##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


|  |  |                                                                                                                                                
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------
|þ |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
    For the Fiscal Year Ended December 31, 2004       
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
    For the transition period
    from          to

0-23229


(Commission File Number)


INDEPENDENCE COMMUNITY BANK CORP.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                            
|------------------------------------------------------------------ |  | -------------------------------------------
|Delaware                                                           |  | 11-3387931                                 
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification Number)
|                                                                  
|195 Montague Street, Brooklyn, New York                            |  | 11201                                      
|(Address of principal executive office)                            |  | (Zip Code)                                 

(718) 722-5300


(Registrants telephone number, including area code)


Securities Registered Pursuant to Section 12(b) of the
Act:


None


Securities Registered Pursuant to Section 12(g) of the
Act:


Common Stock, par value $.01 per share


(Title of Class)


þ o


o


þ o
















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INDEPENDENCE COMMUNITY BANK CORP.


2004 ANNUAL REPORT ON FORM 10-K


TABLE OF CONTENTS


|                                                           |  |                                                                                                                                             |  |    
|---------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------- |  | ---
|PART I                                                     |  |                                                                                                                                             |  |    
|ITEM 1.                                                    |  | Business                                                                                                                                    |  |    
|                                                           |  | Independence Community Bank Corp.                                                                                                           |  | 1  
|                                                           |  | Independence Community Bank                                                                                                                 |  | 1  
|                                                           |  | Change in Fiscal Year End                                                                                                                   |  | 1  
|                                                           |  | Market Area and Competition                                                                                                                 |  | 1  
|                                                           |  | Forward Looking Information                                                                                                                 |  | 3  
|                                                           |  | Available Information                                                                                                                       |  | 3  
|                                                           |  | Lending Activities                                                                                                                          |  | 4  
|                                                           |  | Asset Quality                                                                                                                               |  | 15 
|                                                           |  | Investment Activities                                                                                                                       |  | 23 
|                                                           |  | Sources of Funds                                                                                                                            |  | 27 
|                                                           |  | Trust Activities                                                                                                                            |  | 30 
|                                                           |  | Employees                                                                                                                                   |  | 31 
|                                                           |  | Subsidiaries                                                                                                                                |  | 31 
|                                                           |  | Regulation                                                                                                                                  |  | 33 
|                                                           |  | Taxation                                                                                                                                    |  | 41 
|ITEM 2.                                                    |  | Properties                                                                                                                                  |  | 43 
|ITEM 3.                                                    |  | Legal Proceedings                                                                                                                           |  | 43 
|ITEM 4.                                                    |  | Submission of Matters to a Vote of Security
    Holders                                                                                     |  | 43 
|                                                          
|PART II                                                    |  |                                                                                                                                             |  |    
|ITEM 5.                                                    |  | Market for Independence Community Bank
    Corp.s Common Equity, Related Stockholder Matters and
    Issuer Purchases of Equity Securities |  | 44 
|ITEM 6.                                                    |  | Selected Financial Data                                                                                                                     |  | 46 
|ITEM 7.                                                    |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                                                   |  | 48 
|ITEM 7A.                                                   |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                                              |  | 72 
|ITEM 8.                                                    |  | Financial Statements and Supplementary
    Data                                                                                             |  | 76 
|ITEM 9.                                                    |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                                                    |  | 134
|ITEM 9A.                                                   |  | Controls and Procedures                                                                                                                     |  | 134
|ITEM 9B.                                                   |  | Other Information                                                                                                                           |  | 134
|                                                          
|PART III                                                   |  |                                                                                                                                             |  |    
|ITEM 10.                                                   |  | Directors and Executive Officers of
    Independence Community Bank Corp.                                                                   |  | 134
|ITEM 11.                                                   |  | Executive Compensation                                                                                                                      |  | 134
|ITEM 12.                                                   |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                                          |  | 135
|ITEM 13.                                                   |  | Certain Relationships and Related
    Transactions                                                                                          |  | 135
|ITEM 14.                                                   |  | Principal Accounting Fees and Services                                                                                                      |  | 135
|                                                          
|PART IV                                                    |  |                                                                                                                                             |  |    
|ITEM 15.                                                   |  | Exhibits, Financial Statement Schedules                                                                                                     |  | 136
|SIGNATURES                                                 |  | 139                                                                                                                                        
|EX-10.25: EXECUTIVE MANAGEMENT INCENTIVE COMPENSATION PLAN
|EX-10.26: SEVERANCE BENEFIT PLAN                          
|EX-18.1: LETTER RE CHANGE IN ACCOUNTING PRINCIPLES        
|EX-23.1: CONSENT OF ERNST & YOUNG LLP                     
|EX-31.1: CERTIFICATION                                    
|EX-31.2: CERTIFICATION                                    
|EX-32.1: CERTIFICATION                                    
|EX-32.2: CERTIFICATION                                    





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##### Table of Contents






PART I





ITEM 1.      Business





Independence Community Bank Corp.











Independence Community Bank









Change in Fiscal Year End







Market Area and Competition




1



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2



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Forward Looking Information









Available Information




3



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Lending Activities


General.






4



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Loan Portfolio and Loans Available-for-Sale Composition.


|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       |  |       |      |   |   |           |           |  |  |       |      |  
|----------------------------------------------- | --------------------------------------------------- | --------------- | ---------- | --------- | ------------ |  | ----- | ------ | ------- | - | --------- | --------- |  | ------- | ----- | ---- | ----- | - | --------- | --------- |  |  | ----- | ------- | - | ------ | --------- | --------- | ----- |  | ----- | ---- | - | - | --------- | --------- |  |  | ----- | ---- | -
|                                                |                                                     | At December 31, |            |           | At March 31, | 
|                                                |                                                     |                 |            |           |              | 
|                                                |                                                     | 2004            |            |           | 2003         |  |       | 2002   |         |   | 2001      |           |  | 2001    |      
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |      
|                                                |                                                     |                 |            | Percent   |              |  |       |        | Percent |   |           |           |  | Percent |       |      |       |   | Percent   |           |  |  |       | Percent |  
|                                                |                                                     |                 |            | of        |              |  |       |        | of      |   |           |           |  | of      |       |      |       |   | of        |           |  |  |       | of      |  
|(Dollars in Thousands)                          |                                                     | Amount          |            |           | Total        |  |       | Amount |         |   | Total     |           |  | Amount  |       |      | Total |   |           | Amount    |  |  | Total |         |   | Amount |           |           | Total | 
|                                                |                                                    
|Loan portfolio:                                 |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       |  |       |      |   |   |           |           |  |  |       |     
|Mortgage loans:                                 |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       |  |       |      |   |   |           |           |  |  |       |     
|                                                | Single-family residential and cooperative apartment |                 | $          | 2,490,062 |              |  |       | 22.1   | %       |   | $         | 284,367   |  |         |       | 4.6  | %     |   | $         | 556,279   |  |  |       | 9.5     | % |        | $         | 849,140   |       |  |       | 14.6 | % |   | $         | 996,497   |  |  |       | 18.9 | %
|                                                | Multi-family residential
    (1)                    |                 |            | 3,800,649 |              |  |       | 33.8   |         |   |           | 2,821,706 |  |         |       | 45.7 |       |   |           | 2,436,666 |  |  |       | 41.9    |   |        |           | 2,731,513 |       |  |       | 46.5 |   |   |           | 2,620,888 |  |  |       | 49.8 |  
|                                                | Commercial real estate                              |                 |            | 3,034,254 |              |  |       | 27.0   |         |   |           | 1,612,711 |  |         |       | 26.2 |       |   |           | 1,312,760 |  |  |       | 22.6    |   |        |           | 1,019,379 |       |  |       | 17.3 |   |   |           | 861,187   |  |  |       | 16.4 |  
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Total principal balance  mortgage loans        |                                                     |                 | 9,324,965  |           |              |  | 82.9  |        |         |   | 4,718,784 |           |  |         | 76.5  |      |       |   | 4,305,705 |           |  |  | 74.0  |         |   |        | 4,600,032 |           |       |  | 78.4  |      |   |   | 4,478,572 |           |  |  | 85.1  |     
|                                                | Less net deferred fees                              |                 |            | 9,875     |              |  |       | 0.1    |         |   |           | 4,396     |  |         |       | 0.1  |       |   |           | 7,665     |  |  |       | 0.1     |   |        |           | 11,198    |       |  |       | 0.2  |   |   |           | 10,588    |  |  |       | 0.2  |  
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Total mortgage loans on real estate             |                                                     |                 | 9,315,090  |           |              |  | 82.8  |        |         |   | 4,714,388 |           |  |         | 76.4  |      |       |   | 4,298,040 |           |  |  | 73.9  |         |   |        | 4,588,834 |           |       |  | 78.2  |      |   |   | 4,467,984 |           |  |  | 84.9  |     
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Commercial business loans, net of deferred fees |                                                     |                 | 809,392    |           |              |  | 7.2   |        |         |   | 606,204   |           |  |         | 9.8   |      |       |   | 598,267   |           |  |  | 10.3  |         |   |        | 665,829   |           |       |  | 11.3  |      |   |   | 436,751   |           |  |  | 8.3   |     
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Other loans:                                    |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       |  |       |      |   |   |           |           |  |  |       |     
|                                                | Mortgage warehouse lines of credit                  |                 |            | 659,942   |              |  |       | 5.9    |         |   |           | 527,254   |  |         |       | 8.5  |       |   |           | 692,434   |  |  |       | 11.9    |   |        |           | 446,542   |       |  |       | 7.6  |   |   |           | 206,707   |  |  |       | 3.9  |  
|                                                | Home equity loans and lines of credit               |                 |            | 416,351   |              |  |       | 3.7    |         |   |           | 296,986   |  |         |       | 4.8  |       |   |           | 201,952   |  |  |       | 3.5     |   |        |           | 141,905   |       |  |       | 2.4  |   |   |           | 117,701   |  |  |       | 2.3  |  
|                                                | Consumer and other loans                            |                 |            | 47,817    |              |  |       | 0.4    |         |   |           | 27,538    |  |         |       | 0.5  |       |   |           | 26,971    |  |  |       | 0.4     |   |        |           | 32,002    |       |  |       | 0.5  |   |   |           | 33,489    |  |  |       | 0.6  |  
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Total principal balance  other loans           |                                                     |                 | 1,124,110  |           |              |  | 10.0  |        |         |   | 851,778   |           |  |         | 13.8  |      |       |   | 921,357   |           |  |  | 15.8  |         |   |        | 620,449   |           |       |  | 10.5  |      |   |   | 357,897   |           |  |  | 6.8   |     
|                                                | Less unearned discounts and deferred fees           |                 |            |          |              |  |       | 0.0    |         |   |           | 139       |  |         |       | 0.0  |       |   |           | 291       |  |  |       | 0.0     |   |        |           | 677       |       |  |       | 0.0  |   |   |           | 1,191     |  |  |       | 0.0  |  
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Total other loans                               |                                                     |                 | 1,124,110  |           |              |  | 10.0  |        |         |   | 851,639   |           |  |         | 13.8  |      |       |   | 921,066   |           |  |  | 15.8  |         |   |        | 619,772   |           |       |  | 10.5  |      |   |   | 356,706   |           |  |  | 6.8   |     
|Total loans receivable                          |                                                     |                 | 11,248,592 |           |              |  | 100.0 | %      |         |   | 6,172,231 |           |  |         | 100.0 | %    |       |   | 5,817,373 |           |  |  | 100.0 | %       |   |        | 5,874,435 |           |       |  | 100.0 | %    |   |   | 5,261,441 |           |  |  | 100.0 | %   
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Less allowance for loan losses                  |                                                     |                 | 101,435    |           |              |  |       |        |         |   | 79,503    |           |  |         |       |      |       |   | 80,547    |           |  |  |       |         |   |        | 78,239    |           |       |  |       |      |   |   | 71,716    |           |  |  |       |     
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Loans receivable, net                           |                                                     | $               | 11,147,157 |           |              |  |       |        |         | $ | 6,092,728 |           |  |         |       |      |       | $ | 5,736,826 |           |  |  |       |         |   | $      | 5,796,196 |           |       |  |       |      |   | $ | 5,189,725 |           |  |  |       |     
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Loans available-for- sale:                      |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       |  |       |      |   |   |           |           |  |  |       |     
|                                                | Single-family residential                           |                 | $          | 74,121    |              |  |       |        |         |   | $         | 2,687     |  |         |       |      |       |   | $         | 7,576     |  |  |       |         |   |        | $         | 3,696     |       |  |       |      |   |   | $         |          |  |  |       |      |  
|                                                | Multi-family residential                            |                 |            | 22,550    |              |  |       |        |         |   |           | 3,235     |  |         |       |      |       |   |           | 106,803   |  |  |       |         |   |        |           |          |       |  |       |      |   |   |           |          |  |  |       |      |  
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 
|Total loans available-for- sale                 |                                                     | $               | 96,671     |           |              |  |       |        |         | $ | 5,922     |           |  |         |       |      |       | $ | 114,379   |           |  |  |       |         |   | $      | 3,696     |           |       |  |       |      |   | $ |          |           |  |  |       |     
|                                                |                                                     |                 |            |           |              |  |       |        |         |   |           |           |  |         |       |      |       |   |           |           |  |  |       |         |   |        |           |           |       | 






|    |                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes loans secured by mixed-use (combined residential and
    commercial use) properties. At December 31, 2004 and 2003,
    such loans totaled $1.59 billion and $863.9 million,
    respectively.

5



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Contractual Principal Repayments and Interest Rates.


|                                 |                                                            |                                                                      |         |           |            |  |         |         |           |  |        |         |         |      |        |         |           |  |        |           |         |  |            |           |           |  |        |         |           |  |        |           |           | 
|-------------------------------- | ---------------------------------------------------------- | -------------------------------------------------------------------- | ------- | --------- | ---------- |  | ------- | ------- | --------- |  | ------ | ------- | ------- | ---- | ------ | ------- | --------- |  | ------ | --------- | ------- |  | ---------- | --------- | --------- |  | ------ | ------- | --------- |  | ------ | --------- | --------- | 
|                                 |                                                            | Principal Repayments Contractually Due in Year(s) Ended December 31, |        
|                                 |                                                            |                                                                      |        
|                                 |                                                            | Total at                                                             |         |           |           
|                                 |                                                            | December 31,                                                         |         |           |           
|(In Thousands)                   |                                                            | 2004                                                                 |         |           | 2005       |  |         | 2006    |           |  | 2007   |         |         | 2008 |        |         | 2009-2014 |  |        | 2015-2020 |         |  | Thereafter |          
|                                 |                                                           
|Mortgage loans:                  |                                                            |                                                                      |         |           |            |  |         |         |           |  |        |         |         |      |        |         |           |  |        |           |         |  |            |           |           |  |        |         |           |  |        |          
|                                 | Single-family residential and cooperative
    apartment(1) |                                                                      | $       | 2,485,057 |            |  | $       | 17,818  |           |  | $      | 9,407   |         |      | $      | 6,047   |           |  | $      | 10,900    |         |  | $          | 153,833   |           |  | $      | 336,584 |           |  | $      | 1,950,468 |          
|                                 | Multi-family
    residential(2)(3)                         |                                                                      |         | 3,798,669 |            |  |         | 82,496  |           |  |        | 50,094  |         |      |        | 109,891 |           |  |        | 162,296   |         |  |            | 2,510,079 |           |  |        | 831,041 |           |  |        | 52,772    |          
|                                 | Commercial real
    estate(3)                              |                                                                      |         | 3,034,254 |            |  |         | 171,423 |           |  |        | 123,940 |         |      |        | 95,730  |           |  |        | 142,187   |         |  |            | 1,706,928 |           |  |        | 474,092 |           |  |        | 319,954   |          
|Commercial business
    loans(4) |                                                            |                                                                      | 815,071 |           |            |  | 213,200 |         |           |  | 83,016 |         |         |      | 81,197 |         |           |  | 34,314 |           |         |  | 278,139    |           |           |  | 70,654 |         |           |  | 54,551 |          
|Other loans:                     |                                                            |                                                                      |         |           |            |  |         |         |           |  |        |         |         |      |        |         |           |  |        |           |         |  |            |           |           |  |        |         |           |  |        |          
|                                 | Mortgage warehouse lines of credit                         |                                                                      |         | 659,942   |            |  |         | 659,942 |           |  |        |        |         |      |        |        |           |  |        |          |         |  |            |          |           |  |        |        |           |  |        |          |          
|                                 | Consumer and other
    loans(5)                            |                                                                      |         | 464,168   |            |  |         | 28,433  |           |  |        | 6,274   |         |      |        | 11,221  |           |  |        | 15,120    |         |  |            | 220,182   |           |  |        | 156,140 |           |  |        | 26,798    |          
|                                 |                                                            |                                                                      |         |           |            |  |         |         |           |  |        |         |         |      |        |         |           |  |        |           |         |  |            |          
|                                 |                                                            | Total(6)                                                             |         | $         | 11,257,161 |  |         | $       | 1,173,312 |  |        | $       | 272,731 |      |        | $       | 304,086   |  |        | $         | 364,817 |  |            | $         | 4,869,161 |  |        | $       | 1,868,511 |  |        | $         | 2,404,543 | 
|                                 |                                                            |                                                                      |         |           |            |  |         |         |           |  |        |         |         |      |        |         |           |  |        |           |         |  |            |          






|    |                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Does not include $5.0 million of single-family residential
    loans serviced by others.                                                                                                                             
|   
|(2) | Does not include $2.0 million of multi-family residential
    loans serviced by others.                                                                                                                              
|   
|(3) | Multi-family residential and commercial real estate loans are
    generally originated with a term to maturity of five to seven
    years and may be extended by the borrower for an additional
    five-year period.
|   
|(4) | Does not include $5.7 million of deferred fees.                                                                                                                                                                      
|   
|(5) | Includes home equity loans and lines of credit, FHA and
    conventional home improvement loans, automobile loans, passbook
    loans and secured and unsecured personal loans.                                      
|   
|(6) | Of the $10.08 billion of loan principal repayments
    contractually due after December 31, 2005,
    $7.35 billion have fixed rates of interest and
    $2.73 billion have adjustable rates of interest.            

Loan Originations, Purchases, Sales and Servicing.






6



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7



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8



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Loan Activity.


|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |            |   |           |           |           | 
|------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ---------- | ---------- | ---------- | - | ---------- | ---------- | ---------- | - | --------- | --------- | --------- | 
|                                                                                                  |                                                                         | Year Ended December 31,                                                                     |           
|                                                                                                  |                                                                         |                                                                                             |           
|(In Thousands)                                                                                    |                                                                         | 2004                                                                                        |            |            | 2003       |   |            | 2002       |           
|                                                                                                  |                                                                        
|Total principal balance of loans and loans available-for-sale
    held at the beginning of period |                                                                         | $                                                                                           | 6,188,498  |            |            | $ | 5,944,961  |            |            | $ | 5,890,006 |          
|Acquired from SIB acquisition                                                                     |                                                                         |                                                                                             | 3,856,856  |            |            |   |           |            |            |   |          |          
|Originations of loans for portfolio:                                                              |                                                                         |                                                                                             |            |            |            |   |            |            |            |   |           |          
|                                                                                                  | Single-family residential and cooperative apartment                     |                                                                                             |            | 143,386    |            |   |            | 13,710     |            |   |           | 11,660    |          
|                                                                                                  | Multi-family residential                                                |                                                                                             |            | 2,419,918  |            |   |            | 1,131,460  |            |   |           | 505,678   |          
|                                                                                                  | Commercial real estate                                                  |                                                                                             |            | 1,474,481  |            |   |            | 651,862    |            |   |           | 325,715   |          
|                                                                                                  | Commercial business loans                                               |                                                                                             |            | 375,987    |            |   |            | 289,930    |            |   |           | 406,197   |          
|                                                                                                  | Mortgage warehouse lines of
    credit(1)                               |                                                                                             |            | 10,187,771 |            |   |            | 10,291,152 |            |   |           | 7,016,355 |          
|                                                                                                  | Consumer(2)                                                             |                                                                                             |            | 229,342    |            |   |            | 239,165    |            |   |           | 153,642   |          
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|                                                                                                  |                                                                         | Total originations for portfolio                                                            |            |            | 14,830,885 |   |            |            | 12,617,279 |   |           |           | 8,419,247 | 
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|Originations of loans for sale:                                                                   |                                                                         |                                                                                             |            |            |            |   |            |            |            |   |           |          
|                                                                                                  | Single-family residential                                               |                                                                                             |            | 122,813    |            |   |            | 172,459    |            |   |           | 140,203   |          
|                                                                                                  | Multi-family residential                                                |                                                                                             |            | 1,141,099  |            |   |            | 1,621,584  |            |   |           | 1,165,779 |          
|                                                                                                  | Commercial business loans                                               |                                                                                             |            | 3,377      |            |   |            | 4,066      |            |   |           |          |          
|                                                                                                  | Consumer                                                                |                                                                                             |            |           |            |   |            |           |            |   |           | 947       |          
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|                                                                                                  |                                                                         | Total originations of loans for sale                                                        |            |            | 1,267,289  |   |            |            | 1,798,109  |   |           |           | 1,306,929 | 
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|Purchases of loans:                                                                               |                                                                         |                                                                                             |            |            |            |   |            |            |            |   |           |          
|                                                                                                  | Mortgage warehouse lines of credit                                      |                                                                                             |            |           |            |   |            | 76,334     |            |   |           |          |          
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|                                                                                                  |                                                                         | Total purchases                                                                             |            |            |           |   |            |            | 76,334     |   |           |           |          | 
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|                                                                                                  |                                                                         | Total originations and purchases                                                            |            |            | 16,098,174 |   |            |            | 14,491,722 |   |           |           | 9,726,176 | 
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|Loans sold:                                                                                       |                                                                         |                                                                                             |            |            |            |   |            |            |            |   |           |          
|                                                                                                  | Single-family residential                                               |                                                                                             |            | 348,935    |            |   |            | 174,208    |            |   |           | 133,543   |          
|                                                                                                  | Multi-family residential                                                |                                                                                             |            | 2,074,725  |            |   |            | 1,727,329  |            |   |           | 1,326,905 |          
|                                                                                                  | Commercial business loans                                               |                                                                                             |            | 1,268      |            |   |            | 4,066      |            |   |           |          |          
|                                                                                                  | Consumer(2)                                                             |                                                                                             |            |           |            |   |            |           |            |   |           | 2,216     |          
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|                                                                                                  |                                                                         | Total sold                                                                                  |            |            | 2,424,928  |   |            |            | 1,905,603  |   |           |           | 1,462,664 | 
|Repayments(3)                                                                                     |                                                                         |                                                                                             | 12,357,782 |            |            |   | 12,342,582 |            |            |   | 8,208,557 |          
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|Net loan activity                                                                                 |                                                                         |                                                                                             | 5,172,320  |            |            |   | 243,537    |            |            |   | 54,955    |          
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|                                                                                                  |                                                                         | Total principal balance of loans and loans available-for-sale
    held at the end of period |            |            | 11,360,818 |   |            |            | 6,188,498  |   |           |           | 5,944,961 | 
|Less:                                                                                             |                                                                         |                                                                                             |            |            |            |   |            |            |            |   |           |          
|                                                                                                  | Discounts on loans purchased and net deferred fees at end
    of period |                                                                                             |            | 15,555     |            |   |            | 10,345     |            |   |           | 13,209    |          
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           
|                                                                                                  |                                                                         | Total loans and loans available-for-sale at end of period                                   |            | $          | 11,345,263 |   |            | $          | 6,178,153  |   |           | $         | 5,931,752 | 
|                                                                                                  |                                                                         |                                                                                             |            |            |            |   |            |            |           



(footnotes on next page)


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|    |                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents advances on the lines of credit.                                                                                                                                                                                        
|   
|(2) | Includes home equity loans and lines of credit, FHA and
    conventional home improvement loans, automobile loans, passbook
    loans and secured and unsecured personal loans.                                                    
|   
|(3) | Includes repayment of mortgage warehouse line advances
    ($10.05 billion for mortgage warehouse lines of credit
    during the year ended December 31, 2004) and loans
    charged-off or transferred to other real estate owned.

Multi-Family Residential Lending.










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11



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Commercial Real Estate Lending.








Single-Family Residential and Cooperative Apartment
Lending.




12



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Commercial Business Lending Activities.






13



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Mortgage Warehouse Lines of Credit.






Consumer Lending Activities.






Loan Approval Authority and Underwriting.


14



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Loan Origination and Loan Fees.







Asset Quality




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16



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Delinquent loans.


|                                       |                                                     |                      |     |           |                      |   |        |                      |           |  |                 |    |  |            |        |        |                 |  |           |          |  |   |          |           |  |          |     |    |           |   |        |          |  |  |          |    |  |   |        |       |  |  |     |    |  |   |        |       | 
|-------------------------------------- | --------------------------------------------------- | -------------------- | --- | --------- | -------------------- | - | ------ | -------------------- | --------- |  | --------------- | -- |  | ---------- | ------ | ------ | --------------- |  | --------- | -------- |  | - | -------- | --------- |  | -------- | --- | -- | --------- | - | ------ | -------- |  |  | -------- | -- |  | - | ------ | ----- |  |  | --- | -- |  | - | ------ | ----- | 
|                                       |                                                     | At December 31, 2004 |     |           | At December 31, 2003 |   |        | At December 31, 2002 |          
|                                       |                                                     |                      |     |           |                      |   |        |                      |          
|                                       |                                                     | 60-89 Days           |     |           | 90 Days or More      |   |        | 60-89 Days           |           |  | 90 Days or More |    |  | 60-89 Days |        |        | 90 Days or More | 
|                                       |                                                     |                      |     |           |                      |   |        |                      |           |  |                 |    |  |            |        |        |                 | 
|                                       |                                                     |                      |     | Principal |                      |   |        |                      | Principal |  |                 |    |  | Principal  |        |        |                 |  | Principal |          |  |   |          | Principal |  |          |     |    | Principal |  
|                                       |                                                     | Number               |     |           | Balance              |   |        | Number               |           |  | Balance         |    |  | Number     |        |        | Balance         |  |           | Number   |  |   | Balance  |           |  | Number   |     |    | Balance   |   |        | Number   |  |  | Balance  |   
|(Dollars in Thousands)                 |                                                     | of Loans             |     |           | of Loans             |   |        | of Loans             |           |  | of Loans        |    |  | of Loans   |        |        | of Loans        |  |           | of Loans |  |   | of Loans |           |  | of Loans |     |    | of Loans  |   |        | of Loans |  |  | of Loans |   
|                                       |                                                    
|Mortgage loans:                        |                                                     |                      |     |           |                      |   |        |                      |           |  |                 |    |  |            |        |        |                 |  |           |          |  |   |          |           |  |          |     |    |           |   |        |          |  |  |          |    |  |   |        |       |  |  |     |    |  |   |        |      
|                                       | Single-family residential and cooperative apartment |                      |     | 52        |                      |   | $      | 7,855                |           |  |                 | 67 |  |            | $      | 7,495  |                 |  |           | 18       |  |   | $        | 1,217     |  |          |     | 20 |           |   | $      | 1,526    |  |  |          | 24 |  |   | $      | 1,440 |  |  |     | 40 |  |   | $      | 3,041 | 
|                                       | Multi-family residential                            |                      |     | 3         |                      |   |        | 508                  |           |  |                 | 6  |  |            |        | 1,083  |                 |  |           | 4        |  |   |          | 936       |  |          |     | 4  |           |   |        | 673      |  |  |          | 4  |  |   |        | 427   |  |  |     | 7  |  |   |        | 1,136 | 
|                                       | Commercial real estate                              |                      |     | 7         |                      |   |        | 4,041                |           |  |                 | 27 |  |            |        | 10,005 |                 |  |           | 2        |  |   |          | 14,400    |  |          |     | 17 |           |   |        | 7,600    |  |  |          | 3  |  |   |        | 1,797 |  |  |     | 13 |  |   |        | 6,530 | 
|Commercial business loans              |                                                     |                      | 22  |           |                      |   | 7,637  |                      |           |  | 52              |    |  |            | 17,895 |        |                 |  | 2         |          |  |   | 285      |           |  |          | 40  |    |           |   | 10,392 |          |  |  | 16       |    |  |   | 22,232 |       |  |  | 38  |    |  |   | 14,990 |      
|Consumer and other
    loans(1)        |                                                     |                      | 34  |           |                      |   | 143    |                      |           |  | 34              |    |  |            | 327    |        |                 |  | 34        |          |  |   | 138      |           |  |          | 42  |    |           |   | 880    |          |  |  | 45       |    |  |   | 263    |       |  |  | 71  |    |  |   | 720    |      
|                                       |                                                     |                      |     |           |                      |   |        |                      |           |  |                 |    |  |            |        |        |                 |  |           |          |  |   |          |           |  |          |     |    |           |   |        |          |  |  |          |   
|Total                                  |                                                     |                      | 118 |           |                      | $ | 20,184 |                      |           |  | 186             |    |  | $          | 36,805 |        |                 |  | 60        |          |  | $ | 16,976   |           |  |          | 123 |    |           | $ | 21,071 |          |  |  | 92       |    |  | $ | 26,159 |       |  |  | 169 |    |  | $ | 26,417 |      
|                                       |                                                     |                      |     |           |                      |   |        |                      |           |  |                 |    |  |            |        |        |                 |  |           |          |  |   |          |           |  |          |     |    |           |   |        |          |  |  |          |   
|Delinquent loans to total
    loans(2) |                                                     |                      |     |           |                      |   | 0.18   | %                    |           |  |                 |    |  |            | 0.33   | %      |                 |  |           |          |  |   | 0.28     | %         |  |          |     |    |           |   | 0.34   | %        |  |  |          |    |  |   | 0.45   | %     |  |  |     |    |  |   | 0.45   | %    
|                                       |                                                     |                      |     |           |                      |   |        |                      |           |  |                 |    |  |            |        |        |                 |  |           |          |  |   |          |           |  |          |     |    |           |   |        |          |  |  |          |   






|    |                                                                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes home equity loans and lines of credit, FHA and
    conventional home improvement loans, automobile loans, passbook
    loans, piano loans, overdraft checking loans and secured and
    unsecured personal loans.
|   
|(2) | Total loans includes loans receivable less deferred loan fees
    and unamortized discounts, net.                                                                                                                         

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Non-Performing Assets.


|                                                               |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |        |        |       |        |        |        |       |        | 
|-------------------------------------------------------------- | ----------------------------- | --------------------------------------------------- | ----------------------------- | ------ | --------- | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ------ | ----- | ------ | ------ | ------ | ----- | ------ | 
|                                                               |                               |                                                     |                               | At     |          
|                                                               |                               | At December 31,                                     |                               |        | March 31, |       
|                                                               |                               |                                                     |                               |        |           |       
|(Dollars in Thousands)                                         |                               | 2004                                                |                               |        | 2003      |        |        | 2002   |        |        | 2001   |        |        | 2001   |       
|                                                               |                              
|Non-accrual loans:                                             |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |        |        |       |        |        |       
|                                                               | Mortgage loans:               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |        |        |       |        |        |        |      
|                                                               |                               | Single-family residential and cooperative apartment |                               | $      | 7,495     |        |        | $      | 1,526  |        |        | $      | 3,041  |        |        | $      | 4,172 |        |        | $      | 5,246 |       
|                                                               |                               | Multi-family residential                            |                               |        | 1,394     |        |        |        | 1,131  |        |        |        | 1,136  |        |        |        | 2,312 |        |        |        | 524   |       
|                                                               |                               | Commercial real estate                              |                               |        | 12,517    |        |        |        | 20,061 |        |        |        | 11,738 |        |        |        | 6,780 |        |        |        | 3,477 |       
|                                                               | Commercial business loans     |                                                     |                               | 22,002 |           |        |        | 12,244 |        |        |        | 22,495 |        |        |        | 13,313 |       |        |        | 6,795  |      
|                                                               | Other
    loans(1)            |                                                     |                               | 236    |           |        |        | 840    |        |        |        | 568    |        |        |        | 1,225  |       |        |        | 1,534  |      
|                                                               |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |       
|                                                               |                               |                                                     | Total non-accrual loans       |        |           | 43,644 |        |        |        | 35,802 |        |        |        | 38,978 |        |        |       | 27,802 |        |        |       | 17,576 | 
|                                                               |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |       
|Loans past due 90 days or more as to:                          |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |        |        |       |        |        |       
|                                                               | Interest and accruing         |                                                     |                               | 117    |           |        |        | 40     |        |        |        | 152    |        |        |        | 130    |       |        |        | 322    |      
|                                                               | Principal and
    accruing(2) |                                                     |                               | 5,517  |           |        |        | 742    |        |        |        | 2,482  |        |        |        | 18,089 |       |        |        | 17,750 |      
|                                                               |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |       
|                                                               |                               |                                                     | Total past due accruing loans |        |           | 5,634  |        |        |        | 782    |        |        |        | 2,634  |        |        |       | 18,219 |        |        |       | 18,072 | 
|                                                               |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |       
|Total non-performing loans                                     |                               |                                                     | 49,278                        |        |           |        | 36,584 |        |        |        | 41,612 |        |        |        | 46,021 |        |       |        | 35,648 |       
|                                                               |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |       
|Other real estate owned,
    net(3)                            |                               |                                                     | 2,512                         |        |           |        | 15     |        |        |        | 7      |        |        |        | 130    |        |       |        | 235    |       
|                                                               |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |       
|Total non-performing
    assets(4)                             |                               | $                                                   | 51,790                        |        |           | $      | 36,599 |        |        | $      | 41,619 |        |        | $      | 46,151 |        |       | $      | 35,883 |       
|                                                               |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |       
|Restructured loans                                             |                               | $                                                   | 4,198                         |        |           | $      | 4,345  |        |        | $      | 4,674  |        |        | $      | 4,717  |        |       | $      | 888    |       
|                                                               |                               |                                                     |                               |        |           |        |        |        |        |        |        |        |        |        |       
|Non-performing loans as a percent of total loans               |                               |                                                     | 0.44                          | %      |           |        | 0.59   | %      |        |        | 0.72   | %      |        |        | 0.78   | %      |       |        | 0.68   | %     
|Non-performing assets as a percent of total assets             |                               |                                                     | 0.29                          | %      |           |        | 0.38   | %      |        |        | 0.52   | %      |        |        | 0.61   | %      |       |        | 0.51   | %     
|Allowance for loan losses as a percent of total loans          |                               |                                                     | 0.90                          | %      |           |        | 1.29   | %      |        |        | 1.38   | %      |        |        | 1.33   | %      |       |        | 1.36   | %     
|Allowance for loan losses as a percent of non-performing loans |                               |                                                     | 205.84                        | %      |           |        | 217.32 | %      |        |        | 193.57 | %      |        |        | 170.01 | %      |       |        | 201.18 | %     






|    |                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Consists primarily of home equity loans and lines of credit and
    FHA home improvement loans.                                                                                                                
|   
|(2) | Reflects loans that are 90 days or more past maturity which
    continue to make payments on a basis consistent with the
    original repayment schedule.                                                      
|   
|(3) | Net of related valuation allowances.                                                                                                                                                                           
|   
|(4) | Non-performing assets consist of non-performing loans and OREO.
    Non-performing loans consist of (i) non-accrual loans and
    (ii) accruing loans 90 days or more past due as to
    interest or principal.

