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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2005

Commission File Number 1-31565

NEW YORK COMMUNITY BANCORP, INC.

(Exact name of registrant as specified in its charter)

615 Merrick Avenue, Westbury, New York 11590

(Address of principal executive offices)

(Registrant’s telephone number, including area code) (516) 683-4100

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    x  Yes    ¨  No

Par Value: $0.01

Classes of Common Stock

265,554,808

Number of shares outstanding at May 4, 2005

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NEW YORK COMMUNITY BANCORP, INC.

FORM 10-Q

Quarter Ended March 31, 2005

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NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF CONDITION

(in thousands, except share data)

See accompanying notes to the unaudited consolidated financial statements.

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NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(in thousands, except per share data)

(unaudited)

See accompanying notes to the unaudited consolidated financial statements.

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NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands, except share data)

(unaudited)

See accompanying notes to the unaudited consolidated financial statements.

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NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

See accompanying notes to the unaudited consolidated financial statements.

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NEW YORK COMMUNITY BANCORP, INC.

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of New York Community Bancorp, Inc. and subsidiaries (the “Company”) and its wholly-owned subsidiary, New York Community Bank (the “Bank”).

The unaudited consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary to present a fair statement of the results for the periods presented. There are no other adjustments reflected in the accompanying consolidated financial statements. The results of operations for the three months ended March 31, 2005 are not necessarily indicative of the results of operations that may be expected for all of 2005.

Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).

The unaudited consolidated financial statements include accounts of the Company and other entities in which the Company has a controlling financial interest. All inter-company balances and transactions have been eliminated.

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2004 Annual Report to Shareholders and incorporated by reference into the Company’s 2004 Annual Report on Form 10-K.

Note 2. Stock-based Compensation

The Company had eight stock option plans at March 31, 2005. As the Company applies Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for Stock Issued to Employees,” and related interpretations in accounting for these plans, no compensation cost has been recognized.

Had compensation cost for the Company’s stock option plans been determined based on the fair value at the date of grant for awards made under those plans, consistent with the method set forth in Statement of Financial Accounting Standards (“SFAS”) No. 123, “Accounting for Stock-based Compensation,” as amended by SFAS No. 148, “Accounting for Stock-based Compensation—Transition and Disclosure,” the Company’s net income and earnings per share would have equaled the pro forma amounts indicated in the following table.

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In December 2004, the Financial Accounting Standards Board (the “FASB”) issued SFAS No. 123 (revised 2004), “Share-based Payment” (“SFAS No. 123R”), requiring that compensation cost relating to share-based payment transactions, including employee stock options, be recognized as an expense in the financial statements, effective for the first interim or annual reporting period beginning after June 15, 2005. In April 2005, the SEC deferred the compliance date to the first annual period beginning after June 15, 2005; accordingly, the Company will adopt SFAS No. 123R beginning January 1, 2006. The adoption of SFAS No. 123R, which replaces SFAS No. 123 and supersedes APB Opinion No. 25, is not expected to have a material impact on the Company’s consolidated financial statements.

Note 3. Available-for-Sale Securities

The following table provides a summary of the amortized cost and estimated market values of the Company’s available-for-sale securities:

Note 4. Loans, net

The following table provides a summary of the Company’s loan portfolio:

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Note 5. Borrowed Funds

The following table provides a summary of the Company’s borrowed funds:

At March 31, 2005, the Company had $444.5 million of outstanding junior subordinated deferrable interest debentures (“junior subordinated debentures”) held by nine statutory business trusts that issued guaranteed capital securities. The capital securities qualified as Tier 1 capital of the Company at that date. The proceeds of each issuance were invested in a series of junior subordinated debentures of the Company. The underlying asset of each statutory business trust is the relevant debenture. The Company has fully and unconditionally guaranteed each of the obligations under each trust’s capital securities to the extent set forth in the guarantee. Each trust’s capital securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures at their stated maturity or earlier redemption.

