New York Community Bancorp, Inc. Reports 1st Quarter 2008 Diluted Cash Earnings Per Share of $0.25 and Diluted GAAP and Operating Earnings Per Share of $0.22

Business Wire, April 23, 2008

Borrowed funds totaled $12.8 billion at March 31, 2008, representing a three-month reduction of $75.4 million. The bulk of the reduction was due to a $67.1 million decline in the balance of wholesale borrowings to $12.1 billion, together with an $8.1 million reduction, to $229.1 million, in other borrowings. The latter reduction was largely due to the repurchase of certain REIT-preferred securities, which resulted in a gain of $926,000 (the "gain on debt repurchase") in the first quarter of 2008.

Stockholders' Equity

The Company recorded total stockholders' equity of $4.2 billion at the close of the current first quarter, down $24.1 million from the balance recorded at the end of last year. The March 31, 2008 amount was equivalent to 13.45% of total assets and a book value of $12.83 per share. The December 31, 2007 amount was equivalent to 13.68% of total assets and a book value of $12.95 per share. The calculation of book value per share was based on 324,061,691 shares at the close of the current first quarter and on 322,834,839 shares at the end of last year.

Tangible stockholders' equity totaled $1.6 billion at the close of the current first quarter, a modest $17.6 million reduction from the balance recorded at year-end. Excluding after-tax net unrealized losses on securities of $26.4 million and $14.8 million, respectively, at March 31, 2008 and December 31, 2007, adjusted tangible stockholders' equity represented 5.78% and 5.88% of adjusted tangible assets at the corresponding dates. Including the respective mark-to-market adjustments, tangible stockholders' equity represented 5.70% of tangible assets at the close of the current first quarter, as compared to 5.83% of tangible assets at the end of last year. (3)

In addition to the increase in mark-to-market adjustments on securities, the reduction in tangible stockholders' equity and the related measures reflects the Company's adoption of the Financial Accounting Standards Board's EITF Issue No. 06-4 on January 1, 2008. In accordance with EITF Issue No. 06-4, the Company recorded a charge to retained earnings of $12.7 million for the split-dollar post-retirement benefit related to its investment in bank-owned life insurance ("BOLI").

The Company's subsidiary banks also reported solid levels of capital at the close of the current first quarter, and continued to exceed the requirements for classification as "well capitalized" institutions under the FDIC Improvement Act. At March 31, 2008, New York Community Bank had a leverage capital ratio of 7.47% and New York Commercial Bank had a leverage capital ratio of 10.19%.

Earnings Summary for the Three Months Ended March 31, 2008

The Company generated GAAP earnings of $72.4 million in the current first quarter, representing a $5.0 million, or 7.4%, increase from the trailing-quarter level and a $7.6 million, or 11.7%, increase from the year-earlier amount. Included in the first quarter 2008 amount were two gains that were recorded in non-interest income: the aforementioned gain on debt repurchase in the amount of $926,000, and a $1.6 million gain stemming from Visa Inc.'s initial public offering, included in "other income." On an after-tax basis, the gains were equivalent to $2.2 million, combined.