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Criticized and Classified Assets.


19



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Allowance for Loan Losses.








20



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|                                                                                         |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |        |       |  |   |        |       | 
|---------------------------------------------------------------------------------------- | --------------------------------------------- | ----------------------- | ------- | ------ | ------------ | - | ------ | ----------- |  | - | ------ | ----- |  | ---- | ------ | ----- |  | - | ------ | ----- | 
|                                                                                         |                                               |                         |         |        |              |   |        | Nine Months |  |   | Year   |      
|                                                                                         |                                               |                         |         | Ended  |              |   | Ended  |            
|                                                                                         |                                               | Year Ended December 31, |         |        | December 31, |   |        | March 31,   | 
|                                                                                         |                                               |                         |         |        |              |   |        |             | 
|(Dollars in Thousands)                                                                   |                                               | 2004                    |         |        | 2003         |   |        | 2002        |  |   | 2001   |       |  | 2001 |       
|                                                                                         |                                              
|Allowance at beginning of period                                                         |                                               | $                       | 79,503  |        |              | $ | 80,547 |             |  | $ | 78,239 |       |  | $    | 71,716 |       |  | $ | 70,286 |      
|Allowance of acquired institution (SIB)                                                  |                                               |                         | 24,069  |        |              |   |       |             |  |   |       |       |  |      |       |       |  |   |       |      
|Provision:                                                                               |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |        |       |  |   |        |      
|                                                                                         | Mortgage loans                                |                         |         | 2,000  |              |   |        | 2,300       |  |   |        | 3,733 |  |      |        | 4,200 |  |   |        | 625   | 
|                                                                                         | Commercial business and other
    loans(1)    |                         |         |       |              |   |        | 1,200       |  |   |        | 4,267 |  |      |        | 3,675 |  |   |        | 767   | 
|                                                                                         |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |       
|                                                                                         | Total provision                               |                         |         | 2,000  |              |   |        | 3,500       |  |   |        | 8,000 |  |      |        | 7,875 |  |   |        | 1,392 | 
|                                                                                         |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |       
|Charge-offs:                                                                             |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |        |       |  |   |        |      
|                                                                                         | Mortgage loans                                |                         |         | 1,227  |              |   |        | 6,202       |  |   |        | 1,159 |  |      |        | 850   |  |   |        | 120   | 
|                                                                                         | Commercial business and other
    loans(1)(2) |                         |         | 10,500 |              |   |        | 1,179       |  |   |        | 7,202 |  |      |        | 1,756 |  |   |        | 2,489 | 
|                                                                                         |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |       
|                                                                                         | Total charge-offs                             |                         |         | 11,727 |              |   |        | 7,381       |  |   |        | 8,361 |  |      |        | 2,606 |  |   |        | 2,609 | 
|                                                                                         |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |       
|Recoveries:                                                                              |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |        |       |  |   |        |      
|                                                                                         | Mortgage loans                                |                         |         | 5,775  |              |   |        | 364         |  |   |        | 1,170 |  |      |        | 83    |  |   |        | 1,071 | 
|                                                                                         | Commercial business and other
    loans(1)    |                         |         | 1,815  |              |   |        | 2,473       |  |   |        | 1,499 |  |      |        | 1,171 |  |   |        | 1,576 | 
|                                                                                         |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |       
|                                                                                         | Total recoveries                              |                         |         | 7,590  |              |   |        | 2,837       |  |   |        | 2,669 |  |      |        | 1,254 |  |   |        | 2,647 | 
|                                                                                         |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |       
|Net loans (charged-off)/recovered                                                        |                                               |                         | (4,137  | )      |              |   | (4,544 | )           |  |   | (5,692 | )     |  |      | (1,352 | )     |  |   | 38     |      
|                                                                                         |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |       
|Allowance at end of period                                                               |                                               | $                       | 101,435 |        |              | $ | 79,503 |             |  | $ | 80,547 |       |  | $    | 78,239 |       |  | $ | 71,716 |      
|                                                                                         |                                               |                         |         |        |              |   |        |             |  |   |        |       |  |      |       
|Net loans charged-off to allowance for loan losses                                       |                                               |                         | 4.08    | %      |              |   | 5.72   | %           |  |   | 7.07   | %     |  |      | 1.73   | %     |  |   | N/A    |      
|Net loans charged-off to average loans outstanding during year                           |                                               |                         | 0.04    | %      |              |   | 0.08   | %           |  |   | 0.10   | %     |  |      | 0.02   | %     |  |   | N/A    |      
|Allowance for possible loan losses as a percent of total loans                           |                                               |                         | 0.90    | %      |              |   | 1.29   | %           |  |   | 1.38   | %     |  |      | 1.33   | %     |  |   | 1.36   | %    
|Allowance for possible loan losses as a percent of total
    non-performing
    loans(3) |                                               |                         | 205.84  | %      |              |   | 217.32 | %           |  |   | 193.57 | %     |  |      | 170.01 | %     |  |   | 201.18 | %    






|    |                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes commercial business loans, mortgage warehouse lines of
    credit, home equity loans and lines of credit, automobile loans
    and secured and unsecured personal loans.
|   
|(2) | Includes in 2004 a $9.2 million charge-off related to the
    mortgage warehouse line of credit portfolio.                                                                       
|   
|(3) | Non-performing loans consist of (i) non-accrual loans and
    (ii) accruing loans 90 days or more past due as to
    interest or principal.                                      



|                                   |  |                 |         |  |              |  |           |           |  |   |            |           |  |           |       |   |            |   |        |           |  |           |            |   |  |           |        |  |            |  |       |   |  |   |        |  |  |  |       |  
|---------------------------------- |  | --------------- | ------- |  | ------------ |  | --------- | --------- |  | - | ---------- | --------- |  | --------- | ----- | - | ---------- | - | ------ | --------- |  | --------- | ---------- | - |  | --------- | ------ |  | ---------- |  | ----- | - |  | - | ------ |  |  |  | ----- | -
|                                   |  | At December 31, |         |  | At March 31, | 
|                                   |  |                 |         |  |              | 
|                                   |  | 2004            |         |  | 2003         |  |           | 2002      |  |   | 2001       |           |  | 2001      |      
|                                   |  |                 |         |  |              |  |           |           |  |   |            |           |  |           |      
|                                   |  | Amount of       |         |  |              |  | Amount of |           |  |   |            | Amount of |  |           |       |   | Amount of  |   |        |           |  | Amount of |            |   | 
|(Dollars in Thousands)             |  | Allowance       |         |  | Percent(1)   |  |           | Allowance |  |   | Percent(1) |           |  | Allowance |       |   | Percent(1) |   |        | Allowance |  |           | Percent(1) |   |  | Allowance |        |  | Percent(1) | 
|                                   | 
|Mortgage Loans                     |  | $               | 71,867  |  |              |  | 82.8      | %         |  | $ | 56,549     |           |  |           | 76.4  | % |            | $ | 52,087 |           |  |           | 73.9       | % |  | $         | 53,094 |  |            |  | 78.1  | % |  | $ | 56,769 |  |  |  | 84.9  | %
|Commercial Business Loans          |  |                 | 22,191  |  |              |  | 7.2       |           |  |   | 16,974     |           |  |           | 9.8   |   |            |   | 22,927 |           |  |           | 10.3       |   |  |           | 18,595 |  |            |  | 11.3  |   |  |   | 8,899  |  |  |  | 8.3   |  
|Mortgage Warehouse Lines of Credit |  |                 | 5,161   |  |              |  | 5.9       |           |  |   | 4,016      |           |  |           | 8.5   |   |            |   | 3,516  |           |  |           | 11.9       |   |  |           | 4,349  |  |            |  | 7.6   |   |  |   | 2,600  |  |  |  | 3.9   |  
|Other
    Loans(2)                 |  |                 | 2,216   |  |              |  | 4.1       |           |  |   | 1,964      |           |  |           | 5.3   |   |            |   | 2,017  |           |  |           | 3.9        |   |  |           | 2,201  |  |            |  | 3.0   |   |  |   | 3,448  |  |  |  | 2.9   |  
|                                   |  |                 |         |  |              |  |           |           |  |   |            |           |  |           |       |   |            |   |        |           |  |           |            |   |  |           |        |  |            | 
|Total                              |  | $               | 101,435 |  |              |  | 100.0     | %         |  | $ | 79,503     |           |  |           | 100.0 | % |            | $ | 80,547 |           |  |           | 100.0      | % |  | $         | 78,239 |  |            |  | 100.0 | % |  | $ | 71,716 |  |  |  | 100.0 | %
|                                   |  |                 |         |  |              |  |           |           |  |   |            |           |  |           |       |   |            |   |        |           |  |           |            |   |  |           |        |  |            | 






|    |                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Percent of loans in each category to total loans.                                                                                                
|   
|(2) | Includes home equity loans and lines of credit, student loans,
    automobile loans, passbook loans and secured and unsecured
    personal loans.

22



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##### Table of Contents



Environmental Issues









Investment Activities


Investment Policies.




Mortgage-Related Securities.






23



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24



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|                                                                                          |  |                         |           |       |      |   |            |      |  |   |           |  
|----------------------------------------------------------------------------------------- |  | ----------------------- | --------- | ----- | ---- | - | ---------- | ---- |  | - | --------- | -
|                                                                                          |  | Year Ended December 31, |          
|                                                                                          |  |                         |          
|(In Thousands)                                                                            |  | 2004                    |           |       | 2003 |   |            | 2002 | 
|                                                                                          | 
|Mortgage-related securities at beginning of period                                        |  | $                       | 2,211,755 |       |      | $ | 1,038,742  |      |  | $ | 902,191   |  
|Acquired from SIB acquisition                                                             |  |                         | 1,620,015 |       |      |   |           |      |  |   |          |  
|Purchases                                                                                 |  |                         | 840,250   |       |      |   | 2,823,123  |      |  |   | 1,099,160 |  
|Sales                                                                                     |  |                         | (158,340  | ) (1) |      |   |           |      |  |   | (14,748   | )
|Repayments, prepayments and maturities                                                    |  |                         | (997,105  | )     |      |   | (1,627,540 | )    |  |   | (940,246  | )
|Amortization of premiums                                                                  |  |                         | (19,388   | )     |      |   | (26,216    | )    |  |   | (5,592    | )
|Accretion of discounts                                                                    |  |                         | 1,345     |       |      |   | 2,002      |      |  |   | 1,271     |  
|Change in unrealized gains/(losses) on available-for-sale
    mortgage-related securities |  |                         | (19,050   | )     |      |   | 1,644      |      |  |   | (3,294    | )
|                                                                                          |  |                         |           |       |      |   |            |      | 
|Mortgage-related securities at end of period                                              |  | $                       | 3,479,482 |       |      | $ | 2,211,755  |      |  | $ | 1,038,742 |  
|                                                                                          |  |                         |           |       |      |   |            |      | 






|    |                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Company recognized a net gain of $2.9 million on the
    sale of mortgage-related securities during the year ended
    December 31, 2004. No gain or loss was recognized for the
    years ended December 31, 2003 and 2002.

Investment Securities.




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|                                                                                    |  |                         |          |       |      |   |          |       |  |   |         |      
|----------------------------------------------------------------------------------- |  | ----------------------- | -------- | ----- | ---- | - | -------- | ----- |  | - | ------- | -----
|                                                                                    |  | Year Ended December 31, |         
|                                                                                    |  |                         |         
|(In Thousands)                                                                      |  | 2004                    |          |       | 2003 |   |          | 2002  | 
|                                                                                    | 
|Investment securities at beginning of period                                        |  | $                       | 296,945  |       |      | $ | 224,908  |       |  | $ | 125,803 |      
|Acquired from SIB Acquisition                                                       |  |                         | 469,947  |       |      |   |         |       |  |   |        |      
|Purchases                                                                           |  |                         | 186,291  |       |      |   | 225,240  |       |  |   | 226,071 |      
|Sales                                                                               |  |                         | (155,495 | ) (1) |      |   | (48,410  | ) (1) |  |   | (90,334 | ) (1)
|Maturities, calls and repayments                                                    |  |                         | (332,330 | )     |      |   | (101,535 | )     |  |   | (38,104 | )    
|Amortization of premium                                                             |  |                         | (726     | )     |      |   | (223     | )     |  |   | (70     | )    
|Accretion of discounts                                                              |  |                         | 187      |       |      |   | 128      |       |  |   | 89      |      
|Other-than-temporary impairment charge on securities                                |  |                         | (12,737  | )     |      |   |         |       |  |   |        |      
|Change in unrealized gains/(losses) on available-for-sale
    investment securities |  |                         | 2,223    |       |      |   | (3,163   | )     |  |   | 1,453   |      
|                                                                                    |  |                         |          |       |      |   |          |       | 
|Investment securities at end of period                                              |  | $                       | 454,305  |       |      | $ | 296,945  |       |  | $ | 224,908 |      
|                                                                                    |  |                         |          |       |      |   |          |       | 






|    |                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Company recognized a net gain of $1.0 million, a net
    gain of $0.5 million and a net gain of $0.4 million on
    the sale of investment securities during the years ended
    December 31, 2004, 2003 and 2002, respectively.



|                                    |                              |                                   |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |         |           |   |           |         |           |   |           |         | 
|----------------------------------- | ---------------------------- | --------------------------------- | --------------------------- | - | ---------- | ------- | --------- | --------- | --------- | ------- | ---------- | - | --------- | --------- | --------- | - | ---------- | ------- | --------- | - | --------- | ------- | --------- | - | --------- | ------- | 
|                                    |                              | At December 31,                   |                            
|                                    |                              |                                   |                            
|                                    |                              | 2004                              |                             |   | 2003       |         |           | 2002      |          
|                                    |                              |                                   |                             |   |            |         |           |           |          
|                                    |                              | Amortized                         |                             |   | Estimated  |         |           | Amortized |           |         | Estimated  |   |           | Amortized |           |   | Estimated  |        
|(In Thousands)                      |                              | Cost                              |                             |   | Fair Value |         |           | Cost      |           |         | Fair Value |   |           | Cost      |           |   | Fair Value |        
|                                    |                             
|Available-for-sale:                 |                              |                                   |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |         |           |   |           |         |           |  
|                                    | Investment securities:       |                                   |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |         |           |   |           |         |           |   |          
|                                    |                              | U.S. Government and agencies      |                             | $ | 212,016    |         |           | $         | 212,068   |         |            | $ | 15,549    |           |           | $ | 15,585     |         |           | $ | 14,578    |         |           | $ | 14,634    |        
|                                    |                              | Corporate                         |                             |   | 89,093     |         |           |           | 89,381    |         |            |   | 119,013   |           |           |   | 119,575    |         |           |   | 154,680   |         |           |   | 155,292   |        
|                                    |                              | Municipal                         |                             |   | 4,630      |         |           |           | 4,866     |         |            |   | 4,282     |           |           |   | 4,590      |         |           |   | 5,413     |         |           |   | 5,735     |        
|                                    |                              | Equity Securities:                |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |         |           |   |           |         |           |   |           |        
|                                    |                              |                                   | Preferred                   |   |            | 146,604 |           |           |           | 146,930 |            |   |           | 158,462   |           |   |            | 155,869 |           |   |           | 47,435  |           |   |           | 48,084  | 
|                                    |                              |                                   | Common                      |   |            | 486     |           |           |           | 1,060   |            |   |           | 386       |           |   |            | 1,326   |           |   |           | 386     |           |   |           | 1,163   | 
|                                    |                              |                                   |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |        
|                                    |                              |                                   | Total investment securities |   |            | 452,829 |           |           |           | 454,305 |            |   |           | 297,692   |           |   |            | 296,945 |           |   |           | 222,492 |           |   |           | 224,908 | 
|                                    |                              |                                   |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |        
|                                    | Mortgage-related securities: |                                   |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |         |           |   |           |         |           |   |          
|                                    |                              | Fannie Mae                        |                             |   | 449,182    |         |           |           | 451,375   |         |            |   | 142,956   |           |           |   | 146,177    |         |           |   | 274,911   |         |           |   | 278,516   |        
|                                    |                              | GNMA                              |                             |   | 7,259      |         |           |           | 7,563     |         |            |   | 8,981     |           |           |   | 9,655      |         |           |   | 14,807    |         |           |   | 15,931    |        
|                                    |                              | Freddie Mac                       |                             |   | 973,750    |         |           |           | 978,235   |         |            |   | 5,140     |           |           |   | 5,411      |         |           |   | 8,422     |         |           |   | 8,899     |        
|                                    |                              | CMOs                              |                             |   | 2,057,221  |         |           |           | 2,042,309 |         |            |   | 2,043,558 |           |           |   | 2,050,512  |         |           |   | 731,126   |         |           |   | 735,396   |        
|                                    |                              |                                   |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |        
|                                    |                              | Total mortgage-related securities |                             |   | 3,487,412  |         |           |           | 3,479,482 |         |            |   | 2,200,635 |           |           |   | 2,211,755  |         |           |   | 1,029,266 |         |           |   | 1,038,742 |        
|                                    |                              |                                   |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |        
|Total securities available-for-sale |                              | $                                 | 3,940,241                   |   |            | $       | 3,933,787 |           |           | $       | 2,498,327  |   |           | $         | 2,508,700 |   |            | $       | 1,251,758 |   |           | $       | 1,263,650 |  
|                                    |                              |                                   |                             |   |            |         |           |           |           |         |            |   |           |           |           |   |            |        

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|                             |                              |                                              |   |          |           |  |  |       |          |   |           |           |           |          |  |      |           |   |          |         |         |  |           |      |      |       |   |        |         |  |  |      |      |   |   |           |           | 
|---------------------------- | ---------------------------- | -------------------------------------------- | - | -------- | --------- |  |  | ----- | -------- | - | --------- | --------- | --------- | -------- |  | ---- | --------- | - | -------- | ------- | ------- |  | --------- | ---- | ---- | ----- | - | ------ | ------- |  |  | ---- | ---- | - | - | --------- | --------- | 
|                             |                              | At December 31, 2004, Contractually Maturing |  
|                             |                              |                                              |  
|                             |                              |                                              |   | Weighted |           |  |  |       | Weighted |   |           |           |           | Weighted |  |      |           |   | Weighted |         |         | 
|                             |                              | Under 1                                      |   |          | Average   |  |  | 1-5   |          |   | Average   |           |           | 6-10     |  |      | Average   |   |          | Over 10 |         |  | Average   |      |      |      
|(Dollars in Thousands)       |                              | Year                                         |   |          | Yield (1) |  |  | Years |          |   | Yield (1) |           |           | Years    |  |      | Yield (1) |   |          | Years   |         |  | Yield (1) |      |      | Total |  
|                             |                             
|Investment securities:       |                              |                                              |   |          |           |  |  |       |          |   |           |           |           |          |  |      |           |   |          |         |         |  |           |      |      |       |   |        |         |  |  |      |      |   |   |          
|                             | U.S. Government and agencies |                                              | $ | 31,013   |           |  |  | 1.67  | %        |   | $         | 8,709     |           |          |  | 2.41 | %         |   | $        | 100,172 |         |  |           | 4.29 | %    |       | $ | 72,174 |         |  |  | 5.00 | %    |   | $ | 212,068   |          
|                             | Corporate                    |                                              |   | 5,043    |           |  |  | 2.34  |          |   |           | 6,889     |           |          |  | 5.83 |           |   |          | 5,792   |         |  |           | 4.06 |      |       |   | 71,657 |         |  |  | 1.96 |      |   |   | 89,381    |          
|                             | Municipal                    |                                              |   | 107      |           |  |  | 5.08  |          |   |           | 1,837     |           |          |  | 7.47 |           |   |          | 261     |         |  |           | 7.20 |      |       |   | 2,661  |         |  |  | 6.39 |      |   |   | 4,866     |          
|Mortgage-related securities: |                              |                                              |   |          |           |  |  |       |          |   |           |           |           |          |  |      |           |   |          |         |         |  |           |      |      |       |   |        |         |  |  |      |      |   |   |          
|                             | Fannie Mae                   |                                              |   | 12,079   |           |  |  | 4.75  |          |   |           | 301,925   |           |          |  | 4.43 |           |   |          | 115,442 |         |  |           | 4.88 |      |       |   | 21,929 |         |  |  | 5.25 |      |   |   | 451,375   |          
|                             | GNMA                         |                                              |   | 98       |           |  |  | 7.96  |          |   |           | 7,028     |           |          |  | 6.20 |           |   |          | 437     |         |  |           | 7.29 |      |       |   |       |         |  |  |     |      |   |   | 7,563     |          
|                             | Freddie Mac                  |                                              |   | 272      |           |  |  | 0.82  |          |   |           | 939,382   |           |          |  | 4.64 |           |   |          | 37,644  |         |  |           | 4.90 |      |       |   | 937    |         |  |  | 5.58 |      |   |   | 978,235   |          
|                             | CMOs                         |                                              |   | 410,266  |           |  |  | 4.98  |          |   |           | 1,409,768 |           |          |  | 4.39 |           |   |          | 222,275 |         |  |           | 4.59 |      |       |   |       |         |  |  |     |      |   |   | 2,042,309 |          
|                             |                              |                                              |   |          |           |  |  |       |          |   |           |           |           |          |  |      |           |   |          |         |         |  |           |      |      |       |  
|                             |                              | Total                                        |   | $        | 458,878   |  |  |       | 4.72     | % |           | $         | 2,675,538 |          |  |      | 4.49      | % |          | $       | 482,023 |  |           |      | 4.62 | %     |   | $      | 169,358 |  |  |      | 3.77 | % |   | $         | 3,785,797 | 
|                             |                              |                                              |   |          |           |  |  |       |          |   |           |           |           |          |  |      |           |   |          |         |         |  |           |      |      |       |  






|    |                                                       
|--- | ------------------------------------------------------
|(1) | The weighted average yield is based on amortized cost.




Sources of Funds


General.




Deposits.






27



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28



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|                                            |  |                         |           |  |      |   |           |      |  |   |           | 
|------------------------------------------- |  | ----------------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                            |  | Year Ended December 31, |          
|                                            |  |                         |          
|(In Thousands)                              |  | 2004                    |           |  | 2003 |   |           | 2002 | 
|                                            | 
|Deposits at beginning of period             |  | $                       | 5,304,097 |  |      | $ | 4,940,060 |      |  | $ | 4,794,775 | 
|Deposits of acquired institution (SI Bank)  |  |                         | 3,786,020 |  |      |   |          |      |  |   |          | 
|Other net increase before interest credited |  |                         | 129,588   |  |      |   | 310,780   |      |  |   | 63,648    | 
|Interest credited                           |  |                         | 85,359    |  |      |   | 53,257    |      |  |   | 81,637    | 
|                                            |  |                         |           |  |      |   |           |      | 
|Net increase in deposits                    |  |                         | 4,000,967 |  |      |   | 364,037   |      |  |   | 145,285   | 
|                                            |  |                         |           |  |      |   |           |      | 
|Deposits at end of period                   |  | $                       | 9,305,064 |  |      | $ | 5,304,097 |      |  | $ | 4,940,060 | 
|                                            |  |                         |           |  |      |   |           |      | 



|               |  |                 |           |  |      |   |           |      |  |   |           | 
|-------------- |  | --------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|               |  | At December 31, |          
|               |  |                 |          
|(In Thousands) |  | 2004            |           |  | 2003 |   |           | 2002 | 
|               | 
|0.01% to 1.49% |  | $               | 889,289   |  |      | $ | 784,734   |      |  | $ | 381,635   | 
|1.50% to 1.99% |  |                 | 253,834   |  |      |   | 51,754    |      |  |   | 612,088   | 
|2.00% to 2.99% |  |                 | 200,353   |  |      |   | 84,664    |      |  |   | 71,626    | 
|3.00% to 3.99% |  |                 | 344,084   |  |      |   | 252,363   |      |  |   | 253,431   | 
|4.00% to 4.99% |  |                 | 427,794   |  |      |   | 78,809    |      |  |   | 97,350    | 
|5.00% to 5.99% |  |                 | 117,955   |  |      |   | 105,348   |      |  |   | 144,224   | 
|6.00% to 6.99% |  |                 | 27,473    |  |      |   | 19,281    |      |  |   | 25,648    | 
|7.00% to 8.99% |  |                 | 10,633    |  |      |   | 1,949     |      |  |   | 3,250     | 
|               |  |                 |           |  |      |   |           |      | 
|               |  | $               | 2,271,415 |  |      | $ | 1,378,902 |      |  | $ | 1,589,252 | 
|               |  |                 |           |  |      |   |           |      | 



|               |  |         |         |          |          |   |          |           |  |          |             |  |  |       |         |  |       |   |         |  |  |   |           | 
|-------------- |  | ------- | ------- | -------- | -------- | - | -------- | --------- |  | -------- | ----------- |  |  | ----- | ------- |  | ----- | - | ------- |  |  | - | --------- | 
|               |  |         |         | Over Six |          |   | Over One |           |  | Over Two |             |  |  |       |        
|               |  | Six     |         |          | Months   |   |          | Year      |  |          | Years       |  |  | Over  |         |  |      
|               |  | Months  |         |          | Through  |   |          | Through   |  |          | Through     |  |  | Three |         |  |      
|(In Thousands) |  | Or Less |         |          | One Year |   |          | Two Years |  |          | Three Years |  |  | Years |         |  | Total |  
|               | 
|0.01% to 1.49% |  | $       | 584,482 |          |          | $ | 225,987  |           |  | $        | 71,503      |  |  | $     | 2,362   |  |       | $ | 4,955   |  |  | $ | 889,289   | 
|1.50% to 1.99% |  |         | 193,397 |          |          |   | 23,051   |           |  |          | 8,122       |  |  |       | 29,101  |  |       |   | 163     |  |  |   | 253,834   | 
|2.00% to 2.99% |  |         | 55,659  |          |          |   | 39,791   |           |  |          | 35,744      |  |  |       | 5,747   |  |       |   | 63,412  |  |  |   | 200,353   | 
|3.00% to 3.99% |  |         | 25,639  |          |          |   | 14,412   |           |  |          | 9,423       |  |  |       | 259,498 |  |       |   | 35,112  |  |  |   | 344,084   | 
|4.00% to 4.99% |  |         | 8,257   |          |          |   | 3,925    |           |  |          | 32,257      |  |  |       | 116,531 |  |       |   | 266,824 |  |  |   | 427,794   | 
|5.00% to 5.99% |  |         | 17,320  |          |          |   | 5,127    |           |  |          | 32,294      |  |  |       | 51,876  |  |       |   | 11,338  |  |  |   | 117,955   | 
|6.00% to 6.99% |  |         | 5,226   |          |          |   | 10,773   |           |  |          | 11,196      |  |  |       | 22      |  |       |   | 256     |  |  |   | 27,473    | 
|7.00% to 8.99% |  |         | 501     |          |          |   | 483      |           |  |          |            |  |  |       | 8,413   |  |       |   | 1,236   |  |  |   | 10,633    | 
|               |  |         |         |          |          |   |          |           |  |          |             |  |  |       |         |  |       |  
|Total          |  | $       | 890,481 |          |          | $ | 323,549  |           |  | $        | 200,539     |  |  | $     | 473,550 |  |       | $ | 383,296 |  |  | $ | 2,271,415 | 
|               |  |         |         |          |          |   |          |           |  |          |             |  |  |       |         |  |       |  

29



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|                                |  |        |         | 
|------------------------------- |  | ------ | ------- | 
|(In Thousands)                  |  | Amount |        
|                                | 
|3 months or less                |  | $      | 155,484 | 
|Over 3 months through 6 months  |  |        | 66,604  | 
|Over 6 months through 12 months |  |        | 105,974 | 
|Over 12 months                  |  |        | 417,234 | 
|                                |  |        |        
|                                |  | $      | 745,296 | 
|                                |  |        |        

Borrowings.










Trust Activities






30



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##### Table of Contents








Employees







Subsidiaries




Mitchamm Corp.


BNB Capital Trust.




Independence Community Investment Corp.
(ICIC).


Independence Community Realty Corp.


Renaissance Asset Corporation.


Staten Island Funding Corporation.


Independence Community Insurance Agency, Inc.
(ICIA).


31



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Wiljo Development Corp. (Wiljo).


Broad National Realty Corp. (BNRC).


Broad Horizons Inc.


BNB Investment Corp. (Investment Corp).


SIB Investment Corporation (SIBIC).


Bronatoreo, Inc. (Bronatoreo).


Statewide Financial Services (SFS).


SIB Financial Services Corporation (SIBFSC).


ICM Capital L.L.C. (ICMC).


SIB Mortgage Corp. (SIBMC).


Independence Community Commercial Reinvestment Corp.
(ICCRC).


ICB Leasing Corp. (Leasing Corp.).


