New York Community Bancorp, Inc. Reports Third Quarter 2018 Diluted Earnings Per Common Share of $0.20 as Growth and Expense Reductions Continue



BOARD OF DIRECTORS DECLARES A $0.17 DIVIDEND PER COMMON SHARE AND AUTHORIZES $300 MILLION COMMON SHARE REPURCHASE PROGRAM

WESTBURY, N.Y., Oct. 24, 2018 /PRNewswire/ --


 

Third Quarter 2018 Summary

  • Earnings:
    • Net income was $106.8 million, relatively unchanged compared to $107.4 million for June 30, 2018.
    • Net income available to common shareholders was $98.6 million, also relatively unchanged compared to $99.1 million for June 30, 2018.
    • Non-interest expenses declined $27.8 million, or 17% to $134.4 million versus the prior year's quarter; on a year-to-date basis they declined $81.3 million, or 16%.
    • The efficiency ratio was a solid 49.35%.
    • Return on average assets was 0.84% compared to 0.87% in the previous quarter and return on average common stockholders' equity was 6.26% versus 6.31% at June 30, 2018. (1)
    • Return on average tangible assets was 0.89% compared to 0.91% in the prior quarter and return on average tangible common stockholders' equity was 10.20% compared to 10.30% at June 30, 2018. (1) (2)

  • Balance Sheet:
    • Loans held for investment totaled $39.8 billion up $1.5 billion or 5% annualized.
    • Total multi-family loans also grew $1.5 billion or 7% on an annualized basis.
    • Total commercial and industrial loans, led by our specialty finance business, increased $287 million or 19% on an annualized basis.
    • Total deposits increased $1.2 billion or 6% on an annualized basis, including growth of $763 million or 10% annualized during the current quarter.

  • Net Interest Margin:
    • The net interest margin declined 17 basis points to 2.16% compared to second quarter 2018.
    • Excluding prepayments, the net interest margin was 2.08%, down 11 basis points compared to the prior quarter.
    • Prepayment income added eight basis points to the net interest margin this quarter compared to 14 basis points in the prior quarter.

  • Pristine Asset Quality:
    • Non-performing assets declined 4% to $67.8 million or 0.13% of total assets on a linked-quarter basis.
    • Non-performing loans declined 4% to $54.1 million or 0.14% of total loans on a linked-quarter basis.
    • Net charge-offs totaled $2.2 million or 0.01% of average loans.
    • The allowance for loan losses represented 295.3% of non-performing loans.

  • Capital Position at September 30, 2018:
    • Common Equity Tier 1 Capital Ratio was 11.07%.
    • Tier 1 Risk-Based Capital Ratio was 12.47%.
    • Total Risk-Based Capital Ratio was 13.89%.
    • Leverage Capital Ratio was 9.26%.

  • Recent Developments:
    • Received final regulatory approval to merge subsidiary banks; expect closing to occur in the fourth quarter.
    • Board of Directors approves a $300 million common share repurchase program.

 



(1)

Return on average assets and on average tangible assets are calculated using net income. Return on average common stockholders' equity and on average tangible common stockholders' equity are calculated using net income available to common shareholders.

(2)

"Tangible assets" and "tangible common stockholders' equity" are non-GAAP financial measures. See the discussion and reconciliations of these non-GAAP measures with the comparable GAAP measures on page 8 of this release.


New York Community Bancorp, Inc. (NYSE: NYCB) (the "Company") today reported net income for the three months ended September 30, 2018 of $106.8 million, down modestly from the $107.4 million reported for the three months ended June 30, 2018, and down 3.3% from the $110.5 million reported for the three months ended September 30, 2017.

Net income available to common shareholders was $98.6 million, also down modestly from the $99.1 million reported for the three months ended June 30, 2018 and down 3.6% from the $102.3 million reported for the three months ended September 30, 2017.

Net income and net income available to common shareholders for the three months ended September 30, 2017 included an $82.0 million pre-tax gain on the sale of covered loans and our mortgage banking operations, as well as a $44.6 million provision for loan losses largely due to taxi medallion-related loans.

Diluted earnings per common share ("EPS") for the three months ended September 30, 2018 were $0.20, unchanged from the prior quarter and as compared to $0.21 for the three months ended September 30, 2017.

Commenting on the Company's third quarter performance, President and Chief Executive Officer Joseph R. Ficalora stated, "Despite what traditionally is a seasonally slow quarter, the Company turned in a respectable performance during the third quarter, reflecting a continuation of our three-prong strategy to increase earnings: growing our loan portfolio at higher interest rates, redeploying our excess liquidity into higher yielding assets, and significantly reducing our operating expenses, while keeping a sharp eye on asset quality.

"Our loan portfolio, driven by our core multi-family loan product, continued to grow during the third quarter. Total loans held for investment grew 5% on an annualized basis to $39.8 billion. Since the beginning of 2018, we have grown our loan portfolio by $1.5 billion, with most of this growth occurring over the past two quarters, in response to the SIFI threshold being raised to $250 billion in late May. The growth in loans helped drive our assets higher. Total assets at September 30, 2018 were $51.2 billion, up over $2.0 billion since the beginning of the year.

"While our loans continued to grow, we have not sacrificed our underwriting standards and our asset quality metrics remain pristine. Non-performing assets declined again this quarter, as did net charge-offs. In fact, we did not have any charge-offs in our core multi-family, commercial real estate, and commercial & industrial loan portfolios during the quarter.

