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New York Community Bancorp, Inc. Reports First Quarter 2021 Diluted EPS Of $0.29 Driven By Ongoing NIM Expansion, Good Loan Growth, Lower Operating Expenses, Strong Deposit Growth, And Strong Asset Quality Trends

Monday, April 26, 2021
THE COMPANY ALSO ANNOUNCED TODAY IN A SEPARATE RELEASE THAT IT HAS ENTERED INTO A DEFINITIVE MERGER AGREEMENT TO ACQUIRE FLAGSTAR BANCORP, INC. IN AN ALL STOCK MERGER THAT IS EXPECTED TO ACCELERATE ITS TRANSFORMATION STRATEGY THROUGH GEOGRAPHIC AND PRODUCT DIVERSIFICATION
TRANSACTION EXPECTED TO BE IMMEDIATELY ACCRETIVE TO 2022 ESTIMATED EPS AND TANGIBLE BOOK VALUE PER SHARE
BOARD OF DIRECTORS DECLARES A $0.17 DIVIDEND PER COMMON SHARE

WESTBURY, N.Y., April 26, 2021 /PRNewswire/ --

First Quarter 2021 Summary


Substantial Increase in Year-over-Year Earnings and Operating Performance :


-

Diluted EPS of $0.29 increased 45%.


-

Net income available to common shareholders was $137.4 million, up 49% or $45.3 million.


-

Pre-provision net revenue totaled $199.7 million, an increase of $63.8 million or 47%. (1)


-

The provision for credit losses for the current first quarter declined $17.0 million or 83% to $3.6 million.


-

The first quarter efficiency ratio continues to improve, declining to 39.87%.


-

Return on average assets was 1.03% compared to 0.75% and return on average common stockholders' equity was 8.63% compared to 5.95%.


-

Return on average tangible assets was 1.08% compared to 0.79%, while return on average tangible common stockholders' equity was 13.93%
compared to 9.80%.

Net Interest Margin/Income :


-

The net interest margin was 2.48%, up one bp on a sequential basis, but up 47 bp compared to the first quarter of last year.


-

The first quarter net interest margin was slightly impacted by excess liquidity as total deposits increased $1.8 billion compared to year-end
2020, resulting in a significant increase in our cash and securities balances.


-

Prepayment income totaled $19.7 million and added 15 bp to the NIM.  Excluding the impact from prepayments, the NIM on a non-GAAP
basis would have been 2.33%, up three bp compared to 2.30% compared to the previous quarter.


-

Net interest income for the first quarter totaled $317.7 million, up 30% compared to the year-ago quarter.

Balance Sheet :


-

Total loans held for investment rose $241.5 million or 2% annualized to $43.1 billion compared to December 31, 2020.


-

Multi-family loans totaled $32.2 billion, relatively unchanged compared to year-end 2020.


-

Specialty finance loans and leases continued to grow, increasing $136.1 million during the first quarter to $3.2 billion, up 18% annualized
compared to December 31, 2020.


-

The commercial real estate portfolio reversed several quarters of decline, increasing $191.5 million to $7.0 billion or 11% annualized
compared to the previous quarter.


-

We had strong deposit growth this quarter as total deposits increased $1.8 billion or 22% annualized to $34.2 billion compared to December
31, 2020.  Most of this growth occurred in the non-interest bearing checking account category, while CD balances continued to decline.


-

The Company is currently working with its technology partners to bring in additional low-cost deposits, related to the Economic Impact
Payments associated with the federal stimulus plans. At quarter-end, these deposits totaled $1.6 billion.

Asset Quality :


-

At March 31, 2021, 100% or $6.1 billion of our full-payment loan deferrals returned to payment status.


-

Non-performing assets, excluding non-performing taxi medallion-related assets, were $26.5 million or 0.05% of total assets compared to $21.0
million or 0.04% of total assets during the previous quarter.


-

The ACL increased $3.7 million to $197.8 million at March 31, 2021 compared to December 31, 2020 and represents 596.05% of total non-
performing loans and 0.46% of total loans at quarter end.

Capital Position at March 31, 2021 :


-

Common Equity Tier 1 Capital Ratio was 9.84%.


-

Tier 1 Risk-Based Capital Ratio was 11.07%.


-

Total Risk-Based Capital Ratio was 13.09%.