32



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Regulation




The Holding Company


General.


Activities Restrictions.






33



---



##### Table of Contents





Qualified Thrift Lender Test.




Limitations on Transactions with Affiliates.




34



---



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Restrictions on Acquisitions.




Federal Securities Laws.


The Bank


General.


Capital Requirements.




35



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##### Table of Contents







Activities and Investments of New York-Chartered Savings
Banks.






36



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##### Table of Contents







Activities and Investments of FDIC-Insured State-Chartered
Banks.




Regulatory Enforcement Authority.




37



---



##### Table of Contents



Prompt Corrective Action.






FDIC Insurance Premiums.






38



---



##### Table of Contents





Brokered Deposits.


Community Investment and Consumer Protection Laws.






Limitations on Dividends.






39



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Miscellaneous.


Federal Home Loan Bank System.






Federal Reserve System.


Sarbanes-Oxley Act of 2002




40



---



##### Table of Contents














Taxation


Federal Taxation


General.




Taxable Distributions and Recapture.


41



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Corporate Dividends-Received Deduction.


State and Local
Taxation


New York State and New York City Taxation.








New Jersey State Taxation.


Delaware State Taxation.


42



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ITEM
2.      Properties







ITEM 3.      Legal
Proceedings







ITEM 4.      Submission of
Matters to a Vote of Security Holders




43



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PART II







|        |                                                                                                                         
|------- | ------------------------------------------------------------------------------------------------------------------------
|ITEM 5. | Market for the Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities









|               |  |                   |       |  |                   |   |       |      |  |   |       |  |  |   |       | 
|-------------- |  | ----------------- | ----- |  | ----------------- | - | ----- | ---- |  | - | ----- |  |  | - | ----- | 
|               |  | Year Ended        |       |  | Year Ended        |  
|               |  | December 31, 2004 |       |  | December 31, 2003 |  
|               |  |                   |       |  |                   |  
|               |  | High              |       |  | Low               |   |       | High |  |   | Low   | 
|               | 
|First Quarter  |  | $                 | 41.41 |  |                   | $ | 34.92 |      |  | $ | 27.04 |  |  | $ | 25.14 | 
|Second Quarter |  |                   | 40.93 |  |                   |   | 35.24 |      |  |   | 28.90 |  |  |   | 25.31 | 
|Third Quarter  |  |                   | 40.49 |  |                   |   | 35.03 |      |  |   | 36.03 |  |  |   | 28.47 | 
|Fourth Quarter |  |                   | 43.18 |  |                   |   | 36.95 |      |  |   | 38.74 |  |  |   | 34.50 | 



|               |  |                   |       |  |                   |   |       |      |  |   |       |  |  |   |       | 
|-------------- |  | ----------------- | ----- |  | ----------------- | - | ----- | ---- |  | - | ----- |  |  | - | ----- | 
|               |  | Year Ended        |       |  | Year Ended        |  
|               |  | December 31, 2004 |       |  | December 31, 2003 |  
|               |  |                   |       |  |                   |  
|Bid            |  | High              |       |  | Low               |   |       | High |  |   | Low   | 
|               | 
|First Quarter  |  | $                 | 41.45 |  |                   | $ | 34.70 |      |  | $ | 29.89 |  |  | $ | 24.68 | 
|Second Quarter |  |                   | 41.54 |  |                   |   | 35.02 |      |  |   | 28.88 |  |  |   | 24.95 | 
|Third Quarter  |  |                   | 40.65 |  |                   |   | 34.82 |      |  |   | 36.03 |  |  |   | 27.70 | 
|Fourth Quarter |  |                   | 43.35 |  |                   |   | 36.54 |      |  |   | 39.02 |  |  |   | 34.30 | 



|               |  |                   |      |  |                   |   |      | 
|-------------- |  | ----------------- | ---- |  | ----------------- | - | ---- | 
|               |  | Year Ended        |      |  | Year Ended        |  
|               |  | December 31, 2004 |      |  | December 31, 2003 |  
|               | 
|First Quarter  |  | $                 | 0.22 |  |                   | $ | 0.15 | 
|Second Quarter |  |                   | 0.23 |  |                   |   | 0.16 | 
|Third Quarter  |  |                   | 0.24 |  |                   |   | 0.17 | 
|Fourth Quarter |  |                   | 0.25 |  |                   |   | 0.20 | 



|               |  |                   |        |  |                   |   |        | 
|-------------- |  | ----------------- | ------ |  | ----------------- | - | ------ | 
|               |  | Year Ended        |        |  | Year Ended        |  
|(In Thousands) |  | December 31, 2004 |        |  | December 31, 2003 |  
|               | 
|First Quarter  |  | $                 | 11,159 |  |                   | $ | 7,798  | 
|Second Quarter |  |                   | 18,176 |  |                   |   | 8,118  | 
|Third Quarter  |  |                   | 19,222 |  |                   |   | 8,585  | 
|Fourth Quarter |  |                   | 20,266 |  |                   |   | 10,043 | 





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|                               |  |              |   |  |               |              |                |  |                |                    |   |  |  |  |           | 
|------------------------------ |  | ------------ | - |  | ------------- | ------------ | -------------- |  | -------------- | ------------------ | - |  |  |  | --------- | 
|                               |  |              |   |  |               | Total Number |                |  |               
|                               |  |              |   |  |               | of Shares    |                |  | Maximum Number |                   
|                               |  |              |   |  |               | Purchased as |                |  | of Remaining   |                   
|                               |  | Total Number |   |  | Average Price |              | Part of a      |  |                | Shares that May Be |  
|                               |  | of Shares    |   |  | Paid per      |              | Publicly       |  |                | Purchased Under    |  
|Period                         |  | Purchased    |   |  | Share         |              | Announced Plan |  |                | the Plan           |  
|                               | 
|October 1  October 31, 2004   |  |              |  |  |               | $            |               |  |                |                    |  |  |  |  | 2,790,329 | 
|November 1  November 30, 2004 |  |              |  |  |               |              |               |  |                |                    |  |  |  |  | 2,790,329 | 
|December 1  December 31, 2004 |  |              |  |  |               |              |               |  |                |                    |  |  |  |  | 2,790,329 | 
|                               |  |              |   |  |               |              |                |  |                |                    |   | 
|Total                          |  |              |  |  |               | $            |               |  |                |                    |  |  |  |  |           | 
|                               |  |              |   |  |               |              |                |  |                |                    |   | 





45



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|        |                                               
|------- | ----------------------------------------------
|ITEM 6. | Selected Consolidated Financial and Other Data

|                                               |  |                 |            |  |              |   |           |      |  |   |           |  |  |      |           |  |  |   |           | 
|---------------------------------------------- |  | --------------- | ---------- |  | ------------ | - | --------- | ---- |  | - | --------- |  |  | ---- | --------- |  |  | - | --------- | 
|                                               |  | At December 31, |            |  | At March 31, |  
|                                               |  |                 |            |  |              |  
|(In Thousands)                                 |  | 2004            |            |  | 2003         |   |           | 2002 |  |   | 2001      |  |  | 2001 |          
|                                               | 
|Selected Financial Condition Data:             |  |                 |            |  |              |   |           |      |  |   |           |  |  |      |           |  |  |   |           | 
|Total assets                                   |  | $               | 17,753,430 |  |              | $ | 9,546,607 |      |  | $ | 8,023,643 |  |  | $    | 7,624,798 |  |  | $ | 7,010,867 | 
|Cash and cash equivalents                      |  |                 | 360,877    |  |              |   | 172,028   |      |  |   | 199,057   |  |  |      | 207,633   |  |  |   | 277,762   | 
|Investment securities available-for-sale       |  |                 | 454,305    |  |              |   | 296,945   |      |  |   | 224,908   |  |  |      | 125,803   |  |  |   | 201,198   | 
|Mortgage-related securities available-for-sale |  |                 | 3,479,482  |  |              |   | 2,211,755 |      |  |   | 1,038,742 |  |  |      | 902,191   |  |  |   | 720,549   | 
|Loans available-for-sale                       |  |                 | 96,671     |  |              |   | 5,922     |      |  |   | 114,379   |  |  |      | 3,696     |  |  |   |          | 
|Loans receivable, net                          |  |                 | 11,147,157 |  |              |   | 6,092,728 |      |  |   | 5,736,826 |  |  |      | 5,796,196 |  |  |   | 5,189,725 | 
|Goodwill(1)                                    |  |                 | 1,155,572  |  |              |   | 185,161   |      |  |   | 185,161   |  |  |      | 185,161   |  |  |   | 185,161   | 
|Identifiable intangible assets, net            |  |                 | 79,056     |  |              |   | 190       |      |  |   | 2,046     |  |  |      | 8,981     |  |  |   | 13,833    | 
|Deposits                                       |  |                 | 9,305,064  |  |              |   | 5,304,097 |      |  |   | 4,940,060 |  |  |      | 4,794,775 |  |  |   | 4,666,057 | 
|Borrowings                                     |  |                 | 5,511,972  |  |              |   | 2,916,300 |      |  |   | 1,931,550 |  |  |      | 1,682,788 |  |  |   | 1,309,293 | 
|Subordinated notes                             |  |                 | 396,332    |  |              |   | 148,429   |      |  |   |          |  |  |      |          |  |  |   |          | 
|Trust preferred
    securities(2)              |  |                 |           |  |              |   |          |      |  |   |          |  |  |      | 11,067    |  |  |   | 11,067    | 
|Total stockholders equity                     |  |                 | 2,304,043  |  |              |   | 991,111   |      |  |   | 920,268   |  |  |      | 880,533   |  |  |   | 813,156   | 

|                                                    |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |         |  |  |   |         | 
|--------------------------------------------------- |  | ------------------------------- | ------- | ------------ | ------------ | - | ---------- | ------------ |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | 
|                                                    |  |                                 |         |              |              |   |            | For the Nine |  |   | For the | 
|                                                    |  |                                 |         | Months Ended |              |   | Year Ended |             
|                                                    |  | For the Year Ended December 31, |         |              | December 31, |   |            | March 31,    | 
|                                                    |  |                                 |         |              |              |   |            |              | 
|(Dollars In Thousands, Except Per Share Data)       |  | 2004                            |         |              | 2003         |   |            | 2002         |  |   | 2001    |  |  | 2001 |        
|                                                    | 
|Selected Operating Data:                            |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |         |  |  |   |         | 
|Interest income                                     |  | $                               | 689,408 |              |              | $ | 440,120    |              |  | $ | 485,503 |  |  | $    | 362,206 |  |  | $ | 470,702 | 
|Interest expense                                    |  |                                 | 213,915 |              |              |   | 147,375    |              |  |   | 175,579 |  |  |      | 172,626 |  |  |   | 247,457 | 
|                                                    |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |        
|Net interest income                                 |  |                                 | 475,493 |              |              |   | 292,745    |              |  |   | 309,924 |  |  |      | 189,580 |  |  |   | 223,245 | 
|                                                    |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |        
|Provision for loan losses                           |  |                                 | 2,000   |              |              |   | 3,500      |              |  |   | 8,000   |  |  |      | 7,875   |  |  |   | 1,392   | 
|                                                    |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |        
|Net interest income after provision for loan losses |  |                                 | 473,493 |              |              |   | 289,245    |              |  |   | 301,924 |  |  |      | 181,705 |  |  |   | 221,853 | 
|Net (loss) gain on loans and securities             |  |                                 | (8,535  | )            |              |   | 765        |              |  |   | 557     |  |  |      | 2,850   |  |  |   | 3,398   | 
|Other non-interest income                           |  |                                 | 130,044 |              |              |   | 111,974    |              |  |   | 74,561  |  |  |      | 41,623  |  |  |   | 34,940  | 
|Amortization of
    goodwill(1)                     |  |                                 |        |              |              |   |           |              |  |   |        |  |  |      |        |  |  |   | 14,344  | 
|Amortization of intangible assets                   |  |                                 | 8,268   |              |              |   | 1,855      |              |  |   | 6,971   |  |  |      | 5,761   |  |  |   | 6,880   | 
|Other non-interest expense                          |  |                                 | 262,807 |              |              |   | 186,948    |              |  |   | 178,084 |  |  |      | 109,880 |  |  |   | 131,602 | 
|                                                    |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |        
|Income before provision for income taxes            |  |                                 | 323,927 |              |              |   | 213,181    |              |  |   | 191,987 |  |  |      | 110,537 |  |  |   | 107,365 | 
|Provision for income taxes                          |  |                                 | 111,755 |              |              |   | 76,211     |              |  |   | 69,585  |  |  |      | 40,899  |  |  |   | 45,329  | 
|                                                    |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |        
|Net income                                          |  | $                               | 212,172 |              |              | $ | 136,970    |              |  | $ | 122,402 |  |  | $    | 69,638  |  |  | $ | 62,036  | 
|                                                    |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |        
|Basic earnings per share                            |  | $                               | 2.96    |              |              | $ | 2.74       |              |  | $ | 2.37    |  |  | $    | 1.33    |  |  | $ | 1.11    | 
|                                                    |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |        
|Diluted earnings per share                          |  | $                               | 2.84    |              |              | $ | 2.60       |              |  | $ | 2.24    |  |  | $    | 1.27    |  |  | $ | 1.10    | 
|                                                    |  |                                 |         |              |              |   |            |              |  |   |         |  |  |      |        

(footnotes on next page)


46



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|                                                                            |  |                          |        |              |  |               |        |               |  |      |        |   |  |   |        |   |  |   |        |  
|--------------------------------------------------------------------------- |  | ------------------------ | ------ | ------------ |  | ------------- | ------ | ------------- |  | ---- | ------ | - |  | - | ------ | - |  | - | ------ | -
|                                                                            |  |                          |        |              |  |               |        | At or For the |  |     
|                                                                            |  |                          |        | Nine Months  |  | At or For the
|                                                                            |  | At or For the Year Ended |        | Ended        |  | Year Ended   
|                                                                            |  | December 31,             |        | December 31, |  | March 31,    
|                                                                            |  |                          |        |              |  |              
|(Dollars In Thousands, Except Per Share Data)                               |  | 2004                     |        | 2003         |  | 2002          |        | 2001(3)       |  | 2001
|                                                                           
|Key Operating Ratios and Other Data:                                        |  |                          |        |              |  |               |        |               |  |      |        |   |  |   |        |   |  |   |        |  
|Performance
    Ratios:(4)                                                  |  |                          |        |              |  |               |        |               |  |      |        |   |  |   |        |   |  |   |        |  
|Return on average assets                                                    |  |                          | 1.37   | %            |  |               | 1.58   | %             |  |      | 1.55   | % |  |   | 1.27   | % |  |   | 0.91   | %
|Return on average equity                                                    |  |                          | 11.31  |              |  |               | 14.60  |               |  |      | 13.56  |   |  |   | 11.01  |   |  |   | 7.60   |  
|Return on average tangible assets                                           |  |                          | 1.46   |              |  |               | 1.61   |               |  |      | 1.59   |   |  |   | 1.30   |   |  |   | 0.94   |  
|Return on average tangible equity                                           |  |                          | 21.79  |              |  |               | 18.20  |               |  |      | 17.19  |   |  |   | 14.38  |   |  |   | 10.24  |  
|Average interest-earning assets to average interest-bearing
    liabilities |  |                          | 102.17 |              |  |               | 105.10 |               |  |      | 106.51 |   |  |   | 106.55 |   |  |   | 107.25 |  
|Interest rate
    spread(5)                                                 |  |                          | 3.43   |              |  |               | 3.58   |               |  |      | 4.08   |   |  |   | 3.55   |   |  |   | 3.23   |  
|Net interest
    margin(5)                                                  |  |                          | 3.46   |              |  |               | 3.68   |               |  |      | 4.23   |   |  |   | 3.77   |   |  |   | 3.51   |  
|Non-interest expense to average assets                                      |  |                          | 1.75   |              |  |               | 2.18   |               |  |      | 2.34   |   |  |   | 2.10   |   |  |   | 2.23   |  
|Efficiency
    ratio(6)                                                     |  |                          | 43.40  |              |  |               | 46.19  |               |  |      | 46.32  |   |  |   | 47.53  |   |  |   | 50.97  |  
|Dividend payout
    ratio(7)                                                |  |                          | 33.10  |              |  |               | 26.15  |               |  |      | 22.32  |   |  |   | 21.26  |   |  |   | 27.27  |  
|Cash dividends declared per common share                                    |  | $                        | 0.94   |              |  | $             | 0.68   |               |  | $    | 0.50   |   |  | $ | 0.27   |   |  | $ | 0.30   |  
|Asset Quality Ratios:                                                       |  |                          |        |              |  |               |        |               |  |      |        |   |  |   |        |   |  |   |        |  
|Non-performing loans as a percent of total loans at end of period           |  |                          | 0.44   | %            |  |               | 0.59   | %             |  |      | 0.72   | % |  |   | 0.78   | % |  |   | 0.68   | %
|Non-performing assets to total assets at end of
    period(8)               |  |                          | 0.29   |              |  |               | 0.38   |               |  |      | 0.52   |   |  |   | 0.61   |   |  |   | 0.51   |  
|Allowance for loan losses to non-performing loans at end of
    period      |  |                          | 205.84 |              |  |               | 217.32 |               |  |      | 193.57 |   |  |   | 170.01 |   |  |   | 201.18 |  
|Allowance for loan losses to total loans at end of period                   |  |                          | 0.90   |              |  |               | 1.29   |               |  |      | 1.38   |   |  |   | 1.33   |   |  |   | 1.36   |  
|Capital and Other
    Information:(4)                                       |  |                          |        |              |  |               |        |               |  |      |        |   |  |   |        |   |  |   |        |  
|Equity to assets at end of period                                           |  |                          | 12.98  | %            |  |               | 10.38  | %             |  |      | 11.47  | % |  |   | 11.54  | % |  |   | 11.60  | %
|Leverage
    capital(9)                                                     |  |                          | 5.51   |              |  |               | 8.14   |               |  |      | 8.73   |   |  |   | 8.60   |   |  |   | 8.20   |  
|Total capital to risk-weighted assets at end of
    period(9)               |  |                          | 11.47  |              |  |               | 12.39  |               |  |      | 11.40  |   |  |   | 12.20  |   |  |   | 12.95  |  
|Number of full-service offices at end of period                             |  |                          | 122    |              |  |               | 84     |               |  |      | 73     |   |  |   | 69     |   |  |   | 67     |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the excess of cost over fair value of net assets
    acquired less identifiable intangible assets. Effective
    April 1, 2001, the Company adopted Statement of Financial
    Accounting Standards No. 142, Goodwill and Other
    Intangible Assets, which resulted in discontinuing the
    amortization of goodwill. See Note 9 of the Notes to
    Consolidated Financial Statements set forth in Item 8
    hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(2) | The trust preferred securities were assumed by the Holding
    Company as part of the Broad acquisition effective the close of
    business on July 31, 1999. In accordance with the terms of
    the trust indenture, all of the outstanding trust preferred
    securities totaling $11.5 million were redeemed at $10.00
    per share, effective June 30, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(3) | Where applicable, ratios have been annualized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(4) | With the exception of end of period ratios and the efficiency
    ratio, all ratios are based on average daily balances during the
    respective periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(5) | Interest rate spread represents the difference between the
    weighted-average yield on interest-earning assets and the
    weighted-average cost of interest-bearing liabilities; net
    interest margin represents net interest income as a percentage
    of average interest-earning assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(6) | Reflects adjusted operating expense (net of amortization of
    goodwill and identifiable intangible assets) as a percent of the
    aggregate of net interest income and adjusted non-interest
    income (excluding gains and losses on loans and securities).
    Amortization of identifiable intangible assets is excluded from
    the calculation since it is a non-cash expense and gains and
    losses on loans and securities are excluded since they are
    generally considered by the Companys management to be
    non-recurring in nature. The operating efficiency ratio is not a
    financial measurement required by generally accepted accounting
    principles in the United States of America. However, the Company
    believes such information is useful to investors in evaluating
    the Companys operations. The ratio would have been 45.41%
    for the year ended December 31, 2004 if the adjustments
    noted above were not made.
|   
|(7) | Represents cash dividends declared per common share as a percent
    of diluted earnings per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(8) | Non-performing assets consist of non-accrual loans, loans past
    due 90 days or more as to interest or principal repayment
    and accruing and real estate acquired through foreclosure or by
    deed-in-lieu therefore.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(9) | Ratios reflect the capital position of the Bank only.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

47



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

General








Business Strategy


Controlled growth.












48



---



##### Table of Contents





Emphasis on Commercial Real Estate, Commercial Business
and Multi-family Lending.








Maintain Asset Quality.


Stable Source of Liquidity.


49



---



##### Table of Contents





Emphasis on Retail Deposits and Customer Service.


Critical Accounting Estimates






Allowance for Loan Losses.




50



---



##### Table of Contents







Goodwill.










Deferred Tax Assets.




51



---



##### Table of Contents





Changes in Financial Condition






Cash and Cash Equivalents.


Securities Available-for-Sale.








52



---



##### Table of Contents





Loans Available-for-Sale.










Loans.








53



---



##### Table of Contents











Non-Performing Assets.




Allowance for Loan Losses.


54



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##### Table of Contents



Goodwill and Intangible Assets.






Bank Owned Life Insurance (BOLI).


Other Assets.




Deposits.








55



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##### Table of Contents



Borrowings.










Subordinated Notes.


Stockholders Equity.




56



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##### Table of Contents



Contractual Obligations, Commitments, Contingent Liabilities
and Off-balance Sheet Arrangements




|                        |  |           |    |                 |          |          |           |              |            |   |               |  |  |           |         |  |       |   |         |  |  |   |           | 
|----------------------- |  | --------- | -- | --------------- | -------- | -------- | --------- | ------------ | ---------- | - | ------------- |  |  | --------- | ------- |  | ----- | - | ------- |  |  | - | --------- | 
|                        |  |           |    | Payments Due In |         
|                        |  |           |    |                 |         
|                        |  |           |    |                 |          | Over one |           |              | Over three |   |               | 
|                        |  | Note      |    |                 | One year |          |           | year through |            |   | years through |  |  | Over five |         |  |      
|(In Thousands)          |  | Reference |    |                 | or less  |          |           | three years  |            |   | five years    |  |  | years     |         |  | Total |  
|                        | 
|Core deposits           |  |           | 11 |                 |          | $        | 7,033,649 |              |            | $ |              |  |  | $         |        |  |       | $ |        |  |  | $ | 7,033,649 | 
|Certificates of deposit |  |           | 11 |                 |          |          | 1,265,234 |              |            |   | 737,277       |  |  |           | 394,276 |  |       |   | 7,137   |  |  |   | 2,403,924 | 
|FHLB advances           |  |           | 12 |                 |          |          | 1,389,333 |              |            |   | 569,679       |  |  |           | 178,551 |  |       |   | 721,947 |  |  |   | 2,859,510 | 
|Repurchase Agreements   |  |           | 12 |                 |          |          | 500,775   |              |            |   | 1,354,221     |  |  |           | 947,489 |  |       |   | 500,053 |  |  |   | 3,302,538 | 
|Subordinated Notes      |  |           | 13 |                 |          |          | 14,625    |              |            |   | 29,250        |  |  |           | 30,183  |  |       |   | 470,678 |  |  |   | 544,736   | 
|Operating leases        |  |           | 19 |                 |          |          | 15,271    |              |            |   | 29,457        |  |  |           | 26,273  |  |       |   | 88,542  |  |  |   | 159,543   | 
|Purchase Obligations    |  |           | 19 |                 |          |          | 3,812     |              |            |   |              |  |  |           |        |  |       |   |        |  |  |   | 3,812     | 



|                                                                        |                                                                       |                    |           |         |                   |   |           |         | 
|----------------------------------------------------------------------- | --------------------------------------------------------------------- | ------------------ | --------- | ------- | ----------------- | - | --------- | ------- | 
|                                                                        |                                                                       | Contract or Amount |          
|                                                                        |                                                                       |                    |          
|(In Thousands)                                                          |                                                                       | December 31, 2004  |           |         | December 31, 2003 |  
|                                                                        |                                                                      
|Financial instruments whose contract amounts represent credit
    risk: |                                                                       |                    |           |         |                   |   |           |        
|                                                                        | Commitments to extend credit  mortgage loans                         |                    | $         | 650,101 |                   |   | $         | 563,049 | 
|                                                                        | Commitments to extend credit  commercial business
    loans          |                    |           | 267,649 |                   |   |           | 426,883 | 
|                                                                        | Commitments to extend credit  mortgage warehouse
    lines of credit |                    |           | 775,905 |                   |   |           | 952,615 | 
|                                                                        | Commitments to extend credit  other loans                            |                    |           | 212,119 |                   |   |           | 111,736 | 
|                                                                        | Standby letters of credit                                             |                    |           | 36,633  |                   |   |           | 28,049  | 
|                                                                        | Commercial letters of credit                                          |                    |           | 807     |                   |   |           | 363     | 
|                                                                        |                                                                       |                    |           |         |                   |  
|Total                                                                   |                                                                       | $                  | 1,943,214 |         |                   | $ | 2,082,695 |        
|                                                                        |                                                                       |                    |           |         |                   |  







Average Balances, Net Interest Income, Yields Earned and
Rates Paid




57



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|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |           |           |           |           |         |         |         |        |      |      |      |      | 
|------------------------------------------------------------------------------------ | -------------------------------------------- | --------------------------------------- | ------------------------------- | --------- | --------- | --------- | ------- | ------- | ------- | ------- | ------- | ---- | ---- | -------- | --------- | --------- | --------- | --------- | ------- | ------- | ------- | ------ | -------- | ---- | ---- | ---- | --------- | --------- | --------- | --------- | ------- | ------- | ------- | ------ | ---- | ---- | ---- | ---- | 
|                                                                                     |                                              | Year Ended December 31,                 |                                
|                                                                                     |                                              |                                         |                                
|                                                                                     |                                              | 2004                                    |                                 |           | 2003      |           |         | 2002    |        
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |        
|                                                                                     |                                              |                                         |                                 | Average   |           |           |         |         | Average |         |         |      |      | Average  |          
|                                                                                     |                                              | Average                                 |                                 |           |           |           | Yield/  |         |         | Average |         |      |      |          | Yield/    |           |           | Average   |         |         |         |        | Yield/   |     
|(Dollars in Thousands)                                                               |                                              | Balance                                 |                                 |           | Interest  |           |         | Cost    |         |         | Balance |      |      | Interest |           |           | Cost      |           |         | Balance |         |        | Interest |      |      | Cost |          
|                                                                                     |                                             
|Interest-earning assets:                                                             |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |           |           |           |           |         |         |         |        |      |     
|                                                                                     | Loans
    receivable(1):                     |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |           |           |           |           |         |         |         |        |      |      |     
|                                                                                     |                                              | Mortgage loans                          |                                 | $         | 8,007,134 |           |         | $       | 433,848 |         |         |      | 5.42 | %        |           | $         | 4,162,397 |           |         | $       | 276,579 |        |          |      | 6.64 | %    |           | $         | 4,565,567 |           |         | $       | 334,154 |        |      |      | 7.32 | %   
|                                                                                     |                                              | Commercial business loans               |                                 |           | 768,246   |           |         |         | 46,861  |         |         |      | 6.10 |          |           |           | 564,851   |           |         |         | 37,281  |        |          |      | 6.60 |      |           |           | 714,990   |           |         |         | 47,282  |        |      |      | 6.61 |     
|                                                                                     |                                              | Mortgage warehouse lines of credit      |                                 |           | 583,696   |           |         |         | 26,555  |         |         |      | 4.47 |          |           |           | 639,052   |           |         |         | 28,652  |        |          |      | 4.48 |      |           |           | 402,258   |           |         |         | 18,670  |        |      |      | 4.64 |     
|                                                                                     |                                              | Other
    loans(2)                      |                                 |           | 407,147   |           |         |         | 21,754  |         |         |      | 5.34 |          |           |           | 268,886   |           |         |         | 15,741  |        |          |      | 5.85 |      |           |           | 205,950   |           |         |         | 13,848  |        |      |      | 6.72 |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|                                                                                     | Total loans                                  |                                         |                                 | 9,766,223 |           |           |         | 529,018 |         |         |         | 5.41 |      |          |           | 5,635,186 |           |           |         | 358,253 |         |        |          | 6.36 |      |      |           | 5,888,765 |           |           |         | 413,954 |         |        |      | 7.03 |     
|                                                                                     | Investment securities                        |                                         |                                 | 537,362   |           |           |         | 22,578  |         |         |         | 4.20 |      |          |           | 296,705   |           |           |         | 13,296  |         |        |          | 4.48 |      |      |           | 172,081   |           |           |         | 8,157   |         |        |      | 4.74 |     
|                                                                                     | Mortgage-related securities                  |                                         |                                 | 3,124,201 |           |           |         | 132,809 |         |         |         | 4.25 |      |          |           | 1,765,662 |           |           |         | 62,918  |         |        |          | 3.56 |      |      |           | 1,034,239 |           |           |         | 57,151  |         |        |      | 5.53 |     
|                                                                                     | Other interest-earning
    assets(3)         |                                         |                                 | 294,974   |           |           |         | 5,003   |         |         |         | 1.70 |      |          |           | 263,116   |           |           |         | 5,653   |         |        |          | 2.15 |      |      |           | 225,416   |           |           |         | 6,241   |         |        |      | 2.77 |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Total interest-earning assets                                                        |                                              |                                         | 13,722,760                      |           |           |           | 689,408 |         |         |         | 5.02    |      |      |          | 7,960,669 |           |           |           | 440,120 |         |         |        | 5.53     |      |      |      | 7,320,501 |           |           |           | 485,503 |         |         |        | 6.63 |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Non-interest-earning assets                                                          |                                              |                                         | 1,753,559                       |           |           |           |         |         |         |         |         |      |      |          | 712,017   |           |           |           |         |         |         |        |          |      |      |      | 590,312   |           |           |           |         |         |         |        |      |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Total assets                                                                         |                                              | $                                       | 15,476,319                      |           |           |           |         |         |         |         |         |      |      | $        | 8,672,686 |           |           |           |         |         |         |        |          |      |      | $    | 7,910,813 |           |           |           |         |         |         |        |      |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Interest-bearing liabilities:                                                        |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |           |           |           |           |         |         |         |        |      |     
|                                                                                     | Deposits:                                    |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |           |           |           |           |         |         |         |        |      |      |     
|                                                                                     |                                              | Savings deposits                        |                                 | $         | 2,423,565 |           |         | $       | 8,464   |         |         |      | 0.35 | %        |           | $         | 1,595,084 |           |         | $       | 7,886   |        |          |      | 0.49 | %    |           | $         | 1,573,841 |           |         | $       | 19,460  |        |      |      | 1.24 | %   
|                                                                                     |                                              | Money market deposits                   |                                 |           | 795,658   |           |         |         | 12,259  |         |         |      | 1.54 |          |           |           | 251,447   |           |         |         | 2,303   |        |          |      | 0.92 |      |           |           | 181,574   |           |         |         | 1,726   |        |      |      | 0.95 |     
|                                                                                     |                                              | Active management accounts (AMA)      |                                 |           | 711,247   |           |         |         | 8,347   |         |         |      | 1.17 |          |           |           | 498,229   |           |         |         | 4,762   |        |          |      | 0.96 |      |           |           | 448,342   |           |         |         | 6,804   |        |      |      | 1.52 |     
|                                                                                     |                                              | Interest-bearing demand
    deposits(4) |                                 |           | 1,147,798 |           |         |         | 11,005  |         |         |      | 0.96 |          |           |           | 700,739   |           |         |         | 4,826   |        |          |      | 0.69 |      |           |           | 530,011   |           |         |         | 5,010   |        |      |      | 0.95 |     
|                                                                                     |                                              | Certificates of deposit                 |                                 |           | 2,005,120 |           |         |         | 31,773  |         |         |      | 1.58 |          |           |           | 1,486,302 |           |         |         | 33,480  |        |          |      | 2.25 |      |           |           | 1,705,461 |           |         |         | 48,637  |        |      |      | 2.85 |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|                                                                                     |                                              |                                         | Total interest-bearing deposits |           |           | 7,083,388 |         |         |         | 71,848  |         |      |      | 1.01     |           |           |           | 4,531,801 |         |         |         | 53,257 |          |      |      | 1.18 |           |           |           | 4,439,229 |         |         |         | 81,637 |      |      |      | 1.84 | 
|                                                                                     |                                              | Non-interest bearing deposits           |                                 |           | 1,281,445 |           |         |         |        |         |         |      |     |          |           |           | 672,952   |           |         |         |        |        |          |      |     |      |           |           | 523,927   |           |         |         |        |        |      |      |     |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|                                                                                     |                                              |                                         | Total deposits                  |           |           | 8,364,833 |         |         |         | 71,848  |         |      |      | 0.86     |           |           |           | 5,204,753 |         |         |         | 53,257 |          |      |      | 1.02 |           |           |           | 4,963,156 |         |         |         | 81,637 |      |      |      | 1.64 | 
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|                                                                                     | Borrowings                                   |                                         |                                 | 4,725,871 |           |           |         | 128,788 |         |         |         | 2.73 |      |          |           | 2,290,401 |           |           |         | 91,089  |         |        |          | 3.98 |      |      |           | 1,904,734 |           |           |         | 93,418  |         |        |      | 4.90 |     
|                                                                                     | Subordinated notes                           |                                         |                                 | 341,230   |           |           |         | 13,279  |         |         |         | 3.89 |      |          |           | 79,253    |           |           |         | 3,029   |         |        |          | 3.82 |      |      |           |          |           |           |         |        |         |        |      |     |     
|                                                                                     | Cumulative trust preferred
    securities(5) |                                         |                                 |          |           |           |         |        |         |         |         |     |      |          |           |          |           |           |         |        |         |        |          |     |      |      |           | 5,426     |           |           |         | 524     |         |        |      | 9.65 |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Total interest-bearing liabilities                                                   |                                              |                                         | 13,431,934                      |           |           |           | 213,915 |         |         |         | 1.59    |      |      |          | 7,574,407 |           |           |           | 147,375 |         |         |        | 1.95     |      |      |      | 6,873,316 |           |           |           | 175,579 |         |         |        | 2.55 |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Non-interest-bearing liabilities                                                     |                                              |                                         | 168,890                         |           |           |           |         |         |         |         |         |      |      |          | 159,913   |           |           |           |         |         |         |        |          |      |      |      | 134,627   |           |           |           |         |         |         |        |      |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Total liabilities                                                                    |                                              |                                         | 13,600,824                      |           |           |           |         |         |         |         |         |      |      |          | 7,734,320 |           |           |           |         |         |         |        |          |      |      |      | 7,007,943 |           |           |           |         |         |         |        |      |     
|Total stockholders equity                                                           |                                              |                                         | 1,875,495                       |           |           |           |         |         |         |         |         |      |      |          | 938,366   |           |           |           |         |         |         |        |          |      |      |      | 902,870   |           |           |           |         |         |         |        |      |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Total liabilities and stockholders equity                                           |                                              | $                                       | 15,476,319                      |           |           |           |         |         |         |         |         |      |      | $        | 8,672,686 |           |           |           |         |         |         |        |          |      |      | $    | 7,910,813 |           |           |           |         |         |         |        |      |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Net interest-earning assets                                                          |                                              | $                                       | 290,826                         |           |           |           |         |         |         |         |         |      |      | $        | 386,262   |           |           |           |         |         |         |        |          |      |      | $    | 447,185   |           |           |           |         |         |         |        |      |     
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Net interest income/interest rate spread                                             |                                              |                                         |                                 |           |           | $         | 475,493 |         |         |         | 3.43    | %    |      |          |           |           |           | $         | 292,745 |         |         |        | 3.58     | %    |      |      |           |           |           | $         | 309,924 |         |         |        | 4.08 | %   
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Net interest margin                                                                  |                                              |                                         |                                 |           |           |           |         |         |         |         | 3.46    | %    |      |          |           |           |           |           |         |         |         |        | 3.68     | %    |      |      |           |           |           |           |         |         |         |        | 4.23 | %   
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          
|Ratio of average interest-earning assets to average
    interest-bearing liabilities |                                              |                                         |                                 |           |           |           |         |         |         |         | 1.02    | x    |      |          |           |           |           |           |         |         |         |        | 1.05     | x    |      |      |           |           |           |           |         |         |         |        | 1.07 | x   
|                                                                                     |                                              |                                         |                                 |           |           |           |         |         |         |         |         |      |      |          |           |           |           |           |         |         |         |        |          |      |      |      |          