"We also continued our reinvestment strategy during the current quarter, redeploying a portion of our excess cash position into higher yielding assets, primarily investment securities. We expect to continue to redeploy excess cash during the fourth quarter.

"Additionally, we remained diligent on our expense controls as operating expenses declined again during the third quarter. So far during the first nine months of the year, non-interest expenses declined $81.3 million or 16% compared to the first nine months of 2017. We remain on track to meet our expense reduction goals for 2018.

"Also on October 1st, we received final regulatory approval to merge our commercial bank subsidiary, New York Commercial Bank with and into our primary banking subsidiary, New York Community Bank. This merger will result in additional organizational and capital flexibility, as well as certain operational efficiencies, and is expected to close in the fourth quarter of 2018.

"Finally, we are pleased to receive regulatory approval and Board authorization for our share repurchase program. The program, which is in line with our capital planning, is expected to be immediately accretive to EPS, allows us to take advantage of current market conditions, and will accelerate our internal capital generation."

Board of Directors Declares $0.17 per Common Share Dividend and Authorizes $300 Million Common Share Repurchase Program
Reflecting our earnings and our capital position, the Board of Directors yesterday declared a quarterly cash dividend on the Company's common stock of $0.17 per share. The dividend is payable on November 20, 2018 to common shareholders of record as of November 6, 2018, and represents a dividend yield of 7.2% based on yesterday's closing price.

Also yesterday, the Board of Directors approved the repurchase of $300 million of the Company's outstanding common shares. Purchases will be made from time to time in open market transactions.

BALANCE SHEET SUMMARY

Total assets for the quarter ended September 30, 2018 were $51.2 billion, up just over $2.0 billion or 4% from the year ended December 31, 2017 and up $777.5 million or 6% annualized from the quarter ended June 30, 2018. This quarter's asset growth was primarily due to loan growth combined with growth in the securities portfolio. This growth was funded mainly by deposits and to a lesser extent wholesale borrowings.

While the third quarter of the year traditionally is our slowest for loan growth, we still had very good growth and are on target for mid-single digit growth in 2018. Total loans held for investment rose $1.5 billion or 5% from December 31, 2017 to $39.8 billion and rose $390 million compared to the balance at June 30, 2018.

In addition to solid loan growth this quarter, we also grew our securities portfolio, as we continued to reinvest our excess cash position. Accordingly, the balance of available-for-sale securities increased $641 million to $4.8 billion compared to June 30, 2018 and by $1.2 billion compared to December 31, 2017. Total securities as a percentage of total assets increased to 9.4% during the current third quarter compared to 8.2% at the prior quarter-end and 7.2% at year-end 2017.

Our growth during this quarter was funded primarily through deposits. Total deposits rose $1.2 billion, or 6% annualized to $30.3 billion compared to the level at December 31, 2017 and $763 million or 10% annualized compared to the level at June 30, 2018. Wholesale borrowings of $13.5 billion rose $927 million or 10% annualized compared to the balance at December 31, 2017 and increased $47 million or 1% annualized compared to the balance at June 30, 2018.

Loans

Loans held for investment, net totaled $39.7 billion at September 30, 2018, a $1.4 billion or 5% annualized increase from December 31, 2017, and an increase of $391 million from June 30, 2018.

The Company's overall loan growth was driven by growth in our multi-family and commercial and industrial ("C&I") loan portfolios. Multi-family loans grew to $29.6 billion in the current third quarter. This represents annualized growth of $1.5 billion or 7%, compared to December 31, 2017.

C&I loans, which are primarily specialty finance related-loans, increased $287 million or 19% annualized to $2.3 billion compared to the balance at December 31, 2017.

Conversely, the commercial real estate ("CRE") loan portfolio declined both on a linked-quarter and year-to-date basis, due to payoffs and scheduled maturities. CRE loans declined $289 million, or 5% annualized to $7.0 billion compared to year-end 2017.

Originations
Reflecting typical third quarter seasonality, loans originated for investment were $2.5 billion. For the nine months ended September 30, 2018, loans originated for investment were up 36% to $7.9 billion compared to the nine-months ended September 30, 2017 with multi-family originations increasing 60%, specialty finance up 13%, and CRE up 6%.

Pipeline
The current loan pipeline stands at $1.3 billion. This includes $800 million in multi-family loans, $163 million in CRE loans, and $316 million in specialty finance loans.

Funding

Deposits
Total deposits increased $1.2 billion or 6% annualized on a year-to-date basis and $763 million or 10% annualized, sequentially to $30.3 billion. Deposit growth was driven in large part through certificates of deposit ("CDs") and to a lesser extent, through non-interest-bearing accounts.

On a year-to-date basis, CDs rose $2.8 billion or 43% annualized and on a linked-quarter basis, CDs grew $1.1 billion, also 43% annualized. Non-interest-bearing accounts increased $211 million, or 12% on a year-to-date annualized basis and $25 million, or 4% annualized on a linked-quarter basis.

Borrowed Funds
Total borrowed funds were $13.8 billion at September 30, 2018, up $927 million, or 10% annualized compared to year-end 2017 and up $47 million, or 1% annualized compared to second quarter 2018. The entire increase was due to higher wholesale borrowings, consisting primarily of Federal Home Loan Bank of New York borrowings.

Asset Quality

Total non-performing assets ("NPAs") declined $3 million, or 4% to $67.8 million, or 0.13% of total assets at September 30, 2018 compared to $70.7 million, or 0.14% of total assets at June 30, 2018. NPAs were down $17 million, or 20% compared to $84.7 million, or 0.17% of total assets at September 30, 2017.

