company, long recognized as one of the industry's most effective operators, was able to accomplish this efficiency despite growing investments in personnel and facilities associated with its expansion program. Operating expenses, exclusive of capital securities costs and intangible asset amortization was $73.3 million and $143.4 million, respectively for the three and six-month periods in the current year compared to $53.9 million and $106.1 million, respectively for the prior year comparable periods. "We believe our internally driven expansion program is a better growth option in the present environment compared to potential merger and acquisition opportunities," said Mr. Kanas. NORTH FORK ADDED TO S & P 500 On July 12, 2002, Standard and Poor's announced that our Company will replace Immunex Corp. (NASD:IMNX) in the S & P 500 Index after the close of trading on a date to be announced. The Company is currently a member of the S& P Midcap 400 Index. At June 30, 2002 consolidated total assets and deposits were $19.2 billion and $12.2 billion, respectively with shareholders' equity of $1.6 billion, constituting 8.4% of total assets. This release contains certain forward-looking statements. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of the Company that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand and competition, changes in legislation or regulation, changes in accounting principles, policies or guidelines, and other economic, competitive, governmental, regulatory, and technological factors affecting NFB's operations, pricing, products and services. Investors are encouraged to access NFB's periodic reports filed with the Securities and Exchange Commission for financial and business information regarding the Company. Page 8 Page 12 NORTH FORK BANCORPORATION, INC. CONSOLIDATED STATEMENT OF INCOME AND SELECTED FINANCIAL DATA (UNAUDITED)
THREE SIX MONTHS ENDED MONTHS ENDED JUNE 30, JUNE 30, JUNE 30, JUNE 30, (in thousands, except ratios 2002 2001 2002 2001 and per share amounts) -------- -------- -------- -------- CONSOLIDATED STATEMENT OF INCOME: INTEREST INCOME: Loans $199,918 $195,836 $394,589 $390,385 Securities 93,068 76,295 183,968 153,423 Money Market Investments 173 729 401 1,541 -------- -------- -------- -------- Total Interest Income 293,159 272,860 578,958 545,349 -------- -------- -------- -------- INTEREST EXPENSE: Savings, NOW & Money Market Deposits 16,068 22,929 30,684 45,067 Other Time Deposits 14,726 30,674 34,121 62,176 Certificates of Deposit, $100,000 & Over 6,334 11,379 14,222 21,000 Federal Funds Purchased & Securities Sold Under Agreements to Repurchase 21,433 22,250 41,688 53,653 Other Borrowings 19,488 21,601 39,136 46,141 -------- -------- -------- -------- Total Interest Expense 78,049 108,833 159,851 228,037 -------- -------- -------- -------- Net Interest Income 215,110 164,027 419,107 317,312 Provision for Loan Losses 6,250 4,000 12,500 7,750 -------- -------- -------- -------- Net Interest Income after Provision for Loan Losses 208,860 160,027 406,607 309,562 -------- -------- -------- -------- NON-INTEREST INCOME: Customer Related Fees & Service Charges 18,918 14,066 37,304 27,084 Investment Management, Commissions & Trust Fees 4,844 4,034 9,594 8,008 Mortgage Banking Operations 1,361 1,097 2,629 2,087 Check Cashing Fees 713 822 1,476 1,587 Other Operating Income 3,519 2,514 6,025 4,995 Net Securities Gains 353 1,336 1,381 5,208 Derivative Gain -- -- -- 7,943 -------- -------- -------- -------- Total Non-Interest Income 29,708 23,869 58,409 56,912 -------- -------- -------- -------- NON-INTEREST EXPENSE: Employee Compensation & Benefits 43,148 30,232 83,813 59,681 Occupancy & Equipment, net 13,968 10,347 26,880 20,583 Other Operating Expenses 16,158 13,281 32,676 25,831 Capital Securities Costs 4,689 5,140 9,829 10,280 Amortization of Identifiable Intangibles (1) 1,137 710 2,274 1,420 Amortization of Goodwill (1) -- 4,768 -- 9,525 -------- -------- -------- -------- Total Non-Interest Expense 79,100 64,478 155,472 127,320 -------- -------- -------- -------- Income Before Income Taxes 159,468 119,418 309,544 239,154 Provision for Income Taxes 55,017 41,199 106,793 82,508 -------- -------- -------- -------- NET INCOME $104,451 $ 78,219 $202,751 $156,646 -------- -------- -------- -------- PER SHARE: Net Income - Basic (1) $ 0.65 $ 0.49 $ 1.26 $ 0.98 Net Income - Diluted (1) $ 0.64 $ 0.49 $ 1.25 $ 0.97 Average Shares Outstanding - Basic 160,578 159,392 160,445 159,300 Average Shares Outstanding - Diluted 162,488 161,173 162,333 160,970 Cash Dividends $ 0.25 $ 0.21 $ 0.49 $ 0.42 Dividend Payout Ratio 39% 43% 39% 43% Book Value $ 9.80 $ 8.27 $ 9.80 $ 8.27 SELECTED FINANCIAL DATA: Return on Average Assets 2.34% 2.07% 2.33% 2.10% Return on Average Stockholders' Equity (2) 26.08% 23.28% 25.89% 23.92% Core Efficiency Ratio (4) 31.65% 31.18% 31.91% 31.73% Yield on Interest Earning Assets (3) 7.16% 7.84% 7.28% 7.93% Cost of Funds 2.45% 3.87% 2.56% 4.08% Net Interest Margin (3) 5.29% 4.77% 5.31% 4.67%
NORTH FORK BANCORPORATION, INC. CONSOLIDATED BALANCE SHEET AND SELECTED FINANCIAL DATA (UNAUDITED)
JUNE 30, MARCH 31, DECEMBER 31, JUNE 30, (in thousands, except per share amounts) 2002 2002 2001 2001 ------------ ------------ ------------ ------------ CONSOLIDATED BALANCE SHEET: ASSETS: Cash & Due from Banks $ 377,870 $ 299,914 $ 333,250 $ 313,708 Money Market Investments 19,990 56,895 17,684 17,708 Securities: Available-for-Sale 6,562,072 4,926,156 5,043,557 4,385,911 Held-to-Maturity 522,296 602,509 709,965 860,891 ------------ ------------ ------------ ------------ Total Securities 7,084,368 5,528,665 5,753,522 5,246,802 ------------ ------------ ------------ ------------ Loans, Net of Unearned Income 11,041,392 10,583,097 10,399,691 9,835,080 Less: Allowance for Loan Losses 109,998 106,352 103,801 92,853 ------------ ------------ ------------ ------------ Net Loans 10,931,394 10,476,745 10,295,890 9,742,227 ------------ ------------ ------------ ------------ Goodwill (1) 398,783 398,785 398,785 318,518 Identifiable Intangibles (1) 26,215 27,352 28,489 18,356 Premises & Equipment 118,205 111,050 110,779 102,711 Other Assets 254,719 257,171 293,704 207,955 ------------ ------------ ------------ ------------ Total Assets $ 19,211,544 $ 17,156,577 $ 17,232,103 $ 15,967,985 ============ ============ ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY: Demand Deposits $ 3,026,061 $ 2,714,795 $ 2,702,753 $ 2,162,881 Savings Deposits 3,316,204 3,248,736 3,131,471 2,914,540 NOW & Money Market Deposits 2,817,384 2,406,424 2,037,518 1,873,534 Other Time Deposits 2,094,068 2,231,291 2,340,883 2,346,616 Certificates of Deposit, $100,000 & Over 978,497 1,012,848 1,090,681 884,471 ------------ ------------ ------------ ------------ Total Deposits 12,232,214 11,614,094 11,303,306 10,182,042 ------------ ------------ ------------ ------------ Federal Funds Purchased & Securities Sold Under Agreements to Repurchase 3,025,200 1,804,300 2,142,182 2,112,122 Other Borrowings 1,550,000 1,550,000 1,550,000 1,552,155 Accrued Expenses & Other Liabilities 544,897 443,607 555,243 538,711 ------------ ------------ ------------ ------------ Total Liabilities $ 17,352,311 $ 15,412,001 $ 15,550,731 $ 14,385,030 ============ ============ ============ ============ Capital Securities (6) $ 252,374 $ 244,370 $ 244,364 $ 244,351 STOCKHOLDERS' EQUITY: Common stock, par value $0.01; authorized 500,000,000 shares; issued 174,580,778 shares at June 30, 2002 1,746 1,746 1,746 1,746 Additional Paid in Capital 371,342 370,006 364,345 358,296 Retained Earnings 1,459,840 1,396,387 1,337,564 1,235,924 Accumulated Other Comprehensive Income 43,204 4,401 10,341 25,413 Deferred Compensation (55,961) (56,343) (42,535) (29,494) Treasury Stock, at cost (213,312) (215,991) (234,453) (253,281) ------------ ------------ ------------ ------------ Total Stockholders' Equity 1,606,859 1,500,206 1,437,008 