New York Community Bancorp, Inc. Reports Fourth Quarter 2017 Diluted Earnings Per Common Share of $0.26 and Full Year 2017 Diluted Earnings Per Common Share of $0.90

January 31, 2018

Board of Directors Declares a $0.17 per Common Share Dividend

Fourth Quarter and Full Year 2017 Highlights

  • Earnings:
    • Net income totaled $136.5 million compared to $110.5 million in the third quarter and $113.7 million in the fourth quarter of 2016.
    • Net income available to common shareholders totaled $128.3 million compared to $102.3 million in the third quarter and $113.7 million in the year-ago quarter.
    • The effective tax rate for the fourth quarter was approximately 6% due to a $42 million net tax benefit arising from the impact of the recently enacted Tax Cuts and Jobs Act, including the re-measurement of the company's deferred tax liability.
    • For the quarter, the return on average assets was 1.13% and the return on average common stockholders’ equity was 8.21%. (1)
    • For the quarter, the return on average tangible assets was 1.19% and the return on average tangible common stockholders’ equity was 13.45%. (1) (2)
  • Net Interest Margin:
    • The net interest margin declined five basis points to 2.48% from the third quarter 2017 amount.
    • Excluding prepayments, the net interest margin was 2.37%, unchanged from the trailing quarter.
    • Prepayment income added 11 basis points to the net interest margin this quarter compared to 16 basis points last quarter.
  • Balance Sheet:
    • Total non-covered loans were $38.4 billion, up $882 million, or 9% on an annualized basis from the trailing quarter-end.
    • Loans originated for investment totaled $3.1 billion, a 34% sequential increase and a 52% year-over-year increase.
    • Total Available-for-Sale (“AFS”) securities rose 17%, or $500 million, to $3.5 billion compared to the prior quarter-end.
    • Overall balance sheet growth was 1% as the majority of this quarter’s loan and securities growth was funded by cash, provided by the proceeds of the sale of our covered loan portfolio and mortgage banking operations.
  • Asset Quality:
    • Non-performing non-covered assets represented $90.1 million, or 0.18%, of total non-covered assets.
    • Non-performing non-covered loans represented $73.7 million, or 0.19%, of total non-covered loans.
    • Net charge-offs totaled $3.8 million, or 0.01%, of average loans.
    • The allowance for loan losses represented 214.50% of non-performing non-covered loans.
  • Capital Position:
    • The Leverage Capital Ratio was 9.58% at December 31, 2017 compared to 9.40% at September 30, 2017.
    • Tier 1 Risk-Based Capital Ratio was 12.84% at December 31, 2017 compared to 13.06% at September 30, 2017.
    • Common Equity Tier 1 Risk-Based Capital Ratio was 11.36% at December 31, 2017 compared to 11.54% at September 30, 2017.

(1) Return on average assets and on average tangible assets is calculated using net income. Return on average common stockholders’ equity and on average tangible common stockholders’ equity is 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.

WESTBURY, N.Y.--(BUSINESS WIRE)-- New York Community Bancorp, Inc. (NYSE:NYCB) (the “Company”) today reported net income of $136.5 million for the three months ended December 31, 2017, up 24% from the $110.5 million reported for the three months ended September 30, 2017. Net income available to common shareholders was $128.3 million, up 25% compared to the $102.3 million reported in the trailing three-month period. This translates into diluted earnings per common share of $0.26 as compared to $0.21 per diluted common share for September 30, 2017, a 24% increase.

For the twelve months ended December 31, 2017, the Company reported net income of $466.2 million compared to $495.4 million for the twelve months ended December 31, 2016, down 6%. Net income available to common shareholders totaled $441.6 million, down 11% from the $495.4 million reported for the twelve months ended December 31, 2016. Diluted earnings per common share were $0.90 as compared to $1.01 per diluted common share for the twelve months ended December 31, 2016, down 11%.

Commenting on the Company’s performance, President and Chief Executive Officer Joseph R. Ficalora stated, “The Company’s fourth quarter performance built on the solid performance we achieved in the third quarter of the year and was notable in a number of ways. We originated $3.1 billion of loans held for investment during the quarter, up 34% from the previous quarter. Loan originations were $1.0 billion higher than the $2.1 billion pipeline we reported in our third quarter results. While some of this was offset by prepayments, our loan growth this quarter was very strong with total loans held for investment increasing nearly $900 million or 9% on an annualized basis. Leading this growth was our core multi-family loan portfolio which grew at a 14% annualized rate and accounted for the majority of the loan growth during the quarter.

“We continue to lend prudently and conservatively as reflected again by our asset quality metrics, which continue to be solid. Excluding the charge-offs we took during the year for taxi medallion-related loans, we would have reported net charge-offs of less than 0.01% in 2017.

“The net interest margin was 2.48% during the quarter compared to 2.53% in the third quarter. Excluding the contribution from prepayment income, the margin came in at 2.37%, unchanged from the third quarter and better than management’s expectation of down five basis points.

“Also noteworthy this quarter was the lower level of operating expenses which declined almost $14 million on a linked quarter basis, ahead of management’s projections.

“Additionally, due to the recently enacted Tax Cuts and Jobs Act, the Company reported a one-time net benefit of approximately $42 million, which includes the re-measurement of our deferred tax liability. In 2018, the Company’s effective tax rate is expected to be about 26.5%.

“All in all, we believe that this quarter’s performance lays the groundwork for solid growth in 2018.”

Board of Directors Declares $0.17 per Common Share Dividend Payable on February 27, 2018

Reflecting our earnings and our capital position, the Board of Directors last night declared a quarterly cash dividend on the Company’s common stock of $0.17 per share. The dividend is payable on February 27, 2018 to common shareholders of record as of February 13, 2018, and represents a dividend yield of 4.9% based on yesterday’s closing price.

BALANCE SHEET SUMMARY

Total assets at December 31, 2017 were $49.1 billion, up 1.4% (5.5% annualized) compared to the balance at September 30, 2017 and up 0.4% compared to December 31, 2016. During the current fourth quarter, total loans and AFS securities grew nearly $1.4 billion on a combined basis. The majority of this growth was funded through cash and cash equivalents, which moderated overall balance sheet growth. Total deposits of $29.1 billion were relatively stable compared to the prior-quarter and year-end 2016 balances, increasing 0.7% from both periods.

For the four quarters ended December 31, 2017, the Company’s total consolidated assets averaged $48.7 billion, below the current SIFI threshold of $50.0 billion.

Loans

Non-Covered Loans Held for Investment

Total non-covered loans held for investment of $38.4 billion increased $882 million or 2.4% (9.4% annualized) from the prior quarter end and $1.0 billion or 2.7% from year-end 2016. Total non-covered mortgage loans held for investment rose $816 million sequentially, or 2.3% (9.2% annualized) to $36.3 billion and $880 million or 2.5% compared to December 31, 2016. The main driver of this quarter’s loan growth was primarily in the Company’s core multi-family loan portfolio which increased $930 million to $28.1 billion. This represents 3.4% (14% annualized) growth compared to the September 30, 2017 balance and $1.1 billion or 4.2% growth compared to the December 31, 2016 balance. This was offset by a modest decline in commercial real estate (“CRE”) loans, which declined $228 million or 3% (12% annualized) to $7.3 billion compared to the trailing quarter and $402 million or 5.2% compared to year-end 2016. This decrease was mainly due to prepayments.