Non-performing loans ("NPLs") were $54.1 million at September 30, 2018, down 4% sequentially and 22% year-over-year. For the current third quarter, NPLs represented 0.14% of total loans, unchanged from the prior quarter, and 0.18% of total loans in the year-ago quarter. The majority of NPLs are taxi medallion-related loans, which were $41.3 million in the current third quarter versus $43.5 million in the prior quarter and $43.4 million in the year-ago quarter.

Repossessed assets totaled $13.8 million, a decrease of 3% compared to the prior quarter and a decrease of 13% compared to the year-ago quarter. As with our NPLs, the majority of our repossessed assets consist of repossessed taxi medallions, which represented $8.6 million of repossessed assets during the current quarter, $9.0 million in the prior quarter, and $6.5 million in the year-ago quarter. At September 30, 2018, the Company's total taxi medallion-related loans were $80.7 million compared to $85.8 million at the prior quarter end.

In the third quarter of 2018, the Company recorded net charge-offs of $2.2 million or 0.01% of average loans compared to $5.2 million or 0.01% in the prior quarter and $40.4 million or 0.11% in the year-ago quarter. As in the previous quarter, the majority of our net charge-offs were taxi medallion-related. Aside from taxi medallion-related charge-offs, the Company did not have any charge-offs this quarter in its multi-family, CRE, and C&I portfolios while recording modest recoveries.

EARNINGS SUMMARY FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018

For the three months ended September 30, 2018, the Company reported net income of $106.8 million, down a modest 0.5% from the $107.4 million reported for the three months ended June 30, 2018, and down 3.3% from the $110.5 million reported for the three months ended September 30, 2017.

Net income available to common shareholders was $98.6 million, down 0.6% from the $99.1 million reported for the three months ended June 30, 2018 and down 3.6% from the $102.3 million reported for the three months ended September 30, 2017.

For the three months ended September 30, 2017, both net income and net income available to common shareholders included an $82.0 million pre-tax gain on the sale of certain covered one-to-four family residential loans and mortgage banking operations and a $44.6 million provision for loan losses tied primarily to taxi medallion-related loans.

Diluted EPS for the three months ended September 30, 2018 were $0.20, unchanged from the prior quarter and as compared to $0.21 in the year-ago quarter.

Net Interest Income
Net interest income for the three months ended September 30, 2018 was $249.5 million, down 5% compared to the three months ended June 30, 2018 and down 10% compared to the three months ended September 30, 2017. While interest income rose 2% and 8%, compared to the respective prior periods, this was offset by higher levels of interest expense. The higher levels of interest expense were driven by growth in CDs and wholesale borrowings, along with higher rates on those balances due to the continuation of the Federal Reserve's interest rate increases.

Net Interest Margin
The net interest margin for the current third quarter was 2.16%, down 17 basis points compared to the prior quarter and down 37 basis points compared to the year-ago quarter. The decline was due to higher funding costs driven by Federal Reserve rate increases over the past year. In addition to higher interest expense, the third quarter 2018 net interest margin was negatively impacted by a lower level of loan prepayments. Prepayment income added eight basis points to the net interest margin during the third quarter, compared to 14 and 16 basis points, respectively, in the prior quarter and year-ago quarter.

Excluding the contribution to net interest income from prepayment income, the third quarter 2018 net interest margin would have been 2.08%, down 11 basis points.

Provision for Loan Losses
The provision for loan losses for the third quarter of 2018 was $1.2 million, down 75% compared to the second quarter of 2018 and down 97% compared to the third quarter of 2017. The loan loss provision in the year-ago quarter was $44.6 million, largely reflecting the write down of our taxi medallion-related loan portfolio.

Non-Interest Income
Non-interest income during the third quarter of 2018 totaled $22.9 million, relatively unchanged from the amount recorded in the second quarter of 2018, but was down 79% compared to the third quarter of 2017. The prior-year quarter included an $82.0 million gain on sale related to the sale of certain covered one-to-four family residential loans and our mortgage banking operations.

Non-Interest Expense
Total non-interest expense was $134.4 million during the current third-quarter, down 3% compared to the second quarter of this year and down 17% compared to the third quarter of 2017. Both the linked quarter and year-over-year improvements were driven by lower general and administrative expense, compensation and benefits expense, and occupancy and equipment expense.

The efficiency ratio increased to 49.35% on lower revenues, compared to 48.19% in the prior quarter and 42.10% in the year-ago quarter.

Income Taxes
Income tax expense for the three months ended September 30, 2018 totaled $30.0 million, reflecting modestly lower pre-tax income and a lower effective tax rate of 21.95%. This compares to an effective tax rate of 25.35% in the prior quarter and 38.10% in the year-ago quarter. The lower effective tax rate in both the current quarter and the second quarter of 2018 is due to tax reform legislation passed in late 2017, as well as various tax planning strategies.

About New York Community Bancorp, Inc.

Based in Westbury, NY, New York Community Bancorp, Inc. is a leading producer of multi-family loans on non-luxury, rent-regulated apartment buildings in New York City, and the parent of New York Community Bank and New York Commercial Bank. At September 30, 2018, the Company reported assets of $51.2 billion, loans of $39.8 billion, deposits of $30.3 billion, and stockholders' equity of $6.8 billion.

Reflecting our growth through a series of acquisitions, the Community Bank operates 223 branches through seven local divisions, each with a history of service and strength: Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, and Roosevelt Savings Bank in New York; Garden State Community Bank in New Jersey; Ohio Savings Bank in Ohio; and AmTrust Bank in Florida and Arizona, while the Commercial Bank operates 18 of its 30 New York-based branches under the divisional name Atlantic Bank. Additional information about the Company and its bank subsidiaries is available at www.myNYCB.com and www.NewYorkCommercialBank.com.