1,338,604 ------------ ------------ ------------ ------------ Total Liabilities and Stockholders' Equity $ 19,211,544 $ 17,156,577 $ 17,232,103 $ 15,967,985 ============ ============ ============ ============ QUARTERLY AVERAGE BALANCE SHEET: Total Assets $ 17,895,471 $ 17,148,418 $ 16,618,882 $ 15,145,126 Securities 5,856,302 5,392,521 5,224,720 4,380,057 Loans, net 10,825,814 10,487,002 10,150,772 9,761,554 Demand Deposits 2,857,358 2,623,465 2,495,556 2,040,803 Interest Bearing Deposits 9,124,434 8,839,702 8,244,264 7,896,367 Federal Funds Purchased & Securities Sold Under Agreements to Repurchase 2,109,765 2,040,190 2,321,686 1,704,272 Other Borrowings 1,550,000 1,550,000 1,550,488 1,692,672 Capital Securities 244,373 244,367 244,361 244,349 Stockholders' Equity $ 1,632,612 $ 1,527,140 $ 1,497,105 $ 1,373,281
Page 10 NORTH FORK BANCORPORATION, INC. CONSOLIDATED BALANCE SHEET AND SELECTED FINANCIAL DATA (UNAUDITED)
JUNE 30, MARCH 31, DECEMBER 31, JUNE 30, (in thousands, except per share amounts) 2002 2002 2001 2001 ---------- ---------- ---------- ---------- CAPITAL RATIOS (5): Risk Based Capital: Tier 1 13.21% 13.51% 11.82% 12.67% Total 14.26% 14.60% 12.81% 13.63% Leverage Ratio 7.91% 7.86% 7.68% 8.24% ASSET QUALITY: Non-Performing Loans $ 14,910 $ 14,500 $ 14,636 $ 15,630 Other Real Estate 392 330 315 566 ---------- ---------- ---------- ---------- Total Non-Performing Assets $ 15,302 $ 14,830 $ 14,951 $ 16,196 ========== ========== ========== ========== Allowance for Loan Losses to Non-Performing Loans 738% 733% 709% 594% Allowance for Loan Losses to Total Loans, net 1.00% 1.00% 1.00% 0.94% Non-Performing Loans to Total Loans, net 0.14% 0.14% 0.14% 0.16%
NOTES TO JUNE 30, 2002 EARNINGS RELEASE (1) GOODWILL AND AMORTIZABLE INTANGIBLE ASSETS - In accordance with the provisions of SFAS #141 and #142 that became effective January 1, 2002, the Company has reflected in the accompanying consolidated balance sheets those amounts identified as Identifiable Intangibles subject to future amortization and the non-amortizable amount as Goodwill. Previously, all such intangibles were classified as Intangible Assets and subject to periodic amortization. The consolidated statement of income for the three and six month periods ended June 30, 2002 includes the expense associated with the Identifiable Intangible assets subject to periodic, future amortization. The income statements for the three and six month periods in 2001 shown for comparative purposes reclassifies the expense amounts of a continuing nature and the amount that was discontinued effective January 1, 2002 in accordance with the provisions of the financial accounting pronouncements. Earnings and earnings per share data adjusted to exclude that portion of the discontinued amortization expense for the three and six month periods in 2001 are as follows:
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, 2001 JUNE 30, 2001 ------------------ ---------------- Net Income, as reported $78,219 $156,646 Amortization of Goodwill 4,768 9,525 ------------------ ---------------- Net Income, as adjusted 82,987 166,171 ------------------ ---------------- Adjusted Earnings per Share: Basic $0.52 $1.04 Diluted $0.52 $1.03
(2) Excludes the effect of accumulated other comprehensive income. (3) Presented on tax equivalent basis. (4) The core efficiency ratio is defined as the ratio of non-interest expense, net of other real estate expenses, goodwill amortization and other non-recurring charges, to net interest income on a tax equivalent basis and other non-interest income, net of securities gains and other non-recurring items. (5) Effective January 1, 2002, regulatory revisions were made to the Risk Based Capital guidelines which lowered the risk weighting on several AAA rated investments included in the Company's securities portfolio. The change resulted in an improvement of approximately 125 basis points on Company's Tier I and Total Risk Based Capital Ratios. (6) During the quarter ended June 30, 2002, management, through the use of interest rate swaps, converted $200 million in capital securities from fixed to variable rates. In accordance with SFAS 133, this transaction was recorded as a fair value hedge resulting in a $8.0 million adjustment increasing the reported capital securities balance from $244.4 to $252.4 million. 