-

Leverage Capital Ratio was 8.41%.



(1)

Pre-provision net revenue is a non-GAAP measure, but we believe it is relevant to understanding the Company's financial results in light of the
implementation of CECL and the economic impact of COVID-19.

New York Community Bancorp, Inc. (NYSE: NYCB) (the "Company") today reported net income for the three months ended March 31, 2021 of $145.6 million, up 45% compared to the $100.3 million we reported for the three months ended March 31, 2020. Net income available to common shareholders for the first quarter of 2021 totaled $137.4 million, up 49% compared to the $92.1 million we reported for the three months ended March 31, 2020. On a per share basis, the Company reported diluted EPS of $0.29 for the first quarter of 2021, up 45% compared to the $0.20 we reported for the first quarter of last year.

Commenting on the Company's performance, Chairman, President, and Chief Executive Officer, Thomas R. Cangemi stated: "I am pleased with the Company's strong start to the year, but I am even more pleased about the announcement of our merger with Flagstar Bancorp.  This partnership brings multiple benefits to our organization.  It is expected to be immediately accretive to both our EPS and tangible book value per share, and accelerates our transformation to a commercial banking model.  It provides us with geographic diversification as we will enter new markets in the Midwest and California, diversifies our loan portfolio, increases our core deposits, greatly improves our funding mix and interest rate risk positioning, and it adds a top ten mortgage banking company to our model.  In addition, we both see significant opportunities to provide our customers with a full suite of consumer and commercial banking products and services.  It also adds significant management expertise, especially in those areas that are key for us as we transition to a commercial bank.  This is a tremendous alliance for each of our companies and I am excited to work with Flagstar's management team and board as we come together and build a bank for the future.

"Turning to our quarterly performance, first quarter results were definitely a good start to the year.  With additional fiscal stimulus and the rollout of a COVID-19 vaccine, we are starting to see green shoots in the New York City region.  Our first quarter was characterized by double-digit net income and EPS growth, strong growth in pre-provision net revenue, continued NIM expansion, good loan growth, lower operating expenses, and strong asset quality.

"One of the major positives during the first quarter was the strong growth in our deposits.  During the quarter, we started working with our technology partners to bring in additional low-cost deposits.  The first step of this new relationship was to take in deposits related to the federal stimulus programs.  These deposits totaled $1.6 billion at quarter-end.  Accordingly, this led to strong annualized growth in our deposits as they increased $1.8 billion to $34.2 billion.

"Our net interest margin also continued to improve and excluding the impact from prepayments, expanded to 2.33%, up three basis points sequentially and 41 basis points on a year-over-year basis. 

"On the lending side, our overall loan portfolio increased $242 million to $43.1 billion, up 2% annualized compared to the balance at year-end 2020.  The majority of this increase came from our specialty finance portfolio, which increased 18% annualized compared to year-end and a rebound in the commercial real estate portfolio, which increased nearly $200 million or 11% annualized compared to year-end, while the multi-family portfolio was relatively unchanged.

"Lastly, our asset quality metrics remain very strong as non-performing assets declined while still adding to our reserve and all of the loans on full-payment deferrals have now returned to payment status."

DIVIDEND DECLARATION

The Board of Directors declared a quarterly cash dividend of $0.17 per share on the Company's common stock.  Based on a closing price of $11.99 as of April 23, 2021, this represents an annualized dividend yield of 5.7%.  The dividend is payable on May 18, 2021 to common shareholders of record as of May 7, 2021.

BALANCE SHEET SUMMARY

At March 31, 2021, total assets were $57.7 billion, up $1.4 billion or 10% on an annualized basis compared to December 31, 2020.  The growth was driven by several factors including strong double-digit growth in total deposits, which drove the significant increase in the levels of cash and cash equivalents, an increase in the securities portfolio, and modest growth in total loans and leases held for investment.

Total loans and leases held for investment rose $241.5 million to $43.1 billion or 2% annualized compared to December 31, 2020.  The growth during the current quarter was driven by the specialty finance portfolio and by a rebound in the commercial real estate ("CRE") portfolio, while multi-family loans declined modestly.