|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The average balance of loans receivable includes loans
    available-for-sale and non-performing loans. Interest on
    non-performing loans is recognized on a cash basis.                   
|   
|(2) | Includes home equity loans and lines of credit, FHA and
    conventional home improvement loans, student loans, automobile
    loans, passbook loans and secured and unsecured personal loans.
|   
|(3) | Includes federal funds sold, interest-earning bank deposits and
    FHLB stock.                                                                                                               
|   
|(4) | Includes NOW and checking accounts.                                                                                                                                                           
|   
|(5) | Trust preferred securities redeemed effective June 30, 2002.                                                                                                                                  

58



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##### Table of Contents



Rate/Volume Analysis




|                                  |                                                             |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |         |      |         |         |        |         |         |         |         |  
|--------------------------------- | ----------------------------------------------------------- | ---------------------------------- | -------------- | ------- | ------------------------------- | ------ | -------- | ----------------- | ------- | ------ | --------- | ------- | ------- | ------ | ------- | ------- | ---------- | ------- | ---- | ------- | ------- | ------ | ------- | ------- | ------- | ------- | -
|                                  |                                                             | Year Ended                         |                |         | Year Ended                      |       
|                                  |                                                             | December 31, 2004 to               |                |         | December 31, 2003 to Year Ended |       
|                                  |                                                             | Year Ended December 31, 2003       |                |         | December 31, 2002               |       
|                                  |                                                             |                                    |                |         |                                 |       
|                                  |                                                             | Increase                           |                |         |                                 |        | Increase |                   |         |       
|                                  |                                                             | (Decrease) due to                  |                |         | Total Net                       |        |          | (Decrease) due to |         |        | Total Net |        
|                                  |                                                             |                                    |                |         | Increase                        |        |          |                   |         |        | Increase  |        
|(In Thousands)                    |                                                             | Rate                               |                |         | Volume                          |        |          | (Decrease)        |         |        | Rate      |         |         | Volume |         |         | (Decrease) |        
|                                  |                                                            
|Interest-earning assets:          |                                                             |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |         |      |         |         |        |         |        
|                                  | Loans receivable:                                           |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |         |      |         |         |        |         |         |        
|                                  |                                                             | Mortgage
    loans(1)              |                | $       | (51,572                         | )      |          | $                 | 208,841 |        |           | $       | 157,269 |        |         | $       | (31,955    | )       |      | $       | (25,620 | )      |         | $       | (57,575 | )      
|                                  |                                                             | Commercial business loans          |                |         | (3,001                          | )      |          |                   | 12,581  |        |           |         | 9,580   |        |         |         | (72        | )       |      |         | (9,929  | )      |         |         | (10,001 | )      
|                                  |                                                             | Mortgage warehouse lines of credit |                |         | (53                             | )      |          |                   | (2,044  | )      |           |         | (2,097  | )      |         |         | (681       | )       |      |         | 10,663  |        |         |         | 9,982   |        
|                                  |                                                             | Other
    loans(2)                 |                |         | (1,474                          | )      |          |                   | 7,487   |        |           |         | 6,013   |        |         |         | (1,954     | )       |      |         | 3,847   |        |         |         | 1,893   |        
|                                  |                                                             |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |        
|                                  | Total loans receivable                                      |                                    |                | (56,100 | )                               |        |          | 226,865           |         |        |           | 170,765 |         |        |         | (34,662 | )          |         |      | (21,039 | )       |        |         | (55,701 | )      
|                                  | Investment securities                                       |                                    |                | (879    | )                               |        |          | 10,161            |         |        |           | 9,282   |         |        |         | (470    | )          |         |      | 5,609   |         |        |         | 5,139   |        
|                                  | Mortgage-related securities                                 |                                    |                | 14,052  |                                 |        |          | 55,839            |         |        |           | 69,891  |         |        |         | (25,074 | )          |         |      | 30,841  |         |        |         | 5,767   |        
|                                  | Other interest-earning assets                               |                                    |                | (1,279  | )                               |        |          | 629               |         |        |           | (650    | )       |        |         | (1,532  | )          |         |      | 944     |         |        |         | (588    | )      
|                                  |                                                             |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |        
|                                  | Total net change in income on interest-earning assets       |                                    |                | (44,206 | )                               |        |          | 293,494           |         |        |           | 249,288 |         |        |         | (61,738 | )          |         |      | 16,355  |         |        |         | (45,383 | )      
|Interest-bearing liabilities:     |                                                             |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |         |      |         |         |        |         |        
|                                  | Deposits:                                                   |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |         |      |         |         |        |         |         |        
|                                  |                                                             | Savings deposits                   |                |         | (2,808                          | )      |          |                   | 3,386   |        |           |         | 578     |        |         |         | (11,833    | )       |      |         | 259     |        |         |         | (11,574 | )      
|                                  |                                                             | Money market deposits              |                |         | 2,372                           |        |          |                   | 7,584   |        |           |         | 9,956   |        |         |         | (57        | )       |      |         | 634     |        |         |         | 577     |        
|                                  |                                                             | AMA deposits                       |                |         | 1,255                           |        |          |                   | 2,330   |        |           |         | 3,585   |        |         |         | (2,733     | )       |      |         | 691     |        |         |         | (2,042  | )      
|                                  |                                                             | Interest-bearing demand deposits   |                |         | 2,352                           |        |          |                   | 3,827   |        |           |         | 6,179   |        |         |         | (1,571     | )       |      |         | 1,387   |        |         |         | (184    | )      
|                                  |                                                             | Certificates of deposit            |                |         | (11,539                         | )      |          |                   | 9,832   |        |           |         | (1,707  | )      |         |         | (9,410     | )       |      |         | (5,747  | )      |         |         | (15,157 | )      
|                                  |                                                             |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |        
|                                  |                                                             |                                    | Total deposits |         |                                 | (8,368 | )        |                   |         | 26,959 |           |         |         | 18,591 |         |         |            | (25,604 | )    |         |         | (2,776 | )       |         |         | (28,380 | )
|                                  | Borrowings                                                  |                                    |                | (35,595 | )                               |        |          | 73,294            |         |        |           | 37,699  |         |        |         | (19,421 | )          |         |      | 17,092  |         |        |         | (2,329  | )      
|                                  | Subordinated notes                                          |                                    |                | 56      |                                 |        |          | 10,194            |         |        |           | 10,250  |         |        |         |        |            |         |      | 3,029   |         |        |         | 3,029   |        
|                                  | Trust preferred securities                                  |                                    |                |        |                                 |        |          |                  |         |        |           |        |         |        |         |        |            |         |      | (524    | )       |        |         | (524    | )      
|                                  |                                                             |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |        
|                                  | Total net change in expense on interest-bearing liabilities |                                    |                | (43,907 | )                               |        |          | 110,447           |         |        |           | 66,540  |         |        |         | (45,025 | )          |         |      | 16,821  |         |        |         | (28,204 | )      
|                                  |                                                             |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |        
|Net change in net interest income |                                                             | $                                  | (299           | )       |                                 | $      | 183,047  |                   |         | $      | 182,748   |         |         | $      | (16,713 | )       |            | $       | (466 | )       |         | $      | (17,179 | )      
|                                  |                                                             |                                    |                |         |                                 |        |          |                   |         |        |           |         |         |        |         |         |            |        






|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes loans available-for-sale.                                                                                                                                                            
|   
|(2) | Includes home equity loans and lines of credit, FHA and
    conventional home improvement loans, student loans, automobile
    loans, passbook loans and secured and unsecured personal loans.

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Comparison of Results of Operations for the Year Ended
December 31, 2004 and the Year Ended December 31,
2003


General.


Net Interest Income.
















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Provision for Loan Losses.




Non-Interest Income.




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Non-Interest Expense.


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Income Taxes.






Comparison of Results of Operations for the Year Ended
December 31, 2003 and the 
 Year Ended December 31, 2002


General.


Net Interest Income.








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Provision for Loan Losses.




Non-Interest Income.










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Non-Interest Expense.








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Income Taxes.


Regulatory Capital Requirements




Liquidity






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Impact of Inflation and Changing Prices




Impact of New Accounting Pronouncements




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|         |                                                               
|-------- | --------------------------------------------------------------
|ITEM 7a. | Quantitative and Qualitative Disclosures about Market
    Risk

General.














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Net Interest Income Simulation Model.








Gap Analysis.






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|                                                                        |                                        |             |           |           |               |   |          |                |   |   |             |         |   |              |           |           |       |   |           |            |  |  |            |           |  |  |            |           | 
|----------------------------------------------------------------------- | -------------------------------------- | ----------- | --------- | --------- | ------------- | - | -------- | -------------- | - | - | ----------- | ------- | - | ------------ | --------- | --------- | ----- | - | --------- | ---------- |  |  | ---------- | --------- |  |  | ---------- | --------- | 
|(In Thousands)                                                          |                                        | 0 - 90 Days |           |           | 91 - 180 Days |   |          | 181 - 365 Days |   |   | 1 - 5 Years |         |   | Over 5 Years |           |           | Total |   |           | Fair Value | 
|                                                                        |                                       
|Interest-earning assets:                                                |                                        |             |           |           |               |   |          |                |   |   |             |         |   |              |           |           |       |   |           |            |  |  |            |           |  |  |            |          
|                                                                        | Mortgage
    loans(1)                  |             | $         | 774,824   |               |   | $        | 374,467        |   |   | $           | 748,191 |   |              | $         | 4,815,257 |       |   | $         | 2,699,022  |  |  | $          | 9,411,761 |  |  | $          | 9,455,344 | 
|                                                                        | Commercial business and other loans    |             |           | 1,208,547 |               |   |          | 84,781         |   |   |             | 134,227 |   |              |           | 457,577   |       |   |           | 48,370     |  |  |            | 1,933,502 |  |  |            | 1,925,060 | 
|                                                                        | Securities available-for-sale(2)       |             |           | 372,158   |               |   |          | 318,055        |   |   |             | 566,064 |   |              |           | 2,426,351 |       |   |           | 257,613    |  |  |            | 3,940,241 |  |  |            | 3,933,787 | 
|                                                                        | Other interest-earning
    assets(3)   |             |           | 289,067   |               |   |          |               |   |   |             |        |   |              |           |          |       |   |           |           |  |  |            | 289,067   |  |  |            | 289,067   | 
|                                                                        |                                        |             |           |           |               |   |          |                |   |   |             |         |   |              |           |           |       |   |           |            | 
|Total interest-earning assets                                           |                                        |             | 2,644,596 |           |               |   | 777,303  |                |   |   | 1,448,482   |         |   |              | 7,699,185 |           |       |   | 3,005,005 |            |  |  | 15,574,571 |           |  |  | 15,603,258 |          
|Interest-bearing liabilities:                                           |                                        |             |           |           |               |   |          |                |   |   |             |         |   |              |           |           |       |   |           |            |  |  |            |           |  |  |            |          
|                                                                        | Savings, NOW and money market deposits |             |           | 477,068   |               |   |          | 477,068        |   |   |             | 954,136 |   |              |           | 1,527,942 |       |   |           | 2,213,983  |  |  |            | 5,650,197 |  |  |            | 5,650,197 | 
|                                                                        | Certificates of deposit                |             |           | 535,959   |               |   |          | 363,448        |   |   |             | 319,468 |   |              |           | 1,046,976 |       |   |           | 5,564      |  |  |            | 2,271,415 |  |  |            | 2,333,655 | 
|                                                                        | Borrowings                             |             |           | 1,720,023 |               |   |          | 55,000         |   |   |             | 425,090 |   |              |           | 2,448,800 |       |   |           | 863,059    |  |  |            | 5,511,972 |  |  |            | 5,627,147 | 
|                                                                        | Subordinated notes                     |             |           | (222      | )             |   |          | (222           | ) |   |             | (443    | ) |              |           | 397,219   |       |   |           |           |  |  |            | 396,332   |  |  |            | 387,625   | 
|                                                                        |                                        |             |           |           |               |   |          |                |   |   |             |         |   |              |           |           |       |   |           |            | 
|Total interest-bearing liabilities                                      |                                        |             | 2,732,828 |           |               |   | 895,294  |                |   |   | 1,698,251   |         |   |              | 5,420,937 |           |       |   | 3,082,606 |            |  |  | 13,829,916 |           |  |  | 13,998,624 |          
|Interest sensitivity gap                                                |                                        |             | (88,232   | )         |               |   | (117,991 | )              |   |   | (249,769    | )       |   |              | 2,278,248 |           |       |   | (77,601   | )          |  |  |            |           |  |  |            |          
|                                                                        |                                        |             |           |           |               |   |          |                |   |   |             |         |   |              |           |           |       |   |           |            | 
|Cumulative interest sensitivity gap                                     |                                        | $           | (88,232   | )         |               | $ | (206,223 | )              |   | $ | (455,992    | )       |   | $            | 1,822,256 |           |       | $ | 1,744,655 |            |  |  |            |           |  |  |            |          
|                                                                        |                                        |             |           |           |               |   |          |                |   |   |             |         |   |              |           |           |       |   |           |            | 
|Cumulative interest sensitivity gap as a percentage of total
    assets |                                        |             | (0.50     | )%        |               |   | (1.16    | )%             |   |   | (2.57       | )%      |   |              | 10.26     | %         |       |   | 9.83      | %          |  |  |            |           |  |  |            |          
|                                                                        |                                        |             |           |           |               |   |          |                |   |   |             |         |   |              |           |           |       |   |           |            | 






|    |                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Based upon contractual maturity, repricing date, if applicable,
    and managements estimate of principal prepayments.
    Includes loans available-for-sale.                                                          
|   
|(2) | Based upon contractual maturity, repricing date, if applicable,
    and projected repayments of principal based upon experience.
    Amounts exclude the unrealized gains/(losses) on securities
    available-for-sale.
|   
|(3) | Includes interest-earning cash and due from banks, overnight
    deposits and FHLB stock.                                                                                                                               

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NPV Analysis.






|                                           |  |                       |           |                       |                 |   |          |              |  |  |       |   |  |                     |       |   |  |  |       |   
|------------------------------------------ |  | --------------------- | --------- | --------------------- | --------------- | - | -------- | ------------ |  |  | ----- | - |  | ------------------- | ----- | - |  |  | ----- | --
|                                           |  |                       |           | NPV as % of Portfolio |                
|                                           |  | Net Portfolio Value   |           |                       | Value of Assets |  
|                                           |  |                       |           |                       |                 |  
|Change (in Basis points) in Interest Rates |  | Amount                |           |                       | $ Change        |   |          | NPV % Change |  |  | Ratio |   |  | Change in NPV Ratio |      
|                                           | 
|                                           |  | (Dollars In Thousands |           |                       |                
|+200                                       |  | $                     | 1,735,269 |                       |                 | $ | (392,544 | )            |  |  | 18.45 | % |  |                     | 10.52 | % |  |  | (1.58 | )%
|0                                          |  |                       | 2,127,813 |                       |                 |   |         |              |  |  |      |   |  |                     | 12.10 |   |  |  |      |   
|-100                                       |  |                       | 2,306,512 |                       |                 |   | 178,699  |              |  |  | 8.40  |   |  |                     | 12.78 |   |  |  | 0.68  |   







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|        |                                            
|------- | -------------------------------------------
|ITEM 8. | Financial Statements and Supplementary Data

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors and Shareholders


Independence Community Bank Corp.














| |                       
| | ----------------------
| | /s/ Ernst & Young, LLP
| |                       
| | Ernst & Young, LLP    





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Report of Independent Registered Public Accounting Firm on


Internal Control Over Financial Reporting


The Board of Directors and Shareholders Independence
Community Bank Corp.












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| |                       
| | ----------------------
| | /s/ Ernst & Young, LLP
| |                       
| | Ernst & Young, LLP    





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Managements Report on Internal Control Over Financial
Reporting








| |   |                                                                                                                                                                                                                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Pertain to the maintenance of records that, in reasonable
    detail, accurately and fairly reflect the transactions and
    dispositions of the assets of the company;                                                                                                                                                                                                     
|
| |  | Provide reasonable assurance that transactions are recorded as
    necessary to permit preparation of financial statements in
    accordance with generally accepted accounting principles, and
    that receipts and expenditures of the company are being made
    only in accordance with authorizations of management and the
    board of directors of the company; and
|
| |  | Provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use, or disposition of
    the Companys assets that could have a material effect on
    the financial statements.                                                                                                                                                   









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INDEPENDENCE COMMUNITY BANK CORP.


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |            |           |           |           |           | 
|---------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------- | ------------------------------------------ | --------- | ---------- | ---------- | --------- | --------- | --------- | --------- | 
|                                               |                                                                                                                                                                                                                                          | December 31,                                                                |                                           
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                           
|(In Thousands, Except Share Data)              |                                                                                                                                                                                                                                          | 2004                                                                        |                                            |           | 2003       |           
|                                               |                                                                                                                                                                                                                                         
|ASSETS:                                        |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |            |           |          
|Cash and due from banks  interest-bearing     |                                                                                                                                                                                                                                          | $                                                                           | 84,532                                     |           |            | $          | 43,950    |          
|Cash and due from banks  non-interest-bearing |                                                                                                                                                                                                                                          |                                                                             | 276,345                                    |           |            |            | 128,078   |          
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|                                               |                                                                                                                                                                                                                                          |                                                                             | Total cash and cash equivalents            |           |            | 360,877    |           |           |           | 172,028   | 
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|Securities available-for-sale:                 |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |            |           |          
|                                               | Investment securities ($25,764 and $14,593 pledged to creditors,
    respectively)                                                                                                                                                       |                                                                             |                                            | 454,305   |            |            |           | 296,945   |          
|                                               | Mortgage-related securities ($2,927,519 and $1,872,549 pledged
    to creditors, respectively)                                                                                                                                           |                                                                             |                                            | 3,479,482 |            |            |           | 2,211,755 |          
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|                                               |                                                                                                                                                                                                                                          |                                                                             | Total securities available-for-sale        |           |            | 3,933,787  |           |           |           | 2,508,700 | 
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|Loans available-for-sale                       |                                                                                                                                                                                                                                          |                                                                             | 96,671                                     |           |            |            | 5,922     |          
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|Mortgage loans on real estate                  |                                                                                                                                                                                                                                          |                                                                             | 9,315,090                                  |           |            |            | 4,714,388 |          
|Other loans                                    |                                                                                                                                                                                                                                          |                                                                             | 1,933,502                                  |           |            |            | 1,457,843 |          
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|                                               |                                                                                                                                                                                                                                          | Total loans                                                                 |                                            |           | 11,248,592 |            |           |           | 6,172,231 |          
|                                               |                                                                                                                                                                                                                                          | Less: allowance for loan losses                                             |                                            |           | (101,435   | )          |           |           | (79,503   | )        
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|                                               |                                                                                                                                                                                                                                          | Total loans, net                                                            |                                            |           | 11,147,157 |            |           |           | 6,092,728 |          
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|Premises, furniture and equipment, net         |                                                                                                                                                                                                                                          |                                                                             | 162,687                                    |           |            |            | 101,383   |          
|Accrued interest receivable                    |                                                                                                                                                                                                                                          |                                                                             | 64,437                                     |           |            |            | 37,046    |          
|Goodwill                                       |                                                                                                                                                                                                                                          |                                                                             | 1,155,572                                  |           |            |            | 185,161   |          
|Identifiable intangible assets, net            |                                                                                                                                                                                                                                          |                                                                             | 79,056                                     |           |            |            | 190       |          
|Bank owned life insurance (BOLI)             |                                                                                                                                                                                                                                          |                                                                             | 321,040                                    |           |            |            | 175,800   |          
|Other assets                                   |                                                                                                                                                                                                                                          |                                                                             | 432,146                                    |           |            |            | 267,649   |          
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|                                               |                                                                                                                                                                                                                                          |                                                                             | Total assets                               |           | $          | 17,753,430 |           |           | $         | 9,546,607 | 
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|LIABILITIES AND STOCKHOLDERS EQUITY:          |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |            |           |          
|Deposits:                                      |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |            |           |          
|                                               | Savings deposits                                                                                                                                                                                                                         |                                                                             | $                                          | 2,630,416 |            |            | $         | 1,613,161 |          
|                                               | Money market deposits                                                                                                                                                                                                                    |                                                                             |                                            | 752,310   |            |            |           | 401,024   |          
|                                               | Active management accounts (AMA) deposits                                                                                                                                                                                              |                                                                             |                                            | 948,977   |            |            |           | 475,647   |          
|                                               | Interest-bearing demand deposits                                                                                                                                                                                                         |                                                                             |                                            | 1,214,190 |            |            |           | 694,102   |          
|                                               | Non-interest-bearing demand deposits                                                                                                                                                                                                     |                                                                             |                                            | 1,487,756 |            |            |           | 741,261   |          
|                                               | Certificates of deposit                                                                                                                                                                                                                  |                                                                             |                                            | 2,271,415 |            |            |           | 1,378,902 |          
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|                                               |                                                                                                                                                                                                                                          |                                                                             | Total deposits                             |           |            | 9,305,064  |           |           |           | 5,304,097 | 
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|Borrowings                                     |                                                                                                                                                                                                                                          |                                                                             | 5,511,972                                  |           |            |            | 2,916,300 |          
|Subordinated notes                             |                                                                                                                                                                                                                                          |                                                                             | 396,332                                    |           |            |            | 148,429   |          
|Escrow and other deposits                      |                                                                                                                                                                                                                                          |                                                                             | 104,304                                    |           |            |            | 76,260    |          
|Accrued expenses and other liabilities         |                                                                                                                                                                                                                                          |                                                                             | 131,715                                    |           |            |            | 110,410   |          
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|                                               |                                                                                                                                                                                                                                          |                                                                             | Total liabilities                          |           |            | 15,449,387 |           |           |           | 8,555,496 | 
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|Stockholders equity:                          |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |            |           |          
|                                               | Common stock, $.01 par value: 250,000,000 and 125,000,000 shares
    authorized, 104,243,820 and 76,043,750 shares issued; 84,928,719
    and 54,475,715 shares outstanding at December 31, 2004 and
    December 31, 2003, respectively |                                                                             |                                            | 1,042     |            |            |           | 760       |          
|                                               | Additional paid-in-capital                                                                                                                                                                                                               |                                                                             |                                            | 1,900,252 |            |            |           | 761,880   |          
|                                               | Treasury stock at cost: 19,315,101 and 21,568,035 shares at
    December 31, 2004 and December 31, 2003, respectively                                                                                                                    |                                                                             |                                            | (341,226  | )          |            |           | (380,088  | )        
|                                               | Unallocated common stock held by ESOP                                                                                                                                                                                                    |                                                                             |                                            | (64,267   | )          |            |           | (69,211   | )        
|                                               | Unvested restricted stock awards under stock benefit plans                                                                                                                                                                               |                                                                             |                                            | (9,701    | )          |            |           | (7,598    | )        
|                                               | Retained earnings, partially restricted                                                                                                                                                                                                  |                                                                             |                                            | 821,702   |            |            |           | 678,353   |          
|                                               | Accumulated other comprehensive income:                                                                                                                                                                                                  |                                                                             |                                            |           |            |            |           |           |          
|                                               |                                                                                                                                                                                                                                          | Net unrealized (loss) gain on securities
    available-for-sale, net of tax |                                            |           | (3,759     | )          |           |           | 7,015     |          
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|                                               |                                                                                                                                                                                                                                          |                                                                             | Total stockholders equity                 |           |            | 2,304,043  |           |           |           | 991,111   | 
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           
|                                               |                                                                                                                                                                                                                                          |                                                                             | Total liabilities and stockholders equity |           | $          | 17,753,430 |           |           | $         | 9,546,607 | 
|                                               |                                                                                                                                                                                                                                          |                                                                             |                                            |           |            |           

See accompanying notes to consolidated financial
statements.


80



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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


CONSOLIDATED STATEMENTS OF OPERATIONS


|                                         |                                                |                                                     |                            |         |         |         |         |         |         |         |         |         |         |         | 
|---------------------------------------- | ---------------------------------------------- | --------------------------------------------------- | -------------------------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | 
|                                         |                                                | For the Year Ended December 31,                     |                           
|                                         |                                                |                                                     |                           
|(In Thousands, Except Per Share Amounts) |                                                | 2004                                                |                            |         | 2003    |         |         | 2002    |        
|                                         |                                               
|Interest income:                         |                                                |                                                     |                            |         |         |         |         |         |         |         |         |        
|                                         | Mortgage loans on real estate                  |                                                     | $                          | 426,942 |         |         | $       | 271,805 |         |         | $       | 332,332 |        
|                                         | Other loans                                    |                                                     |                            | 95,170  |         |         |         | 81,674  |         |         |         | 79,800  |        
|                                         | Loans available-for-sale                       |                                                     |                            | 6,906   |         |         |         | 4,774   |         |         |         | 1,822   |        
|                                         | Investment securities                          |                                                     |                            | 22,578  |         |         |         | 13,296  |         |         |         | 8,157   |        
|                                         | Mortgage-related securities                    |                                                     |                            | 132,809 |         |         |         | 62,918  |         |         |         | 57,151  |        
|                                         | Other                                          |                                                     |                            | 5,003   |         |         |         | 5,653   |         |         |         | 6,241   |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|                                         |                                                | Total interest income                               |                            |         | 689,408 |         |         |         | 440,120 |         |         |         | 485,503 |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|Interest expense:                        |                                                |                                                     |                            |         |         |         |         |         |         |         |         |        
|                                         | Deposits                                       |                                                     |                            | 71,848  |         |         |         | 53,257  |         |         |         | 81,637  |        
|                                         | Borrowings                                     |                                                     |                            | 128,788 |         |         |         | 91,089  |         |         |         | 93,418  |        
|                                         | Subordinated notes                             |                                                     |                            | 13,279  |         |         |         | 3,029   |         |         |         |        |        
|                                         | Trust preferred securities                     |                                                     |                            |        |         |         |         |        |         |         |         | 524     |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|                                         |                                                | Total interest expense                              |                            |         | 213,915 |         |         |         | 147,375 |         |         |         | 175,579 |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|                                         |                                                | Net interest income                                 |                            |         | 475,493 |         |         |         | 292,745 |         |         |         | 309,924 |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|Provision for loan losses                |                                                |                                                     | 2,000                      |         |         |         | 3,500   |         |         |         | 8,000   |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|                                         |                                                | Net interest income after provision for loan losses |                            |         | 473,493 |         |         |         | 289,245 |         |         |         | 301,924 |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|Non-interest income:                     |                                                |                                                     |                            |         |         |         |         |         |         |         |         |        
|                                         | Net (loss)/gain on securities                  |                                                     |                            | (8,816  | )       |         |         | 476     |         |         |         | 412     |        
|                                         | Net gain on sales of loans                     |                                                     |                            | 281     |         |         |         | 289     |         |         |         | 145     |        
|                                         | Mortgage-banking activities                    |                                                     |                            | 29,613  |         |         |         | 25,407  |         |         |         | 13,759  |        
|                                         | Service fees                                   |                                                     |                            | 66,619  |         |         |         | 69,270  |         |         |         | 50,476  |        
|                                         | BOLI                                           |                                                     |                            | 14,616  |         |         |         | 8,833   |         |         |         | 6,294   |        
|                                         | Other                                          |                                                     |                            | 19,196  |         |         |         | 8,464   |         |         |         | 4,032   |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|                                         |                                                | Total non-interest income                           |                            |         | 121,509 |         |         |         | 112,739 |         |         |         | 75,118  |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|Non-interest expense:                    |                                                |                                                     |                            |         |         |         |         |         |         |         |         |        
|                                         | Compensation and employee benefits             |                                                     |                            | 134,924 |         |         |         | 100,262 |         |         |         | 96,298  |        
|                                         | Occupancy costs                                |                                                     |                            | 43,679  |         |         |         | 26,547  |         |         |         | 22,839  |        
|                                         | Data processing fees                           |                                                     |                            | 16,236  |         |         |         | 10,029  |         |         |         | 8,951   |        
|                                         | Advertising                                    |                                                     |                            | 9,140   |         |         |         | 7,845   |         |         |         | 6,194   |        
|                                         | Other                                          |                                                     |                            | 58,828  |         |         |         | 42,265  |         |         |         | 43,802  |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|                                         |                                                | Total general and administrative expense            |                            |         | 262,807 |         |         |         | 186,948 |         |         |         | 178,084 |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|                                         | Amortization of identifiable intangible assets |                                                     |                            | 8,268   |         |         |         | 1,855   |         |         |         | 6,971   |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|                                         |                                                |                                                     | Total non-interest expense |         |         | 271,075 |         |         |         | 188,803 |         |         |         | 185,055 | 
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|Income before provision for income taxes |                                                |                                                     | 323,927                    |         |         |         | 213,181 |         |         |         | 191,987 |        
|Provision for income taxes               |                                                |                                                     | 111,755                    |         |         |         | 76,211  |         |         |         | 69,585  |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|Net income                               |                                                | $                                                   | 212,172                    |         |         | $       | 136,970 |         |         | $       | 122,402 |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|Basic earnings per share                 |                                                | $                                                   | 2.96                       |         |         | $       | 2.74    |         |         | $       | 2.37    |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        
|Diluted earnings per share               |                                                | $                                                   | 2.84                       |         |         | $       | 2.60    |         |         | $       | 2.24    |        
|                                         |                                                |                                                     |                            |         |         |         |         |         |        

See accompanying notes to consolidated financial
statements.