12 EX-99.2 4 y62333exv99w2.txt MOODY'S INVESTORS SERIVCE PRESS RELEASE EXHIBIT 99.2 [MOODY'S INVESTOR'S SERVICE LOGO] GLOBAL CREDIT RESEARCH RATING ACTION 16 JUL 2002 RATING ACTION: NORTH FORK BANCORPORATION, INC. MOODY'S UPGRADES NORTH FORK BANCORPORATION (ISSUER RATING TO A2) AND NORTH OMIFORK]BANKP(DEPOSITSETO A1) New York, July 16, 2002 -- Moody's Investors Service upgraded the long-term ratings of North Fork Bancorporation and its subsidiaries, and affirmed their Prime-1 short-term ratings. The outlook for all ratings is stable. The issuer rating of North Fork Bancorporation, a holding company, was raised to A2 from A3. The deposit and bank financial strength ratings of North Fork Bank, the principal operating bank subsidiary, were raised to A1 (from A2) and B- (from C+), respectively. Moody's said that the upgrade recognizes North Fork's continued healthy revenue and earnings growth, its above-average profitability and asset quality, and its highly efficient operating platform. An expanding core deposit franchise and a growing portfolio of attractively priced multi-family home loans also contributed to the upgrade. These factors provide North Fork with substantial financial flexibility to weather a prolonged economic downturn without impairing bondholder protection, according to Moody's. The ratings also take into account the limited diversification in the bank's revenues and its vulnerability to the economic well-being of the New York metropolitan area, said the rating agency. Moreover, the bank does not have a leading market share in any of its businesses, for which it could be at a disadvantage against larger competitors. Moody's added that the challenge remaining for the company is to institutionalize a management structure that will allow the company to implement its business plan over the long-term. The following issuers and ratings were affected: North Fork Bancorporation - -Issuer rating: to A2 from A3 North Fork Bank - - Short-term deposit and OSO ratings: affirmed P-1 13 - - Long-term deposits, issuer, and OSO ratings: to A1 from A2 North Fork CapitalTrust I & II - - TRUPS: to A3 from Baa1 North Fork Bancorporation, headquartered in Melville, New York, is a bank holding company with total assets of $19.2 billion at June 30, 2002. New York Gregory W. Bauer Managing Director Financial Institutions Group Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 New York Les Muranyi VP - Senior Credit Officer Financial Institutions Group Moody's Investors Service JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 [GRAPHIC OMITTED][GRAPHIC OMITTED] (C) Copyright 2002 by Moody's Investors Service, 99 Church Street, New York, NY 10007. All rights reserved. ALL INFORMATION CONTAINED HEREIN IS COPYRIGHTED IN THE NAME OF MOODY'S INVESTORS SERVICE, INC. ("MOODY'S"), AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information is provided "as is" without warranty of any kind and MOODY'S, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstance shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, any such information. The credit ratings, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation of each security and of each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding or selling. Pursuant to Section 17(b) of the Securities Act of 1933, MOODY'S hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MOODY'S have, prior to assignment of any rating, agreed to pay MOODY'S for the appraisal and rating services rendered by it fees ranging from $1,000 to $1,500,000. 14 -----END PRIVACY-ENHANCED MESSAGE-----