Given the strong deposit growth during the quarter, the level of cash balances increased $775.0 million to $2.7 billion compared to the previous quarter.  Total securities consisting primarily of available-for-sale securities also rose as the Company continued to buy securities as long-term interest rates increased during the first quarter and the yield curve steepened.  Total securities grew $348.8 million to $6.2 billion, or 24% annualized on a linked-quarter basis.

At March 31, 2021, total deposits increased $1.8 billion or 22% annualized to $34.2 billion compared to December 31, 2020 largely due to the aforementioned relationship.  In addition to the growth in non-interest bearing checking accounts, we also grew savings accounts $628.0 million to $7.0 billion, up 39% annualized compared to the previous quarter, while at the same time, CD balances continued to decline.

Looking ahead, as of March 31, 2021, the Company has approximately $10.5 billion in CDs which are scheduled to mature over the next four quarters with a weighted average interest rate of 0.57%.  Of this amount, approximately $5.0 billion with a weighted average interest rate of 0.70% are scheduled to mature during the second quarter of 2021.

Total borrowed funds as of March 31, 2021 decreased $324.8 million or 8% annualized to $15.8 billion compared to December 31, 2020.  At March 31, 2021, the Company had approximately $973 million of FHLB-NY advances maturing over the next four quarters at a weighted average cost of 1.68%.

Loans

At March 31, 2021, the multi-family portfolio was relatively unchanged, declining a modest $40.9 million to $32.2 billion compared to December 31, 2020, but increased $924.7 million or 3% on a year-over-year basis.

The specialty finance portfolio continued its pace of growth, increasing $136.1 million or 18% annualized to $3.2 billion compared to year-end 2020 and was up $160.3 million or 5% compared to the year-ago quarter.

The CRE portfolio rebounded during the current quarter, increasing $191.5 million or 11% annualized compared to December 31, 2020, but was flat compared to the year-ago quarter.

Additionally, at March 31, 2021, the Company had $141.4 million of loans held for sale, up $24.3 million compared to December 31, 2020.  The majority of these loans for both periods are part of the Paycheck Protection Program (the "PPP").  At March 31, 2020, the Company did not have any loans designated as held for sale.

During the current first quarter, the average size of our multi-family loans was $6.6 million, unchanged from the previous quarter, and the average size of our CRE loans was $7.0 million, up from $6.7 million from the previous quarter.

The weighted average life of the multi-family loan portfolio for the current first quarter was 2.4 years compared to 2.3 years for the prior quarter, while for the CRE portfolio it was 2.4 years, unchanged compared to  the previous quarter.

Originations

For the three months ended March 31, 2021, loans and leases originated for investment totaled $2.5 billion, exceeding the fourth quarter pipeline by $1.0 billion.  Overall, origination volumes declined 34% compared to the fourth quarter, due to normal seasonality and 7% compared to the first quarter of 2020.

Pipeline
The current pipeline stands at $1.7 billion with 69% of this amount representing new money.  The current pipeline includes $1.3 billion in multi-family loans, $34 million in CRE loans, $202 million in specialty finance loans and leases, and $103 million in commercial and industrial ("C&I") loans.

Asset Quality

Loan Deferral Update
As of March 31, 2021, 100% or $6.1 billion of our full-payment loan deferrals have returned to payment status.  Additionally, approximately $2.5 billion or 6% of total loans have been modified and are currently paying interest-only and escrow.  The majority of these loans are scheduled to come off of their deferral period during the second quarter of the year.  At this point, we expect the majority of these loans to return to full-payment status once they come off of their deferral period.

Non-Performing Assets
The Company's asset quality continued to be solid during the current first quarter, reflecting the underlying strength of our loan portfolio.  Non-performing assets ("NPAs") at March 31, 2021 totaled $41.3 million down 10% compared to $46.1 million at December 31, 2020.  This represents seven basis points of total assets as compared to eight basis points in the previous quarter.

Total non-performing loans at March 31, 2021 declined 12% to $33.2 million compared to December 31, 2020.  This decline was driven primarily by a decline in other non-accrual loans, which consist largely of taxi medallion-related non-accrual loans.  Total repossessed assets of $8.2 million were relatively unchanged compared to the previous quarter.

Non-performing taxi medallion-related assets at March 31, 2021 were $14.9 million, down $10.2 million or 41% compared to December 31, 2020.  Excluding the impact from non-performing taxi-related assets, first quarter NPAs on a non-GAAP basis would have been $26.5 million or five basis points of total assets compared to $21.0 million or four basis points of total assets in the previous quarter.