Total loans originated for investment increased 34% on a sequential basis, to $3.1 billion, including 42% growth in multi-family originations and 39% growth in CRE loan originations. The Company continues to originate multi-family and CRE loans which adhere to its conservative underwriting standards.

Pipeline

The Company has approximately $2.3 billion of loans in its current pipeline, including $1.6 billion of multi-family loans and $290 million of CRE loans.

Funding Sources

Deposits

Total deposits of $29.1 billion rose just under 1% compared to both the trailing quarter-end and from the prior year-end. On a year-over-year basis, the deposit mix shifted as interest-bearing checking/money market accounts declined 3.4%, savings accounts declined 1.3%, and non-interest-bearing accounts dropped 12.3%. This was offset by growth in our certificates of deposits, which increased 14.1% from year-end 2016.

Borrowed Funds

Total borrowed funds increased $550 million, or 4.4%, to $12.9 billion at the end of the current fourth quarter compared to the trailing quarter. This was entirely due to an increase in wholesale borrowings to $12.6 billion. Borrowed funds declined 5.6% from year-end 2016, due to a 5.7% decrease in wholesale borrowings to $12.6 billion.

Stockholders’ Equity

Total stockholders’ equity rose 11%, to $6.8 billion, at year-end 2017 compared to the year-end 2016 balance and was relatively unchanged from the September 30, 2017 balance. The year-to-date increase is due mainly to the $502.8 million preferred stock offering completed in March of 2017.

Reflecting this quarter’s growth, common stockholders’ equity represented 12.81% of total assets at December 31, 2017 compared to 12.91% at September 30, 2017 and 12.52% at December 31, 2016. Book value per common share was $12.88 at December 31, 2017 compared to $12.79 at September 30, 2017 and $12.57 at December 31, 2016.

Excluding goodwill of $2.4 billion, tangible common stockholders’ equity totaled $3.9 billion, representing 8.26% of tangible assets, compared to 8.30% at September 30, 2017 and 7.93% at December 31, 2016. Tangible book value per common share was $7.89 at the end of the current fourth quarter compared to $7.81 at September 30, 2017 and $7.57 at December 31, 2016. (2)

In addition, all regulatory capital ratios for the Company and its two subsidiary banks continued to exceed the regulatory requirements for “Well Capitalized” classification.

Asset Quality

The following discussion pertains only to the Company's portfolio of non-covered loans held for investment (excluding purchased credit-impaired, or “PCI,” loans) and non-covered repossessed assets.

Non-performing non-covered assets increased 6% to $90.1 million, or 0.18%, of total non-covered assets at December 31, 2017 as compared to $84.7 million, or 0.17%, at September 30, 2017, and $68.1 million or 0.14% of total non-covered assets at December 31, 2016. Non-performing non-covered loans also increased, rising 6.8% to $73.7 million, or 0.19%, of total non-covered loans at the end of the current fourth quarter as compared to $69.0 million, or 0.18%, of total non-covered loans at September 30, 2017 and $56.5 million or 0.15% at December 31, 2016.

During the fourth quarter of 2017, non-accrual non-covered mortgage loans rose 7% sequentially to $25.9 million, while other non-accrual non-covered loans (which primarily consisted of taxi medallion-related loans) also increased 7% to $47.8 million. Non-covered repossessed assets rose 4% to $16.4 million compared to the trailing quarter and 41% from year-end 2016.

Net charge-offs for the current fourth quarter dropped 91% to $3.8 million or 0.01% of average loans compared to $40.4 million or 0.11% of average loans at September 30, 2017. Taxi medallion-related loans accounted for $4.8 million of this quarter’s charge-offs compared to $40.6 million in the trailing quarter. At December 31, 2017, the Company’s total taxi medallion-related exposure was $99.1 million.

EARNINGS SUMMARY FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2017

The Company reported diluted earnings per common share of $0.26 for the three months ended December 31, 2017, up 24% compared to the $0.21 per diluted common share for the three months ended September 30, 2017. Net income available to common shareholders was $128.3 million, up 25% as compared to the $102.3 million reported in the trailing three-month period. Net income for the three months ended December 31, 2017 was $136.5 million, up 24% as compared to the $110.5 million reported for the three months ended September 30, 2017.

For the twelve months ended December 31, 2017, the Company reported diluted earnings per common share of $0.90, as compared to diluted earnings per common share of $1.01 for the twelve months ended December 31, 2016, a decrease of 11%. Net income available to common shareholders totaled $441.6 million in 2017 as compared to $495.4 million in 2016, also down 11%. Net income for 2017 was $466.2 million, down 6% from 2016.

Net Interest Income

Net interest income for the three months ended December 31, 2017 decreased 2% from the trailing three month period and 14% from the year-ago quarter to $271.0 million. Both the sequential and year-over-year declines were due to higher levels of interest expense driven by an increase in our overall cost of funds.

In 2017, net interest income decreased 12% to $1.1 billion as compared to $1.3 billion in 2016. Similar to the fourth quarter 2017 trends, the decline in the full year 2017 net interest income was driven by a 17% increase in interest expense due to higher funding costs.

Net Interest Margin

The net interest margin for the current fourth quarter declined five basis points sequentially and 38 basis points as compared to the year-ago fourth quarter to 2.48%. Excluding the 11-basis point contribution to the net interest margin from prepayment income (compared to 16 and 20 basis points for the prior quarter and year-ago quarter, respectively), the net interest margin would have been 2.37% during the fourth quarter, unchanged from the third quarter.

For full year 2017, the net interest margin was 2.59%, representing a 34-basis point decrease from the 2.93% recorded for full year 2016. Excluding prepayment income, which added 13 basis points to the margin in 2017 and 22 basis points in 2016, the net interest margin for 2017 was 2.46% as compared to 2.71% for 2016, down 25 basis points.

Provision for (Recovery of) Loan Losses

Provision for Losses on Non-Covered Loans

The Company reported a $2.9 million provision for losses on non-covered loans in the fourth quarter of 2017 as compared to $44.6 million and $5.2 million, for the third quarter of 2017 and the fourth quarter of 2016, respectively. The higher provision in the third quarter was due to charge-offs in the taxi medallion loan portfolio.

For the twelve months ended December 31, 2017, the Company reported a $60.9 million provision for losses on non-covered loans as compared to $11.9 million for the twelve months ended December 31, 2016. The year-over-year increase was also related to the aforementioned taxi medallion-related charge-offs during the third quarter of 2017.

Recovery of Losses on Covered Loans

For full year 2017, the Company recovered $23.7 million on certain pools of acquired loans covered by FDIC loss-sharing agreements, as compared to $7.7 million for full year 2016. The recoveries recorded in the respective years were largely offset by FDIC indemnification expense of $19.0 million and $6.2 million recorded in “Non-interest income.”

On July 28, 2017, the Company completed the sale of its covered loans to an affiliate of Cerberus Capital Management, L.P. Accordingly, at December 31, 2017, the Company no longer had any covered loans and related FDIC loss share receivable on its balance sheet.