The following table provides a summary of the outstanding capital securities issued by each trust and the junior subordinated debentures issued by the Company to each trust as of March 31, 2005:

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Note 6. Pension and Other Post-retirement Benefits

The following table sets forth the disclosures required under SFAS No. 132 (Revised), “Employers’ Disclosures about Pensions and Other Post-retirement Benefits” for the Company’s pension and post-retirement plans:

As discussed in the notes to the consolidated financial statements presented in the Company’s 2004 Annual Report to Shareholders, the Company expects to contribute $1.4 million to its post-retirement plan in 2005; no contribution is expected to be made to the Company’s pension plan during that time.

Note 7. Impact of Accounting Pronouncements

Accounting for Stock Options

In December 2004, the FASB issued SFAS No. 123R, which requires that the compensation cost relating to share-based payment transactions (including employee stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans) be recognized as an expense in the Company’s consolidated financial statements. Under SFAS No. 123R, the related compensation cost will be measured based on the fair value of the award at the date of grant.

As previously described under “Stock Option Plans,” SFAS No. 123 requires only that the expense relating to employee stock options be disclosed in the footnotes to the consolidated financial statements. SFAS No. 123R will replace SFAS No. 123 and supersede APB Opinion No. 25. While SFAS No. 123R was originally to have been effective for interim and annual reporting periods beginning after June 15, 2005, the SEC, in April 2005, deferred the compliance date to the first annual reporting period beginning after June 15, 2005. Adoption of SFAS No. 123R is not expected to have a material impact on the Company’s consolidated financial statements when it is adopted on January 1, 2006.

Other-Than-Temporary Impairment of Certain Investments

On March 31, 2004, the FASB ratified Emerging Issues Task Force (“EITF”) Issue No. 03-1, “The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments” (“EITF 03-1”), which provides guidance on recognizing other-than-temporary impairment on certain investments. EITF 03-1 is effective for other-than-temporary impairment evaluations for investments accounted for under SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities,” as well as non-marketable equity securities accounted for under the cost method for reporting periods beginning after June 15, 2004. On September 30, 2004, the FASB directed its staff to delay the effective date for the measurement and recognition guidance contained in paragraphs 10 through 20 of EITF 03-01. During this period of delay, the Company continues to apply the relevant “other-than-temporary” guidance under SFAS No. 115.

In the fourth quarter of 2004, the Company recorded an $8.2 million loss on the other-than-temporary impairment of certain perpetual preferred Fannie Mae (“FNMA”) stock with a par value of $50.0 million. On an after-tax basis, the loss on the other-than temporary impairment was equivalent to $5.0 million.

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Accounting for Loan Commitments

In March 2004, the SEC issued Staff Accounting Bulletin (“SAB”) No. 105, “Application of Accounting Principles to Loan Commitments.” SAB No. 105 clarifies certain provisions of SFAS No. 149, “Amendment of Statement No. 133 on Derivative Instruments and Hedging Activities,” which amended portions of SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” and is effective for periods following March 31, 2004. Together, SAB No. 105 and SFAS No. 149 provide guidance with regard to accounting for loan commitments. Under SAB No. 105 and SFAS No. 149, loan commitments relating to the origination of mortgage loans that will be held for sale shall be accounted for as derivative instruments by the issuer of the commitment. The adoption of the provisions of SFAS No. 149 on April 1, 2004 did not have any impact on the Company’s consolidated financial statements, as the Company has determined that the loan commitments relating to the origination of mortgage loans held for sale outstanding as of March 31, 2005 do not constitute a derivative instrument and therefore do not fall within the scope of SFAS No. 149. As such loans are originated on a conduit basis (for which a flat fee is received from the third-party originator), they do not carry any inherent interest rate risk.

Deconsolidation of Trust Subsidiaries

In accordance with FASB Interpretation No. 46, “Consolidation of Variable Interest Entities (revised December 2003)” (“FIN 46R”), the Company deconsolidated all of its trust subsidiaries on January 1, 2004, resulting in the Company recording, on a stand-alone basis, a liability to these trusts totaling $16.5 million under “borrowed funds” on the consolidated statements of financial condition. Previously, the liability was recorded in borrowed funds on the basis of the amount owed by the trust subsidiary. The adoption of FIN 46R also resulted in the Company recording, on a stand-alone basis, its investment in these trusts as an “other asset” in the consolidated statements of financial condition, equal to the aforementioned $16.5 million in borrowed funds.