As of March 31, 2021, our remaining taxi medallion-related exposure was $16.6 million compared to $25.2 million in the previous quarter.

Allowance for Loan and Lease Losses
At March 31, 2021, the allowance for credit losses ("ACL") totaled $197.8 million, up $3.7 million compared to December 31, 2020.  At this date, the ACL represented 596.05% of non-performing loans and 0.46% of total loans.









(in thousands)




Loans and
Leases


Unfunded
Commitments

Allowance for credit losses at December 31, 2020

$              194,043


$          11,939

   2021 provision for credit losses


3,198


371

   2021 net recoveries



517


-

Allowance for credit losses at March 31, 2021

$              197,758


$          12,310

CAPITAL POSITION

The Company's capital position remains strong at both the holding company level and at the Bank level, as all of our regulatory capital ratios continue to exceed regulatory minimums to be classified as "Well Capitalized," the highest regulatory classification.

The table below depicts the Company's and the Bank's regulatory capital ratios at those respective periods. 


March 31,


December 31,


March 31,



2021


2020


2020


REGULATORY CAPITAL RATIOS: (1)







New York Community Bancorp, Inc.







Common equity tier 1 ratio

9.84

%

9.72

%

9.81

%

Tier 1 risk-based capital ratio

11.07


10.95


11.10


Total risk-based capital ratio

13.09


12.97


13.16


Leverage capital ratio

8.41


8.52


8.47


New York Community Bank







Common equity tier 1 ratio

12.31

%

12.18

%

12.38

%

Tier 1 risk-based capital ratio

12.31


12.18


12.38


Total risk-based capital ratio

12.77


12.62


12.79


Leverage capital ratio

9.35


9.48


9.45










(1)

The minimum regulatory requirements for classification as a well-capitalized institution are a common equity tier 1 capital ratio of 6.5%; a tier one risk-based capital ratio of 8.00%; a total risk-based capital ratio of 10.00%; and a leverage capital ratio of 5.00%.

 

EARNINGS SUMMARY FOR THE THREE MONTHS ENDED MARCH 31, 2021

Net Interest Income

Net interest income for the three months ended March 31, 2021 rose $73.2 million or 30% to $317.7 million on a year-over-year basis.  This improvement was driven by a 46% or $91.1 million decrease in interest expense compared to the three months ended March 31, 2020.  Interest expense for the three months ended March 31, 2021 totaled $105.4 million compared to $196.6 million for the three months ended March 31, 2020.

This decline was the result of a substantial decrease in interest expense related to CDs, which dropped to $18.5 million during the current quarter compared to $79.6 million in the year-ago quarter.

Prepayment income for the three months ended March 31, 2021 totaled $19.7 million, up 87% compared to the three months ended March 31, 2020.  Excluding the impact from prepayment income, net interest income on a non-GAAP basis would have been $298.0 million, up $64.1 million or 27% compared to the year-ago quarter.













March 31, 2021







For the Three Months Ended


compared to






















March 31,


December 31,


March 31,


December 31,


March 31,







2021


2020


2020


2020


2020
















(in thousands)





























Total interest income





$               423,108


$         425,827


$        441,042


-1%


-4%

Total interest expense





105,449


117,910


196,575


-11%


-46%

Net interest income





$               317,659


$         307,917


$        244,467


3%


30%

Less:















Total prepayment income




19,670


20,867


10,537


-6%


87%

Net interest income excluding prepayment income


$               297,989


$         287,050


$        233,930


4%


27%

 

Net Interest Margin

Our net interest margin ("NIM") continued to expand in line with expectations.  For the three months ended March 31, 2021, the NIM rose to 2.48%, up one basis point on a linked-quarter basis and up 47 basis points on a year-over-year basis.  As in past quarters, the NIM improvement was driven by lower funding costs.  Our overall cost of funds declined 88 basis points on a year-over-year basis and 12 basis points on a linked-quarter basis to 0.94%. 

During the current first quarter, our average cost of deposits decreased to 0.46%, down 15 basis points compared to the previous quarter and down 116 basis points compared to the year-ago quarter.  Our deposit costs this quarter are at the lowest level since the last easing cycle seven years ago when they bottomed at 0.58%.  Given current pricing trends and market interest rates, we expect that our deposit costs will continue to decline.