Non-Interest Income

Non-interest income for the current fourth quarter totaled $25.3 million, down 77% from the trailing quarter and 22% from the year-ago quarter. The large sequential decrease was primarily due to an $82 million gain recorded in the third quarter from the sale of our covered loans and mortgage banking operations. Also, as a result of this sale, the Company exited the residential wholesale mortgage banking business. As such, there were no mortgage banking-related revenues during the current fourth quarter as compared to $1.5 million in the trailing quarter and $3.3 million in the year-ago quarter.

In the twelve months ended December 31, 2017, non-interest income totaled $216.9 million, up 49% from the $145.6 million recorded in the twelve months ended December 31, 2016. The increase in 2017 is attributable to the gain on the sale of our covered loans and mortgage banking operations.

Non-Interest Expense

Total non-interest expense for the current fourth quarter was $148.5 million, down $13.8 million, or 8%, from the prior quarter level and $22.1 million, or 13%, from the year earlier quarter. The main driver for the decline in both periods was lower compensation and benefits expense, which dropped $10.6 million, or 12%, compared to the third quarter, and $9.2 million, or 10%, compared to the year-ago quarter. Also contributing to the lower non-interest expenses was a $3.3 million, or 7%, decline in general and administrative expense relative to the trailing quarter and a $7.2 million, or 15%, decline relative to the year-ago quarter.

The efficiency ratio for the quarter was 50.1% compared to 42.1% in the prior quarter (which included the gain on the sale of our covered loans and mortgage banking operations) and 47.2% in the year-ago quarter. Excluding the gain, the third quarter efficiency ratio would have been 53%.

For full year 2017, total non-interest expenses declined 1.6% to $641.4 million and the efficiency ratio came in at 47.6% compared to $651.6 million and 44.5%, respectively in 2016.

Income Tax Expense

The Company’s income tax expense decreased 88%, or $59.6 million, sequentially to $8.4 million in the three months ended December 31, 2017. The effective tax rate declined to 5.8% from 38.1% in the trailing three months. The decrease in both the effective tax rate and income tax expense was due to the recently enacted Tax Cuts and Jobs Act. This resulted in the Company recording a one-time net benefit to income tax expense of $42 million including that portion related to the re-measurement of its deferred tax liability. The Company expects that its effective tax rate in 2018 will be about 26.5%.

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 December 31, 2017, the Company reported assets of $49.1 billion, loans of $38.4 billion, deposits of $29.1 billion, stockholders’ equity of $6.8 billion, and a market cap of $6.4 billion.

Reflecting our growth through a series of acquisitions, the Community Bank operates 225 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

As previously announced, the Company will host a conference call on Wednesday, January 31, 2018, at 8:30 a.m. (Eastern Time) to discuss its fourth quarter 2017 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 February 4, 2018 and may be accessed by calling (877) 660-6853 (domestic) or (201) 612-7415 (international) and providing the following conference ID: 13674879. In addition, the conference call will be webcast at ir.myNYCB.com, and archived through 5:00 p.m. on February 28, 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, 2016 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.

- Financial Statements and Highlights Follow -


   
   
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION



December 31,

December 31,



  2017  

  2016  
(in thousands, except share data)

(unaudited)


Assets





Cash and cash equivalents

$ 2,528,169


$ 557,850
Securities:





Available-for-sale


3,531,427



104,281
Held-to-maturity

  -  

  3,712,776  
Total securities


3,531,427



3,817,057
Loans held for sale


35,258



409,152
Non-covered mortgage loans held for investment:





Multi-family


28,092,182



26,961,486
Commercial real estate


7,324,852



7,727,258
One-to-four family


477,244



381,081
Acquisition, development, and construction

  435,707  

  380,522  
Total non-covered mortgage loans held for investment


36,329,985



35,450,347
Other non-covered loans:





Commercial and industrial


2,049,498



1,908,308
Other loans

  8,488  

  24,067  
Total non-covered other loans held for investment

  2,057,986  

  1,932,375  
Total non-covered loans held for investment


38,387,971



37,382,722
Less: Allowance for losses on non-covered loans

  (158,046 )

  (158,290 )
Non-covered loans held for investment, net


38,229,925



37,224,432
Covered loans


-



1,698,133
Less: Allowance for losses on covered loans

  -  

  (23,701 )
Covered loans, net

  -  

  1,674,432  
Total loans, net


38,265,183



39,308,016
Federal Home Loan Bank stock, at cost


603,819



590,934
Premises and equipment, net


368,655



373,675
FDIC loss share receivable


-



243,686
Goodwill


2,436,131



2,436,131
Core deposit intangibles, net


-



208
Other assets (includes $16,990 of other real estate owned covered by





loss sharing agreements at December 31, 2016)

  1,390,811  

  1,598,998  
Total assets

$ 49,124,195  

$ 48,926,555  
Liabilities and Stockholders' Equity





Deposits:





Interest-bearing checking and money market accounts

$ 12,936,301


$ 13,395,080
Savings accounts


5,210,001



5,280,374
Certificates of deposit


8,643,646



7,577,170
Non-interest-bearing accounts

  2,312,215  

  2,635,279  
Total deposits

  29,102,163  

  28,887,903  
Borrowed funds:





Wholesale borrowings


12,554,500



13,314,500
Junior subordinated debentures

  359,179  

  358,879  
Total borrowed funds


12,913,679



13,673,379
Other liabilities

  312,977  

  241,282  
Total liabilities

  42,328,819  

  42,802,564  
Stockholders' equity:





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





Series A (515,000 shares issued and outstanding)


502,840



-
Common stock at par $0.01 (900,000,000 shares authorized; 489,072,101 and 487,067,889





shares issued; and 488,490,352 and 487,056,676 shares outstanding, respectively)


4,891



4,871
Paid-in capital in excess of par


6,072,559



6,047,558
Retained earnings


237,868



128,435
Treasury stock, at cost (581,749 and 11,213 shares, respectively)


(7,615 )


(160 )
Accumulated other comprehensive loss, net of tax:





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


39,188



(753 )
Net unrealized loss on the non-credit portion of other-than-





temporary impairment losses, net of tax


(5,221 )


(5,241 )
Pension and post-retirement obligations, net of tax

  (49,134 )

  (50,719 )
Total accumulated other comprehensive loss, net of tax

  (15,167 )

  (56,713 )
Total stockholders' equity

  6,795,376  

  6,123,991  
Total liabilities and stockholders' equity

$ 49,124,195  

$ 48,926,555  










 


   
   
   
   
   
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)















 



For the Three Months Ended

For the Twelve Months Ended



Dec. 31,

Sept. 30,

Dec. 31,

Dec. 31,

Dec. 31,
(in thousands, except per share data)

  2017

  2017  

  2016  

  2017  

  2016  
Interest Income:














Mortgage and other loans

$ 346,515

$ 350,990


$ 372,883


$ 1,417,237


$ 1,472,020
Securities and money market investments

  43,855

  42,685  

  42,465  

  165,002  

  202,849  
Total interest income

  390,370

  393,675  

  415,348  

  1,582,239  

  1,674,869  















 
Interest Expense:














Interest-bearing checking and money market accounts


27,567


27,620



16,395



98,980



62,166
Savings accounts


7,378


7,109



6,981



28,447



31,982
Certificates of deposit


28,569


27,649



21,746



102,355



76,875
Borrowed funds

  55,882

  54,954  

  54,706  

  222,454  

  216,464  
Total interest expense

  119,396

  117,332  

  99,828  

  452,236  

  387,487  
Net interest income


270,974


276,343



315,520



1,130,003



1,287,382
Provision for losses on non-covered loans


2,926


44,585



5,175



60,943



11,874
Recovery of losses on covered loans


-


-



(1,659 )