The Company’s existing interest rate swap agreements, which were designated and accounted for as “fair value hedges,” were also impacted by the adoption of FIN 46R. The interest rate swap agreements, which convert fixed-rate instruments to variable-rate, have been redesignated to hedge $65.0 million of the Company’s fixed-rate junior subordinated debentures to four of its trust subsidiaries. The notional amount of the four interest rate swap agreements totaled $65.0 million at March 31, 2005 and equaled the amount of the fixed-rate capital securities issued by the same four trust subsidiaries. The maturity dates, call features, and other critical terms of the fair value hedges match the terms of the junior subordinated debentures issued by the Company to each trust subsidiary.

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NEW YORK COMMUNITY BANCORP, INC.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-looking Statements and Associated Risk Factors

This report, like many written and oral communications presented by the Company and its authorized officers, may contain certain forward-looking statements regarding the Company’s prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of said safe harbor provisions.

Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or similar expressions. The Company’s ability to predict results or the actual effects of its plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

There are a number of factors, many of which are beyond the Company’s control, that could cause actual conditions, events, or results to differ significantly from those described in the forward-looking statements. These factors include, but are not limited to:

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In addition, it should be noted that the Company routinely evaluates opportunities to expand through acquisition and frequently conducts due diligence activities in connection with such opportunities. As a result, acquisition discussions and, in some cases, negotiations, may take place in the future, and acquisitions involving cash, debt, or equity securities may occur.

Furthermore, the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Except as required by applicable law or regulation, the Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

Critical Accounting Policies

The Company has identified the accounting policies below as being critical to understanding its financial condition and results of operations. Certain accounting policies are considered to be important to the portrayal of the Company’s financial condition, since they require management to make complex or subjective judgments, some of which may relate to matters that are inherently uncertain. The inherent sensitivity of the Company’s consolidated financial statements to these critical accounting policies, and the judgments, estimates, and assumptions used therein, could have a material impact on the Company’s results of operations or financial condition.

Allowance for Loan Losses

The allowance for loan losses is increased by the provision for loan losses charged to operations and reduced by reversals or by net charge-offs.

Management establishes the allowance for loan losses through an assessment of probable losses in the loan portfolio. Several factors are considered in this process, including historical and projected default rates and loss severities; internal risk ratings; loan size; economic, geographic, industry, and environmental factors; and loan impairment, as defined under Statement of Financial Accounting Standards (“SFAS”) No. 114, “Accounting by Creditors for Impairment of a Loan,” as amended by SFAS No. 118, “Accounting by Creditors for Impairment of a Loan/Income Recognition and Disclosures.” Under SFAS Nos. 114 and 118, a loan is classified as “impaired” when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due under the contractual terms of the loan. The Bank applies SFAS Nos. 114 and 118 to all loans except smaller balance homogenous loans and loans carried at fair value or the lower of cost or fair value.

In establishing the allowance for loan losses, management also considers the Company’s current business strategies and credit process, including compliance with stringent guidelines established by the Board of Directors with regard to credit limitations, loan approvals, underwriting criteria, and loan workout procedures.

In accordance with the Bank’s policy, the allowance for loan losses is segmented to correspond to the various types of loans in the loan portfolio. These loan categories are assessed with specific emphasis on the internal risk rating; underlying collateral; credit underwriting; loan size; and geographic area. These factors correspond to the respective levels of quantified and inherent risk.

The initial assessment takes into consideration loans that have been adversely rated, primarily through the valuation of the collateral supporting each loan. “Adversely rated” loans are loans that are either non-performing or that exhibit certain weaknesses that could jeopardize payment in accordance with the original terms. Larger loans are assigned risk ratings based upon a routine review of the credit files, while smaller loans are assigned risk ratings based upon an aging schedule that typically considers the extent of delinquency exceeding 90 days in arrears. Based upon this analysis, quantified risk factors are assigned for each risk-rating category to provide an allocation to the overall allowance for loan losses.