Prepayment income contributed 15 basis points to the current quarter's NIM, down two basis points compared to the previous quarter but up six basis points compared to the year-ago quarter.

Excluding the impact from prepayment income, our first quarter NIM, on a non-GAAP basis, would have been 2.33%, up three basis points compared to the previous quarter and up 41 basis points compared to the year-ago quarter.

Provision for Credit Losses

For the three months ended March 31, 2021, the Company recorded a provision for credit losses of $3.6 million compared to $11.0 million for the three months ended December 31, 2020 and $20.6 million for the three months ended March 31, 2020.

For the three months ended March 31, 2021, the Company recorded net recoveries of $517,000 compared to net charge-offs of $5.7 million for the three months ended December 31, 2020 and $10.2 million for the three months ended March 31, 2020.

Pre-Provision Net Revenue ("PPNR") (1)

The tables below details the Company's PPNR for the periods noted.

For the three months ended March 31, 2021, PPNR rose $10.3 million or 5% to $199.7 million compared to the three months ended December 31, 2020 and $63.8 million or 47% compared to the three months ended March 31, 2020.













March 31, 2021







For the Three Months Ended


compared to






















March 31,


December 31,


March 31,


December 31,


March 31,







2021


2020


2020


2020


2020
















(in thousands)





























Net interest income





$               317,659


$         307,917


$        244,467


3%


30%

Non-interest income





14,407


15,033


16,899


-4%


-15%

Total revenues





$               332,066


$         322,950


$        261,366


3%


27%

Total non-interest expense




132,401


133,568


125,522


-1%


5%

Pre-provision net revenue (PPNR)



199,665


189,382


135,844


5%


47%

Provision for credit losses




3,569


11,036


20,601


-68%


-83%

Income before taxes





$               196,096


$         178,346


$        115,243


10%


70%

Income tax expense (benefit)




50,500


(11,318)


14,915


-546%


239%

Net Income






$               145,596


$         189,664


$        100,328


-23%


45%

Preferred stock dividends




8,207


8,207


8,207


0%


0%

Net income available to common shareholders


$               137,389


$         181,457


$          92,121


-24%


49%

 

Non-Interest Income

For the three months ended March 31, 2021, total non-interest income was $14.4 million, down slightly compared to the $15.0 million in the previous quarter and $16.9 million in the year-ago first quarter.  The current first quarter includes a net loss on securities of $483,000 compared to net gains of $128,000 and $534,000 for the previous quarter and year-ago first quarter, respectively.

Non-Interest Expense

For the three months ended March 31, 2021, non-interest expenses totaled $132.4 million, down 1% compared to the previous quarter, but up 5% compared to the year-ago first quarter.  On a linked-quarter basis, compensation and benefits expense increased 8% to $78.0 million, offset by a 14% decrease in general and administrative expense.  This decrease was primarily due to a decrease in professional fees and a recovery on previously written down repossessed taxi medallions.

The efficiency ratio dropped below 40% during the three months ended March 31, 2021 to 39.87% compared to 41.36% in the fourth quarter of 2020 and to 48.03% in the first quarter of 2020.

Income Taxes

For the three months ended March 31, 2021, the Company recorded income tax expense of $50.5 million, largely driven by higher pre-tax income, and reflects an effective tax rate of 25.75%.  Income taxes and the effective tax rate in both the previous quarter and in the year-ago quarter were favorably impacted by certain provisions under the CARES Act.

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. At March 31, 2021, the Company reported assets of $57.7 billion, loans of $43.1 billion, deposits of $34.2 billion, and stockholders' equity of $6.8 billion.

Reflecting our growth through a series of acquisitions, the Company operates 236 branches through eight local divisions, each with a history of service and strength: Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, Roosevelt Savings Bank, and Atlantic Bank in New York; Garden State Community Bank in New Jersey; Ohio Savings Bank in Ohio; and AmTrust Bank in Florida and Arizona.