81



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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS
EQUITY


|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |         |   |   |         |        |        |   |           |         |        |  
|------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | ----- | ----------- | -------- | - | ------------ | -------- | ------ | - | ---------- | ----------- | - | ----------- | ------- | - | -------- | - | ------- | ------------- | - | - | ------- | ------- | - | - | ------- | ------ | ------ | - | --------- | ------- | ------ | -
|                                                                                                                   |                                                                                                                                                | Years Ended December 31, 2004, 2003 and 2002                                                               |      
|                                                                                                                   |                                                                                                                                                |                                                                                                            |      
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       | Unearned    |          |   |             
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       | Unallocated |          |   | Common Stock |          |        |   |            | Accumulated |   |             |        
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       | Additional  |          |   |              |          | Common |   |            | Held by     |   |             |         |   | Other    |   |         |              
|                                                                                                                   |                                                                                                                                                | Common                                                                                                     |       |             | Paid-in- |   |              | Treasury |        |   | Stock Held |             |   | Recognition |         |   | Retained |   |         | Comprehensive |   |   |        
|(In Thousands, Except Share Data)                                                                                  |                                                                                                                                                | Stock                                                                                                      |       |             | Capital  |   |              | Stock    |        |   | by ESOP    |             |   | Plan        |         |   | Earnings |   |         | Income/(Loss) |   |   | Total   |        
|                                                                                                                   |                                                                                                                                               
|Balance  December 31, 2001                                                                                        |                                                                                                                                                | $                                                                                                          | 760   |             |          | $ | 734,773      |          |        | $ | (247,184   | )           |   | $           | (79,098 | ) |          | $ | (17,641 | )             |   | $ | 480,074 |         |   | $ | 8,849   |        |        | $ | 880,533   |        
|Comprehensive income:                                                                                              |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |         |   |   |         |        |        |   |           |        
|                                                                                                                   | Net income for the year ended December 31, 2002                                                                                                |                                                                                                            |       |            |          |   |              |         |        |   |            |            |   |             |         |  |          |   |         |              |   |   |         | 122,402 |   |   |         |       |        |   |           | 122,402 |       
|                                                                                                                   | Other comprehensive income, net of tax of $5.4 million
    Change in net unrealized losses on cash flow hedges, net of tax
    of $1.1 million |                                                                                                            |       |            |          |   |              |         |        |   |            |            |   |             |         |  |          |   |         |              |   |   |         |        |   |   |         | (1,871 | )      |   |           | (1,871  | )     
|                                                                                                                   |                                                                                                                                                | Change in net unrealized gains on securities available-for-sale,
    net of tax of $0.7 million            |       |             |         |   |              |          |       |   |            |             |  |             |         |   |         |   |         |               |  |   |         |         |  |   |         |        | (1,212 | ) |           |         | (1,212 | )
|                                                                                                                   |                                                                                                                                                | Less: reclassification adjustment of net gains realized in net
    income, net of tax of $0.1 million      |       |             |         |   |              |          |       |   |            |             |  |             |         |   |         |   |         |               |  |   |         |         |  |   |         |        | (73    | ) |           |         | (73    | )
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |        
|Comprehensive income                                                                                               |                                                                                                                                                |                                                                                                            |      |             |          |   |             |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   | 122,402 |         |   |   | (3,156  | )      |        |   | 119,246   |        
|Repurchase of common stock (3,538,650 shares)                                                                      |                                                                                                                                                |                                                                                                            |      |             |          |   |             |          |        |   | (92,147    | )           |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | (92,147   | )      
|Valuation adjustment for deferred income tax benefit                                                               |                                                                                                                                                |                                                                                                            |      |             |          |   | (1,038       | )        |        |   |           |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | (1,038    | )      
|Treasury stock issued for options exercised, director fees and
    Meridian Capital (1,414,988 shares)             |                                                                                                                                                |                                                                                                            |      |             |          |   | 1,488        |          |        |   | 21,149     |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 22,637    |        
|Dividends declared                                                                                                 |                                                                                                                                                |                                                                                                            |      |             |          |   |             |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   | (26,549 | )       |   |   |        |        |        |   | (26,549   | )      
|Accelerated vesting of options                                                                                     |                                                                                                                                                |                                                                                                            |      |             |          |   | 115          |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 115       |        
|ESOP shares committed to be released                                                                               |                                                                                                                                                |                                                                                                            |      |             |          |   | 2,840        |          |        |   |           |             |   |             | 4,944   |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 7,784     |        
|Issuance of grants and amortization of earned portion of
    restricted stock awards                               |                                                                                                                                                |                                                                                                            |      |             |          |   | 3,828        |          |        |   |           |             |   |             |        |   |          |   | 5,859   |               |   |   |        |         |   |   |        |        |        |   | 9,687     |        
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |        
|Balance  December 31, 2002                                                                                        |                                                                                                                                                |                                                                                                            | 760   |             |          |   | 742,006      |          |        |   | (318,182   | )           |   |             | (74,154 | ) |          |   | (11,782 | )             |   |   | 575,927 |         |   |   | 5,693   |        |        |   | 920,268   |        
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |        
|Comprehensive income:                                                                                              |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |         |   |   |         |        |        |   |           |        
|                                                                                                                   | Net income for the year ended December 31, 2003                                                                                                |                                                                                                            |       |            |          |   |              |         |        |   |            |            |   |             |         |  |          |   |         |              |   |   |         | 136,970 |   |   |         |       |        |   |           | 136,970 |       
|                                                                                                                   | Other comprehensive income, net of tax of $3.9 million
    Change in net unrealized losses on cash flow hedges, net of tax
    of $1.1 million |                                                                                                            |       |            |          |   |              |         |        |   |            |            |   |             |         |  |          |   |         |              |   |   |         |        |   |   |         | 4,094  |        |   |           | 4,094   |       
|                                                                                                                   |                                                                                                                                                | Less: reclassification adjustment of net loss realized on cash
    flow hedges, net of tax of $1.2 million |       |             |         |   |              |          |       |   |            |             |  |             |         |   |         |   |         |               |  |   |         |         |  |   |         |        | (2,223 | ) |           |         | (2,223 | )
|                                                                                                                   |                                                                                                                                                | Change in net unrealized gains on securities available-for-sale,
    net of tax of $0.3 million            |       |             |         |   |              |          |       |   |            |             |  |             |         |   |         |   |         |               |  |   |         |         |  |   |         |        | (549   | ) |           |         | (549   | )
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |        
|Comprehensive income                                                                                               |                                                                                                                                                |                                                                                                            |      |             |          |   |             |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   | 136,970 |         |   |   | 1,322   |        |        |   | 138,292   |        
|Repurchase of common stock (2,765,900 shares)                                                                      |                                                                                                                                                |                                                                                                            |      |             |          |   |             |          |        |   | (78,068    | )           |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | (78,068   | )      
|Valuation adjustment for deferred income tax benefit                                                               |                                                                                                                                                |                                                                                                            |      |             |          |   | (3,070       | )        |        |   |           |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | (3,070    | )      
|Treasury stock issued for options exercised (and related tax
    benefit) and for director fees (992,717 shares)   |                                                                                                                                                |                                                                                                            |      |             |          |   | 14,360       |          |        |   | 16,162     |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 30,522    |        
|Dividends declared                                                                                                 |                                                                                                                                                |                                                                                                            |      |             |          |   |             |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   | (34,544 | )       |   |   |        |        |        |   | (34,544   | )      
|Accelerated vesting of options                                                                                     |                                                                                                                                                |                                                                                                            |      |             |          |   | 185          |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 185       |        
|Stock compensation expense                                                                                         |                                                                                                                                                |                                                                                                            |      |             |          |   | 153          |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 153       |        
|ESOP shares committed to be released                                                                               |                                                                                                                                                |                                                                                                            |      |             |          |   | 3,674        |          |        |   |           |             |   |             | 4,943   |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 8,617     |        
|Issuance of grants and amortization of earned portion of
    restricted stock awards                               |                                                                                                                                                |                                                                                                            |      |             |          |   | 4,572        |          |        |   |           |             |   |             |        |   |          |   | 4,184   |               |   |   |        |         |   |   |        |        |        |   | 8,756     |        
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |        
|Balance  December 31, 2003                                                                                        |                                                                                                                                                |                                                                                                            | 760   |             |          |   | 761,880      |          |        |   | (380,088   | )           |   |             | (69,211 | ) |          |   | (7,598  | )             |   |   | 678,353 |         |   |   | 7,015   |        |        |   | 991,111   |        
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |        
|Comprehensive income:                                                                                              |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |         |   |   |         |        |        |   |           |        
|                                                                                                                   | Net income for the year ended December 31, 2004                                                                                                |                                                                                                            |       |            |          |   |              |         |        |   |            |            |   |             |         |  |          |   |         |              |   |   |         | 212,172 |   |   |         |       |        |   |           | 212,172 |       
|                                                                                                                   | Other comprehensive income, net of tax benefit of
    $2.5 million                                                                             |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |         |   |   |         |        |        |   |           |         |       
|                                                                                                                   |                                                                                                                                                | Change in net unrealized gains on securities available-for-sale,
    net of tax of $3.5 million            |       |             |         |   |              |          |       |   |            |             |  |             |         |   |         |   |         |               |  |   |         |         |  |   |         |        | (6,736 | ) |           |         | (6,736 | )
|                                                                                                                   |                                                                                                                                                | Less: reclassification adjustment of net gain realized in net
    income, net of tax of $2.6 million       |       |             |         |   |              |          |       |   |            |             |  |             |         |   |         |   |         |               |  |   |         |         |  |   |         |        | (4,038 | ) |           |         | (4,038 | )
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |        
|Comprehensive income                                                                                               |                                                                                                                                                |                                                                                                            |      |             |          |   |             |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   | 212,172 |         |   |   | (10,774 | )      |        |   | 201,398   |        
|Treasury stock issued for options exercised (and related tax
    benefit) and for director fees (2,252,934 shares) |                                                                                                                                                |                                                                                                            |      |             |          |   | 18,750       |          |        |   | 38,862     |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 57,612    |        
|Common stock issued in connection with Staten Island Bancorp,
    Inc. acquisition (28,200,070 shares)             |                                                                                                                                                |                                                                                                            | 282   |             |          |   | 1,106,853    |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 1,107,135 |        
|Dividends declared                                                                                                 |                                                                                                                                                |                                                                                                            |      |             |          |   |             |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   | (68,823 | )       |   |   |        |        |        |   | (68,823   | )      
|Stock compensation expense                                                                                         |                                                                                                                                                |                                                                                                            |      |             |          |   | 1,699        |          |        |   |           |             |   |             |        |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 1,699     |        
|ESOP shares committed to be released                                                                               |                                                                                                                                                |                                                                                                            |      |             |          |   | 5,865        |          |        |   |           |             |   |             | 4,944   |   |          |   |        |               |   |   |        |         |   |   |        |        |        |   | 10,809    |        
|Issuance of grants and amortization of earned portion of
    restricted stock awards                               |                                                                                                                                                |                                                                                                            |      |             |          |   | 5,205        |          |        |   |           |             |   |             |        |   |          |   | (2,103  | )             |   |   |        |         |   |   |        |        |        |   | 3,102     |        
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |        
|Balance  December 31, 2004                                                                                        |                                                                                                                                                | $                                                                                                          | 1,042 |             |          | $ | 1,900,252    |          |        | $ | (341,226   | )           |   | $           | (64,267 | ) |          | $ | (9,701  | )             |   | $ | 821,702 |         |   | $ | (3,759  | )      |        | $ | 2,304,043 |        
|                                                                                                                   |                                                                                                                                                |                                                                                                            |       |             |          |   |              |          |        |   |            |             |   |             |         |   |          |   |         |               |   |   |         |        

See accompanying notes to consolidated financial
statements.


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INDEPENDENCE COMMUNITY BANK CORP.


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                  |  |                         |             |   |      |   |             |      |  |   |            |  
|--------------------------------------------------------------------------------- |  | ----------------------- | ----------- | - | ---- | - | ----------- | ---- |  | - | ---------- | -
|                                                                                  |  | Year Ended December 31, |            
|                                                                                  |  |                         |            
|(In Thousands)                                                                    |  | 2004                    |             |   | 2003 |   |             | 2002 | 
|                                                                                  | 
|Cash Flows from Operating Activities:                                             |  |                         |             |   |      |   |             |      |  |   |            |  
|Net income                                                                        |  | $                       | 212,172     |   |      | $ | 136,970     |      |  | $ | 122,402    |  
|Adjustments to reconcile net income to net cash                                   |  |                         |             |   |      |   |             |      |  |   |            |  
|Provided by operating activities:                                                 |  |                         |             |   |      |   |             |      |  |   |            |  
|Provision for loan losses                                                         |  |                         | 2,000       |   |      |   | 3,500       |      |  |   | 8,000      |  
|Net loss (gain) on securities                                                     |  |                         | 8,816       |   |      |   | (476        | )    |  |   | (412       | )
|Net gain on sale of loans                                                         |  |                         | (281        | ) |      |   | (289        | )    |  |   | (145       | )
|Originations of loans available-for-sale                                          |  |                         | (1,267,289  | ) |      |   | (1,798,108  | )    |  |   | (1,306,929 | )
|Proceeds on sales of loans available-for-sale                                     |  |                         | 2,442,121   |   |      |   | 1,919,941   |      |  |   | 1,211,761  |  
|Amortization of deferred income and premiums                                      |  |                         | (32,347     | ) |      |   | 19,107      |      |  |   | (1,444     | )
|Amortization of identifiable intangibles                                          |  |                         | 8,268       |   |      |   | 1,855       |      |  |   | 6,971      |  
|Amortization of earned portion of ESOP and restricted stock
    awards            |  |                         | 14,962      |   |      |   | 16,603      |      |  |   | 17,011     |  
|Depreciation and amortization                                                     |  |                         | 17,503      |   |      |   | 11,561      |      |  |   | 11,458     |  
|Deferred income tax (benefit) provision                                           |  |                         | (1,349      | ) |      |   | 10,678      |      |  |   | (24,443    | )
|(Increase) decrease in accrued interest receivable                                |  |                         | (3,379      | ) |      |   | (516        | )    |  |   | 906        |  
|Decrease (increase) in accounts receivable-securities
    transactions            |  |                         | 5,088       |   |      |   | (4,318      | )    |  |   | (1,943     | )
|Decrease in other accounts receivable                                             |  |                         | 355         |   |      |   | 2           |      |  |   | 7,394      |  
|Decrease in accrued expenses and other liabilities                                |  |                         | (7,466      | ) |      |   | (73,249     | )    |  |   | (27,472    | )
|Other, net                                                                        |  |                         | 2,783       |   |      |   | (18,885     | )    |  |   | (19,266    | )
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Net cash provided by operating activities                                         |  |                         | 1,401,957   |   |      |   | 224,376     |      |  |   | 3,849      |  
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Cash Flow from Investing Activities:                                              |  |                         |             |   |      |   |             |      |  |   |            |  
|Loan originations and purchases                                                   |  |                         | (4,643,114  | ) |      |   | (2,402,462  | )    |  |   | (1,402,892 | )
|Principal payments on loans                                                       |  |                         | 2,300,128   |   |      |   | 1,802,535   |      |  |   | 1,429,732  |  
|Proceeds from sale of loans from portfolio                                        |  |                         |            |   |      |   |            |      |  |   | 257,559    |  
|Advances on mortgage warehouse lines of credit                                    |  |                         | (10,187,771 | ) |      |   | (10,291,152 | )    |  |   | (7,016,355 | )
|Repayments on mortgage warehouse lines of credit                                  |  |                         | 10,045,928  |   |      |   | 10,532,666  |      |  |   | 6,770,463  |  
|Proceeds from sale of securities available-for-sale                               |  |                         | 317,756     |   |      |   | 48,886      |      |  |   | 105,493    |  
|Proceeds from maturities of securities available-for-sale                         |  |                         | 316,389     |   |      |   | 101,457     |      |  |   | 37,717     |  
|Principal collected on securities available-for-sale                              |  |                         | 1,012,884   |   |      |   | 1,627,618   |      |  |   | 940,633    |  
|Purchases of securities available-for-sale                                        |  |                         | (1,026,512  | ) |      |   | (3,048,363  | )    |  |   | (1,325,231 | )
|Purchase of BOLI                                                                  |  |                         |            |   |      |   |            |      |  |   | (50,000    | )
|Redemption (purchase) of Federal Home Loan Bank stock                             |  |                         | 48,165      |   |      |   | (34,237     | )    |  |   | (16,143    | )
|Cash consideration paid to acquire Staten Island Bancorp,
    Inc.                |  |                         | (368,500    | ) |      |   |            |      |  |   |           |  
|Cash and cash equivalents acquired in Staten Island Bancorp,
    Inc. acquisition |  |                         | 669,614     |   |      |   |            |      |  |   |           |  
|Proceeds from sale of other real estate                                           |  |                         | 1,340       |   |      |   |            |      |  |   | 166        |  
|Net additions to premises, furniture and equipment                                |  |                         | (31,836     | ) |      |   | (27,548     | )    |  |   | (15,564    | )
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Net cash used in investing activities                                             |  |                         | (1,545,529  | ) |      |   | (1,690,600  | )    |  |   | (284,422   | )
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Cash Flows from Financing Activities:                                             |  |                         |             |   |      |   |             |      |  |   |            |  
|Net increase in demand and savings deposits                                       |  |                         | 451,960     |   |      |   | 574,387     |      |  |   | 409,670    |  
|Net decrease in time deposits                                                     |  |                         | (242,577    | ) |      |   | (210,350    | )    |  |   | (264,385   | )
|Net (decrease) increase in borrowings                                             |  |                         | (99,403     | ) |      |   | 984,750     |      |  |   | 248,762    |  
|Net increase in subordinated notes                                                |  |                         | 247,903     |   |      |   | 148,429     |      |  |   |           |  
|Net increase (decrease) in escrow and other deposits                              |  |                         | 5,684       |   |      |   | 41,686      |      |  |   | (3,787     | )
|Decrease in cumulative trust preferred securities                                 |  |                         |            |   |      |   |            |      |  |   | (11,067    | )
|Proceeds on exercise of stock options                                             |  |                         | 37,677      |   |      |   | 12,905      |      |  |   | 11,500     |  
|Repurchase of common stock                                                        |  |                         |            |   |      |   | (78,068     | )    |  |   | (92,147    | )
|Dividends paid                                                                    |  |                         | (68,823     | ) |      |   | (34,544     | )    |  |   | (26,549    | )
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Net cash provided by financing activities                                         |  |                         | 332,421     |   |      |   | 1,439,195   |      |  |   | 271,997    |  
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Net increase (decrease) in cash and cash equivalents                              |  |                         | 188,849     |   |      |   | (27,029     | )    |  |   | (8,576     | )
|Cash and cash equivalents at beginning of period                                  |  |                         | 172,028     |   |      |   | 199,057     |      |  |   | 207,633    |  
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Cash and cash equivalents at end of period                                        |  | $                       | 360,877     |   |      | $ | 172,028     |      |  | $ | 199,057    |  
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Supplemental Information                                                          |  |                         |             |   |      |   |             |      |  |   |            |  
|Income taxes paid                                                                 |  | $                       | 116,416     |   |      | $ | 53,875      |      |  | $ | 99,181     |  
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Interest paid                                                                     |  | $                       | 197,240     |   |      | $ | 150,923     |      |  | $ | 175,057    |  
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Income tax benefit realized from exercise of stock options                        |  | $                       | 16,551      |   |      | $ | 6,076       |      |  | $ | 4,652      |  
|                                                                                  |  |                         |             |   |      |   |             |      | 
|Non-Cash Investing Activities                                                     |  |                         |             |   |      |   |             |      |  |   |            |  
|Common stock issued in Staten Island Bancorp, Inc. acquisition                    |  | $                       | 1,107,135   |   |      | $ |            |      |  | $ |           |  
|                                                                                  |  |                         |             |   |      |   |             |      | 

See accompanying notes to consolidated financial
statements.


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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


December 31, 2004, 2003 and 2002




|   |                                
|-- | -------------------------------
|1. | Organization/ Form of Ownership















84



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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




2.     Acquisitions














85



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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                       |                                             |              |           |           | 
|---------------------- | ------------------------------------------- | ------------ | --------- | --------- | 
|                       |                                             | At April 12, |          
|(Dollars In Thousands) |                                             | 2004         |          
|                       |                                            
|ASSETS:                |                                             |              |           |          
|                       | Cash and due from banks                     |              | $         | 671,213   | 
|                       | Securities                                  |              |           | 2,089,962 | 
|                       | Loans, net of the allowance for loan losses |              |           | 3,893,452 | 
|                       | FHLB-NY stock                               |              |           | 110,150   | 
|                       | Fixed assets                                |              |           | 46,969    | 
|                       | Other assets                                |              |           | 231,559   | 
|                       | Core deposit intangible                     |              |           | 87,133    | 
|                       |                                             |              |          
|Total assets           |                                             | $            | 7,130,438 |          
|                       |                                             |              |          
|LIABILITIES:           |                                             |              |           |          
|                       | Deposits                                    |              | $         | 3,805,094 | 
|                       | Borrowings                                  |              |           | 2,733,603 | 
|                       | Other liabilities                           |              |           | 86,343    | 
|                       |                                             |              |          
|Total liabilities      |                                             |              | 6,625,040 |          
|                       |                                             |              |          
|Net assets acquired    |                                             | $            | 505,398   |          
|                       |                                             |              |          



3.     Summary of Significant
Accounting Policies






| |                                                          
| | ---------------------------------------------------------
| | Principles of Consolidation and Basis of
    Presentation





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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                              
| | -----------------------------
| | Securities Available-for-Sale





| |                                   
| | ----------------------------------
| | Loans and Loans Available-for-Sale











87



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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                          
| | -------------------------
| | Allowance for Loan Losses





| |                                            
| | -------------------------------------------
| | Loan Servicing Assets and Retained Recourse





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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                  
| | ---------------------------------
| | Premises, Furniture and Equipment



|                        |  |               
|----------------------- |  | --------------
|Buildings               |  | 10 to 30 years
|Furniture and equipment |  | 3 to 10 years 
|Automobiles             |  | 3 years       





| |                                            
| | -------------------------------------------
| | Goodwill and Identifiable Intangible Assets







| |                        
| | -----------------------
| | Other Real Estate Owned





| |                          
| | -------------------------
| | Bank Owned Life Insurance





| |                                 
| | --------------------------------
| | Derivative Financial Instruments





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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


















| |             
| | ------------
| | Income Taxes





| |                   
| | ------------------
| | Earnings Per Share



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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                  
| | -----------------
| | Employee Benefits













| |                     
| | --------------------
| | Comprehensive Income



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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                  
| | -----------------
| | Segment Reporting





| |               
| | --------------
| | Treasury Stock





| |                                      
| | -------------------------------------
| | Consolidated Statements of Cash Flows





| |                                        
| | ---------------------------------------
| | Impact of New Accounting Pronouncements





| |                                            
| | -------------------------------------------
| | Consolidation of Variable Interest Entities





| |                                                                                              
| | ---------------------------------------------------------------------------------------------
| | The Meaning of Other-Than-Temporary Impairment and its
    Application to Certain Investments



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | Accounting and Disclosure Requirements Related to the
    Medicare Prescription Drug, Improvement and Modernization Act of
    2003





| |                                                              
| | -------------------------------------------------------------
| | FASB Statement No. 123 (revised 2004)-Share-Based
    Payment









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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                             
| | ------------------------------------------------------------
| | Application of Accounting Principles to Loan
    Commitments



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                              
|-- | -----------------------------
|4. | Securities Available-for-Sale



|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |         |      |   |           |           |         | 
|----------------------------------- | ---------------------------------------- | ---------------------------- | --------- | --------- | ---------- | - | ------ | ---------- | ----- | --------- | ------- | ------- | ---- | - | --------- | --------- | ------- | 
|                                    |                                          | December 31, 2004            |          
|                                    |                                          |                              |          
|                                    |                                          |                              |           | Gross     |            |   | Gross  |            |       | Estimated |        
|                                    |                                          | Amortized                    |           |           | Unrealized |   |        | Unrealized |       |           | Fair    |        
|(In Thousands)                      |                                          | Cost                         |           |           | Gains      |   |        | Losses     |       |           | Value   |        
|                                    |                                         
|Investment securities:              |                                          |                              |           |           |            |   |        |            |       |           |         |         |      |   |           |          
|                                    | Debt securities:                         |                              |           |           |            |   |        |            |       |           |         |         |      |   |           |           |        
|                                    |                                          | U.S. Government and agencies |           | $         | 212,016    |   |        | $          | 1,002 |           |         | $       | (950 | ) |           | $         | 212,068 | 
|                                    |                                          | Corporate                    |           |           | 89,093     |   |        |            | 604   |           |         |         | (316 | ) |           |           | 89,381  | 
|                                    |                                          | Municipal                    |           |           | 4,630      |   |        |            | 236   |           |         |         |     |   |           |           | 4,866   | 
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |        
|                                    | Total debt securities                    |                              |           | 305,739   |            |   |        | 1,842      |       |           |         | (1,266  | )    |   |           | 306,315   |        
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |        
|                                    | Equity securities:                       |                              |           |           |            |   |        |            |       |           |         |         |      |   |           |           |        
|                                    |                                          | Preferred                    |           |           | 146,604    |   |        |            | 1,100 |           |         |         | (774 | ) |           |           | 146,930 | 
|                                    |                                          | Common                       |           |           | 486        |   |        |            | 583   |           |         |         | (9   | ) |           |           | 1,060   | 
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |        
|                                    | Total equity securities                  |                              |           | 147,090   |            |   |        | 1,683      |       |           |         | (783    | )    |   |           | 147,990   |        
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |        
|Total investment securities         |                                          |                              | 452,829   |           |            |   | 3,525  |            |       |           | (2,049  | )       |      |   | 454,305   |          
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |        
|Mortgage-related securities:        |                                          |                              |           |           |            |   |        |            |       |           |         |         |      |   |           |          
|                                    | Fannie Mae pass through certificates     |                              |           | 449,182   |            |   |        | 4,405      |       |           |         | (2,212  | )    |   |           | 451,375   |        
|                                    | GNMA pass through certificates           |                              |           | 7,259     |            |   |        | 330        |       |           |         | (26     | )    |   |           | 7,563     |        
|                                    | Freddie Mac pass through certificates    |                              |           | 973,750   |            |   |        | 5,070      |       |           |         | (585    | )    |   |           | 978,235   |        
|                                    | Collateralized mortgage obligation bonds |                              |           | 2,057,221 |            |   |        | 3,400      |       |           |         | (18,312 | )    |   |           | 2,042,309 |        
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |        
|Total mortgage-related securities   |                                          |                              | 3,487,412 |           |            |   | 13,205 |            |       |           | (21,135 | )       |      |   | 3,479,482 |          
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |        
|Total securities available-for-sale |                                          | $                            | 3,940,241 |           |            | $ | 16,730 |            |       | $         | (23,184 | )       |      | $ | 3,933,787 |          
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |        

|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |        |        |   |           |           |         | 
|----------------------------------- | ---------------------------------------- | ---------------------------- | --------- | --------- | ---------- | - | ------ | ---------- | ----- | --------- | ------- | ------ | ------ | - | --------- | --------- | ------- | 
|                                    |                                          | December 31, 2003            |          
|                                    |                                          |                              |          
|                                    |                                          |                              |           | Gross     |            |   | Gross  |            |       | Estimated |        
|                                    |                                          | Amortized                    |           |           | Unrealized |   |        | Unrealized |       |           | Fair    |       
|(In Thousands)                      |                                          | Cost                         |           |           | Gains      |   |        | Losses     |       |           | Value   |       
|                                    |                                         
|Investment securities:              |                                          |                              |           |           |            |   |        |            |       |           |         |        |        |   |           |          
|                                    | Debt securities:                         |                              |           |           |            |   |        |            |       |           |         |        |        |   |           |           |        
|                                    |                                          | U.S. Government and agencies |           | $         | 15,549     |   |        | $          | 37    |           |         | $      | (1     | ) |           | $         | 15,585  | 
|                                    |                                          | Corporate                    |           |           | 119,013    |   |        |            | 1,399 |           |         |        | (837   | ) |           |           | 119,575 | 
|                                    |                                          | Municipal                    |           |           | 4,282      |   |        |            | 308   |           |         |        |       |   |           |           | 4,590   | 
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |       
|                                    | Total debt securities                    |                              |           | 138,844   |            |   |        | 1,744      |       |           |         | (838   | )      |   |           | 139,750   |        
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |       
|                                    | Equity securities:                       |                              |           |           |            |   |        |            |       |           |         |        |        |   |           |           |        
|                                    |                                          | Preferred                    |           |           | 158,462    |   |        |            | 3,352 |           |         |        | (5,945 | ) |           |           | 155,869 | 
|                                    |                                          | Common                       |           |           | 386        |   |        |            | 940   |           |         |        |       |   |           |           | 1,326   | 
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |       
|                                    | Total equity securities                  |                              |           | 158,848   |            |   |        | 4,292      |       |           |         | (5,945 | )      |   |           | 157,195   |        
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |       
|Total investment securities         |                                          |                              | 297,692   |           |            |   | 6,036  |            |       |           | (6,783  | )      |        |   | 296,945   |          
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |       
|Mortgage-related securities:        |                                          |                              |           |           |            |   |        |            |       |           |         |        |        |   |           |          
|                                    | Fannie Mae pass through certificates     |                              |           | 142,956   |            |   |        | 3,221      |       |           |         |       |        |   |           | 146,177   |        
|                                    | GNMA pass through certificates           |                              |           | 8,981     |            |   |        | 675        |       |           |         | (1     | )      |   |           | 9,655     |        
|                                    | Freddie Mac pass through certificates    |                              |           | 5,140     |            |   |        | 273        |       |           |         | (2     | )      |   |           | 5,411     |        
|                                    | Collateralized mortgage obligation bonds |                              |           | 2,043,558 |            |   |        | 15,498     |       |           |         | (8,544 | )      |   |           | 2,050,512 |        
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |       
|Total mortgage-related securities   |                                          |                              | 2,200,635 |           |            |   | 19,667 |            |       |           | (8,547  | )      |        |   | 2,211,755 |          
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |       
|Total securities available-for-sale |                                          | $                            | 2,498,327 |           |            | $ | 25,703 |            |       | $         | (15,330 | )      |        | $ | 2,508,700 |          
|                                    |                                          |                              |           |           |            |   |        |            |       |           |         |       