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The remainder of the loan portfolio is then assessed, by loan type, with similar risk factors being considered, including the borrower’s ability to pay and the Bank’s past loan loss experience with each type of loan. These loans are also assigned quantified risk factors, which result in allocations to the allowance for loan losses for each particular loan or loan type in the portfolio. In order to determine its overall adequacy, the allowance for loan losses is reviewed quarterly by management and by the Mortgage and Real Estate Committee (the “Committee”) of the Board of Directors. Each of the independent directors who serve on the Committee has had more than 30 years of complementary real estate experience.

Other factors and processes considered in determining the appropriate level of the allowance for loan losses include, but are not limited to:

While management uses available information to recognize losses on loans, future additions to the allowance for loan losses may be necessary, based on changes in economic and local market conditions beyond management’s control. In addition, the Bank may be required to take certain charge-offs and/or recognize additions to the loan loss allowance, based on the judgment of regulatory agencies with regard to information provided to them during their examinations.

Employee Benefit Plans

The Company provides a range of benefits to its employees and retired employees, including pensions and post-retirement health care and life insurance benefits. The Company records annual amounts relating to these plans based on calculations specified by accounting principles generally accepted in the United States of America (“GAAP”), which include various actuarial assumptions such as discount rates, assumed rates of return, assumed rates of compensation increases, turnover rates, and trends in health care costs. The Company reviews its actuarial assumptions on an annual basis and modifies the assumptions based on current rates and trends when deemed appropriate. As required by GAAP, the effects of such modifications are generally recorded or amortized over future periods. The Company believes that the assumptions utilized in recording its obligations under its employee benefit plans are reasonable, based upon the advice of its actuaries. Primary among the assumptions utilized are the discount rate, which is used to calculate expected future benefit payments as a present value on the date of measurement, and the expected long-term rate of return. The Company primarily utilizes the Citigroup Pension Liability Index in making its discount rate assumptions; its expected long-term rate of return on plan assets is based on historical returns earned by equities and fixed income securities, adjusted to reflect expectations of future returns as they apply to the plan’s actual target allocation of asset classes.

Investment Securities

The Company’s securities portfolio consists of mortgage-backed securities and collateralized mortgage obligations (together, “mortgage-related securities”) and other securities. Securities that are classified as “available for sale” are carried at estimated fair value, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. Securities that the Company has the positive intent and ability to hold to maturity are classified as “held to maturity” and are carried at amortized cost.

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The market values of the Company’s securities, particularly fixed-rate mortgage-related securities, are affected by changes in interest rates. In general, as interest rates rise, the market value of fixed-rate securities will decline; as interest rates fall, the market value of fixed-rate securities will increase. The Company conducts a periodic review and evaluation of the securities portfolio to determine if the decline in the fair value of any security below its carrying value is other than temporary. Estimated fair values for securities are based on published or securities dealers’ market values. If the Company deems any decline in value to be other than temporary, the security is written down to a new cost basis and the resulting loss is charged against earnings. The Company has determined that there was no other-than-temporary impairment of its securities as of March 31, 2005.

Goodwill Impairment

Goodwill is presumed to have an indefinite useful life and is tested for impairment, rather than amortized, at the reporting unit level at least once a year. Impairment exists when the carrying amount of goodwill exceeds its implied fair value. If the fair value of a reporting unit exceeds its carrying amount at the time of testing, the goodwill of the reporting unit is not considered impaired. According to SFAS No. 142, “Goodwill and Other Intangible Assets,” quoted market prices in active markets are the best evidence of fair value and are to be used as the basis for measurement, when available. Other acceptable valuation methods include present-value measurements based on multiples of earnings or revenues, or similar performance measures. Differences in the identification of reporting units and the use of valuation techniques could result in materially different evaluations of impairment.

For the purpose of goodwill impairment testing, the Company has identified one reporting unit. The Company performed its annual goodwill impairment test as of January 1, 2005, and determined that the fair value of the reporting unit was in excess of its carrying value, using the quoted market price of the Company’s common stock on the impairment testing date as the basis for determining fair value. As of the annual impairment test date, there was no goodwill impairment.