Post-Earnings Release Conference Call
The Company will host a conference call on Wednesday, October 24, 2018, at 8:30 a.m. (Eastern Time) to discuss its third quarter 2018 performance. The conference call may be accessed by dialing (877) 407-8293 (for domestic calls) or (201) 689-8349 (for international calls) and asking for "New York Community Bancorp" or "NYCB." A replay will be available approximately three hours following completion of the call through 11:59 p.m. on October 28, 2018 and may be accessed by calling (877) 660-6853 (domestic) or (201) 612-7415 (international) and providing the following conference ID: 13683407. In addition, the conference call will be webcast at ir.myNYCB.com, and archived through 5:00 p.m. on November 21, 2018.

Cautionary Statements Regarding Forward-Looking Information
This earnings release and the associated conference call may include forward�looking statements by the Company and our authorized officers pertaining to such matters as our goals, intentions, and expectations regarding revenues, earnings, loan production, asset quality, capital levels, and acquisitions, among other matters; our estimates of future costs and benefits of the actions we may take; our assessments of probable losses on loans; our assessments of interest rate and other market risks; and our ability to achieve our financial and other strategic goals.

Forward�looking statements are typically identified by such words as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Additionally, forward�looking statements speak only as of the date they are made; the Company does not assume any duty, and does not undertake, to update our forward�looking statements. Furthermore, because forward�looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in our statements, and our future performance could differ materially from our historical results.

Our forward�looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios; changes in competitive pressures among financial institutions or from non�financial institutions; our ability to obtain the necessary shareholder and regulatory approvals of any acquisitions we may propose; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may acquire into our operations, and our ability to realize related revenue synergies and cost savings within expected time frames; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are subject to significant uncertainties and/or are beyond our control.

More information regarding some of these factors is provided in the Risk Factors section of our Form 10�K for the year ended December 31, 2017 and in other SEC reports we file. Our forward�looking statements may also be subject to other risks and uncertainties, including those we may discuss in this news release, on our conference call, during investor presentations, or in our SEC filings, which are accessible on our website and at the SEC's website, www.sec.gov.

Investor/Media Contact:

Salvatore J. DiMartino


(516) 683-4286

- Financial Statements and Highlights Follow -

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF CONDITION


September 30,


December 31,


2018


2017


(unaudited)



(in thousands, except share data)




Assets




Cash and cash equivalents

$     1,731,754


$         2,528,169

Securities:




Available-for-sale

4,764,283


3,531,427

    Equity investments with readily




        determinable fair values, at fair value

31,724


-

Total securities

4,796,007


3,531,427

Loans held for sale 

-


35,258

Mortgage loans held for investment:




Multi-family

29,566,170


28,092,182

Commercial real estate 

7,036,315


7,324,852

One-to-four family

456,626


477,244

Acquisition, development, and construction

433,877


435,707

Total mortgage loans held for investment

37,492,988


36,329,985

Other loans: 




Commercial and industrial 

2,336,183


2,049,498

Other loans

9,100


8,488

Total other loans held for investment

2,345,283


2,057,986

Total loans held for investment

39,838,271


38,387,971

Less:  Allowance for loan losses

(159,655)


(158,046)

Loans held for investment, net

39,678,616


38,229,925

Total loans, net

39,678,616


38,265,183

Federal Home Loan Bank stock, at cost

654,939


603,819

Premises and equipment, net

352,518


368,655

Goodwill

2,436,131


2,436,131

Other assets 

1,596,689


1,390,811

Total assets

$   51,246,654


$       49,124,195

Liabilities and Stockholders' Equity




Deposits:




Interest-bearing checking and money market accounts

$   11,559,687


$       12,936,301

Savings accounts

4,826,845


5,210,001

Certificates of deposit

11,409,974


8,643,646

Non-interest-bearing accounts

2,522,778


2,312,215

Total deposits

30,319,284


29,102,163

Borrowed funds:




Wholesale borrowings

13,481,000


12,554,500

Junior subordinated debentures

359,422


359,179

Total borrowed funds

13,840,422


12,913,679

Other liabilities

292,933


312,977

Total liabilities

44,452,639


42,328,819

Stockholders' equity:




Preferred stock at par $0.01 (5,000,000 shares authorized): 




Series A (515,000 shares issued and outstanding)

502,840


502,840

Common stock at par $0.01 (900,000,000 shares authorized; 490,439,070 and 489,072,101




shares issued; and 490,341,864 and 488,490,352 shares outstanding, respectively)

4,904


4,891

Paid-in capital in excess of par

6,091,749


6,072,559

Retained earnings 

286,763


237,868

Treasury stock, at cost (97,206 and 581,749 shares, respectively)

(1,177)


(7,615)

Accumulated other comprehensive loss, net of tax:




Net unrealized (loss) gain on securities available for sale, net of tax

(29,859)


39,188

Net unrealized loss on the non-credit portion of other-than-




temporary impairment losses, net of tax

(6,042)


(5,221)

Pension and post-retirement obligations, net of tax

(55,163)


(49,134)

Total accumulated other comprehensive loss, net of tax

(91,064)


(15,167)

Total stockholders' equity

6,794,015


6,795,376

Total liabilities and stockholders' equity

$   51,246,654


$       49,124,195

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)






