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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |                         |                                          |        |       |                  |   |           |            |         |   |           |   |       |   |         |   |         | 
|----------------------------------- | ----------------------- | ---------------------------------------- | ------ | ----- | ---------------- | - | --------- | ---------- | ------- | - | --------- | - | ----- | - | ------- | - | ------- | 
|                                    |                         | At December 31, 2004                     |       
|                                    |                         |                                          |       
|                                    |                         | Under One Year                           |        |       | One Year or More |  
|                                    |                         |                                          |        |       |                  |  
|                                    |                         | Gross                                    |        |       | Estimated        |   |           | Gross      |         |   | Estimated |  
|                                    |                         | Unrealized                               |        |       | Fair             |   |           | Unrealized |         |   | Fair      |  
|(In Thousands)                      |                         | Losses                                   |        |       | Value            |   |           | Losses     |         |   | Value     |  
|                                    |                        
|Investment securities:              |                         |                                          |        |       |                  |   |           |            |         |   |           |   |       |   |         |  
|                                    | Debt securities:        |                                          |        |       |                  |   |           |            |         |   |           |   |       |   |         |   |        
|                                    |                         | U.S. Government and agencies             |        | $     | 950              |   |           | $          | 101,084 |   |           | $ |      |   |         | $ |        | 
|                                    |                         | Corporate                                |        |       | 316              |   |           |            | 33,357  |   |           |   |      |   |         |   |        | 
|                                    |                         |                                          |        |       |                  |   |           |            |         |   |           |  
|                                    | Total debt securities   |                                          |        | 1,266 |                  |   |           | 134,441    |         |   |           |  |       |   |         |  |        
|                                    |                         |                                          |        |       |                  |   |           |            |         |   |           |  
|                                    | Equity securities:      |                                          |        |       |                  |   |           |            |         |   |           |   |       |   |         |   |        
|                                    |                         | Preferred                                |        |       | 774              |   |           |            | 28,068  |   |           |   |      |   |         |   |        | 
|                                    |                         | Common                                   |        |       | 9                |   |           |            | 207     |   |           |   |      |   |         |   |        | 
|                                    |                         |                                          |        |       |                  |   |           |            |         |   |           |  
|                                    | Total equity securities |                                          |        | 783   |                  |   |           | 28,275     |         |   |           |  |       |   |         |  |        
|                                    |                         |                                          |        |       |                  |   |           |            |         |   |           |  
|Total investment securities         |                         |                                          | 2,049  |       |                  |   | 162,716   |            |         |   |          |   |       |   |        |  
|                                    |                         |                                          |        |       |                  |   |           |            |         |   |           |  
|Mortgage-related securities:        |                         |                                          |        |       |                  |   |           |            |         |   |           |   |       |   |         |  
|                                    |                         | Fannie Mae pass through certificates     |        |       | 2,212            |   |           |            | 208,790 |   |           |   |      |   |         |   |        | 
|                                    |                         | GNMA pass through certificates           |        |       | 26               |   |           |            | 2,337   |   |           |   |      |   |         |   |        | 
|                                    |                         | Freddie Mac pass through certificates    |        |       | 585              |   |           |            | 78,856  |   |           |   |      |   |         |   |        | 
|                                    |                         | Collateralized mortgage obligation bonds |        |       | 9,726            |   |           |            | 950,459 |   |           |   | 8,586 |   |         |   | 393,226 | 
|                                    |                         |                                          |        |       |                  |   |           |            |         |   |           |  
|Total mortgage-related securities   |                         |                                          | 12,549 |       |                  |   | 1,240,442 |            |         |   | 8,586     |   |       |   | 393,226 |  
|                                    |                         |                                          |        |       |                  |   |           |            |         |   |           |  
|Total securities available-for-sale |                         | $                                        | 14,598 |       |                  | $ | 1,403,158 |            |         | $ | 8,586     |   |       | $ | 393,226 |  
|                                    |                         |                                          |        |       |                  |   |           |            |         |   |           |  









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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                    |  |                         |         |  |      |   |        |      |  |   |         |  
|------------------- |  | ----------------------- | ------- |  | ---- | - | ------ | ---- |  | - | ------- | -
|                    |  | Year Ended December 31, |        
|                    |  |                         |        
|(In Thousands)      |  | 2004                    |         |  | 2003 |   |        | 2002 | 
|                    | 
|Proceeds from sales |  | $                       | 317,756 |  |      | $ | 48,886 |      |  | $ | 105,493 |  
|Gross gains         |  |                         | 6,242   |  |      |   | 476    |      |  |   | 656     |  
|Gross losses        |  |                         | 2,321   |  |      |   |       |      |  |   | (243    | )



|                             |  |                   |         |  |            |   |         | 
|---------------------------- |  | ----------------- | ------- |  | ---------- | - | ------- | 
|                             |  | December 31, 2004 |        
|                             |  |                   |        
|                             |  | Amortized         |         |  | Estimated  |  
|(In Thousands)               |  | Cost              |         |  | Fair Value |  
|                             | 
|One year or less             |  | $                 | 36,224  |  |            | $ | 36,163  | 
|One year through five years  |  |                   | 17,181  |  |            |   | 17,435  | 
|Five years through ten years |  |                   | 105,698 |  |            |   | 106,225 | 
|Over ten years               |  |                   | 146,636 |  |            |   | 146,492 | 
|                             |  |                   |         |  |            |  
|                             |  | $                 | 305,739 |  |            | $ | 306,315 | 
|                             |  |                   |         |  |            |  



|                             |  |                   |           |  |            |   |           | 
|---------------------------- |  | ----------------- | --------- |  | ---------- | - | --------- | 
|                             |  | December 31, 2004 |          
|                             |  |                   |          
|                             |  | Amortized         |           |  | Estimated  |  
|(In Thousands)               |  | Cost              |           |  | Fair Value |  
|                             | 
|One year or less             |  | $                 | 423,840   |  |            | $ | 422,715   | 
|One year through five years  |  |                   | 2,666,314 |  |            |   | 2,658,103 | 
|Five years through ten years |  |                   | 374,864   |  |            |   | 375,798   | 
|Over ten years               |  |                   | 22,394    |  |            |   | 22,866    | 
|                             |  |                   |           |  |            |  
|                             |  | $                 | 3,487,412 |  |            | $ | 3,479,482 | 
|                             |  |                   |           |  |            |  

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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


5.     Loans Available-for-Sale and
Loan Servicing Assets




|                               |                           |              |        |        |      |   |       |       | 
|------------------------------ | ------------------------- | ------------ | ------ | ------ | ---- | - | ----- | ----- | 
|                               |                           | December 31, |       
|                               |                           |              |       
|(In Thousands)                 |                           | 2004         |        |        | 2003 |  
|                               |                          
|Loans available-for-sale:      |                           |              |        |        |      |   |       |      
|                               | Single-family residential |              | $      | 74,121 |      |   | $     | 2,687 | 
|                               | Multi-family residential  |              |        | 22,550 |      |   |       | 3,235 | 
|                               |                           |              |        |        |      |  
|Total loans available-for-sale |                           | $            | 96,671 |        |      | $ | 5,922 |      
|                               |                           |              |        |        |      |  



| |                             
| | ----------------------------
| | Fannie Mae Loan Sale Program







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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|                               |                              |                         |        |         |      |   |       |        |   |   |       |        |  
|------------------------------ | ---------------------------- | ----------------------- | ------ | ------- | ---- | - | ----- | ------ | - | - | ----- | ------ | -
|                               |                              | Year Ended December 31, |       
|                               |                              |                         |       
|(In Thousands)                 |                              | 2004                    |        |         | 2003 |   |       | 2002   |  
|                               |                             
|Balance at beginning of period |                              | $                       | 7,772  |         |      | $ | 6,445 |        |   | $ | 4,273 |       
|                               | Acquired from SIB            |                         |        | 7,687   |      |   |       |       |   |   |       |       |  
|                               | Capitalized servicing asset  |                         |        | 13,555  |      |   |       | 7,307  |   |   |       | 5,544  |  
|                               | Reduction of servicing asset |                         |        | (10,914 | )    |   |       | (5,980 | ) |   |       | (3,372 | )
|                               |                              |                         |        |         |      |   |       |        |  
|Balance at end of period       |                              | $                       | 18,100 |         |      | $ | 7,772 |        |   | $ | 6,445 |       
|                               |                              |                         |        |         |      |   |       |        |  



| |                       
| | ----------------------
| | Fannie Mae DUS Program





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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Single-Family Loan Sale
Program








|                                                     |  |                         |         |   |      |   |        |      |  |   |        |  
|---------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                     |  | Year Ended December 31, |        
|                                                     |  |                         |        
|(In Thousands)                                       |  | 2004                    |         |   | 2003 |   |        | 2002 | 
|                                                     | 
|Origination fees                                     |  | $                       | 2,105   |   |      | $ | 9,046  |      |  | $ | 8,121  |  
|Servicing fees                                       |  |                         | 8,724   |   |      |   | 3,609  |      |  |   | 1,465  |  
|Gain on sales                                        |  |                         | 29,362  |   |      |   | 18,396 |      |  |   | 7,545  |  
|Change in fair value of loan commitments             |  |                         | (4,749  | ) |      |   | 3,261  |      |  |   | 1,133  |  
|Change in fair value of forward loan sale agreements |  |                         | 4,749   |   |      |   | (3,261 | )    |  |   | (1,133 | )
|Amortization of loan servicing asset                 |  |                         | (10,578 | ) |      |   | (5,644 | )    |  |   | (3,372 | )
|                                                     |  |                         |         |   |      |   |        |      | 
|Total mortgage-banking activity income               |  | $                       | 29,613  |   |      | $ | 25,407 |      |  | $ | 13,759 |  
|                                                     |  |                         |         |   |      |   |        |      | 



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |           
|-- | ----------
|6. | Loans, Net



|                                                |                                                     |              |            |           |      |   |           |           | 
|----------------------------------------------- | --------------------------------------------------- | ------------ | ---------- | --------- | ---- | - | --------- | --------- | 
|                                                |                                                     | December 31, |           
|                                                |                                                     |              |           
|(In Thousands)                                  |                                                     | 2004         |            |           | 2003 |  
|                                                |                                                    
|Mortgage loans:                                 |                                                     |              |            |           |      |   |           |          
|                                                | Single-family residential and cooperative apartment |              | $          | 2,490,062 |      |   | $         | 284,367   | 
|                                                | Multi-family residential                            |              |            | 3,800,649 |      |   |           | 2,821,706 | 
|                                                | Commercial real estate                              |              |            | 3,034,254 |      |   |           | 1,612,711 | 
|                                                |                                                     |              |            |           |      |  
|Total principal balance  mortgage loans        |                                                     |              | 9,324,965  |           |      |   | 4,718,784 |          
|Less net deferred fees                          |                                                     |              | 9,875      |           |      |   | 4,396     |          
|                                                |                                                     |              |            |           |      |  
|Total mortgage loans                            |                                                     |              | 9,315,090  |           |      |   | 4,714,388 |          
|Commercial business loans, net of deferred fees |                                                     |              | 809,392    |           |      |   | 606,204   |          
|Other loans:                                    |                                                     |              |            |           |      |   |           |          
|                                                | Mortgage warehouse lines of credit                  |              |            | 659,942   |      |   |           | 527,254   | 
|                                                | Home equity loans and lines of credit               |              |            | 416,351   |      |   |           | 296,986   | 
|                                                | Consumer and other loans                            |              |            | 47,817    |      |   |           | 27,538    | 
|                                                |                                                     |              |            |           |      |  
|Total principal balance  other loans           |                                                     |              | 1,124,110  |           |      |   | 851,778   |          
|Less unearned discounts and deferred fees       |                                                     |              |           |           |      |   | 139       |          
|                                                |                                                     |              |            |           |      |  
|Total other loans                               |                                                     |              | 1,124,110  |           |      |   | 851,639   |          
|Total loans                                     |                                                     |              | 11,248,592 |           |      |   | 6,172,231 |          
|                                                |                                                     |              |            |           |      |  
|Less allowance for loan losses                  |                                                     |              | 101,435    |           |      |   | 79,503    |          
|                                                |                                                     |              |            |           |      |  
|Loans, net                                      |                                                     | $            | 11,147,157 |           |      | $ | 6,092,728 |          
|                                                |                                                     |              |            |           |      |  





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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


















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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




7.     Allowance for Loan Losses




|                                  |  |                         |         |   |      |   |        |      |  |   |        |  
|--------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                  |  | Year Ended December 31, |        
|                                  |  |                         |        
|(In Thousands)                    |  | 2004                    |         |   | 2003 |   |        | 2002 | 
|                                  | 
|Allowance at beginning of period  |  | $                       | 79,503  |   |      | $ | 80,547 |      |  | $ | 78,239 |  
|Allowance of acquired institution |  |                         | 24,069  |   |      |   |       |      |  |   |       |  
|Provision charged to operations   |  |                         | 2,000   |   |      |   | 3,500  |      |  |   | 8,000  |  
|Net charge-offs                   |  |                         | (4,137  | ) |      |   | (4,544 | )    |  |   | (5,692 | )
|                                  |  |                         |         |   |      |   |        |      | 
|Allowance at end of period        |  | $                       | 101,435 |   |      | $ | 79,503 |      |  | $ | 80,547 |  
|                                  |  |                         |         |   |      |   |        |      | 



8.     Premises, Furniture and
Equipment




|                                               |  |              |         |  |      |   |         | 
|---------------------------------------------- |  | ------------ | ------- |  | ---- | - | ------- | 
|                                               |  | December 31, |        
|                                               |  |              |        
|(In Thousands)                                 |  | 2004         |         |  | 2003 |  
|                                               | 
|Land                                           |  | $            | 14,164  |  |      | $ | 8,094   | 
|Buildings and improvements                     |  |              | 108,697 |  |      |   | 77,638  | 
|Leasehold improvements                         |  |              | 43,840  |  |      |   | 21,859  | 
|Furniture and equipment                        |  |              | 60,890  |  |      |   | 68,518  | 
|                                               |  |              |         |  |      |  
|                                               |  |              | 227,591 |  |      |   | 176,109 | 
|Less accumulated depreciation and amortization |  |              | 64,904  |  |      |   | 74,726  | 
|                                               |  |              |         |  |      |  
|Total premises, furniture and equipment        |  | $            | 162,687 |  |      | $ | 101,383 | 
|                                               |  |              |         |  |      |  



9.     Goodwill and Identifiable
Intangible Assets






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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                             |                     |                      |   |        |                      |  |     |          |  |       |          |        |  |              |     |        |          |  |   |        |  |  |   |     | 
|---------------------------- | ------------------- | -------------------- | - | ------ | -------------------- |  | --- | -------- |  | ----- | -------- | ------ |  | ------------ | --- | ------ | -------- |  | - | ------ |  |  | - | --- | 
|                             |                     | At December 31, 2004 |   |        | At December 31, 2003 | 
|                             |                     |                      |   |        |                      | 
|                             |                     | Gross                |   |        |                      |  | Net |          |  | Gross |          |        |  |              | Net |       
|                             |                     | Carrying             |   |        | Accumulated          |  |     | Carrying |  |       | Carrying |        |  | Accumulated  |     |        | Carrying | 
|(Dollars in Thousands)       |                     | Amount               |   |        | Amortization         |  |     | Amount   |  |       | Amount   |        |  | Amortization |     |        | Amount   | 
|                             |                    
|Amortized intangible assets: |                     |                      |   |        |                      |  |     |          |  |       |          |        |  |              |     |        |          |  |   |        |  |  |   |    
|                             | Deposit intangibles |                      | $ | 91,129 |                      |  | $   | 12,073   |  |       | $        | 79,056 |  |              | $   | 47,559 |          |  | $ | 47,369 |  |  | $ | 190 | 
|                             |                     |                      |   |        |                      |  |     |          |  |       |          |        |  |              |     |        |          | 



|                    |  |   |        | 
|------------------- |  | - | ------ | 
|2005                |  | $ | 11,379 | 
|2006                |  |   | 10,496 | 
|2007                |  |   | 9,612  | 
|2008                |  |   | 8,728  | 
|2009                |  |   | 7,844  | 
|2010 and thereafter |  |   | 30,997 | 



10.     Other Assets




|                                             |  |              |         |  |      |   |         | 
|-------------------------------------------- |  | ------------ | ------- |  | ---- | - | ------- | 
|                                             |  | December 31, |        
|                                             |  |              |        
|(In Thousands)                               |  | 2004         |         |  | 2003 |  
|                                             | 
|FHLB stock                                   |  | $            | 197,900 |  |      | $ | 135,815 | 
|Net deferred tax asset                       |  |              | 78,844  |  |      |   | 55,735  | 
|Loan servicing assets                        |  |              | 18,100  |  |      |   | 7,772   | 
|Equity investment in mortgage brokerage firm |  |              | 29,183  |  |      |   | 23,931  | 
|Prepaid expenses                             |  |              | 24,234  |  |      |   | 17,892  | 
|Other real estate                            |  |              | 2,512   |  |      |   | 15      | 
|Accounts receivable                          |  |              | 49,199  |  |      |   | 9,810   | 
|Other                                        |  |              | 32,174  |  |      |   | 16,679  | 
|                                             |  |              |         |  |      |  
|Total other assets                           |  | $            | 432,146 |  |      | $ | 267,649 | 
|                                             |  |              |         |  |      |  



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|    |         
|--- | --------
|11. | Deposits



|                            |                     |              |           |           |         |  |      |           |          |   |           |           |  |  |      |      | 
|--------------------------- | ------------------- | ------------ | --------- | --------- | ------- |  | ---- | --------- | -------- | - | --------- | --------- |  |  | ---- | ---- | 
|                            |                     | December 31, |          
|                            |                     |              |          
|                            |                     | 2004         |           |           | 2003    | 
|                            |                     |              |           |           |         | 
|                            |                     |              |           | Weighted  |         |  |      |           | Weighted |  
|                            |                     | Deposit      |           |           | Average |  |      | Deposit   |          |   | Average   |          
|(Dollars in Thousands)      |                     | Liability    |           |           | Rate    |  |      | Liability |          |   | Rate      |          
|                            |                    
|Savings                     |                     | $            | 2,630,416 |           |         |  | 0.38 | %         |          | $ | 1,613,161 |           |  |  | 0.33 | %   
|Money market                |                     |              | 752,310   |           |         |  | 1.59 |           |          |   | 401,024   |           |  |  | 1.29 |     
|Active management accounts  |                     |              | 948,977   |           |         |  | 1.43 |           |          |   | 475,647   |           |  |  | 0.79 |     
|Interest-bearing demand     |                     |              | 1,214,190 |           |         |  | 1.35 |           |          |   | 694,102   |           |  |  | 0.83 |     
|Non-interest-bearing demand |                     |              | 1,487,756 |           |         |  |     |           |          |   | 741,261   |           |  |  |     |     
|                            |                     |              |           |           |         |  |      |           |          |   |           |          
|                            | Total core deposits |              |           | 7,033,649 |         |  |      | 0.93      |          |   |           | 3,925,195 |  |  |      | 0.63 | 
|Certificates of deposit     |                     |              | 2,271,415 |           |         |  | 2.58 |           |          |   | 1,378,902 |           |  |  | 2.11 |     
|                            |                     |              |           |           |         |  |      |           |          |   |           |          
|                            | Total deposits      |              | $         | 9,305,064 |         |  |      | 1.19      |          |   | $         | 5,304,097 |  |  |      | 0.93 | 
|                            |                     |              |           |           |         |  |      |           |          |   |           |          



|               |  |              |           |  |      |   |           | 
|-------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|               |  | December 31, |          
|               |  |              |          
|(In Thousands) |  | 2004         |           |  | 2003 |  
|               | 
|One year       |  | $            | 1,214,030 |  |      | $ | 1,092,832 | 
|Two years      |  |              | 200,539   |  |      |   | 75,674    | 
|Three years    |  |              | 473,550   |  |      |   | 56,154    | 
|Four years     |  |              | 100,859   |  |      |   | 107,554   | 
|Thereafter     |  |              | 282,437   |  |      |   | 46,688    | 
|               |  |              |           |  |      |  
|               |  | $            | 2,271,415 |  |      | $ | 1,378,902 | 
|               |  |              |           |  |      |  



105



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


12.     Borrowings




|                      |  |              |           |  |      |   |           | 
|--------------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|                      |  | December 31, |          
|                      |  |              |          
|(In Thousands)        |  | 2004         |           |  | 2003 |  
|                      | 
|FHLB advances         |  | $            | 2,588,938 |  |      | $ | 1,051,300 | 
|Repurchase agreements |  |              | 2,923,034 |  |      |   | 1,865,000 | 
|                      |  |              |           |  |      |  
|Total borrowings      |  | $            | 5,511,972 |  |      | $ | 2,916,300 | 
|                      |  |              |           |  |      |  



|                                          |  |              |           |  |      |   |           | 
|----------------------------------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|                                          |  | December 31, |          
|                                          |  |              |          
|(In Thousands)                            |  | 2004         |           |  | 2003 |  
|                                          | 
|One year or less                          |  | $            | 1,320,938 |  |      | $ | 226,300   | 
|Over one year through five years          |  |              | 598,000   |  |      |   | 450,000   | 
|Over five years through nine
    years(1) |  |              | 670,000   |  |      |   | 375,000   | 
|                                          |  |              |           |  |      |  
|                                          |  | $            | 2,588,938 |  |      | $ | 1,051,300 | 
|                                          |  |              |           |  |      |  






|    |                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Although the contractual maturities of these borrowings are
    between five and nine years, the FHLB has the right to call
    these advances beginning in the third year after the advance was
    made. Such advances callable by the FHLB total
    $140.0 million in 2005, $395.0 million in 2006 and
    $100.0 million in 2007.







106



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                   |  |              |           |  |      |   |           | 
|---------------------------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|                                   |  | December 31, |          
|                                   |  |              |          
|(In Thousands)                     |  | 2004         |           |  | 2003 |  
|                                   | 
|One year or less                   |  | $            | 397,212   |  |      | $ | 875,000   | 
|Over one year through five years   |  |              | 2,050,822 |  |      |   | 450,000   | 
|Over five years through nine years |  |              | 475,000   |  |      |   | 540,000   | 
|                                   |  |              |           |  |      |  
|                                   |  | $            | 2,923,034 |  |      | $ | 1,865,000 | 
|                                   |  |              |           |  |      |  



13. Subordinated Notes






14.     Earnings Per Share




107



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                         |                                                                                        |                                        |      |         |        |   |      |         |        |   |      |         |        | 
|---------------------------------------- | -------------------------------------------------------------------------------------- | -------------------------------------- | ---- | ------- | ------ | - | ---- | ------- | ------ | - | ---- | ------- | ------ | 
|                                         |                                                                                        | For the Year Ended December 31,        |     
|                                         |                                                                                        |                                        |     
|(In Thousands, Except Per Share Amounts) |                                                                                        | 2004                                   |      |         | 2003   |   |      | 2002    |       
|                                         |                                                                                       
|Numerator:                               |                                                                                        |                                        |      |         |        |   |      |         |        |   |      |        
|                                         | Net income                                                                             |                                        | $    | 212,172 |        |   | $    | 136,970 |        |   | $    | 122,402 |       
|                                         |                                                                                        |                                        |      |         |        |   |      |         |       
|Denominator:                             |                                                                                        |                                        |      |         |        |   |      |         |        |   |      |        
|                                         | Weighted average number of common shares outstanding 
    basic                       |                                        |      | 71,560  |        |   |      | 49,993  |        |   |      | 51,703  |       
|                                         | Weighted average number of common stock equivalents (restricted
    stock and options) |                                        |      | 3,057   |        |   |      | 2,650   |        |   |      | 2,854   |       
|                                         |                                                                                        |                                        |      |         |        |   |      |         |       
|                                         | Weighted average number of common shares                                               |                                        |      |         |        |   |      |         |        |   |      |         |       
|                                         |                                                                                        | and common stock equivalents  diluted |      |         | 74,617 |   |      |         | 52,643 |   |      |         | 54,557 | 
|                                         |                                                                                        |                                        |      |         |        |   |      |         |       
|Basic earning per share                  |                                                                                        | $                                      | 2.96 |         |        | $ | 2.74 |         |        | $ | 2.37 |        
|                                         |                                                                                        |                                        |      |         |        |   |      |         |       
|Diluted earnings per share               |                                                                                        | $                                      | 2.84 |         |        | $ | 2.60 |         |        | $ | 2.24 |        
|                                         |                                                                                        |                                        |      |         |        |   |      |         |       



15.     Benefit Plans




| |             
| | ------------
| | Pension Plan







108



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                             |  |                         |        |   |      |   |        |  
|---------------------------------------------------------------------------- |  | ----------------------- | ------ | - | ---- | - | ------ | -
|                                                                             |  | Year Ended December 31, |       
|                                                                             |  |                         |       
|(In Thousands)                                                               |  | 2004                    |        |   | 2003 |  
|                                                                             | 
|Projected benefit obligation at beginning of year                            |  | $                       | 49,831 |   |      | $ | 46,551 |  
|Projected benefit obligation for Staten Island Plan at beginning
    of year |  |                         | 24,920 |   |      |   |       |  
|Service cost                                                                 |  |                         | 1,479  |   |      |   | 1,420  |  
|Interest cost                                                                |  |                         | 4,633  |   |      |   | 2,971  |  
|Actuarial loss                                                               |  |                         | 603    |   |      |   | 1,045  |  
|Benefits paid                                                                |  |                         | (3,792 | ) |      |   | (2,156 | )
|                                                                             |  |                         |        |   |      |  
|Projected benefit obligation at end of year                                  |  | $                       | 77,674 |   |      | $ | 49,831 |  
|                                                                             |  |                         |        |   |      |  



|                                                             |  |              |        |   |      |   |        |  
|------------------------------------------------------------ |  | ------------ | ------ | - | ---- | - | ------ | -
|                                                             |  | December 31, |       
|                                                             |  |              |       
|(In Thousands)                                               |  | 2004         |        |   | 2003 |  
|                                                             | 
|Fair value of Plan assets at beginning of year               |  | $            | 50,644 |   |      | $ | 43,569 |  
|Fair value of Staten Island Plan assets at beginning of year |  |              | 25,311 |   |      |   |       |  
|Actual return on Plan assets                                 |  |              | 5,250  |   |      |   | 8,965  |  
|Employer contributions                                       |  |              | 258    |   |      |   | 266    |  
|Benefits paid                                                |  |              | (3,792 | ) |      |   | (2,156 | )
|                                                             |  |              |        |   |      |  
|Fair value of Plan assets at end of year                     |  | $            | 77,671 |   |      | $ | 50,644 |  
|                                                             |  |              |        |   |      |  
|Funded status                                                |  | $            | (3     | ) |      | $ | 813    |  
|Amount contributed during the fourth quarter                 |  |              | 24     |   |      |   |       |  
|Unrecognized net asset                                       |  |              | (203   | ) |      |   | (405   | )
|Unrecognized prior service cost                              |  |              | (3,450 | ) |      |   | (4,541 | )
|Unrecognized actuarial loss                                  |  |              | 12,577 |   |      |   | 11,689 |  
|                                                             |  |              |        |   |      |  
|Prepaid pension cost at December 31, 2004 and 2003           |  | $            | 8,945  |   |      | $ | 7,556  |  
|                                                             |  |              |        |   |      |  





|                     |                          |                 |        |       |      |   |        |       | 
|-------------------- | ------------------------ | --------------- | ------ | ----- | ---- | - | ------ | ----- | 
|                     |                          | At December 31, |       
|                     |                          |                 |       
|(In Thousands)       |                          | 2004            |        |       | 2003 |  
|                     |                         
|Prepaid pension cost |                          | $               | 13,717 |       |      | $ | 10,087 |      
|Accrued pension cost |                          |                 | (4,772 | )     |      |   | (2,531 | )    
|                     |                          |                 |        |       |      |  
|                     | Net prepaid pension cost |                 | $      | 8,945 |      |   | $      | 7,556 | 
|                     |                          |                 |        |       |      |  

109



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                       |  |                         |        |   |      |   |        |      |  |   |        |  
|-------------------------------------------------------------------------------------- |  | ----------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                                                                       |  | Year Ended December 31, |       
|                                                                                       |  |                         |       
|(In Thousands)                                                                         |  | 2004                    |        |   | 2003 |   |        | 2002 | 
|                                                                                       | 
|Service cost-benefits earned during the period                                         |  | $                       | 1,479  |   |      | $ | 1,420  |      |  | $ | 1,238  |  
|Interest cost on projected Benefit obligation                                          |  |                         | 4,188  |   |      |   | 2,972  |      |  |   | 2,847  |  
|Expected return on Plan assets                                                         |  |                         | (5,598 | ) |      |   | (3,415 | )    |  |   | (3,219 | )
|Amortization of net asset                                                              |  |                         | (203   | ) |      |   | (203   | )    |  |   | (203   | )
|Amortization of prior service cost                                                     |  |                         | (1,090 | ) |      |   | (1,090 | )    |  |   | (1,090 | )
|Recognized net actuarial loss                                                          |  |                         | 686    |   |      |   | 1,462  |      |  |   | 279    |  
|                                                                                       |  |                         |        |   |      |   |        |      | 
|Net pension (benefit) expense for the years ended
    December 31, 2004, 2003 and 2002 |  |                         | (538   | ) |      |   | 1,146  |      |  |   | (148   | )
|Net adjustment                                                                         |  |                         |       |   |      |   | (37    | )    |  |   | (102   | )
|                                                                                       |  |                         |        |   |      |   |        |      | 
|Net pension (benefit) expense                                                          |  | $                       | (538   | ) |      | $ | 1,109  |      |  | $ | (250   | )
|                                                                                       |  |                         |        |   |      |   |        |      | 

|                                                |  |      |      |   |      |  |       |      |  |  |      |  
|----------------------------------------------- |  | ---- | ---- | - | ---- |  | ----- | ---- |  |  | ---- | -
|Weighted Average Assumptions as of December 31: |  | 2004 |      |   | 2003 |  |       | 2002 | 
|                                                | 
|Discount rate                                   |  |      | 6.25 | % |      |  | 6.375 | %    |  |  | 6.50 | %
|Rate of compensation increase                   |  |      | 3.25 | % |      |  | 3.50  | %    |  |  | 4.00 | %
|Expected long-term return on Plan assets        |  |      | 9.00 | % |      |  | 8.00  | %    |  |  | 8.00 | %