Income Taxes

The Company estimates income taxes payable based on the amount it expects to owe the various tax authorities (i.e., federal, state, and local). Income taxes represent the net estimated amount due to, or to be received from, such taxing authorities. In estimating income taxes, management assesses the relative merits and risks of the appropriate tax treatment of transactions, taking into account statutory, judicial, and regulatory guidance in the context of the Company’s tax position. In this process, management also relies on tax opinions, recent audits, and historical experience. Although the Company uses available information to record income taxes, underlying estimates and assumptions can change over time as a result of unanticipated events or circumstances such as changes in tax laws and judicial guidance influencing its overall tax position.

Overview

New York Community Bancorp, Inc. is the holding company for New York Community Bank (the “Bank”) and the fourth largest thrift in the nation, with total assets of $24.6 billion at March 31, 2005.

The Bank currently serves its customers through a network of 143 banking offices in New York City, Long Island, Westchester County, and New Jersey. Of these, 89 are traditional branches, 51 are located in-store, and three are customer service centers. The Bank operates its branch network through seven community-based divisions, each of which represents the Bank in a specific county or community. In New York, the Bank operates through five divisions: Queens County Savings Bank, with 34 locations in Queens; Roslyn Savings Bank, with 61 locations on Long Island; Richmond County Savings Bank, with 23 locations on Staten Island; Roosevelt Savings Bank, with nine branches located in Brooklyn; and CFS Bank, with four branches located in Westchester County, one in Manhattan, and one in the Bronx. In addition, the Company operates a branch in Co-op City under the name New York Community Bank. In New Jersey, the Bank operates through two divisions: First Savings Bank of New Jersey, with four branches located in Bayonne (Hudson County); and Ironbound Bank, with five branches in Essex and Union counties.

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In addition to operating the largest supermarket banking franchise in the New York Metro region, the Bank is the leading producer of multi-family loans for portfolio in New York City, with rent-controlled and -stabilized buildings representing its primary market niche.

At the end of the second quarter of 2004, the Company engaged in a significant repositioning of its balance sheet to enhance its interest rate and market risk profile in the face of rising market interest rates. In connection with the balance sheet repositioning, the Company sold $5.1 billion of available-for-sale securities with an average yield of 4.62%, and utilized the proceeds to reduce its short-term wholesale borrowings by a like amount. In addition, the Company extended $2.4 billion of wholesale borrowings to an average maturity of three years, with an average cost of 3.32%, and reclassified $1.0 billion of available-for-sale securities as held-to-maturity.

In the first quarter of 2005, the Company continued its planned reduction of the securities portfolio, primarily through redemptions, and used the resultant cash flows to fund the growth of its loan portfolio. Securities totaled $6.6 billion at March 31, 2005, representing 26.8% of total assets, as compared to $12.1 billion, representing 45.7% of total assets, at March 31, 2004. Additional funding stemmed from an increase in deposits, and from the use of wholesale borrowings. Deposits totaled $10.6 billion at the current first quarter-end, signifying a 5.6% increase from the year-earlier level, while wholesale borrowings totaled $9.6 billion, down 19.0% year-over-year. Tangible stockholders’ equity totaled $1.2 billion, and represented 5.21% of tangible assets at March 31, 2005.

In keeping with its traditional business model, the Company placed an emphasis on multi-family lending, with originations totaling $1.4 billion in the first quarter of 2005. Multi-family loans totaled $10.9 billion at March 31, 2005, signifying a linked-quarter increase of $1.0 billion. In addition, the quality of the Company’s assets continued to be solid, with non-performing assets equaling 0.14% of total assets at the close of the quarter and net charge-offs totaling $8,000 for the three-month period. The Company also maintained an efficient operation, recording a first quarter 2005 efficiency ratio of 26.54%.