For the Three Months Ended


For the Nine Months Ended


Sept. 30,


June 30,


Sept. 30,


Sept. 30,


Sept. 30,


2018


2018


2017


2018


2017











(in thousands, except per share data)










Interest Income:










Mortgage and other loans

$ 368,264


$ 368,456


$ 350,990


$ 1,092,637


$ 1,070,722

Securities and money market investments

56,880


48,876


42,685


154,164


121,147

Total interest income

425,144


417,332


393,675


1,246,801


1,191,869











Interest Expense:










Interest-bearing checking and money market accounts

44,497


40,380


27,620


119,246


71,413

Savings accounts 

7,325


6,630


7,109


21,176


21,069

Certificates of deposit

51,249


39,534


27,649


121,298


73,786

Borrowed funds

72,567


66,833


54,954


201,322


166,572

Total interest expense

175,638


153,377


117,332


463,042


332,840

Net interest income

249,506


263,955


276,343


783,759


859,029

Provision for losses on loans

1,201


4,714


44,585


15,486


58,017

Recovery of losses on covered loans

-


-


-


-


(23,701)

Net interest income after provision for (recovery of)










loan losses

248,305


259,241


231,758


768,273


824,713











Non-Interest Income:










Fee income

7,237


7,492


7,972


22,056


23,983

Bank-owned life insurance

7,302


6,318


8,314


20,424


21,170

Mortgage banking income

-


-


1,486


-


19,446

Net (loss) gain on securities 

(41)


(303)


-


(810)


28,915

FDIC indemnification expense

-


-


-


-


(18,961)

Gain on sale of covered loans and mortgage banking










   operations

-


-


82,026


-


82,026

Other income 

8,424


9,199


9,130


26,815


34,958

Total non-interest income  

22,922


22,706


108,928


68,485


191,537











Non-Interest Expense:










Operating expenses:










Compensation and benefits

78,283


80,314


92,246


242,572


281,964

Occupancy and equipment

24,401


25,026


25,133


74,311


73,595

General and administrative

31,749


32,802


44,831


94,799


137,175

Total operating expenses

134,433


138,142


162,210


411,682


492,734

Amortization of core deposit intangibles

-


-


24


-


208

Total non-interest expense

134,433


138,142


162,234


411,682


492,942

Income before income taxes

136,794


143,805


178,452


425,076


523,308

Income tax expense 

30,022


36,451


67,984


104,398


193,628

Net Income 

106,772


107,354


110,468


320,678


329,680

Preferred stock dividends

8,207


8,207


8,207


24,621


16,414

Net income available to common shareholders

$   98,565


$   99,147


$ 102,261


$    296,057


$    313,266











Basic earnings per common share 

$       0.20


$       0.20


$       0.21


$          0.60


$          0.64

Diluted earnings per common share

$       0.20


$       0.20


$       0.21


$          0.60


$          0.64

NEW YORK COMMUNITY BANCORP, INC.

RECONCILIATIONS OF CERTAIN GAAP AND NON-GAAP FINANCIAL MEASURES

(unaudited)


While stockholders' equity, total assets, and book value per share are financial measures that are recorded in accordance with U.S. generally accepted accounting principles ("GAAP"), tangible stockholders' equity, tangible assets, and tangible book value per share are not.  Nevertheless, it is management's belief that these non-GAAP measures should be disclosed in our earnings releases and other investor communications for the following reasons:


      1.      Tangible stockholders' equity is an important indication of the Company's ability to grow organically and through business combinations, as well as its
               ability to pay dividends and to engage in various capital management strategies.

      2.      Returns on average tangible assets and average tangible stockholders' equity are among the profitability measures considered by current and prospective
               investors, both independent of, and in comparison with, the Company's peers.

      3.      Tangible book value per share and the ratio of tangible stockholders' equity to tangible assets are among the capital measures considered by current
               and prospective investors, both independent of, and in comparison with, its peers. 


Tangible stockholders' equity, tangible assets, and the related non-GAAP profitability and capital measures should not be considered in isolation or as a substitute for stockholders' equity, total assets, or any other profitability or capital measure calculated in accordance with GAAP.  Moreover, the manner in which we calculate these non-GAAP measures may differ from that of other companies reporting non-GAAP measures with similar names. 


The following table presents reconciliations of our common stockholders' equity and tangible common stockholders' equity, our total assets and tangible assets, and the related GAAP and non-GAAP profitability and capital measures at or for the three months ended September 30, 2018, June 30, 2018, and September 30, 2017 and for the nine months ended September 30, 2018 and 2017:



At or for the


At or for the


Three Months Ended


Nine Months Ended


Sept. 30,


June 30,


Sept. 30,


Sept. 30,


Sept. 30,

(dollars in thousands)

2018


2018


2017


2018


2017

Total Stockholders' Equity

$    6,794,015


$    6,789,352


$    6,759,654


$    6,794,015


$    6,759,654

Less: Goodwill

(2,436,131)


(2,436,131)


(2,436,131)


(2,436,131)


(2,436,131)

Preferred stock

(502,840)


(502,840)


(502,840)


(502,840)


(502,840)

Tangible common stockholders' equity

$    3,855,044


$    3,850,381


$    3,820,683


$    3,855,044


$    3,820,683











Total Assets 

$  51,246,654


$  50,469,170


$  48,457,891


$  51,246,654


$  48,457,891

Less: Goodwill

(2,436,131)


(2,436,131)


(2,436,131)


(2,436,131)


(2,436,131)