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," "should," 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: the effect of the COVID-19 pandemic, including the length of time that the pandemic continues, the potential imposition of future shelter in place orders or additional restrictions on travel in the future, the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligation, the remedial actions and stimulus measures adopted by federal, state, and local governments; the inability of employees to work due to illness, quarantine, or government mandates; 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; changes in legislation, regulations, and policies; the impact of recently adopted accounting pronouncements; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the Company and Flagstar to terminate the definitive merger agreement among the Company, 615 Corp., and Flagstar; the outcome of any legal proceedings that may be instituted against the Company or Flagstar; the possibility that the proposed transaction with Flagstar will not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated; the ability of the Company and Flagstar to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of either or both of the Company and Flagstar to the proposed transaction; the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Company and Flagstar do business; certain restrictions during the pendency of the proposed transaction that may impact the of the Company' and Flagstar' ability to pursue certain business opportunities or strategic transactions; the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management's attention from ongoing business operations and opportunities; the possibility that the Company and Flagstar may be unable to achieve expected synergies and operating efficiencies in the proposed transaction within the expected timeframes or at all and to successfully integrate Flagstar's operations and those of the Company; such integration may be more difficult, time consuming or costly than expected; revenues following the proposed transaction may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; the Company's and Flagstar's success in executing their respective business plans and strategies and managing the risks involved in the foregoing; the dilution caused by The Company's issuance of additional shares of its capital stock in connection with the proposed transaction; 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, 2020 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.

Important Information and Where You Can Find It

This press release may be deemed to be solicitation material in respect of the proposed transaction by the Company and Flagstar. In connection with the proposed transaction, the Company will file with the SEC a registration statement on Form S-4 to register the shares of the Company's capital stock to be issued in connection with the proposed transaction. The registration statement will include a prospectus of the Company and a joint proxy statement of the Company and Flagstar, which will be sent to the stockholders of the Company and shareholders of Flagstar seeking certain approvals related to the proposed transaction.

INVESTORS AND SECURITY HOLDERS OF NEW YORK COMMUNITY AND FLAGSTAR AND THEIR RESPECTIVE AFFILIATES ARE URGED TO READ, WHEN AVAILABLE, THE REGISTRATION STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS TO BE INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NEW YORK COMMUNITY, FLAGSTAR AND THE PROPOSED TRANSACTION.  Investors and security holders will be able to obtain a free copy of the registration statement, including the joint proxy statement/prospectus, as well as other relevant documents filed with the SEC containing information about New York Community and Flagstar, without charge, at the SEC's website (http://www.sec.gov). Copies of documents filed with the SEC by New York Community can also be obtained, without charge, by directing a request to Investor Relations, New York Community Bancorp, Inc., 615 Merrick Avenue, Westbury, New York 11590 or by telephone (516-683-4420). Copies of documents filed with the SEC by Flagstar can also be obtained, without charge, by directing requests to Investor Relations, Flagstar Bancorp, Inc., 5151 Corporate Drive, Troy, Michigan 48098 or by telephone: (248-312-5741). 

Participants in the Solicitation of Proxies in Connection with Proposed Transaction

The Company, Flagstar, and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction under the rules of the SEC.  Information regarding the Company's NYCB's directors and executive officers is available in its definitive proxy statement for its 2021 annual stockholders meeting, which was filed with the SEC on April 16, 2021, and certain of its Current Reports on Form 8-K.  Information regarding Flagstar's directors and executive officers is available in its definitive proxy statement for its 2021 annual stockholders meeting, which was filed with the SEC on April 15, 2021, and certain of its Current Reports on Form 8-K. Other information regarding the participants in the solicitation of proxies in respect of the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.

Investor/Media Contact:

Salvatore J. DiMartino


(516) 683-4286

 

- Financial Statements and Highlights Follow

 

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF CONDITION









March 31,



December 31,



2021



2020



(unaudited)



(in thousands, except share data)






Assets






Cash and cash equivalents


$        2,722,915



$        1,947,931

Securities:






Available-for-sale


6,177,905



5,813,333

    Equity investments with readily






        determinable fair values, at fair value


15,801



31,576

Total securities


6,193,706



5,844,909

Loans held for sale


141,435



117,136

Mortgage loans held for investment:






Multi-family


32,220,176



32,261,123

Commercial real estate 


7,030,532



6,839,075

One-to-four family


208,369



236,267

Acquisition, development, and construction


115,895



89,721

Total mortgage loans held for investment


39,574,972



39,426,186

Other loans and leases held for investment: 