The Company generated earnings of $91.1 million, or $0.35 per diluted share, in the current first quarter, signifying a 1.64% return on average tangible assets and a 32.20% return on average tangible stockholders’ equity. During the quarter, the Company sold certain Bank-owned properties at an after-tax gain of $4.0 million, equivalent to $0.02 per diluted share.

Recent Events

Dividend Payment

On April 19, 2005, the Board of Directors of the Company declared a quarterly cash dividend of $0.25 per share, payable on May 17, 2005 to shareholders of record at May 2, 2005.

Financial Condition

Balance Sheet Summary

The Company’s March 31, 2005 balance sheet reflects the actions taken during the current first quarter to further enhance its interest rate and market risk profile in a volatile interest rate environment. The Company continued to fund the growth of its loan portfolio with the cash flows from securities redemptions while, at the same time, increasing its use of wholesale borrowings and deposits.

Reflecting these actions, the Company recorded total assets of $24.6 billion at March 31, 2005, as compared to $24.0 billion at December 31, 2004. While the loan portfolio grew $1.1 billion, or 8.4%, over the course of the quarter, the increase in loans was partly offset by a $479.6 million, or 6.8%, reduction in securities during the same time. Total liabilities rose $562.4 million, or 2.7%, from the December 31, 2004 balance, primarily reflecting a $276.6 million increase in borrowed funds and a $186.2 million increase in deposits.

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Loans

The Company recorded total loans of $14.5 billion at March 31, 2005, signifying a $1.1 billion increase from the balance recorded at December 31, 2004. The increase was driven by a record volume of loan production, and tempered by loan sales and repayments totaling $641.8 million. The Company originated $1.8 billion of loans in the current first quarter, as compared to $1.1 billion in the first quarter of 2004.

Multi-family loan originations represented $1.4 billion, or 77.8%, of first quarter 2005 loan originations, and were up 95.0% from the volume recorded in the year-earlier three months. Construction loan originations accounted for $178.9 million, or 10.1%, of the current first quarter’s originations, while commercial real estate loan originations accounted for $175.8 million, or 9.9%. In the first quarter of 2004, construction and commercial real estate loan originations totaled $144.2 million and $166.7 million, respectively.

Multi-family Loans

Multi-family loans totaled $10.9 billion at March 31, 2005, signifying a 10.6% increase from $9.8 billion at December 31, 2004, and a 39.7% increase from $7.8 billion at March 31, 2004. The March 31, 2005 amount represented 75.0% of total loans outstanding, up from 73.5% and 71.4%, respectively, at the earlier dates. At March 31, 2005, the average multi-family loan had a principal balance of $3.2 million and a loan-to-value ratio of 58.9%. The expected weighted average life of the portfolio was 3.9 years at that date.

Multi-family loans are typically originated for a term of ten years, with a fixed rate of interest in the first five years, tied to the five-year Treasury, and a rate that adjusts annually in years six through ten. However, the nature of the Company’s lending niche is such that the typical multi-family loan refinances within the first five-year period, generating prepayment penalties ranging from five points to one point of the initial loan balance.

The majority of the Company’s multi-family loans are secured by rent-regulated buildings in New York City. Because the rents on the apartments in these buildings are typically below market, the buildings tend to be fully occupied, even during times of economic adversity. The Company’s asset quality has been supported by such multi-family credits, which have not incurred a loss for more than twenty years.

The Company has been originating multi-family loans in this market for several decades. Its longevity reflects the relationships it has developed with several leading mortgage brokers, who are familiar with the Company’s lending practices, its underwriting standards, and its long-standing practice of lending on the cash flows produced by the rent rolls of the buildings collateralizing these loans. Because the multi-family market is largely broker-driven, these longstanding relationships have supported the growth of the Company’s multi-family loan portfolio.

Commercial Real Estate Loans

The Company’s portfolio of commercial real estate loans totaled $2.3 billion at March 31, 2005, up $120.6 million, or 5.6%, from the balance recorded at December 31, 2004, and up $682.6 million, or 43.2%, from the balance recorded at March 31, 2004. Commercial real estate loans represented 15.6% of total loans outstanding at the close of the current first quarter, as compared to 16.0% and 14.5%, respectively, at the earlier dates. At March 31, 2005, the average commercial real estate loan had a principal balance of $2.3 million and a loan-to-value ratio of 54.6%. The expected weighted average life of the portfolio was 4.3 years at that date.