(23,701 )


(7,694 )
Net interest income after provision for (recovery of)

 

 

 

 

 
loan losses

  268,048

  231,758  

  312,004  

  1,092,761  

  1,283,202  















 
Non-Interest Income:














Fee income


7,776


7,972



8,185



31,759



32,665
Bank-owned life insurance


5,963


8,314



7,807



27,133



31,015
Mortgage banking income


-


1,486



3,261



19,337



27,281
Net gain (loss) on sales of loans


101


(76 )


688



1,156



15,806
Net gain on sales of securities


1,009


-



2,934



29,924



3,347
FDIC indemnification expense


-


-



(1,327 )


(18,961 )


(6,155 )
Gain on sale of covered loans and mortgage banking operations


-


82,026



-



82,026



-
Other income

  10,494

  9,206  

  10,826  

  44,506  

  41,613  
Total non-interest income

  25,343

  108,928  

  32,374  

  216,880  

  145,572  















 
Non-Interest Expense:














Operating expenses:














Compensation and benefits


80,977


91,594



90,206



360,985



351,436
Occupancy and equipment


25,368


25,133



24,706



98,963



98,543
General and administrative

  42,139

  45,483  

  49,290  

  181,270  

  188,130  
Total operating expenses


148,484


162,210



164,202



641,218



638,109
Amortization of core deposit intangibles


-


24



397



208



2,391
Merger-related expenses

  -

  -  

  6,003  

  -  

  11,146  
Total non-interest expense

  148,484

  162,234  

  170,602  

  641,426  

  651,646  
Income before income taxes


144,907


178,452



173,776



668,215



777,128
Income tax expense

  8,386

  67,984  

  60,043  

  202,014  

  281,727  
Net Income


136,521


110,468



113,733



466,201



495,401
Preferred stock dividends

  8,207

  8,207  

  -  

  24,621  

  -  
Net income available to common shareholders

$ 128,314

$ 102,261  

$ 113,733  

$ 441,580  

$ 495,401  















 
Basic earnings per common share

$ 0.26

$ 0.21  

$ 0.23  

$ 0.90  

$ 1.01  
Diluted earnings per common share

$ 0.26

$ 0.21  

$ 0.23  

$ 0.90  

$ 1.01  















 

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 December 31, 2017, September 30, 2017, and December 31, 2016 and the twelve months ended December 31, 2017 and 2016:



   

   

   

   

   





At or for the


At or for the




Three Months Ended


Twelve Months Ended




Dec. 31,


Sept. 30,


Dec. 31,


Dec. 31,


Dec. 31,
(dollars in thousands)

2017


2017


2016


2017


2016
Total Stockholders’ Equity

$ 6,795,376



$ 6,759,654



$ 6,123,991



$ 6,795,376



$ 6,123,991

Less:

Goodwill




(2,436,131 )



(2,436,131 )



(2,436,131 )



(2,436,131 )



(2,436,131 )

 

Core deposit intangibles (“CDI”)




-




-




(208 )



-




(208 )

 

Preferred stock



  (502,840 )


  (502,840 )


  -  


  (502,840 )


  -  
Tangible common stockholders’ equity

$ 3,856,405



$ 3,820,683



$ 3,687,652



$ 3,856,405



$ 3,687,652






















 
Total Assets

$ 49,124,195



$ 48,457,891



$ 48,926,555



$ 49,124,195



$ 48,926,555

Less:

Goodwill




(2,436,131 )



(2,436,131 )



(2,436,131 )



(2,436,131 )



(2,436,131 )

 

CDI



  -  


  -  


  (208 )


  -  


  (208 )
Tangible assets

$ 46,688,064



$ 46,021,760



$ 46,490,216



$ 46,688,064



$ 46,490,216






















 
Average Common Stockholders’ Equity

$ 6,253,482



$ 6,262,792



$ 6,123,550



$ 6,204,142



$ 6,052,051

Less: Average goodwill and CDI

  (2,436,131 )


  (2,436,146 )


  (2,436,559 )


  (2,436,184 )


  (2,437,433 )
Average tangible common stockholders’ equity

$ 3,817,351



$ 3,826,646



$ 3,686,991



$ 3,767,958



$ 3,614,618






















 
Average Assets

$ 48,175,046



$ 48,526,259



$ 49,388,513



$ 48,624,882



$ 49,299,601

Less: Average goodwill and CDI

  (2,436,131 )


  (2,436,146 )


  (2,436,559 )


  (2,436,184 )


  (2,437,433 )
Average tangible assets

$ 45,738,915



$ 46,090,113



$ 46,951,954



$ 46,188,698



$ 46,862,168






















 
Net Income Available to Common Shareholders

$ 128,314



$ 102,261



$ 113,733



$ 441,580



$ 495,401

Add back: Amortization of CDI, net of tax

  -  


  14  


  238  


  125  


  1,435  
Adjusted net income available to common shareholders

$ 128,314



$ 102,275



$ 113,971



$ 441,705



$ 496,836






















 
GAAP MEASURES:



















Return on average assets (1)


1.13
%


0.91
%


0.92
%


0.96
%


1.00

%

Return on average common stockholders’ equity (2)


8.21




6.53




7.43




7.12




8.19

Book value per common share

$ 12.88



$ 12.79



$ 12.57



$ 12.88



$ 12.57

Common stockholders’ equity to total assets


12.81




12.91




12.52




12.81




12.52






















 
NON-GAAP MEASURES:



















Return on average tangible assets (1)


1.19
%


0.96
%


0.97
%


1.01
%


1.06

%

Return on average tangible common stockholders’ equity (2)


13.45




10.69




12.36




11.72




13.75

Tangible book value per common share

$ 7.89



$ 7.81



$ 7.57



$ 7.89



$ 7.57

Tangible common stockholders’ equity to tangible assets


8.26




8.30




7.93




8.26



 

7.93






















 

(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



December 31, 2017

September 30, 2017

December 31, 2016



Average




Average

Average




Average

Average




Average



Balance

Interest

Yield/Cost

Balance

Interest

Yield/Cost

Balance

Interest

Yield/Cost
(dollars in thousands)





























Assets:





























Interest-earning assets:





























Mortgage and other loans, net

$ 37,651,895

$ 346,515

3.68 %

$ 37,791,476

$ 350,990

3.71 %

$ 39,666,550

$ 372,883

3.76 %
Securities


3,792,557


35,628

3.75



3,597,699


34,359

3.81



4,496,252


42,460

3.77
Interest-earning cash and cash equivalents

  2,410,081

  8,227

1.35


  2,474,307

  8,326

1.34


  19,042

  5

0.10
Total interest-earning assets


43,854,533


390,370

3.56



43,863,482


393,675

3.59



44,181,844


415,348

3.76
Non-interest-earning assets

  4,320,513








  4,662,777








  5,206,669






Total assets

$ 48,175,046








$ 48,526,259








$ 49,388,513






Liabilities and Stockholders’ Equity:





























Interest-bearing deposits:





