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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                         |       |              |      |       |                 |  |      |       |   |  |      |       |  
|------------------------ | ----- | ------------ | ---- | ----- | --------------- |  | ---- | ----- | - |  | ---- | ----- | -
|                         |       | Pension Plan |     
|                         |       |              |     
|                         |       | Target       |      |       |                
|                         |       | Allocation   |      |       | At December 31, | 
|                         |       |              |      |       |                 | 
|Asset Category:          |       | 2005         |      |       | 2004            |  |      | 2003  |  
|                         |      
|Equity investments       |       |              | 60.0 | %     |                 |  | 61.0 | %     |   |  | 62.0 | %    
|Fixed income investments |       |              | 40.0 |       |                 |  | 39.0 |       |   |  | 38.0 |      
|                         |       |              |      |       |                 |  |      |       |  
|                         | Total |              |      | 100.0 | %               |  |      | 100.0 | % |  |      | 100.0 | %
|                         |       |              |      |       |                 |  |      |       |  

|                         |       |                    |      |       |                 |  |      |       |   |  |      |       |  
|------------------------ | ----- | ------------------ | ---- | ----- | --------------- |  | ---- | ----- | - |  | ---- | ----- | -
|                         |       | Staten Island Plan |     
|                         |       |                    |     
|                         |       | Target             |      |       |                
|                         |       | Allocation         |      |       | At December 31, | 
|                         |       |                    |      |       |                 | 
|Asset Category:          |       | 2005               |      |       | 2004            |  |      | 2003  |  
|                         |      
|Equity investments       |       |                    | 60.0 | %     |                 |  | 70.0 | %     |   |  | 69.0 | %    
|Fixed income investments |       |                    | 40.0 |       |                 |  | 30.0 |       |   |  | 31.0 |      
|                         |       |                    |      |       |                 |  |      |       |  
|                         | Total |                    |      | 100.0 | %               |  |      | 100.0 | % |  |      | 100.0 | %
|                         |       |                    |      |       |                 |  |      |       |  









|                        |             |        |   |        | 
|----------------------- | ----------- | ------ | - | ------ | 
|(In Thousands)          |             | Amount |  
|                        |            
|Year ended December 31: |             |        |   |       
|                        | 2005        |        | $ | 3,739  | 
|                        | 2006        |        |   | 3,841  | 
|                        | 2007        |        |   | 4,098  | 
|                        | 2008        |        |   | 4,201  | 
|                        | 2009        |        |   | 4,333  | 
|                        | 2010  2014 |        |   | 24,816 | 





| |                        
| | -----------------------
| | Postretirement Benefits



111



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|                                                                                  |  |              |         |   |              |   |         |  
|--------------------------------------------------------------------------------- |  | ------------ | ------- | - | ------------ | - | ------- | -
|                                                                                  |  | December 31, |         |   | December 31, |  
|(In Thousands)                                                                    |  | 2004         |         |   | 2003         |  
|                                                                                  | 
|Benefit obligation at beginning of year                                           |  | $            | 21,651  |   |              | $ | 16,509  |  
|Benefit obligation for Staten Island Plan at beginning of year                    |  |              | 7,262   |   |              |   |        |  
|Service cost                                                                      |  |              | 726     |   |              |   | 523     |  
|Interest cost                                                                     |  |              | 1,566   |   |              |   | 1,197   |  
|Actuarial (gain) loss                                                             |  |              | (2,287  | ) |              |   | 4,338   |  
|Benefits paid                                                                     |  |              | (1,021  | ) |              |   | (916    | )
|Plan amendments                                                                   |  |              | 1,755   |   |              |   |        |  
|                                                                                  |  |              |         |   |              |  
|Benefit obligation at end of year                                                 |  | $            | 29,652  |   |              | $ | 21,651  |  
|                                                                                  |  |              |         |   |              |  
|Funded status                                                                     |  | $            | (29,652 | ) |              | $ | (21,651 | )
|Unrecognized transition obligation being recognized over
    20 years             |  |              | 582     |   |              |   | 640     |  
|Unrecognized net loss due to past experience difference from
    assumptions made |  |              | 6,798   |   |              |   | 9,623   |  
|Unrecognized past service liability                                               |  |              | 1,756   |   |              |   |        |  
|                                                                                  |  |              |         |   |              |  
|Accrued postretirement benefit cost at December 31, 2004
    and 2003             |  | $            | (20,516 | ) |              | $ | (11,388 | )
|                                                                                  |  |              |         |   |              |  





|                                                                                  |  |                         |       |  |      |   |       |      |  |   |       | 
|--------------------------------------------------------------------------------- |  | ----------------------- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                                                                                  |  | Year Ended December 31, |      
|                                                                                  |  |                         |      
|(In Thousands)                                                                    |  | 2004                    |       |  | 2003 |   |       | 2002 | 
|                                                                                  | 
|Service cost-benefits earned during the period                                    |  | $                       | 726   |  |      | $ | 523   |      |  | $ | 438   | 
|Interest cost on accumulated postretirement benefit obligation                    |  |                         | 1,566 |  |      |   | 1,197 |      |  |   | 991   | 
|Amortization of net obligation                                                    |  |                         | 58    |  |      |   | 58    |      |  |   | 58    | 
|Amortization of unrecognized loss                                                 |  |                         | 537   |  |      |   | 585   |      |  |   | 185   | 
|                                                                                  |  |                         |       |  |      |   |       |      | 
|Postretirement benefit cost-plan years ended December 31,
    2004, 2003 and 2002 |  | $                       | 2,887 |  |      | $ | 2,363 |      |  | $ | 1,672 | 
|                                                                                  |  |                         |       |  |      |   |       |      | 

112



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                             |  |                 |        |  |      |   |        | 
|---------------------------- |  | --------------- | ------ |  | ---- | - | ------ | 
|                             |  | At December 31, |       
|                             |  |                 |       
|(In Thousands)               |  | 2004            |        |  | 2003 |  
|                             | 
|Accrued postretirement costs |  | $               | 20,516 |  |      | $ | 11,388 | 
|                             |  |                 |        |  |      |  







|                        |             |        |   |        | 
|----------------------- | ----------- | ------ | - | ------ | 
|(In Thousands)          |             | Amount |  
|                        |            
|Year ended December 31: |             |        |   |       
|                        | 2005        |        | $ | 1,201  | 
|                        | 2006        |        |   | 1,295  | 
|                        | 2007        |        |   | 1,421  | 
|                        | 2008        |        |   | 1,559  | 
|                        | 2009        |        |   | 1,691  | 
|                        | 2010  2014 |        |   | 10,416 | 





|                                                                                        |  |                 |       |   |      |  |       |  
|--------------------------------------------------------------------------------------- |  | --------------- | ----- | - | ---- |  | ----- | -
|                                                                                        |  | At December 31, |      
|                                                                                        |  |                 |      
|                                                                                        |  | 2004            |       |   | 2003 | 
|                                                                                        | 
|Health care cost trend rate assumed for next year                                       |  |                 | 10.00 | % |      |  | 10.00 | %
|Rate to which the cost trend rate is assumed to decline (the
    ultimate trend rate) |  |                 | 3.75  | % |      |  | 3.75  | %
|Year that the rate reaches the ultimate trend rate                                      |  |                 | 2011  |   |      |  | 2010  |  



|                                            |  |             |       |  |             |   |        |  
|------------------------------------------- |  | ----------- | ----- |  | ----------- | - | ------ | -
|                                            |  | 1% Increase |       |  | 1% Decrease |  
|                                            |  |             |      
|Effect in total service and interest cost   |  | $           | 435   |  |             | $ | (342   | )
|Effect in postretirement benefit obligation |  |             | 4,739 |  |             |   | (3,786 | )

113



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |            
| | -----------
| | 401(k) Plan







| |                              
| | -----------------------------
| | Employee Stock Ownership Plan







114



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


16.     Stock Benefit Plans




| |                 
| | ----------------
| | Recognition Plan







115



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                               |  |                         |          |          |             |   |         |        |          |  |             |   |  |          |         |  |             |  |           |   |  |   |         | 
|------------------------------ |  | ----------------------- | -------- | -------- | ----------- | - | ------- | ------ | -------- |  | ----------- | - |  | -------- | ------- |  | ----------- |  | --------- | - |  | - | ------- | 
|                               |  | Year Ended December 31, |         
|                               |  |                         |         
|                               |  | 2004                    |          |          | 2003        |   |         | 2002   |         
|                               |  |                         |          |          |             |   |         |        |         
|                               |  |                         |          | Weighted |             |   |         |        | Weighted |  |             |   |  | Weighted |        
|                               |  |                         |          | Average  |             |   |         |        | Average  |  |             |   |  | Average  |        
|                               |  | Shares                  |          |          | Grant Value |   |         | Shares |          |  | Grant Value |   |  | Shares   |         |  | Grant Value | 
|                               | 
|Outstanding, beginning of year |  |                         | 363,771  |          |             | $ | 24.0877 |        |          |  | 747,205     |   |  | $        | 16.5493 |  |             |  | 1,147,246 |   |  | $ | 14.4214 | 
|Granted                        |  |                         | 183,379  |          |             |   | 38.9202 |        |          |  | 123,522     |   |  |          | 31.9458 |  |             |  | 102,637   |   |  |   | 28.7284 | 
|Vested                         |  |                         | (103,952 | )        |             |   | 22.9653 |        |          |  | (505,206    | ) |  |          | 14.8673 |  |             |  | (500,578  | ) |  |   | 14.1801 | 
|Forfeited                      |  |                         | (1,673   | )        |             |   | 30.1083 |        |          |  | (1,750      | ) |  |          | 13.3125 |  |             |  | (2,100    | ) |  |   | 13.3125 | 
|                               |  |                         |          |          |             |   |         |        |          |  |             |   |  |          |         |  |             | 
|Outstanding, end of year       |  |                         | 441,525  |          |             | $ | 30.4827 |        |          |  | 363,771     |   |  | $        | 24.0877 |  |             |  | 747,205   |   |  | $ | 16.5493 | 
|                               |  |                         |          |          |             |   |         |        |          |  |             |   |  |          |         |  |             | 



| |                   
| | ------------------
| | Stock Option Plans









| |                       
| | ----------------------
| | 1998 Stock Option Plan



116



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                          
| | -------------------------
| | 2002 Stock Incentive Plan





| |                  
| | -----------------
| | Other Stock Plans





117



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |                                                                                                                                                   |                         |   |         |      |  |   |         |   |  |   |         |  
|------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                      |                                                                                                                                                   | Year Ended December 31, |  
|                                      |                                                                                                                                                   |                         |  
|(In Thousands, Except Per Share Data) |                                                                                                                                                   | 2004                    |   |         | 2003 |  |   | 2002    |  
|                                      |                                                                                                                                                  
|Net income:                           |                                                                                                                                                   |                         |   |         |      |  |   |         |   |  |   |        
|                                      | As reported                                                                                                                                       |                         | $ | 212,172 |      |  | $ | 136,970 |   |  | $ | 122,402 |  
|                                      | Add: Stock-based employee compensation expense included in
    reported net income, net of related tax effects (1)                                |                         |   | 4,654   |      |  |   | 5,724   |   |  |   | 6,176   |  
|                                      | Deduct: Total stock-based employee compensation expense
    determined under fair value method for all awards, net of
    related tax effects (1) |                         |   | (8,739  | )    |  |   | (10,599 | ) |  |   | (11,424 | )
|                                      |                                                                                                                                                   |                         |   |         |      |  |   |         |  
|                                      | Pro forma                                                                                                                                         |                         | $ | 208,087 |      |  | $ | 132,095 |   |  | $ | 117,154 |  
|                                      |                                                                                                                                                   |                         |   |         |      |  |   |         |  
|Basic earnings per share:             |                                                                                                                                                   |                         |   |         |      |  |   |         |   |  |   |        
|                                      | As reported                                                                                                                                       |                         | $ | 2.96    |      |  | $ | 2.74    |   |  | $ | 2.37    |  
|                                      |                                                                                                                                                   |                         |   |         |      |  |   |         |  
|                                      | Pro forma                                                                                                                                         |                         | $ | 2.91    |      |  | $ | 2.64    |   |  | $ | 2.27    |  
|                                      |                                                                                                                                                   |                         |   |         |      |  |   |         |  
|Diluted earnings per share:           |                                                                                                                                                   |                         |   |         |      |  |   |         |   |  |   |        
|                                      | As reported                                                                                                                                       |                         | $ | 2.84    |      |  | $ | 2.60    |   |  | $ | 2.24    |  
|                                      |                                                                                                                                                   |                         |   |         |      |  |   |         |  
|                                      | Pro forma                                                                                                                                         |                         | $ | 2.79    |      |  | $ | 2.51    |   |  | $ | 2.15    |  
|                                      |                                                                                                                                                   |                         |   |         |      |  |   |         |  






|    |                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes costs associated with restricted stock awards granted
    pursuant to the Recognition Plan and Stock Incentive Plan and
    stock option grants awarded under the various stock option plans.



|                                                               |                       |                         |           |            |       |   |         |         |          |  |           |            |   |          |         |         |       |  |           |          |   |   |         |         | 
|-------------------------------------------------------------- | --------------------- | ----------------------- | --------- | ---------- | ----- | - | ------- | ------- | -------- |  | --------- | ---------- | - | -------- | ------- | ------- | ----- |  | --------- | -------- | - | - | ------- | ------- | 
|                                                               |                       | Year Ended December 31, |          
|                                                               |                       |                         |          
|                                                               |                       | 2004                    |           |            | 2003  |   |         | 2002    |         
|                                                               |                       |                         |           |            |       |   |         |         |         
|                                                               |                       |                         |           | Weighted   |       |   |         |         | Weighted |  |           |            |   | Weighted |        
|                                                               |                       |                         |           | Average    |       |   |         |         | Average  |  |           |            |   | Average  |        
|                                                               |                       |                         |           | Exercise   |       |   |         |         | Exercise |  |           |            |   | Exercise |        
|                                                               |                       | Shares                  |           |            | Price |   |         | Shares  |          |  | Price     |            |   | Shares   |         |         | Price | 
|                                                               |                      
|Outstanding, beginning of year                                 |                       |                         | 5,993,742 |            |       | $ | 16.6344 |         |          |  | 6,833,438 |            |   | $        | 15.6345 |         |       |  | 6,845,581 |          |   | $ | 13.5669 |        
|                                                               | Granted               |                         |           | 548,540    |       |   |         | 38.1708 |          |  |           | 235,750    |   |          |         | 34.2564 |       |  |           | 882,650  |   |   |         | 29.1008 | 
|                                                               | SIB converted options |                         |           | 2,762,184  |       |   |         | 21.3063 |          |  |           |           |   |          |         |        |       |  |           |         |   |   |         |        | 
|                                                               | Exercised             |                         |           | (2,293,844 | )     |   |         | 17.9516 |          |  |           | (1,039,833 | ) |          |         | 13.9231 |       |  |           | (876,553 | ) |   |         | 13.0622 | 
|                                                               | Forfeited/cancelled   |                         |           | (21,990    | )     |   |         | 24.2335 |          |  |           | (35,613    | ) |          |         | 20.5780 |       |  |           | (18,240  | ) |   |         | 14.9298 | 
|                                                               |                       |                         |           |            |       |   |         |         |          |  |           |            |   |          |         |         |       | 
|Outstanding, end of year                                       |                       |                         | 6,988,632 |            |       | $ | 20.0634 |         |          |  | 5,993,742 |            |   | $        | 16.6344 |         |       |  | 6,833,438 |          |   | $ | 15.6345 |        
|                                                               |                       |                         |           |            |       |   |         |         |          |  |           |            |   |          |         |         |       | 
|Options exercisable at year end                                |                       |                         | 5,631,013 |            |       |   |         |         |          |  | 4,736,347 |            |   |          |         |         |       |  | 4,246,268 |          |   |   |         |        
|Weighted average fair value of options granted during the year |                       |                         |           |            |       | $ | 10.6241 |         |          |  |           |            |   | $        | 10.8031 |         |       |  |           |          |   | $ | 8.4651  |        

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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                        |  |                         |                 |  |      |  |                 |      |  |  |                 | 
|----------------------- |  | ----------------------- | --------------- |  | ---- |  | --------------- | ---- |  |  | --------------- | 
|                        |  | Year Ended December 31, |                
|                        |  |                         |                
|                        |  | 2004                    |                 |  | 2003 |  |                 | 2002 | 
|                        | 
|Risk free interest rate |  |                         | 3.12% - 4.53%   |  |      |  | 2.90% - 3.85%   |      |  |  | 3.45% - 5.16%   | 
|Volatility              |  |                         | 29.72% - 37.50% |  |      |  | 31.02% - 32.59% |      |  |  | 32.33% - 33.55% | 
|Expected dividend yield |  |                         | 1.20% - 2.60%   |  |      |  | 1.92% - 2.37%   |      |  |  | 1.40% - 2.19%   | 
|Expected option life    |  |                         | 6 years         |  |      |  | 6 years         |      |  |  | 6 years         | 



|                         |  |             |           |                  |                  |  |     |             |  |  |                  |  |  |   |         | 
|------------------------ |  | ----------- | --------- | ---------------- | ---------------- |  | --- | ----------- |  |  | ---------------- |  |  | - | ------- | 
|                         |  |             |           | Weighted Average |                  |  |     |             | 
|                         |  |             |           | Remaining        |                  |  |     |             | 
|                         |  | Options     |           |                  | Contractual Life |  |     | Options     |  |  | Weighted Average | 
|Range of Exercise Prices |  | Outstanding |           |                  | (Years)          |  |     | Exercisable |  |  | Exercise Price   | 
|                         | 
|$ 0.0000 - $12.0000      |  |             | 214,423   |                  |                  |  | 3.5 |             |  |  | 198,023          |  |  | $ | 9.9449  | 
|$12.0001 - $16.0000      |  |             | 3,238,480 |                  |                  |  | 3.5 |             |  |  | 3,233,480        |  |  |   | 13.3372 | 
|$16.0001 - $24.0000      |  |             | 1,568,393 |                  |                  |  | 5.2 |             |  |  | 1,339,993        |  |  |   | 19.4281 | 
|$24.0001 - $30.0000      |  |             | 836,138   |                  |                  |  | 7.2 |             |  |  | 417,512          |  |  |   | 28.9956 | 
|$30.0001 - $36,0000      |  |             | 656,698   |                  |                  |  | 8.4 |             |  |  | 413,255          |  |  |   | 32.5209 | 
|$36.0001 - $41.6400      |  |             | 474,500   |                  |                  |  | 9.2 |             |  |  | 28,750           |  |  |   | 37.6130 | 
|                         |  |             |           |                  |                  |  |     |             |  |  |                  | 
|                         |  |             | 6,988,632 |                  |                  |  | 5.2 |             |  |  | 5,631,013        |  |  | $ | 17.3601 | 
|                         |  |             |           |                  |                  |  |     |             |  |  |                  | 

17.     Stockholders Equity








119



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


18.     Derivative Financial
Instruments








| |                              
| | -----------------------------
| | Interest Rate Swap Agreements









| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Loan Commitments for Loans Originated for Sale and Forward
    Loan Sale Agreements



120



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






19.     Commitments and
Contingencies




| |                        
| | -----------------------
| | Off-Balance Sheet Risks







121



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                        |                                                                       |                    |           |         |                   |   |           |         | 
|----------------------------------------------------------------------- | --------------------------------------------------------------------- | ------------------ | --------- | ------- | ----------------- | - | --------- | ------- | 
|                                                                        |                                                                       | Contract or Amount |          
|                                                                        |                                                                       |                    |          
|(In Thousands)                                                          |                                                                       | December 31, 2004  |           |         | December 31, 2003 |  
|                                                                        |                                                                      
|Financial instruments whose contract amounts represent credit
    risk: |                                                                       |                    |           |         |                   |   |           |        
|                                                                        | Commitments to extend credit  mortgage loans                         |                    | $         | 650,101 |                   |   | $         | 563,049 | 
|                                                                        | Commitments to extend credit  commercial business loans              |                    |           | 267,649 |                   |   |           | 426,883 | 
|                                                                        | Commitments to extend credit  mortgage warehouse lines
    of credit |                    |           | 775,905 |                   |   |           | 952,615 | 
|                                                                        | Commitments to extend credit  other loans                            |                    |           | 212,119 |                   |   |           | 111,736 | 
|                                                                        | Standby letters of credit                                             |                    |           | 36,633  |                   |   |           | 28,049  | 
|                                                                        | Commercial letters of credit                                          |                    |           | 807     |                   |   |           | 363     | 
|                                                                        |                                                                       |                    |           |         |                   |  
|Total                                                                   |                                                                       | $                  | 1,943,214 |         |                   | $ | 2,082,695 |        
|                                                                        |                                                                       |                    |           |         |                   |  



| |                         
| | ------------------------
| | Retained Credit Exposure







122



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                  
| | -----------------
| | Lease Commitments



|                        |                     |        |   |         | 
|----------------------- | ------------------- | ------ | - | ------- | 
|(In Thousands)          |                     | Amount |  
|                        |                    
|Year ended December 31: |                     |        |   |        
|                        | 2005                |        | $ | 15,271  | 
|                        | 2006                |        |   | 15,296  | 
|                        | 2007                |        |   | 14,161  | 
|                        | 2008                |        |   | 13,494  | 
|                        | 2009 and thereafter |        |   | 101,322 | 





| |                     
| | --------------------
| | Purchase Obligations





| |                                    
| | -----------------------------------
| | Other Commitments and Contingencies



20.     Related Party
Transactions










123



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










21.     Income Taxes




|                               |                                           |              |         |        |      |   |        |        | 
|------------------------------ | ----------------------------------------- | ------------ | ------- | ------ | ---- | - | ------ | ------ | 
|                               |                                           | December 31, |        
|                               |                                           |              |        
|(In Thousands)                 |                                           | 2004         |         |        | 2003 |  
|                               |                                          
|Deferred tax assets:           |                                           |              |         |        |      |   |        |       
|                               | Stock options and restricted stock awards |              | $       | 16,551 |      |   | $      | 7,039  | 
|                               | Allowance for loan losses                 |              |         | 56,804 |      |   |        | 36,532 | 
|                               | Securities impairment loss                |              |         | 6,806  |      |   |        |       | 
|                               | Deferred loan fees                        |              |         | 3,462  |      |   |        | 5,473  | 
|                               | Amortization of intangible assets         |              |         | 9,066  |      |   |        | 10,286 | 
|                               | Non-accrual interest                      |              |         | 1,061  |      |   |        |       | 
|                               | Employee benefits                         |              |         | 12,853 |      |   |        | 2,393  | 
|                               | Securities available-for-sale             |              |         | 2,720  |      |   |        |       | 
|                               | Representation and warranty reserve       |              |         | 2,178  |      |   |        |       | 
|                               | Other                                     |              |         | 1,333  |      |   |        | 1,769  | 
|                               |                                           |              |         |        |      |  
|Gross deferred tax assets      |                                           |              | 112,834 |        |      |   | 63,492 |       
|                               |                                           |              |         |        |      |  
|Deferred tax liabilities:      |                                           |              |         |        |      |   |        |       
|                               | Securities available-for-sale             |              |         |       |      |   |        | 3,712  | 
|                               | Purchase accounting                       |              |         | 25,639 |      |   |        |       | 
|                               | Deferred compensation                     |              |         | 263    |      |   |        | 151    | 
|                               | Depreciation                              |              |         | 8,088  |      |   |        | 3,894  | 
|                               |                                           |              |         |        |      |  
|Gross deferred tax liabilities |                                           |              | 33,990  |        |      |   | 7,757  |       
|                               |                                           |              |         |        |      |  
|Net deferred tax assets        |                                           | $            | 78,844  |        |      | $ | 55,735 |       
|                               |                                           |              |         |        |      |  



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|               |                 |                         |         |        |      |   |        |        |  |   |         |         |  
|-------------- | --------------- | ----------------------- | ------- | ------ | ---- | - | ------ | ------ |  | - | ------- | ------- | -
|               |                 | Year Ended December 31, |        
|               |                 |                         |        
|(In Thousands) |                 | 2004                    |         |        | 2003 |   |        | 2002   | 
|               |                
|Current:       |                 |                         |         |        |      |   |        |        |  |   |         |        
|               | Federal         |                         | $       | 96,108 |      |   | $      | 60,069 |  |   | $       | 86,421  |  
|               | State and local |                         |         | 16,996 |      |   |        | 5,464  |  |   |         | 8,644   |  
|               |                 |                         |         |        |      |   |        |        | 
|               |                 |                         | 113,104 |        |      |   | 65,533 |        |  |   | 95,065  |        
|               |                 |                         |         |        |      |   |        |        | 
|Deferred:      |                 |                         |         |        |      |   |        |        |  |   |         |        
|               | Federal         |                         |         | (740   | )    |   |        | 10,291 |  |   |         | (19,536 | )
|               | State and local |                         |         | (609   | )    |   |        | 387    |  |   |         | (5,944  | )
|               |                 |                         |         |        |      |   |        |        | 
|               |                 |                         | (1,349  | )      |      |   | 10,678 |        |  |   | (25,480 | )      
|               |                 |                         |         |        |      |   |        |        | 
|Total          |                 | $                       | 111,755 |        |      | $ | 76,211 |        |  | $ | 69,585  |        
|               |                 |                         |         |        |      |   |        |        | 



|                                                |                                                         |                         |         |        |      |   |        |        |   |   |        |       | 
|----------------------------------------------- | ------------------------------------------------------- | ----------------------- | ------- | ------ | ---- | - | ------ | ------ | - | - | ------ | ----- | 
|                                                |                                                         | Year Ended December 31, |        
|                                                |                                                         |                         |        
|(In Thousands)                                  |                                                         | 2004                    |         |        | 2003 |   |        | 2002   |  
|                                                |                                                        
|Federal income tax provision at statutory rates |                                                         | $                       | 113,374 |        |      | $ | 74,613 |        |   | $ | 67,195 |      
|Increase (decrease) in tax resulting from:      |                                                         |                         |         |        |      |   |        |        |   |   |        |      
|                                                | State and local taxes, net of Federal income tax effect |                         |         | 10,650 |      |   |        | 3,803  |   |   |        | 1,755 | 
|                                                | New Market Tax Credit                                   |                         |         | (5,650 | )    |   |        |       |   |   |        |      | 
|                                                | Other                                                   |                         |         | (6,619 | )    |   |        | (2,205 | ) |   |        | 635   | 
|                                                |                                                         |                         |         |        |      |   |        |        |  
|                                                |                                                         | $                       | 111,755 |        |      | $ | 76,211 |        |   | $ | 69,585 |      
|                                                |                                                         |                         |         |        |      |   |        |        |  







125



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                        |       |        |   |        | 
|----------------------- | ----- | ------ | - | ------ | 
|(In Thousands)          |       | Amount |  
|                        |      
|Year ended December 31: |       |        |   |       
|                        | 2004  |        | $ | 5,650  | 
|                        | 2005  |        |   | 5,650  | 
|                        | 2006  |        |   | 5,650  | 
|                        | 2007  |        |   | 6,780  | 
|                        | 2008  |        |   | 6,780  | 
|                        | 2009  |        |   | 6,780  | 
|                        | 2010  |        |   | 6,780  | 
|                        |       |        |  
|                        | Total |        | $ | 44,070 | 
|                        |       |        |  

126



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


22.     Regulatory Requirements








|                       |  |                |           |          |             |             |            |             |             |   |         |  |  |        |      |   |       |   |           |  |  |  |       |  
|---------------------- |  | -------------- | --------- | -------- | ----------- | ----------- | ---------- | ----------- | ----------- | - | ------- |  |  | ------ | ---- | - | ----- | - | --------- |  |  |  | ----- | -
|                       |  |                |           |          |             |             |            | To Be Well- |            
|                       |  |                |           |          |             | For Capital |            |             | Capitalized |  
|                       |  |                |           | Adequacy |             |             | Under FDIC |            
|                       |  | Actual Amounts |           |          | Purposes at |             |            | Guidelines  |            
|                       |  | as of 12/31/04 |           |          | 12/31/04    |             |            | at 12/31/04 |            
|                       |  |                |           |          |             |             |            |             |            
|(Dollars In Thousands) |  | Amount         |           |          | Ratio       |             |            | Amount      |             |   | Ratio   |  |  | Amount |      |   | Ratio |  
|                       | 
|Tier I Leverage        |  | $              | 904,828   |          |             |             | 5.51       | %           |             | $ | 656,762 |  |  |        | 4.00 | % |       | $ | 820,953   |  |  |  | 5.00  | %
|Tier I Risk-Based      |  |                | 904,828   |          |             |             | 7.36       |             |             |   | 491,833 |  |  |        | 4.00 |   |       |   | 737,749   |  |  |  | 6.00  |  
|Total Risk-Based       |  |                | 1,410,734 |          |             |             | 11.47      |             |             |   | 983,665 |  |  |        | 8.00 |   |       |   | 1,229,582 |  |  |  | 10.00 |  

|                       |  |                |         |          |             |             |            |             |             |   |         |  |  |        |      |   |       |   |         |  |  |  |       |  
|---------------------- |  | -------------- | ------- | -------- | ----------- | ----------- | ---------- | ----------- | ----------- | - | ------- |  |  | ------ | ---- | - | ----- | - | ------- |  |  |  | ----- | -
|                       |  |                |         |          |             |             |            | To Be Well- |            
|                       |  |                |         |          |             | For Capital |            |             | Capitalized |  
|                       |  |                |         | Adequacy |             |             | Under FDIC |            
|                       |  | Actual Amounts |         |          | Purposes at |             |            | Guidelines  |            
|                       |  | as of 12/31/03 |         |          | 12/31/03    |             |            | at 12/31/03 |            
|                       |  |                |         |          |             |             |            |             |            
|(Dollars In Thousands) |  | Amount         |         |          | Ratio       |             |            | Amount      |             |   | Ratio   |  |  | Amount |      |   | Ratio |  
|                       | 
|Tier I Leverage        |  | $              | 722,325 |          |             |             | 8.14       | %           |             | $ | 355,026 |  |  |        | 4.00 | % |       | $ | 443,782 |  |  |  | 5.00  | %
|Tier I Risk-Based      |  |                | 722,325 |          |             |             | 9.34       |             |             |   | 309,291 |  |  |        | 4.00 |   |       |   | 463,937 |  |  |  | 6.00  |  
|Total Risk-Based       |  |                | 957,839 |          |             |             | 12.39      |             |             |   | 618,582 |  |  |        | 8.00 |   |       |   | 773,228 |  |  |  | 10.00 |  

127



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


23.     Fair Value of Financial
Instruments






|                                   |  |              |           |  |            |   |           |            |  |   |            |  |  |   |           | 
|---------------------------------- |  | ------------ | --------- |  | ---------- | - | --------- | ---------- |  | - | ---------- |  |  | - | --------- | 
|                                   |  | December 31, |          
|                                   |  |              |          
|                                   |  | 2004         |           |  | 2003       |  
|                                   |  |              |           |  |            |  
|(In Thousands)                     |  | Book Value   |           |  | Fair Value |   |           | Book Value |  |   | Fair Value | 
|                                   | 
|Financial Assets:                  |  |              |           |  |            |   |           |            |  |   |            |  |  |   |           | 
|Cash and due from banks            |  | $            | 360,877   |  |            | $ | 360,877   |            |  | $ | 172,028    |  |  | $ | 172,028   | 
|Securities available-for-sale      |  |              | 3,933,787 |  |            |   | 3,933,787 |            |  |   | 2,508,700  |  |  |   | 2,508,700 | 
|Loans available-for-sale           |  |              | 96,671    |  |            |   | 97,707    |            |  |   | 5,922      |  |  |   | 5,922     | 
|Mortgage loans on real estate      |  |              | 9,324,965 |  |            |   | 9,357,637 |            |  |   | 4,718,784  |  |  |   | 4,619,810 | 
|Commercial business loans          |  |              | 809,392   |  |            |   | 804,915   |            |  |   | 606,204    |  |  |   | 612,767   | 
|Mortgage warehouse lines of credit |  |              | 659,942   |  |            |   | 659,942   |            |  |   | 527,254    |  |  |   | 527,254   | 
|Other loans                        |  |              | 464,168   |  |            |   | 460,203   |            |  |   | 324,524    |  |  |   | 321,957   | 
|Accrued interest receivable        |  |              | 64,437    |  |            |   | 64,437    |            |  |   | 37,046     |  |  |   | 37,046    | 
|FHLB stock                         |  |              | 197,900   |  |            |   | 197,900   |            |  |   | 135,815    |  |  |   | 135,815   | 
|Loan servicing assets              |  |              | 18,100    |  |            |   | 26,514    |            |  |   | 7,772      |  |  |   | 12,463    | 
|Financial Liabilities:             |  |              |           |  |            |   |           |            |  |   |            |  |  |   |           | 
|Core deposits                      |  |              | 7,033,649 |  |            |   | 7,033,649 |            |  |   | 3,925,195  |  |  |   | 3,925,195 | 
|Certificates of deposit accounts   |  |              | 2,271,415 |  |            |   | 2,333,655 |            |  |   | 1,378,902  |  |  |   | 1,394,972 | 
|Borrowings                         |  |              | 5,511,972 |  |            |   | 5,627,147 |            |  |   | 2,916,300  |  |  |   | 3,021,087 | 
|Escrow and other deposits          |  |              | 104,304   |  |            |   | 104,304   |            |  |   | 76,260     |  |  |   | 76,260    | 
|Subordinated notes                 |  |              | 396,332   |  |            |   | 387,625   |            |  |   | 148,429    |  |  |   | 154,875   | 
|Retained credit exposure           |  |              | 7,881     |  |            |   | 7,881     |            |  |   | 7,159      |  |  |   | 7,159     | 