The Company’s commercial real estate loans are structured in a manner similar to that of its multi-family credits, typically featuring a fixed rate of interest for the first five years of the loan and a rate that adjusts in each of years six through ten. Prepayment penalties also apply, with five points generally being charged on loans that refinance in the first year of the mortgage, scaling down to one point on loans that refinance in year five. The Company’s commercial real estate loans also tend to refinance within the first five-year period.

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The majority of the Company’s commercial real estate loans are secured by office or mixed-use buildings in New York City, and by retail shopping centers in both the City and Long Island that are typically anchored by national credit-rated tenants.

Construction Loans

The construction loan portfolio totaled $828.5 million at March 31, 2005, up $21.4 million, or 2.7%, from the balance recorded at December 31, 2004, and up $91.4 million, or 12.4%, from the balance recorded at March 31, 2004. Construction loans accounted for 5.7% of total loans outstanding at the close of the current first quarter, as compared to 6.0% and 6.8%, respectively, at the earlier dates. At March 31, 2005, the average construction loan had a principal balance of $2.4 million and a loan-to-value ratio of 40.2%.

The majority of the construction loan portfolio consists of loans for the construction of one-to-four family homes on Long Island, where the Bank is the primary lender to several leading builders and developers. The typical construction loan features a term of 18 to 24 months and a floating rate of interest that is tied to prime.

One-to-four Family and Other Loans

Since December 1, 2000, the Company has maintained a policy of originating one-to-four family mortgage loans on a pass-through basis, and selling such loans to a third-party conduit within ten business days of the loans being closed. Reflecting this policy, and a high level of repayments, the balance of one-to-four family loans declined $23.1 million, or 4.6%, from the year-end 2004 balance to $483.0 million, representing 3.3% of total loans outstanding, at March 31, 2005.

Other loans (including consumer and business loans) declined to $65.1 million from $102.5 million over the course of the quarter, reflecting scheduled repayments and the reclassification of certain loans. Included in the respective amounts were one-to-four family loans held for sale of $2.7 million and $2.3 million, in connection with the Company’s aforementioned conduit policy.

Asset Quality

The quality of the Company’s assets continued to be solid in the first quarter of 2005. Non-performing assets totaled $33.8 million and represented 0.14% of total assets, at the close of the quarter, as compared to $28.7 million, representing 0.12% of total assets, at December 31, 2004. Non-performing loans represented $33.1 million and $28.1 million of the March 31, 2005 and December 31, 2004 totals, and 0.23% and 0.21% of total loans at the respective dates. Included in the March 31, 2005 amount were non-accrual mortgage loans totaling $31.6 million and other non-accrual loans totaling $1.5 million.

A loan is generally classified as a “non-accrual” loan when it is 90 days past due and management has determined that the collectibility of the loan is doubtful. When a loan is placed on non-accrual status, the Bank ceases the accrual of interest owed, and previously accrued interest is charged against interest income. A loan is generally returned to accrual status when the loan is less than 90 days past due and the Bank has reasonable assurance that the loan will be fully collectible.

Other real estate owned represented the remaining $690,000 of non-performing assets at the close of the current first quarter and the remaining $566,000 at December 31, 2004. The March 31, 2005 amount consisted of four residential properties which are currently in the process of being marketed for sale. The Company does not expect to incur a loss when such properties are sold.

The allowance for loan losses totaled $78.0 million at March 31, 2005, and was down $8,000 from the balance recorded at December 31, 2004. While the Company recorded no provisions for loan losses during the current first quarter, it charged off $8,000 of consumer loans that had been acquired in merger transactions in 2001 and 2003. The allowance for loan losses represented 0.54% and 0.58% of total loans at March 31, 2005 and December 31, 2004, respectively, and 236.03% and 277.31% of non-performing loans at the corresponding dates. Based upon all relevant and presently available information, management believes that the current allowance for loan losses is adequate.

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