Tangible assets

$  48,810,523


$  48,033,039


$  46,021,760


$  48,810,523


$  46,021,760











Average Common Stockholders' Equity

$    6,301,525


$    6,286,326


$    6,262,792


$    6,291,911


$    6,187,514

Less: Average goodwill and CDI

(2,436,131)


(2,436,131)


(2,436,146)


(2,436,131)


(2,436,202)

Average tangible common stockholders' equity

$    3,865,394


$    3,850,195


$    3,826,646


$    3,855,780


$    3,751,312











Average Assets

$  50,608,283


$  49,567,386


$  48,526,259


$  49,685,717


$  48,776,475

Less: Average goodwill and CDI

(2,436,131)


(2,436,131)


(2,436,146)


(2,436,131)


(2,436,202)

Average tangible assets

$  48,172,152


$  47,131,255


$  46,090,113


$  47,249,586


$  46,340,273











Net Income Available to Common Shareholders 

$         98,565


$         99,147


$       102,261


$       296,057


$       313,266

Add back: Amortization of CDI, net of tax

-


-


14


-


125

Adjusted net income available to common shareholders

$         98,565


$         99,147


$       102,275


$       296,057


$       313,391











GAAP MEASURES:










Return on average assets (1)

0.84

%

0.87

%

0.91

%

0.86

%

0.90

Return on average common stockholders' equity (2)

6.26


6.31


6.53


6.27


6.75

Book value per common share

$           12.83


$           12.82


$           12.79


$           12.83


$           12.79

Common stockholders' equity to total assets

12.28


12.46


12.91


12.28


12.91











NON-GAAP MEASURES:










Return on average tangible assets (1)

0.89

%

0.91

%

0.96

%

0.90

%

0.95

Return on average tangible common stockholders' equity (2)

10.20


10.30


10.69


10.24


11.14

Tangible book value per common share

$             7.86


$             7.85


$             7.81


$             7.86


$             7.81

Tangible common stockholders' equity to tangible assets

7.90


8.02


8.30


7.90


8.30



(1)

To calculate return on average assets for a period, we divide net income generated during that period by average assets recorded during that period. To calculate return on average tangible assets for a period, we adjust net income generated during that period by adding back the amortization of CDI, net of tax, and then divide that adjusted net income by average tangible assets recorded during that period.



(2)

To calculate return on average common stockholders' equity for a period, we divide net income available to common shareholders generated during that period by average common stockholders' equity recorded during that period. To calculate return on average tangible common stockholders' equity for a period, we adjust net income available to common shareholders generated during that period by adding back the amortization of CDI, net of tax, and then divide that adjusted net income by average tangible common stockholders' equity recorded during that period.


NEW YORK COMMUNITY BANCORP, INC.


NET INTEREST INCOME ANALYSIS


LINKED-QUARTER AND YEAR-OVER-YEAR COMPARISONS


(unaudited)






















For the Three Months Ended



September 30, 2018


June 30, 2018


September 30, 2017



Average
Balance


Interest


Average
Yield/Cost


Average
Balance


Interest


Average
Yield/Cost


Average
Balance


Interest


Average
Yield/Cost


(dollars in thousands)



















Assets:



















Interest-earning assets:



















Mortgage and other loans, net 

$ 39,465,876


$  368,264


3.73

%

$ 38,937,521


$  368,456


3.79

%

$   37,791,476


$  350,990


3.71

%

Securities

5,279,319


49,084


3.71


4,029,967


37,962


3.77


3,597,699


34,359


3.81


Interest-earning cash and cash equivalents

1,557,465


7,796


1.99


2,288,581


10,914


1.91


2,474,307


8,326


1.34


Total interest-earning assets

46,302,660


425,144


3.67


45,256,069


417,332


3.69


43,863,482


393,675


3.59


Non-interest-earning assets

4,305,623






4,311,317






4,662,777






Total assets

$ 50,608,283






$ 49,567,386






$   48,526,259






Liabilities and Stockholders' Equity:



















Interest-bearing deposits:



















Interest-bearing checking and money



















market accounts

$ 11,732,410


$    44,497


1.50

%

$ 12,185,478


$    40,380


1.33

%

$   12,672,720


$    27,620


0.86

%

Savings accounts

4,872,126


7,325


0.60


4,935,936


6,630


0.54


5,006,499


7,109


0.56


Certificates of deposit

10,740,927


51,249


1.89


9,631,672


39,534


1.65


8,533,404


27,649


1.29


Total interest-bearing deposits

27,345,463


103,071


1.50


26,753,086


86,544


1.30


26,212,623


62,378


0.94


Borrowed funds

13,704,208


72,567


2.10


13,126,137


66,833


2.04


12,397,681


54,954


1.76


Total interest-bearing liabilities

41,049,671


175,638


1.70


39,879,223


153,377


1.54


38,610,304


117,332


1.21


Non-interest-bearing deposits

2,488,674






2,675,223






2,766,701






Other liabilities

265,573






223,774






383,622






Total liabilities

43,803,918






42,778,220






41,760,627






Stockholders' equity

6,804,365






6,789,166






6,765,632






Total liabilities and stockholders' equity

$ 50,608,283






$ 49,567,386






$   48,526,259






Net interest income/interest rate spread



$  249,506


1.97

%



$  263,955


2.15

%



$  276,343


2.38

%

Net interest margin





2.16

%





2.33

%





2.53

%

Ratio of interest-earning assets to



















interest-bearing liabilities 





1.13

x





1.13

x





1.14

x

NEW YORK COMMUNITY BANCORP, INC.