Interest-bearing checking and money





























market accounts

$ 12,304,413

$ 27,567

0.89 %

$ 12,672,720

$ 27,620

0.86 %

$ 13,242,362

$ 16,395

0.49 %
Savings accounts


5,166,477


7,378

0.57



5,006,499


7,109

0.56



5,327,346


6,981

0.52
Certificates of deposit

  8,595,905

  28,569

1.32


  8,533,404

  27,649

1.29


  7,493,925

  21,746

1.15
Total interest-bearing deposits


26,066,795


63,514

0.97



26,212,623


62,378

0.94



26,063,633


45,122

0.69
Borrowed funds

  12,374,681

  55,882

1.79


  12,397,681

  54,954

1.76


  13,988,313

  54,706

1.56
Total interest-bearing liabilities


38,441,476


119,396

1.23



38,610,304


117,332

1.21



40,051,946


99,828

0.99
Non-interest-bearing deposits


2,665,971









2,766,701









2,990,053






Other liabilities

  311,277








  383,622








  222,964






Total liabilities


41,418,724









41,760,627









43,264,963






Stockholders’ equity

  6,756,322








  6,765,632








  6,123,550






Total liabilities and stockholders’ equity

$ 48,175,046








$ 48,526,259








$ 49,388,513






Net interest income/interest rate spread




$ 270,974

2.33 %




$ 276,343

2.38 %




$ 315,520

2.77 %
Net interest margin







2.48 %







2.53 %







2.86 %
Ratio of interest-earning assets to





























interest-bearing liabilities







1.14 x







1.14 x







1.10 x






























 


   
   

   
   
   

NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
YEAR-OVER-YEAR COMPARISON
(unaudited)

   




















For the Twelve Months Ended December 31,



2017

2016



Average




Average

Average




Average



Balance

Interest

Yield/Cost

Balance

Interest

Yield/Cost
(dollars in thousands)



















Assets:



















Interest-earning assets:



















Mortgage and other loans, net

$ 38,400,003

$ 1,417,237

3.69 %

$ 39,076,298

$ 1,472,020

3.77 %
Securities


3,986,722


148,429

3.72



4,922,722


202,832

4.12
Interest-earning cash and cash equivalents

  1,227,137

  16,573

1.35


  11,336

  17

0.15
Total interest-earning assets


43,613,862


1,582,239

3.63



44,010,356


1,674,869

3.81
Non-interest-earning assets

  5,011,020








  5,289,245






Total assets

$ 48,624,882








$ 49,299,601






Liabilities and Stockholders’ Equity:



















Interest-bearing deposits:



















Interest-bearing checking and money



















market accounts

$ 12,787,703

$ 98,980

0.77 %

$ 13,322,346

$ 62,166

0.47 %
Savings accounts


5,170,342


28,447

0.55



5,915,020


31,982

0.54
Certificates of deposit

  8,164,518

  102,355

1.25


  6,899,706

  76,875

1.11
Total interest-bearing deposits


26,122,563


229,782

0.88



26,137,072


171,023

0.65
Borrowed funds

  12,836,919

  222,454

1.73


  14,059,543

  216,464

1.54
Total interest-bearing liabilities


38,959,482


452,236

1.16



40,196,615


387,487

0.96
Non-interest-bearing deposits


2,782,155









2,860,532






Other liabilities

  279,466








  190,403






Total liabilities


42,021,103









43,247,550






Stockholders’ equity

  6,603,779








  6,052,051






Total liabilities and stockholders’ equity

$ 48,624,882








$ 49,299,601






Net interest income/interest rate spread




$ 1,130,003

2.47 %




$ 1,287,382

2.85 %
Net interest margin







2.59 %







2.93 %
Ratio of interest-earning assets to



















interest-bearing liabilities







1.12 x







1.09 x




















 



   

   

   

   

NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)

   




















For the Three Months Ended


For the Twelve Months Ended



Dec. 31,


Sept. 30,


Dec. 31,


Dec. 31,


Dec. 31,
(dollars in thousands except share and per share data)

2017


2017


2016




2017


2016
PROFITABILITY MEASURES:



















Net income

$ 136,521


$ 110,468


$ 113,733


$ 466,201


$ 495,401
Net income available to common shareholders


128,314



102,261



113,733



441,580



495,401
Basic earnings per common share


0.26



0.21



0.23



0.90



1.01
Diluted earnings per common share


0.26



0.21



0.23



0.90



1.01
Return on average assets


1.13 %


0.91 %


0.92 %


0.96 %


1.00

%

Return on average tangible assets (1)


1.19



0.96



0.97



1.01



1.06
Return on average common stockholders’ equity


8.21



6.53



7.43



7.12



8.19

Return on average tangible common stockholders'





















equity (1)


13.45



10.69



12.36



11.72



13.75
Efficiency ratio (2)


50.11



42.10



47.20



47.61



44.53
Operating expenses to average assets


1.23



1.34



1.33



1.32



1.29
Interest rate spread


2.33



2.38



2.77



2.47



2.85
Net interest margin


2.48



2.53



2.86



2.59



2.93
Effective tax rate


5.79



38.10



34.55



30.23



36.25
Shares used for basic common EPS computation


487,217,383



487,274,303



485,337,734



487,073,951



485,150,173
Shares used for diluted common EPS computation


487,217,383



487,274,303



485,337,734



487,073,951



485,150,173
Common shares outstanding at the respective



















period-ends


488,490,352



489,061,848



487,056,676



488,490,352



487,056,676




















 

(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.



 

    Dec. 31,
    Sept. 30,
    Dec. 31,



2017


2017


2016
CAPITAL MEASURES:











Book value per common share

$ 12.88


$ 12.79


$ 12.57
Tangible book value per common share (1)


7.89



7.81



7.57
Common stockholders’ equity to total assets


12.81 %


12.91 %


12.52 %
Tangible common stockholders’ equity to tangible assets (1)


8.26



8.30



7.93












 

(1)

 

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


   

   

   




Dec. 31,


Sept. 30,


Dec. 31,



2017


2017


2016
REGULATORY CAPITAL RATIOS: (1)











New York Community Bancorp, Inc.











Common equity tier 1 ratio

11.36

%

11.54 %

10.62 %
Tier 1 risk-based capital ratio

12.84




13.06


10.62
Total risk-based capital ratio

14.32




14.59


12.12
Leverage capital ratio

9.58


9.40


8.00
New York Community Bank











Common equity tier 1 ratio

13.43

%

13.60 %

11.23 %
Tier 1 risk-based capital ratio

13.43




13.60


11.23
Total risk-based capital ratio

13.86




14.02


11.71
Leverage capital ratio

10.06


9.80


8.45
New York Commercial Bank











Common equity tier 1 ratio

15.95

%

15.30 %

14.14 %
Tier 1 risk-based capital ratio

15.95




15.30


14.14
Total risk-based capital ratio

16.97




16.55


15.15
Leverage capital ratio

11.37


11.07


10.53












 

(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

 

   
   
   
    Dec. 31, 2017












compared to



Dec. 31,

Sept. 30,

Dec. 31,

Sept. 30,     Dec. 31,



  2017

  2017

  2016

2017

2016
(in thousands, except share data)

(unaudited)

(unaudited)








Assets














Cash and cash equivalents

$ 2,528,169

$ 3,277,427

$ 557,850

-22.9%

353.2%
Securities:














Available-for-sale


3,531,427


3,031,026


104,281

16.5%

NM
Held-to-maturity

  -

  -

  3,712,776

NM

NM
Total securities


3,531,427


3,031,026


3,817,057

16.5%

-7.5%
Loans held for sale


35,258


104,938


409,152

-66.4%

-91.4%
Non-covered mortgage loans held for investment:














Multi-family


28,092,182


27,162,401


26,961,486

3.4%

4.2%
Commercial real estate


7,324,852


7,552,777


7,727,258

-3.0%

-5.2%
One-to-four family


477,244


413,235


381,081

15.5%

25.2%
Acquisition, development, and construction

  435,707

  385,543

  380,522

13.0%

14.5%
Total non-covered mortgage loans held for investment


36,329,985


35,513,956


35,450,347

2.3%

2.5%
Other non-covered loans:














Commercial and industrial


2,049,498


1,988,577


1,908,308

3.1%

7.4%
Other loans

  8,488

  3,666

  24,067

131.5%

-64.7%
Total non-covered other loans held for investment

  2,057,986

  1,992,243

  1,932,375

3.3%

6.5%
Total non-covered loans held for investment


38,387,971


37,506,199


37,382,722

2.4%

2.7%
Less: Allowance for losses on non-covered loans

  (158,046)

  (158,918)

  (158,290)

-0.5%

-0.2%
Non-covered loans held for investment, net


38,229,925


37,347,281


37,224,432

2.4%

2.7%
Covered loans


-


-


1,698,133

NM

NM
Less: Allowance for losses on covered loans

  -

  -

  (23,701)

NM

NM
Covered loans, net

  -

  -

  1,674,432

NM

NM
Total loans, net


38,265,183


37,452,219


39,308,016

2.2%

-2.7%
Federal Home Loan Bank stock, at cost


603,819


579,474


590,934

4.2%

2.2%
Premises and equipment, net


368,655


375,482


373,675

-1.8%

-1.3%
FDIC loss share receivable


-


-


243,686

NM

NM
Goodwill


2,436,131


2,436,131


2,436,131

0.0%

0.0%
Core deposit intangibles, net


-


-


208

NM

NM
Other assets (includes $16,990 of other real estate owned covered














loss sharing agreements at December 31, 2016)

  1,390,811

  1,306,132

  1,598,998

6.5%

-13.0%
Total assets

$ 49,124,195

$ 48,457,891

$ 48,926,555

1.4%

0.4%















 
Liabilities and Stockholders' Equity














Deposits:














Interest-bearing checking and money market accounts

$ 12,936,301

$ 12,338,949

$ 13,395,080

4.8%

-3.4%
Savings accounts


5,210,001


4,996,578


5,280,374

4.3%

-1.3%
Certificates of deposit


8,643,646


8,802,573


7,577,170

-1.8%

14.1%
Non-interest-bearing accounts

  2,312,215

  2,755,097

  2,635,279

-16.1%

-12.3%
Total deposits

  29,102,163

  28,893,197

  28,887,903

0.7%

0.7%
Borrowed funds:














Wholesale borrowings


12,554,500


12,004,500


13,314,500

4.6%

-5.7%
Junior subordinated debentures

  359,179

  359,102

  358,879

0.0%

0.1%
Total borrowed funds


12,913,679


12,363,602


13,673,379

4.4%

-5.6%
Other liabilities

  312,977

  441,438

  241,282

-29.1%

29.7%
Total liabilities

  42,328,819

  41,698,237

  42,802,564

1.5%

-1.1%
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


-

0.0%

NM
Common stock at par $0.01 (900,000,000 shares authorized; 489,072,101,














489,072,101 and 487,067,889 shares issued; and 489,490,352,














489,061,848 and 487,056,676 shares outstanding, respectively)


4,891


4,891


4,871

0.0%

0.4%
Paid-in capital in excess of par


6,072,559


6,063,813


6,047,558

0.1%

0.4%
Retained earnings


237,868


192,607


128,435

23.5%

85.2%
Treasury stock, at cost (581,749, 10,253 and 11,213 shares, respectively)


(7,615)


(130)


(160)

NM

NM
Accumulated other comprehensive loss, net of tax:














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


39,188


47,917


(753)

-18.2%

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














impairment losses, net of tax


(5,221)


(5,221)


(5,241)

0.0%

-0.4%
Pension and post-retirement obligations, net of tax

  (49,134)

  (47,063)

  (50,719)

4.4%

-3.1%
Total accumulated other comprehensive loss, net of tax

  (15,167)

  (4,367)

  (56,713)

247.3%

-73.3%
Total stockholders' equity

  6,795,376

  6,759,654

  6,123,991

0.5%

11.0%
Total liabilities and stockholders' equity

$ 49,124,195

$ 48,457,891

$ 48,926,555

1.4%

0.4%


















 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

(unaudited)

 

   
   
   
    Dec. 31, 2017



For the Three Months Ended

compared to



Dec. 31,

Sept. 30,

Dec. 31,

Sept. 30, Dec. 31,



2017

2017

2016

2017  
2016
(in thousands, except per share data)














Interest Income:














Mortgage and other loans

$ 346,515

$ 350,990

$ 372,883

-1.3%

-7.1%
Securities and money market investments

  43,855

  42,685

  42,465

2.7%

3.3%
Total interest income

  390,370

  393,675

  415,348

-0.8%

-6.0%















 
Interest Expense:














Interest-bearing checking and money market accounts


27,567


27,620


16,395

-0.2%

68.1%
Savings accounts


7,378


7,109


6,981

3.8%

5.7%
Certificates of deposit


28,569


27,649


21,746

3.3%

31.4%
Borrowed funds

  55,882

  54,954

  54,706

1.7%

2.1%
Total interest expense

  119,396

  117,332

  99,828

1.8%

19.6%
Net interest income


270,974


276,343


315,520

-1.9%

-14.1%
Provision for losses on non-covered loans


2,926


44,585


5,175

-93.4%

-43.5%
Recovery of losses on covered loans

  -

  -

  (1,659)

NM

NM















 
Net interest income after provision for (recovery of)














loan losses

  268,048

  231,758

  312,004

15.7%

-14.1%















 
Non-Interest Income:














Fee income


7,776


7,972


8,185

-2.5%

-5.0%
Bank-owned life insurance


5,963


8,314


7,807

-28.3%

-23.6%
Mortgage banking income


-


1,486


3,261

NM

NM
Net gain (loss) on sales of loans


101


(76)


688

NM

-85.3%
Net gain on sales of securities


1,009


-


2,934

NM

-65.6%
FDIC indemnification expense


-


-


(1,327)

NM

NM
Gain on sale of covered loans and mortgage banking














operations


-


82,026


-

NM

NM
Other income

  10,494

  9,206

  10,826

14.0%

-3.1%
Total non-interest income

  25,343

  108,928

  32,374

-76.7%

-21.7%















 
Non-Interest Expense:














Operating expenses:














Compensation and benefits


80,977


91,594


90,206

-11.6%

-10.2%
Occupancy and equipment


25,368


25,133


24,706

0.9%

2.7%
General and administrative

  42,139

  45,483

  49,290

-7.4%

-14.5%
Total operating expenses


148,484


162,210


164,202

-8.5%

-9.6%
Amortization of core deposit intangibles


-


24


397

NM

NM
Merger-related expenses

  -

  -

  6,003

NM

NM
Total non-interest expense

  148,484

  162,234

  170,602

-8.5%

-13.0%















 
Income before taxes


144,907


178,452


173,776

-18.8%

-16.6%
Income tax expense

  8,386

  67,984

  60,043

-87.7%

-86.0%
Net Income

$ 136,521

$ 110,468

$ 113,733

23.6%

20.0%
Preferred stock dividends

  8,207

  8,207

  -

0.0%

NM
Net Income available to common shareholders

$ 128,314

$ 102,261

$ 113,733

25.5%

12.8%















 
Basic earnings per common share

$ 0.26

$ 0.21

$ 0.23

23.8%

13.0%
Diluted earnings per common share

$ 0.26

$ 0.21

$ 0.23

23.8%

13.0%















 
Dividends per common share

$ 0.17

$ 0.17

$ 0.17























 

 
NEW YORK COMMUNITY BANCORP, INC.
SUPPLEMENTAL FINANCIAL INFORMATION (continued)
(unaudited)

   
   
   



For the Twelve Months Ended

Dec. 31, 2017



Dec. 31,

Dec. 31,

compared to



2017

2016

Dec. 31, 2016
(in thousands, except per share data)








Interest Income:








Mortgage and other loans

$ 1,417,237

$ 1,472,020

-3.7%
Securities and money market investments

  165,002

  202,849

-18.7%
Total interest income

  1,582,239

  1,674,869

-5.5%









 
Interest Expense:








Interest-bearing checking and money market accounts


98,980


62,166

59.2%
Savings accounts


28,447


31,982

-11.1%
Certificates of deposit


102,355


76,875

33.1%
Borrowed funds

  222,454

  216,464

2.8%
Total interest expense

  452,236

  387,487

16.7%
Net interest income


1,130,003


1,287,382

-12.2%
Provision for losses on non-covered loans


60,943


11,874

413.2%
Recovery of losses on covered loans

  (23,701)

  (7,694)

NM









 
Net interest income after provision for (recovery of)








loan losses

  1,092,761

  1,283,202

-14.8%









 
Non-Interest Income:








Fee income


31,759


32,665

-2.8%
Bank-owned life insurance


27,133


31,015

-12.5%
Mortgage banking income


19,337


27,281

-29.1%
Net gain on sales of loans


1,156


15,806

-92.7%
Net gain on sales of securities


29,924


3,347

794.1%
FDIC indemnification expense


(18,961)


(6,155)

208.1%
Gain on sale of covered loans and mortgage banking








operations


82,026


-

NM
Other income

  44,506

  41,613

7.0%
Total non-interest income

  216,880

  145,572

49.0%









 
Non-Interest Expense:








Operating expenses:








Compensation and benefits


360,985


351,436

2.7%
Occupancy and equipment


98,963


98,543

0.4%
General and administrative

  181,270

  188,130

-3.6%
Total operating expenses


641,218


638,109

0.5%
Amortization of core deposit intangibles


208


2,391

-91.3%
Merger-related expenses

  -

  11,146

NM
Total non-interest expense

  641,426

  651,646

-1.6%









 
Income before taxes


668,215


777,128

-14.0%
Income tax expense

  202,014

  281,727

-28.3%
Net Income

$ 466,201

$ 495,401

-5.9%
Preferred stock dividends

  24,621

  -

NM
Net Income available to common shareholders

$ 441,580

$ 495,401

-10.9%









 
Basic earnings per common share

$ 0.90

$ 1.01

-10.9%
Diluted earnings per common share

$ 0.90

$ 1.01

-10.9%









 
Dividends per common share

$ 0.68

$ 0.68













 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 

The following table summarizes the contribution of loan and securities prepayment income on the Company's interest income and
net interest margin for the periods indicated.

 

    For the Three Months Ended  
  Sept. 30, 2017 compared to  



Dec. 31,  
  Sept. 30,  
  Dec. 31,


Sept. 30,  
  Dec. 31,




2017


2017


2016


2017


2016

(dollars in thousands)




















Total Interest Income

$ 390,370


$ 393,675


$ 415,348


-1%


-6%






















 
Prepayment Income:




















Loans

$ 10,078


$ 14,076


$ 18,243


-28%


-45%

Securities

  1,387


  2,488


  3,814


-44%


-64%

Total prepayment income

$ 11,465


$ 16,564


$ 22,057


-31%


-48%






















 
GAAP Net Interest Margin


2.48%



2.53%



2.86%


-5
bp
-38
bp
Less:




















Prepayment income from loans


9
bp

13
bp

17
bp
-4
bp
-8
bp
Prepayment income from securities

  2


  3


  3


-1
bp
-1
bp
Total prepayment income contribution




















to net interest margin

  11
bp
  16
bp
  20
bp
-5
bp
-9
bp





















 
Adjusted Net Interest Margin (non-GAAP)


2.37%



2.37%



2.66%


0
bp
-29
bp
























 

   
 
 
 



For the Twelve Months Ended








Dec. 31,  
  Dec. 31,








2017


2016


Change (%)
(dollars in thousands)

























 
Total Interest Income

$1,582,239


$1,674,869


-6%














 
Prepayment Income:












Loans

$47,004


$60,891


-23%

Securities

8,130


33,509


-76%

Total prepayment income

$55,134


$94,400


-42%














 
GAAP Net Interest Margin

2.59%


2.93%


-34
bp
Less:












Prepayment income from loans

11
bp
14
bp
-3
bp
Prepayment income from securities

2


8


-6
bp
Total prepayment income contribution












to net interest margin

13
bp
22
bp
-9
bp













 
Adjusted Net Interest Margin (non-GAAP)

2.46%


2.71%


-25
bp













 

While our net interest margin, including the contribution of prepayment income, is recorded in accordance with GAAP, adjusted net interest margin, which excludes the contribution of prepayment income, is not. Nevertheless, management uses this non-GAAP measure in its analysis of our performance, and believes that this non-GAAP measure should be disclosed in our earnings releases and other investor communications for the following reasons:

        1.   Adjusted net interest margin gives investors a better understanding of the effect of prepayment income on our net interest margin. Prepayment income in any given period depends on the volume of loans that refinance or prepay, or securities that prepay, during that period. Such activity is largely dependent on external factors such as current market conditions, including real estate values, and the perceived or actual direction of market interest rates.






 




2.
Adjusted net interest margin is among the measures considered by current and prospective investors, both independent of, and in comparison with, our peers.