Specialty Finance


3,192,586



3,056,463

Commercial and industrial 


351,969



394,404

Other loans


5,612



6,545

Total other loans and leases  held for investment


3,550,167



3,457,412

Total loans and leases held for investment


43,125,139



42,883,598

Less:  Allowance for credit losses on loans and leases


(197,758)



(194,043)

Total loans and leases held for investment and held for sale, net


43,068,816



42,806,691

Federal Home Loan Bank stock, at cost


698,984



714,005

Premises and equipment, net


282,407



287,447

Operating lease right-of-use assets


262,196



266,864

Goodwill


2,426,379



2,426,379

Other assets 


2,001,489



2,011,894

Total assets


$      57,656,892



$      56,306,120

Liabilities and Shareholders' Equity






Deposits:






Interest-bearing checking and money market accounts


$      12,665,002



$      12,610,073

Savings accounts


7,043,602



6,415,608

Certificates of deposit


9,614,298



10,330,680

Non-interest-bearing accounts


4,874,234



3,080,452

Total deposits


34,197,136



32,436,813

Borrowed funds:






Wholesale borrowings


15,102,661



15,427,661

Junior subordinated debentures


360,362



360,259

Subordinated notes


295,764



295,624

Total borrowed funds


15,758,787



16,083,544

Operating lease liabilities


262,169



266,846

Other liabilities


642,360



677,273

Total liabilities


50,860,452



49,464,476

Shareholders' 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 490,439,070






shares issued; and 465,074,384 and 463,901,808 shares outstanding, respectively)


4,904



4,904

Paid-in capital in excess of par


6,103,251



6,122,690

Retained earnings 


552,566



494,229

Treasury stock, at cost (25,364,686 and 26,537,262 shares, respectively)


(245,005)



(257,541)

Accumulated other comprehensive loss, net of tax:






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


(41,809)



66,880

Pension and post-retirement obligations, net of tax


(54,855)



(59,345)

Net unrealized loss on cash flow hedges, net of tax


(25,452)



(33,013)

Total accumulated other comprehensive loss, net of tax


(122,116)



(25,478)

Total shareholders' equity


6,796,440



6,841,644

Total liabilities and shareholders' equity


$      57,656,892



$      56,306,120







 

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)






















For the Three Months Ended




March 31,



December 31,



March 31,




2021



2020



2020










(in thousands, except per share data)










Interest Income:










Loans and leases

$        383,430



$        388,082



$        391,911



Securities and money market investments

39,678



37,745



49,131



Total interest income

423,108



425,827



441,042













Interest Expense:










Interest-bearing checking and money market accounts

8,652



8,988



28,564



Savings accounts 

6,255



6,915



8,934



Certificates of deposit

18,471



28,143



79,555



Borrowed funds

72,071



73,864



79,522



Total interest expense

105,449



117,910



196,575



Net interest income

317,659



307,917



244,467



Provision for credit losses

3,569



11,036



20,601



Net interest income after provision for credit losses

314,090



296,881



223,866













Non-Interest Income:










Fee income

5,539



6,045



7,018



Bank-owned life insurance

6,890



7,292



7,389



Net (losses) gains on securities 

(483)



128



534



Other income 

2,461



1,568



1,958



Total non-interest income  

14,407



15,033



16,899













Non-Interest Expense:










Operating expenses:










Compensation and benefits

78,026



72,576



79,451



Occupancy and equipment

21,481



22,876



17,875



General and administrative

32,894



38,116



28,196



Total non-interest expense

132,401



133,568



125,522



Income before income taxes

196,096



178,346



115,243



Income tax (benefit) expense 

50,500



(11,318)



14,915



Net Income 

145,596



189,664



100,328



Preferred stock dividends

8,207



8,207



8,207



Net income available to common shareholders

$        137,389



$        181,457



$          92,121













Basic earnings per common share 

$              0.29



$              0.39



$              0.20



Diluted earnings per common share

$              0.29



$              0.39



$              0.20













 

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 periods indicated:




Three Months Ended






March 31,


December 31,



March 31,


(dollars in thousands)

2021


2020



2020


Total Shareholders' Equity

$        6,796,440


$        6,841,644



$        6,637,385


Less: Goodwill

(2,426,379)


(2,426,379)



(2,426,379)


  Preferred stock

(502,840)


(502,840)



(502,840)