Securities available-for-sale:


128



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##### Table of Contents



INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Mortgage loans on real estate:


Commercial business loans:


FHLB stock:


Loan servicing assets:


Certificates of deposit:


Borrowings:


Subordinated Notes:


Retained Credit Exposure:


24.     Asset and Dividend
Restrictions








129



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                            
|--- | -------------------------------------------
|25. | Quarterly Results of Operations (unaudited)

|                                                    |               |                              |         |        |             |   |         |             |  |   |             |        |  |   |         |        | 
|--------------------------------------------------- | ------------- | ---------------------------- | ------- | ------ | ----------- | - | ------- | ----------- |  | - | ----------- | ------ |  | - | ------- | ------ | 
|                                                    |               | Year Ended December 31, 2004 |        
|                                                    |               |                              |        
|(In Thousands, Except Per Share Data)               |               | 1st Quarter                  |         |        | 2nd Quarter |   |         | 3rd Quarter |  |   | 4th Quarter |       
|                                                    |              
|Interest income                                     |               | $                            | 117,615 |        |             | $ | 182,561 |             |  | $ | 193,385     |        |  | $ | 195,847 |       
|Interest expense                                    |               |                              | 36,106  |        |             |   | 51,718  |             |  |   | 61,995      |        |  |   | 64,096  |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Net interest income                                 |               |                              | 81,509  |        |             |   | 130,843 |             |  |   | 131,390     |        |  |   | 131,751 |       
|Provision for loan losses                           |               |                              |        |        |             |   | 2,000   |             |  |   |            |        |  |   |        |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Net interest income after provision for loan losses |               |                              | 81,509  |        |             |   | 128,843 |             |  |   | 131,390     |        |  |   | 131,751 |       
|Non-interest income                                 |               |                              | 27,453  |        |             |   | 35,505  |             |  |   | 35,897      |        |  |   | 22,654  |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Total income                                        |               |                              | 108,962 |        |             |   | 164,348 |             |  |   | 167,287     |        |  |   | 154,405 |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|General and administrative expense                  |               |                              | 49,453  |        |             |   | 70,051  |             |  |   | 71,548      |        |  |   | 71,755  |       
|Amortization of intangible assets                   |               |                              | 143     |        |             |   | 2,602   |             |  |   | 2,540       |        |  |   | 2,983   |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Income before provision for income taxes            |               |                              | 59,366  |        |             |   | 91,695  |             |  |   | 93,199      |        |  |   | 79,667  |       
|Provision for income taxes                          |               |                              | 21,223  |        |             |   | 33,447  |             |  |   | 29,785      |        |  |   | 27,300  |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Net income                                          |               | $                            | 38,143  |        |             | $ | 58,248  |             |  | $ | 63,414      |        |  | $ | 52,367  |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Basic earnings per common share                     |               | $                            | 0.76    |        |             | $ | 0.77    |             |  | $ | 0.79        |        |  | $ | 0.65    |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Diluted earnings per common share                   |               | $                            | 0.72    |        |             | $ | 0.74    |             |  | $ | 0.76        |        |  | $ | 0.63    |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Dividend declared per common share                  |               | $                            | 0.22    |        |             | $ | 0.23    |             |  | $ | 0.24        |        |  | $ | 0.25    |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Closing price per common share                      |               |                              |         |        |             |   |         |             |  |   |             |        |  |   |         |       
|                                                    | High          |                              | $       | 41.410 |             |   | $       | 40.930      |  |   | $           | 40.490 |  |   | $       | 43.180 | 
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|                                                    | Low           |                              | $       | 34.920 |             |   | $       | 35.240      |  |   | $           | 35.025 |  |   | $       | 36.950 | 
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|                                                    | End of period |                              | $       | 40.750 |             |   | $       | 36.400      |  |   | $           | 39.050 |  |   | $       | 42.580 | 
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       

130



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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                    |               |                              |         |        |             |   |         |             |  |   |             |        |  |   |         |        | 
|--------------------------------------------------- | ------------- | ---------------------------- | ------- | ------ | ----------- | - | ------- | ----------- |  | - | ----------- | ------ |  | - | ------- | ------ | 
|                                                    |               | Year Ended December 31, 2003 |        
|                                                    |               |                              |        
|(In Thousands, Except Per Share Data)               |               | 1st Quarter                  |         |        | 2nd Quarter |   |         | 3rd Quarter |  |   | 4th Quarter |       
|                                                    |              
|Interest income                                     |               | $                            | 110,696 |        |             | $ | 111,245 |             |  | $ | 105,952     |        |  | $ | 112,227 |       
|Interest expense                                    |               |                              | 37,671  |        |             |   | 37,279  |             |  |   | 37,622      |        |  |   | 34,803  |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Net interest income                                 |               |                              | 73,025  |        |             |   | 73,966  |             |  |   | 68,330      |        |  |   | 77,424  |       
|Provision for loan losses                           |               |                              | 2,000   |        |             |   | 1,500   |             |  |   |            |        |  |   |        |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Net interest income after provision for loan losses |               |                              | 71,025  |        |             |   | 72,466  |             |  |   | 68,330      |        |  |   | 77,424  |       
|Non-interest income                                 |               |                              | 26,237  |        |             |   | 27,937  |             |  |   | 29,685      |        |  |   | 28,880  |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Total income                                        |               |                              | 97,262  |        |             |   | 100,403 |             |  |   | 98,015      |        |  |   | 106,304 |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|General and administrative expense                  |               |                              | 44,524  |        |             |   | 47,204  |             |  |   | 45,465      |        |  |   | 49,755  |       
|Amortization of intangible assets                   |               |                              | 1,427   |        |             |   | 143     |             |  |   | 142         |        |  |   | 143     |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Income before provision for income taxes            |               |                              | 51,311  |        |             |   | 53,056  |             |  |   | 52,408      |        |  |   | 56,406  |       
|Provision for income taxes                          |               |                              | 18,343  |        |             |   | 18,967  |             |  |   | 18,736      |        |  |   | 20,165  |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Net income                                          |               | $                            | 32,968  |        |             | $ | 34,089  |             |  | $ | 33,672      |        |  | $ | 36,241  |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Basic earnings per common share                     |               | $                            | 0.65    |        |             | $ | 0.68    |             |  | $ | 0.68        |        |  | $ | 0.73    |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Diluted earnings per common share                   |               | $                            | 0.62    |        |             | $ | 0.65    |             |  | $ | 0.64        |        |  | $ | 0.69    |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Dividend declared per common share                  |               | $                            | 0.15    |        |             | $ | 0.16    |             |  | $ | 0.17        |        |  | $ | 0.20    |       
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|Closing price per common share                      |               |                              |         |        |             |   |         |             |  |   |             |        |  |   |         |       
|                                                    | High          |                              | $       | 27.040 |             |   | $       | 28.900      |  |   | $           | 36.030 |  |   | $       | 38.740 | 
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|                                                    | Low           |                              | $       | 25.140 |             |   | $       | 25.310      |  |   | $           | 28.470 |  |   | $       | 34.500 | 
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       
|                                                    | End of period |                              | $       | 26.450 |             |   | $       | 28.140      |  |   | $           | 35.110 |  |   | $       | 35.970 | 
|                                                    |               |                              |         |        |             |   |         |             |  |   |             |       

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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                          
|--- | -------------------------
|26. | Parent Company Disclosure





| |                                           
| | ------------------------------------------
| | Condensed Statement of Financial Condition

|                                           |  |              |           |  |      |   |         | 
|------------------------------------------ |  | ------------ | --------- |  | ---- | - | ------- | 
|                                           |  | December 31, |          
|                                           |  |              |          
|(In Thousands)                             |  | 2004         |           |  | 2003 |  
|                                           | 
|Assets:                                    |  |              |           |  |      |   |         | 
|Cash and cash equivalents                  |  | $            | 38,856    |  |      | $ | 18,009  | 
|Securities available-for-sale              |  |              | 50,102    |  |      |   |        | 
|Investment in and advances to subsidiaries |  |              | 2,153,880 |  |      |   | 923,693 | 
|Net deferred tax asset                     |  |              | 164       |  |      |   |        | 
|Dividends receivable                       |  |              | 25,000    |  |      |   | 25,000  | 
|Minority equity investment                 |  |              | 29,183    |  |      |   | 23,931  | 
|Other assets                               |  |              | 7,231     |  |      |   | 948     | 
|                                           |  |              |           |  |      |  
|Total assets                               |  | $            | 2,304,416 |  |      | $ | 991,581 | 
|                                           |  |              |           |  |      |  
|Liabilities:                               |  |              |           |  |      |   |         | 
|Accrued expenses and other liabilities     |  | $            | 373       |  |      | $ | 470     | 
|                                           |  |              |           |  |      |  
|Total liabilities                          |  |              | 373       |  |      |   | 470     | 
|Stockholders equity                       |  |              | 2,304,043 |  |      |   | 991,111 | 
|                                           |  |              |           |  |      |  
|Total liabilities and stockholders equity |  | $            | 2,304,416 |  |      | $ | 991,581 | 
|                                           |  |              |           |  |      |  



| |                                  
| | ---------------------------------
| | Condensed Statement of Operations

|                                                                                        |  |                         |         |   |      |   |         |      |  |   |         | 
|--------------------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | 
|                                                                                        |  | Year Ended December 31, |        
|                                                                                        |  |                         |        
|(In Thousands)                                                                          |  | 2004                    |         |   | 2003 |   |         | 2002 | 
|                                                                                        | 
|Income:                                                                                 |  |                         |         |   |      |   |         |      |  |   |         | 
|Interest income                                                                         |  | $                       | 355     |   |      | $ | 69      |      |  | $ | 227     | 
|Net (loss) gain on sales of securities                                                  |  |                         | (181    | ) |      |   |        |      |  |   | 562     | 
|Income from minority equity investment                                                  |  |                         | 14,160  |   |      |   | 6,334   |      |  |   | 2,200   | 
|Other non-interest income                                                               |  |                         | 201     |   |      |   |        |      |  |   | 118     | 
|                                                                                        |  |                         |         |   |      |   |         |      | 
|                                                                                        |  |                         | 14,535  |   |      |   | 6,403   |      |  |   | 3,107   | 
|                                                                                        |  |                         |         |   |      |   |         |      | 
|Expenses:                                                                               |  |                         |         |   |      |   |         |      |  |   |         | 
|Shareholder expense                                                                     |  |                         | 701     |   |      |   | 477     |      |  |   | 674     | 
|Other expense                                                                           |  |                         | 200     |   |      |   | 245     |      |  |   | 747     | 
|                                                                                        |  |                         |         |   |      |   |         |      | 
|                                                                                        |  |                         | 901     |   |      |   | 722     |      |  |   | 1,421   | 
|                                                                                        |  |                         |         |   |      |   |         |      | 
|Income before provision for income taxes and undistributed
    earnings of subsidiaries |  |                         | 13,634  |   |      |   | 5,681   |      |  |   | 1,686   | 
|Provision for income taxes, net                                                         |  |                         | 165     |   |      |   | 150     |      |  |   | 150     | 
|                                                                                        |  |                         |         |   |      |   |         |      | 
|Income before undistributed earnings of subsidiaries                                    |  |                         | 13,469  |   |      |   | 5,531   |      |  |   | 1,536   | 
|Equity in undistributed earnings of subsidiaries                                        |  |                         | 198,703 |   |      |   | 131,439 |      |  |   | 120,866 | 
|                                                                                        |  |                         |         |   |      |   |         |      | 
|Net income                                                                              |  | $                       | 212,172 |   |      | $ | 136,970 |      |  | $ | 122,402 | 
|                                                                                        |  |                         |         |   |      |   |         |      | 

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INDEPENDENCE COMMUNITY BANK CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                  
| | ---------------------------------
| | Condensed Statement of Cash Flows

|                                                                                      |  |                         |          |   |      |   |          |      |  |   |          |  
|------------------------------------------------------------------------------------- |  | ----------------------- | -------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                                                      |  | Year Ended December 31, |         
|                                                                                      |  |                         |         
|(In Thousands)                                                                        |  | 2004                    |          |   | 2003 |   |          | 2002 | 
|                                                                                      | 
|Cash flows from operating activities:                                                 |  |                         |          |   |      |   |          |      |  |   |          |  
|Net income                                                                            |  | $                       | 212,172  |   |      | $ | 136,970  |      |  | $ | 122,402  |  
|Adjustments to reconcile net income to net cash provided by
    operating activities: |  |                         |          |   |      |   |          |      |  |   |          |  
|Loss (gain) on sale of securities                                                     |  |                         | 181      |   |      |   |         |      |  |   | (562     | )
|Decrease in deferred income taxes                                                     |  |                         |         |   |      |   | 6,084    |      |  |   | 4,984    |  
|Dividends received from subsidiary                                                    |  |                         | 370,000  |   |      |   | 75,000   |      |  |   | 94,000   |  
|Decrease (increase) in other assets                                                   |  |                         | 31,946   |   |      |   | 9,031    |      |  |   | (2,539   | )
|Redemption of subordinated debentures                                                 |  |                         |         |   |      |   |         |      |  |   | (11,856  | )
|(Decrease) increase in other liabilities                                              |  |                         | (97      | ) |      |   | (55      | )    |  |   | 525      |  
|Amortization of unearned compensation of ESOP and Recognition
    Plan                |  |                         | 13,911   |   |      |   | 17,373   |      |  |   | 17,471   |  
|Accelerated vesting of stock options                                                  |  |                         | 206      |   |      |   | 185      |      |  |   | 115      |  
|Undistributed earnings of subsidiaries                                                |  |                         | (198,703 | ) |      |   | (131,439 | )    |  |   | (120,866 | )
|Other, net                                                                            |  |                         | (890     | ) |      |   | (542     | )    |  |   | 56       |  
|                                                                                      |  |                         |          |   |      |   |          |      | 
|Net cash provided by operating activities                                             |  |                         | 428,726  |   |      |   | 112,607  |      |  |   | 103,730  |  
|                                                                                      |  |                         |          |   |      |   |          |      | 
|Cash flows from investing activities:                                                 |  |                         |          |   |      |   |          |      |  |   |          |  
|Cash and cash equivalents acquired from SIB                                           |  |                         | 10,564   |   |      |   |         |      |  |   |         |  
|Cash consideration paid to acquire SIB                                                |  |                         | (368,500 | ) |      |   |         |      |  |   |         |  
|Purchase of securities available-for-sale                                             |  |                         | (39,000  | ) |      |   |         |      |  |   |         |  
|Principal collected on securities available-for-sale                                  |  |                         | 15,314   |   |      |   |         |      |  |   |         |  
|Proceeds on sales of securities                                                       |  |                         | 4,889    |   |      |   |         |      |  |   | 1,885    |  
|                                                                                      |  |                         |          |   |      |   |          |      | 
|Net cash (used in) provided by investing activities                                   |  |                         | (376,733 | ) |      |   |         |      |  |   | 1,885    |  
|                                                                                      |  |                         |          |   |      |   |          |      | 
|Cash flows from financing activities:                                                 |  |                         |          |   |      |   |          |      |  |   |          |  
|Proceeds received on exercise of stock options                                        |  |                         | 37,677   |   |      |   | 12,905   |      |  |   | 11,500   |  
|Repurchase of common stock                                                            |  |                         |         |   |      |   | (78,068  | )    |  |   | (92,147  | )
|Dividends paid                                                                        |  |                         | (68,823  | ) |      |   | (34,544  | )    |  |   | (26,549  | )
|                                                                                      |  |                         |          |   |      |   |          |      | 
|Net cash used in financing activities                                                 |  |                         | (31,146  | ) |      |   | (99,707  | )    |  |   | (107,196 | )
|                                                                                      |  |                         |          |   |      |   |          |      | 
|Net increase (decrease) in cash and cash equivalents                                  |  |                         | 20,847   |   |      |   | 12,900   |      |  |   | (1,581   | )
|Cash and cash equivalents at beginning of period                                      |  |                         | 18,009   |   |      |   | 5,109    |      |  |   | 6,690    |  
|                                                                                      |  |                         |          |   |      |   |          |      | 
|Cash and cash equivalents at end of period                                            |  | $                       | 38,856   |   |      | $ | 18,009   |      |  | $ | 5,109    |  
|                                                                                      |  |                         |          |   |      |   |          |      | 

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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|ITEM 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|ITEM 9A. | Controls and Procedures

Evaluation of Disclosure Controls and Procedures.


Changes in Internal Control Over Financial Reporting.


Management Report on Internal Control Over Financial
Reporting.







|         |                  
|-------- | -----------------
|ITEM 9B. | Other Information






PART III







|         |                                                   
|-------- | --------------------------------------------------
|ITEM 10. | Directors and Executive Officers of the Registrant



www.myindependence.com







|         |                       
|-------- | ----------------------
|ITEM 11. | Executive Compensation



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|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|ITEM 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters







|                                                                  |       |                   |           |           |                   |            |                     |                      |  |  |           |           | 
|----------------------------------------------------------------- | ----- | ----------------- | --------- | --------- | ----------------- | ---------- | ------------------- | -------------------- |  |  | --------- | --------- | 
|                                                                  |       |                   |           |           |                   | Number of  |                    
|                                                                  |       |                   |           |           |                   | securities |                    
|                                                                  |       | Number of         |           |           |                   |            | remaining available |                     
|                                                                  |       | securities to be  |           |           | Weighted-         |            |                     | for future issuance  | 
|                                                                  |       | issued upon       |           |           | average exercise  |            |                     | under equity         | 
|                                                                  |       | exercise of       |           |           | price of          |            |                     | compensation         | 
|                                                                  |       | outstanding       |           |           | outstanding       |            |                     | plans (excluding     | 
|                                                                  |       | options, warrants |           |           | options, warrants |            |                     | securities reflected | 
|                                                                  |       | and rights        |           |           | and rights        |            |                     | in column (a))       | 
|Plan Category                                                     |       | (a)               |           |           | (b)               |            |                     | (c)                  | 
|                                                                  |       |                   |           |           |                   |            |                     |                      | 
|Equity compensation plans approved by security holders            |       |                   | 5,856,065 | (1)       |                   | $          | 19.48               | (1)                  |  |  | 1,371,897 | (2)(3)   
|Equity compensation plans not approved by security
    holders(4) |       |                   | 5,000     |           |                   |            | 12.94               |                      |  |  |          |          
|                                                                  |       |                   |           |           |                   |            |                     |                      | 
|                                                                  | Total |                   |           | 5,861,065 |                   |            | $                   | 19.48                |  |  |           | 1,371,897 | 
|                                                                  |       |                   |           |           |                   |            |                     |                      | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Included in such number are 441,525 shares which are subject to
    restricted stock grants which were not vested as of
    December 31, 2004. The weighted average exercise price
    excludes restricted stock grants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(2) | Does not take into account shares available for future issuance
    under the Directors Fee Plan, under which the $25,000
    annual retainer payable to each of the Companys
    non-employee directors and Directors Emeritus is payable in
    shares of Common Stock. Because the number of shares of Common
    Stock issuable under the Directors Fee Plan is based on a
    formula and not a specific reserve amount, the number of shares
    which may be issued pursuant to this plan in the future is not
    determinable. This plan was approved by stockholders in May
    2001. During the year ended December 31, 2004, a total of
    13,203 shares were issued under this plan.
|   
|(3) | The table does not include information for equity compensation
    plans assumed by the Holding Company in connection with mergers
    and acquisitions of the companies which originally established
    those plans. As of December 31, 2004, a total of 1,569,092
    shares of Common Stock were issuable upon exercise of
    outstanding options under those assumed plans and the weighted
    average exercise price of those outstanding options was $22.09
    per share.                                                                                                                                                                                                                  
|   
|(4) | Consists of a single grant of options to a non-employee director
    upon appointment to the Board of Directors of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      






|         |                                               
|-------- | ----------------------------------------------
|ITEM 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|ITEM 14. | Principal Accounting Fees and Services



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##### Table of Contents






PART IV







|         |                                        
|-------- | ---------------------------------------
|ITEM 15. | Exhibits, Financial Statement Schedules

Documents Filed as Part of this Report




| |     |                                                                                         
| | --- | ----------------------------------------------------------------------------------------
| | (1) | The following financial statements are incorporated by reference
    from Item 8 hereof:



| |                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------
| | Report of Independent Registered Public Accounting Firm                                                             
|
| | Consolidated Statements of Financial Condition as of
    December 31, 2004 and 2003.                                
|
| | Consolidated Statements of Operations for the Years Ended
    December 31, 2004, 2003 and 2002.                     
|
| | Consolidated Statements of Changes in Stockholders Equity
    for the Years Ended December 31, 2004, 2003 and 2002.
|
| | Consolidated Statements of Cash Flows for the Years Ended
    December 31, 2004, 2003 and 2002.                     
|
| | Notes to Consolidated Financial Statements.                                                                         



| |     |                                                                                                                                                                                                                                                                                                                 
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | All schedules for which provision is made in the applicable
    accounting regulations of the SEC are omitted because of the
    absence of conditions under which they are required or because
    the required information is included in the consolidated
    financial statements and related notes thereto.
|
| | (3) | The following exhibits are filed as part of this Form 10-K,
    and this list includes the Exhibit Index.                                                                                                                                                                                                       

136



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##### Table of Contents



EXHIBIT INDEX


| |       |      |  |                                                                                                                                                                                                      
| | ----- | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3.1   | (1)  |  | Articles of Incorporation of Independence Community Bank Corp.                                                                                                                                       
| | 3.2   | (2)  |  | Bylaws, as amended, of Independence Community Bank Corp.                                                                                                                                             
| | 3.3   | (3)  |  | Amendment to Certificate of Incorporation of Independence
    Community Bank Corp.                                                                                                                   
| | 4.0   | (1)  |  | Specimen Stock Certificate of Independence Community Bank Corp.                                                                                                                                      
| | 10.1  | (1)  |  | Form of Change of Control Agreement entered into among
    Independence Community Bank Corp., Independence Community Bank
    and certain senior executive officers of the Company and the
    Bank.*
| | 10.2  | (1)  |  | Form of Change in Control Agreement entered into between
    Independence Community Bank and certain officers thereof.*                                                                              
| | 10.3  | (1)  |  | Form of Change of Control Agreement entered into among
    Independence Community Bank Corp., Independence Community Bank
    and certain executive officers of the Company and the Bank.*           
| | 10.4  | (1)  |  | Form of Change of Control Agreement entered into between
    Independence Community Bank and certain executive officers
    thereof.*                                                                
| | 10.5  | (4)  |  | Independence Community Bank Severance Plan.*                                                                                                                                                         
| | 10.6  | (5)  |  | 1998 Stock Option Plan.*                                                                                                                                                                             
| | 10.7  | (5)  |  | 1998 Recognition and Retention Plan and Trust Agreement.*                                                                                                                                            
| | 10.8  | (6)  |  | Broad National Bancorporation Incentive Stock Option Plan.*                                                                                                                                          
| | 10.9  | (6)  |  | 1993 Broad National Incentive Stock Option Plan.*                                                                                                                                                    
| | 10.10 | (6)  |  | 1993 Broad National Directors Non-Statutory Stock Option Plan.*                                                                                                                                      
| | 10.11 | (6)  |  | 1996 Broad National Incentive Stock Option Plan.*                                                                                                                                                    
| | 10.12 | (6)  |  | 1996 Broad National Bancorporation Directors Non-Statutory Stock
    Option Plan.*                                                                                                                   
| | 10.13 | (7)  |  | 1996 Statewide Financial Corporation Incentive Stock Option
    Plan.*                                                                                                                               
| | 10.14 | (8)  |  | Deferred Compensation Plan.*                                                                                                                                                                         
| | 10.15 | (8)  |  | Directors Fiscal 2002 Stock Retainer Plan.*                                                                                                                                                          
| | 10.16 | (9)  |  | Directors Fee Plan.*                                                                                                                                                                                 
| | 10.17 | (10) |  | Independence Community Bank Executive Management Incentive
    Compensation Plan (April 1, 2001-December 31, 2001).*                                                                                 
| | 10.18 | (11) |  | Independence Community Bank Executive Management Incentive
    Compensation Plan (January 1, 2002-December 31, 2002),
    as amended.*                                                               
| | 10.19 | (12) |  | 2002 Stock Incentive Plan.*                                                                                                                                                                          
| | 10.20 | (4)  |  | Independence Community Bank Executive Management Incentive
    Compensation Plan (January 1, 2003-December 31, 2003),
    as amended.*                                                               
| | 10.21 | (4)  |  | Form of Amendment Number One to Change in Control Severance
    Agreements.                                                                                                                          
| | 10.22 | (3)  |  | Amendment No. 1 to the SI Bank & Trust Deferred
    Compensation Plan A.                                                                                                                           
| | 10.23 | (3)  |  | Amendment No. 1 to the Independence Community Bank Corp.
    Deferred Compensation Plan.                                                                                                             
| | 10.24 | (13) |  | 1998 Staten Island Bancorp, Inc. Amended and Restated Stock
    Option Plan.*                                                                                                                        
| | 10.25 |      |  | Independence Community Bank Executive Management Incentive
    Compensation Plan (January 1, 2004-December 31, 2004).*                                                                               
| | 10.26 |      |  | Independence Community Bank Severance Benefit Plan.                                                                                                                                                  
| | 11.0  |      |  | Statement re computation of per share earnings-Reference is made
    to Item 8. Financial Statements and Supplementary
    Data for the required information.                                      
| | 18.1  |      |  | Letter re change in accounting principles                                                                                                                                                            
| | 21.0  |      |  | Subsidiaries of the Registrant-Reference is made to Item 1.
    Business for the required information.                                                                                             
| | 23.1  |      |  | Consent of Ernst & Young LLP                                                                                                                                                                         

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| |      |  |  |                                                                                                                                                                        
| | ---- |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 31.1 |  |  | Certification pursuant to Rule 13a-14 of the Securities
    Exchange Act of 1934, as amended, as adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.
| | 31.2 |  |  | Certification pursuant to Rule 13a-14 of the Securities
    Exchange Act of 1934, as amended, as adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.
| | 32.1 |  |  | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.                                        
| | 32.2 |  |  | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.                                        






|    |                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Incorporated herein by reference from the Companys
    Registration Statement on Form S-1 (Registration
    No. 333-30757) filed by the Company with the SEC on
    July 3, 1997.            
|   
|(2) | Incorporated herein by reference from the Companys
    Quarterly Report on Form 10-Q for the quarter ended
    September 30, 2002 filed by the Company with the SEC on
    November 14, 2002.
|   
|(3) | Incorporated herein by reference from the Companys
    Quarterly Report on Form 10-Q for the quarter ended
    September 30, 2004 filed by the Company with the SEC on
    November 8, 2004. 
|   
|(4) | Incorporated herein by reference from the Companys Annual
    Report on Form 10-K for the fiscal year ended
    December 31, 2003 filed by the Company with the SEC on
    March 10, 2004.   
|   
|(5) | Incorporated herein by reference from the Companys
    definitive proxy statement filed by the Company with the SEC on
    August 17, 1998.                                                  
|   
|(6) | Incorporated herein by reference from the Companys
    registration statement on Form S-8 (Registration
    No. 333-85981) filed by the Company with the SEC on
    August 26, 1999.         
|   
|(7) | Incorporated herein by reference from the Companys
    registration statement on Form S-8 (Registration
    No. 333-95767) filed by the Company with the SEC on
    January 31, 2000.        
|   
|(8) | Incorporated herein by reference from the Companys Annual
    Report on Form 10-K for the fiscal year ended
    March 31, 2001 filed by the Company with the SEC on
    June 22, 2001.       
|   
|(9) | Incorporated herein by reference from the Companys
    definitive proxy statement filed by the Company with the SEC on
    June 22, 2001.                                                    



|     |                                                                                                                                                                                                                   
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Incorporated herein by reference from the Companys Annual
    Report on Form 10-KT for the transition period from
    April 1, 2001 to December 31, 2001 filed by the
    Company with the SEC on March 28, 2002.
|    
|(11) | Incorporated herein by reference from the Companys Annual
    Report on Form 10-K for the fiscal year ended
    December 31, 2002 filed by the Company with the SEC on
    March 31, 2003.                       
|    
|(12) | Incorporated herein by reference from the Companys
    definitive proxy statement filed by the Company with the SEC on
    April 10, 2002.                                                                       
|    
|(13) | Incorporated herein by reference from the Companys
    registration statement on Form S-8 (Registration
    No. 333-111562) filed by the Company with the SEC on
    April 23, 2004.                             



| |   |                                                     
| | - | ----------------------------------------------------
| | * | Denotes management compensation plan or arrangement.





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##### Table of Contents






SIGNATURES






| |                                      
| | -------------------------------------
| | Independence Community
    Bank Corp.
|
| | /s/ Alan H. Fishman                  
| |                                      
| | Alan H. Fishman                      
| | President and Chief Executive Officer





|                                             |  |                                                                                                   |  |                |  | 
|-------------------------------------------- |  | ------------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Name                                         |  |                                                                                                   |  | Date          
|                                             |  |                                                                                                   |  |               
|                                            
|/s/ Charles J. HammCharles
    J. Hamm       |  | Chairman of the Board                                                                             |  | March 11, 2005
|                                            
|/s/ Harry P. DohertyHarry
    P. Doherty     |  | Vice Chairman of the Board                                                                        |  | March 11, 2005
|                                            
|/s/ Donald M. KarpDonald
    M. Karp         |  | Vice Chairman of the Board                                                                        |  | March 11, 2005
|                                            
|/s/ Victor M. RichelVictor
    M. Richel     |  | Vice Chairman of the Board                                                                        |  | March 11, 2005
|                                            
|/s/ Alan H. FishmanAlan
    H. Fishman       |  | President and Chief Executive Officer                                                             |  | March 11, 2005
|                                            
|/s/ Frank W. BaierFrank
    W. Baier         |  | Executive Vice President, Chief Financial Officer, Treasurer and
    Principal Accounting Officer |  | March 11, 2005
|                                            
|/s/ Willard N. ArchieWillard
    N. Archie   |  | Director                                                                                          |  | March 11, 2005
|                                            
|/s/ Robert B. CatellRobert
    B. Catell     |  | Director                                                                                          |  | March 11, 2005
|                                            
|/s/ Rohit M. DesaiRohit
    M. Desai         |  | Director                                                                                          |  | March 11, 2005
|                                            
|/s/ Chaim Y. EdelsteinChaim
    Y. Edelstein |  | Director                                                                                          |  | March 11, 2005

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|                                                       |  |          |  |                |  | 
|------------------------------------------------------ |  | -------- |  | -------------- |  | 
|Name                                                   |  |          |  | Date          
|                                                       |  |          |  |               
|                                                      
|/s/ Scott M. HandScott
    M. Hand                     |  | Director |  | March 11, 2005
|                                                      
|/s/David
    L. Hinds                                  |  | Director |  | March 11, 2005
|                                                      
|/s/ Denis P. KelleherDenis
    P. Kelleher             |  | Director |  | March 11, 2005
|                                                      
|/s/ John R. MorrisJohn
    R. Morris                   |  | Director |  | March 11, 2005
|                                                      
|/s/ Maria Fiorini
    RamirezMaria
    Fiorini Ramirez |  | Director |  | March 11, 2005
|                                                      
|/s/ Allan WeissglassAllan
    Weissglass               |  | Director |  | March 11, 2005

140