 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 
LOANS ORIGINATED FOR INVESTMENT
(unaudited)

   
   
   
 
Dec. 31, 2017



For the Three Months Ended

compared to



Dec. 31,

Sept. 30,

Dec. 31,

Sept. 30, Dec. 31,



2017

2017

2016

2017  
2016
(in thousands)














Mortgage Loans Originated for Investment:














Multi-family

$2,038,298

$1,432,424

$1,154,934

42%

76%
Commercial real estate

346,918

249,773

287,754

39%

21%
One-to-four family residential

8,160

22,047

55,857

-63%

-85%
Acquisition, development, and construction

21,644

21,754

26,328

-1%

-18%
Total mortgage loans originated for investment

2,415,020

1,725,998

1,524,873

40%

58%















 
Other Loans Originated for Investment:














Specialty Finance

547,732

468,735

358,811

17%

53%
Other commercial and industrial

122,905

115,569

140,910

6%

-13%
Other

789

700

846

13%

-7%
Total other loans originated for investment

671,426

585,004

500,567

15%

34%
Total Loans Originated for Investment

$3,086,446

$2,311,002

$2,025,440

34%

52%















 















 















 



For the Twelve Months Ended











Dec. 31,

Dec. 31,











2017

2016

Change (%)



(in thousands)














Mortgage Loans Originated for Investment:














Multi-family

$5,377,600

$5,684,838

-5%





Commercial real estate

1,039,105

1,180,430

-12%





One-to-four family residential

124,763

303,877

-59%





Acquisition, development, and construction

77,153

150,177

-49%





Total mortgage loans originated for investment

6,618,621

7,319,322

-10%




















 
Other Loans Originated for Investment:














Specialty Finance

1,784,549

1,266,362

41%





Other commercial and industrial

511,416

592,250

-14%





Other

3,159

3,856

-18%





Total other loans originated for investment

2,299,124

1,862,468

23%





Total Loans Originated for Investment

$8,917,745

$9,181,790

-3%




















 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 

The following table provides certain information about the Company's multi-family and CRE loan portfolios at the
respective dates:

 

   
   
   
   
 
 
 












Dec. 31, 2017




At or For the Three Months Ended

compared to




Dec. 31,

Sept. 30,

Dec. 31,

Sept. 30,


Dec. 31,




2017

2017

2016

2017


2016

(dollars in thousands)

















Multi-Family Loan Portfolio:

















Loans outstanding

$28,092,182

$27,162,401

$26,961,486

3%


4%

Percent of total held-for-investment loans

73.2%

72.4%

72.1%

80
bp
110
bp
Average principal balance

$5,790

$5,558

$5,454

4%


6%

Weighted average life (in years)

2.6

2.7

2.9

-4%


-10%



















 
Commercial Real Estate Loan Portfolio:

















Loans outstanding

$7,324,852

$7,552,777

$7,727,258

-3%


-5%

Percent of total held-for-investment loans

19.1%

20.1%

20.7%

-100
bp
-160
bp
Average principal balance

$5,691

$5,721

$5,644

-1%


1%

Weighted average life (in years)

3.0

2.9

3.4

3%


-12%



















 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 
ASSET QUALITY SUMMARY
(unaudited)

   
 

 


 
 

The following table presents the Company's non-performing non-covered loans and assets at the respective dates:















 












Dec. 31, 2017












compared to



Dec. 31, Sept. 30, Dec. 31,
Sept. 30, Dec. 31,
(in thousands)

2017

2017

2016

2017

2016
Non-Performing Non-Covered Assets:














Non-accrual non-covered mortgage loans:














Multi-family

$11,078

$11,018

$13,558

0.5%

-18.3%
Commercial real estate

6,659

4,923

9,297

35.3%

-28.4%
One-to-four family residential

1,966

2,179

9,679

-9.8%

-79.7%
Acquisition, development, and construction

6,200

6,200

6,200

0.0%

0.0%
Total non-accrual non-covered mortgage loans

25,903

24,320

38,734

6.5%

-33.1%
Other non-accrual non-covered loans (1)

47,779

44,650

17,735

7.0%

169.4%
Total non-performing non-covered loans

73,682

68,970

56,469

6.8%

30.5%
Non-covered repossessed assets (2)

16,400

15,753

11,607

4.1%

41.3%
Total non-performing non-covered assets

$90,082

$84,723

$68,076

6.3%

32.3%















 

(1)

 

Includes $46.7 million, $43.4 million, and $15.2 million of non-accrual taxi medallion-related loans at December 31, 2017, September 30, 2017 and December 31, 2016, respectively.

(2)


Includes $8.2 million and $6.5 million of repossessed taxi medallions at December 31, 2017 and September 30, 2017, respectively.



 
The following table presents the Company's asset quality measures at the respective dates:

   

   

   




Dec. 31,

Sept. 30,

Dec. 31,



2017


2017


2016
Non-performing non-covered loans to total











non-covered loans

0.19 %

0.18 %

0.15 %
Non-performing non-covered assets











to total non-covered assets

0.18


0.17


0.14
Allowance for losses on non-covered loans to











non-performing non-covered loans

214.50


230.42


277.19 (1)
Allowance for losses on non-covered loans to











total non-covered loans

0.41


0.42


0.42 (1)












 
(1)   Excludes the allowance for losses on PCI loans.


 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 
The following table presents the Company's non-covered loans 30 to 89 days past due at the respective dates:









 







Dec. 31, 2017







compared to

Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,

2017
2017
2016
2017
2016
(in thousands)








Non-Covered Loans 30 to 89 Days Past Due:








Multi-family $1,258
$602
$28
109%
4393%
Commercial real estate 13,227
450
-
2839%
NM
One-to-four family residential 585
676
2,844
-13%
-79%
Acquisition, development, and construction -
-
-
NA
NA
Other (1) 2,719
3,425
7,511
-21%
-64%
Total non-covered loans 30 to 89 days past due $17,789
$5,153

$10,383


245%
71%

 

(1)   Includes $2.7 million, $3.4 million, and $6.8 million of non-accrual taxi medallion loans at December 31, 2017, September 30, 2017, and December 31, 2016, respectively.


 
The following table summarizes the Company’s net charge-offs (recoveries) for the respective periods:

   
   
   
   
   



For the Three Months Ended

For the Twelve Months Ended



Sept. 30,

Sept. 30,

Dec 31,

Dec 31,

Dec 31,



2017

2017

2016

2017

2016
(dollars in thousands)














Charge-offs:














Multi-family

$ -


$ 279


$ -


$ 279


$ -
Commercial real estate


-



-



-



-



-
One-to-four family residential


-



6



-



96



170
Acquisition, development, and














construction


-



-



-



-



-
Other (1)

  4,772  

  40,557  

  2,258  

  62,975  

  3,413  
Total charge-offs

  4,772  

  40,842  

  2,258  

  63,350  

  3,583  















 
Recoveries:














Multi-family

$ -



($28 )

$ -



($28 )


($78 )
Commercial real estate


(10 )


(373 )


(19 )


(408 )


(799 )
One-to-four family residential


-



-



(2 )


-



(228 )
Acquisition, development, and














construction


-



(14 )


-



(169 )


(167 )
Other (1)

  (964 )

  (77 )

  (648 )

  (1,558 )

  (1,604 )
Total recoveries

  (974 )

  (492 )

  (669 )

  (2,163 )

  (2,876 )















 
Net charge-offs (recoveries)

$ 3,798  

$ 40,350  

$ 1,589  

$ 61,187  

$ 707  















 
Net charge-offs (recoveries) to














average loans (2)


0.01 %


0.11 %


0.00 %


0.16 %


0.00 %















 

(1)

 

Includes taxi medallion loans of $4.8 million, $40.6 million, and $2.3 million, respectively, for the three months ended December 31, 2017, September 30, 2017, and December 31, 2016 and $59.6 million and $2.5 million, respectively, for the twelve months ended December 31, 2017 and 2016.

(2)


Three months ended presented on a non-annualized basis.



 

 

Source: New York Community Bancorp, Inc.

New York Community Bancorp, Inc.

Investors:

Salvatore J. DiMartino, 516-683-4286

or

Media:

Kelly Maude Leung, 516-683-4032