NET INTEREST INCOME ANALYSIS


YEAR-OVER-YEAR COMPARISON


(unaudited)
















For the Nine Months Ended September 30,



2018


2017



Average
Balance


Interest


Average
Yield/Cost


Average
Balance


Interest


Average
Yield/Cost


(dollars in thousands)













Assets:













Interest-earning assets:













Mortgage and other loans, net 

$ 38,902,370


$ 1,092,637


3.75

%

$ 38,652,113


$ 1,070,722


3.69

%

Securities

4,463,058


127,038


3.80


4,052,154


112,800


3.72


Interest-earning cash and cash equivalents

1,991,558


27,126


1.82


832,463


8,347


1.34


Total interest-earning assets

45,356,986


1,246,801


3.67


43,536,730


1,191,869


3.65


Non-interest-earning assets

4,328,731






5,239,745






Total assets

$ 49,685,717






$ 48,776,475






Liabilities and Stockholders' Equity:













Interest-bearing deposits:













Interest-bearing checking and money













market accounts

$ 12,178,512


$    119,246


1.31

%

$ 12,950,570


$      71,413


0.74

%

Savings accounts

4,956,358


21,176


0.57


5,171,645


21,069


0.54


Certificates of deposit

9,732,912


121,298


1.67


8,019,142


73,786


1.23


Total interest-bearing deposits

26,867,782


261,720


1.30


26,141,357


166,268


0.85


Borrowed funds

13,255,400


201,322


2.03


12,992,691


166,572


1.71


Total interest-bearing liabilities

40,123,182


463,042


1.54


39,134,048


332,840


1.14


Non-interest-bearing deposits

2,522,784






2,820,923






Other liabilities

245,000






269,132






Total liabilities

42,890,966






42,224,103






Stockholders' equity

6,794,751






6,552,372






Total liabilities and stockholders' equity

$ 49,685,717






$ 48,776,475






Net interest income/interest rate spread



$    783,759


2.13

%



$    859,029


2.51

%

Net interest margin





2.30

%





2.63

%

Ratio of interest-earning assets to













interest-bearing liabilities 





1.13

x





1.11

x

NEW YORK COMMUNITY BANCORP, INC.


CONSOLIDATED FINANCIAL HIGHLIGHTS


(unaudited)














For the Three Months Ended


For the Nine Months Ended



Sept. 30,


June 30,


Sept. 30,


Sept. 30,


Sept. 30,


(dollars in thousands except share and per share data)

2018


2018


2017


2018


2017


PROFITABILITY MEASURES:











Net income

$      106,772


$      107,354


$      110,468


$      320,678


$      329,680


Net income available to common shareholders

98,565


99,147


102,261


296,057


313,266


Basic earnings per common share 

0.20


0.20


0.21


0.60


0.64


Diluted earnings per common share

0.20


0.20


0.21


0.60


0.64


Return on average assets

0.84

%

0.87

%

0.91

%

0.86

%

0.90

%

Return on average tangible assets (1)

0.89


0.91


0.96


0.90


0.95


Return on average common stockholders' equity

6.26


6.31


6.53


6.27


6.75


Return on average tangible common stockholders'











equity (1)

10.20


10.30


10.69


10.24


11.14


Efficiency ratio (2)

49.35


48.19


42.10


48.31


46.90


Operating expenses to average assets

1.06


1.11


1.34


1.10


1.35


Interest rate spread

1.97


2.15


2.38


2.13


2.51


Net interest margin

2.16


2.33


2.53


2.30


2.63


Effective tax rate

21.95


25.35


38.10


24.56


37.00


Shares used for basic common EPS computation

488,476,340


488,530,527


487,274,303


488,383,554


487,025,614


Shares used for diluted common EPS computation

488,476,340


488,530,527


487,274,303


488,383,554


487,025,614


Common shares outstanding at the respective











period-ends

490,341,864


490,379,705


489,061,848


490,341,864


489,061,848




(1)

See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 8 of this release.

(2)

We calculate our efficiency ratio by dividing our operating expenses by the sum of our net interest income and non-interest income.


Sept. 30,


June 30,


Sept. 30,



2018


2018


2017


CAPITAL MEASURES:







Book value per common share

$      12.83


$      12.82


$      12.79


Tangible book value per common share (1)

7.86


7.85


7.81


Common stockholders' equity to total assets

12.28

%

12.46

%

12.91

%

Tangible common stockholders' equity to tangible assets (1)             

7.90


8.02


8.30




(1)

See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 8 of this release.


Sept. 30,


June 30,


Sept. 30,



2018


2018


2017


REGULATORY CAPITAL RATIOS: (1)                                  







New York Community Bancorp, Inc.







Common equity tier 1 ratio

11.07

%

11.16

%

11.54

%

Tier 1 risk-based capital ratio

12.47


12.59


13.06


Total risk-based capital ratio

13.89


14.03


14.59


Leverage capital ratio

9.26


9.41


9.40


New York Community Bank







Common equity tier 1 ratio

13.06

%

13.19

%

13.60

%

Tier 1 risk-based capital ratio

13.06


13.19


13.60


Total risk-based capital ratio

13.46


13.60


14.02


Leverage capital ratio

9.61


9.81


9.80


New York Commercial Bank







Common equity tier 1 ratio

14.85

%

15.04

%

15.30

%

Tier 1 risk-based capital ratio

14.85


15.04


15.30


Total risk-based capital ratio

15.81


16.04


16.55


Leverage capital ratio

12.34


12.10


11.07




(1)

The minimum regulatory requirements for classification as a well-capitalized institution are a common equity tier 1 capital ratio of 6.50%; a tier 1 risk-based capital ratio of 8.00%; a total risk-based capital ratio of 10.00%; and a leverage capital ratio of 5.00%.

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION








Sep. 30, 2018








compared to


Sep. 30,


Jun. 30,


Sep. 30,


Jun. 30,


Sep. 30,


2018


2018


2017


2018


2017

(in thousands, except share data)

(unaudited)


(unaudited)


(unaudited)





Assets










Cash and cash equivalents

$1,731,754


$2,204,397


$3,277,427


-21%


-47%

Securities:










     Available-for-sale

4,764,283


4,122,883


3,031,026


16%


57%

     Equity investments with readily determinable fair values, at fair value

31,724


31,766


-


0%


NM

Total securities

4,796,007


4,154,649


3,031,026


15%


58%

Loans held for sale

-


-


104,938


NM


NM

Mortgage loans held for investment:










     Multi-family

29,566,170


29,230,112


27,162,401


1%


9%

     Commercial real estate

7,036,315


7,156,484


7,552,777


-2%


-7%

     One-to-four family

456,626


449,681


413,235


2%


11%

     Acquisition, development, and construction

433,877


424,552


385,543


2%


13%

Total mortgage loans held for investment

37,492,988


37,260,829


35,513,956


1%


6%

Other loans:










     Commercial and industrial

2,336,183


2,178,288


1,988,577


7%


17%

     Other loans

9,100


8,708


3,666


5%


148%

Total other loans held for investment

2,345,283


2,186,996


1,992,243


7%


18%

Total loans held for investment

39,838,271


39,447,825


37,506,199


1%


6%

Less:  Allowance for losses on loans

(159,655)


(160,652)


(158,918)


-1%


0%

Loans held for investment, net

39,678,616


39,287,173


37,347,281


1%


6%

Total loans, net

39,678,616


39,287,173


37,452,219


1%


6%

Federal Home Loan Bank stock, at cost

654,939


653,075


579,474


0%


13%

Premises and equipment, net

352,518


359,725


375,482


-2%


-6%

Goodwill

2,436,131


2,436,131


2,436,131


0%


0%

Other assets 

1,596,689


1,374,020


1,306,132


16%


22%

Total assets

$51,246,654


$50,469,170


$48,457,891


2%


6%











Liabilities and Stockholders' Equity










Deposits:










     Interest-bearing checking and money market accounts

$11,559,687


$11,830,315


$12,338,949


-2%


-6%

     Savings accounts

4,826,845


4,920,967


4,996,578


-2%


-3%

     Certificates of deposit

11,409,974


10,306,519


8,802,573


11%


30%

     Non-interest-bearing accounts

2,522,778


2,498,044


2,755,097


1%


-8%

Total deposits

30,319,284


29,555,845


28,893,197


3%


5%

Borrowed funds:










     Wholesale borrowings

13,481,000


13,434,500


12,004,500


0%


12%

     Junior subordinated debentures

359,422


359,339


359,102


0%


0%

Total borrowed funds

13,840,422


13,793,839


12,363,602


0%


12%

Other liabilities

292,933


330,134


441,438


-11%


-34%

Total liabilities

44,452,639


43,679,818


41,698,237


2%


7%

Stockholders' equity:










     Preferred stock at par $0.01 (5,000,000 shares authorized):










      Series A (515,000 shares issued and outstanding)

502,840


502,840


502,840


0%


0%

Common stock at par $0.01 (900,000,000 shares authorized; 490,439,070,










   490,439,070 and 489,072,101 shares issued; and 490,341,864,










   490,379,705 and 489,061,848 shares outstanding, respectively)

4,904


4,904


4,891


0%


0%

   Paid-in capital in excess of par

6,091,749


6,082,394


6,063,813


0%


0%

   Retained earnings

286,763


271,559


192,607


6%


49%

   Treasury stock, at cost (97,206, 59,365, and 10,253 shares, respectively)

(1,177)


(757)


(130)


55%


805%

   Accumulated other comprehensive loss, net of tax:










       Net unrealized (loss) gain on securities available for sale, net of tax

(29,859)


(9,069)


47,917


229%


-162%

       Net unrealized loss on the non-credit portion of other-than-temporary










          impairment losses, net of tax

(6,042)


(6,042)


(5,221)


0%


16%

       Pension and post-retirement obligations, net of tax

(55,163)


(56,477)


(47,063)


-2%


17%

   Total accumulated other comprehensive loss, net of tax

(91,064)


(71,588)


(4,367)


27%


NM

Total stockholders' equity

6,794,015


6,789,352


6,759,654


0%


1%

Total liabilities and stockholders' equity

$51,246,654


$50,469,170


$48,457,891


2%


6%

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

(unaudited)









Sep. 30, 2018



For the Three Months Ended


compared to



Sep. 30,


Jun. 30,


Sep. 30,


Jun. 30,


Sep. 30,



2018


2018


2017


2018


2017

(in thousands, except per share data)











Interest Income:











     Mortgage and other loans


$368,264


$368,456


$350,990


0%


5%

     Securities and money market investments


56,880


48,876


42,685


16%


33%

Total interest income


425,144


417,332


393,675


2%


8%












Interest Expense:











     Interest-bearing checking and money market accounts

44,497


40,380


27,620


10%


61%

     Savings accounts


7,325


6,630


7,109


10%


3%

     Certificates of deposit


51,249


39,534


27,649


30%


85%