Tangible common shareholders' equity

$        3,867,221


$        3,912,425



$        3,708,166










Total Assets 

$      57,656,892


$      56,306,120



$      54,261,093


Less: Goodwill

(2,426,379)


(2,426,379)



(2,426,379)


Tangible assets

$      55,230,513


$      53,879,741



$      51,834,714










Average Common Shareholders' Equity

$        6,370,579


$        6,258,720



$        6,188,032


Less: Average goodwill 

(2,426,379)


(2,426,379)



(2,426,379)


Average tangible common shareholders' equity

$        3,944,200


$        3,832,341



$        3,761,653










Average Assets

$      56,305,692


$      54,959,914



$      53,408,504


Less: Average goodwill 

(2,426,379)


(2,426,379)



(2,426,379)


Average tangible assets

$      53,879,313


$      52,533,535



$      50,982,125










Net Income Available to Common Shareholders 

$           137,389


$           181,457



$             92,121










GAAP MEASURES:








Return on average assets (1)

1.03

%

1.38

%


0.75

%

Return on average common shareholders' equity (2)

8.63


11.60



5.95


Book value per common share

$               13.53


$               13.66



$               13.15


Common shareholders' equity to total assets

10.92


11.26



11.31










NON-GAAP MEASURES:








Return on average tangible assets (1)

1.08

%

1.44

%


0.79

%

Return on average tangible common shareholders' equity (2) 

13.93


18.94



9.80


Tangible book value per common share

$                 8.32


$                 8.43



$                 7.95


Tangible common shareholders' equity to tangible assets

7.00


7.26



7.15










 

(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 divide 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 divide net income available to common shareholders generated during that period 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



March 31, 2021


December 31, 2020


March 31, 2020



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 and leases, net 

$      42,735,708


$      383,430


3.59

%

$       42,436,104


$     388,082


3.66

%

$        41,511,176


$     391,911


3.78

%

Securities

6,516,568


38,430


2.36


5,847,981


37,082


2.54


6,347,320


47,276


2.98


Interest-earning cash and cash equivalents

1,835,268


1,248


0.28


1,682,947


663


0.16


662,899


1,855


1.13


Total interest-earning assets

51,087,544


423,108


3.32


49,967,032


425,827


3.41


48,521,395


441,042


3.64


Non-interest-earning assets

5,218,148






4,992,882






4,887,109






Total assets

$      56,305,692






$       54,959,914






$        53,408,504






Liabilities and Stockholders' Equity:



















Interest-bearing deposits:



















Interest-bearing checking and money



















market accounts

$      12,626,151


$          8,652


0.28

%

$       12,004,197


$         8,988


0.30

%

$        10,070,100


$       28,564


1.14

%

Savings accounts

6,713,051


6,255


0.38


6,145,526


6,915


0.45


4,833,600


8,934


0.74


Certificates of deposit

9,983,363


18,471


0.75


10,765,843


28,143


1.04


14,120,484


79,555


2.27


Total interest-bearing deposits

29,322,565


33,378


0.46


28,915,566


44,046


0.61


29,024,184


117,053


1.62


Borrowed funds

15,994,741


72,071


1.82


15,342,541


73,864


1.92


14,439,309


79,522


2.21


Total interest-bearing liabilities

45,317,306


105,449


0.94


44,258,107


117,910


1.06


43,463,493


196,575


1.82


Non-interest-bearing deposits

3,242,803






3,221,558






2,569,331






Other liabilities

872,164






718,689






684,808






Total liabilities

49,432,273






48,198,354






46,717,632






Stockholders' equity

6,873,419






6,761,560






6,690,872






Total liabilities and shareholders' equity

$      56,305,692






$       54,959,914






$        53,408,504






Net interest income/interest rate spread



$      317,659


2.38

%



$     307,917


2.35

%



$     244,467


1.82

%

Net interest margin





2.48

%





2.47

%





2.01

%

Ratio of interest-earning assets to



















interest-bearing liabilities 





1.13

x





1.13

x





1.12

x




















 

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(unaudited)











For the Three Months Ended




March 31,


December 31,



March 31,



(dollars in thousands except share and per share data)

2021


2020



2020



PROFITABILITY MEASURES:









Net income

$           145,596


$           189,664



$           100,328



Net income available to common shareholders

137,389


181,457



92,121



Basic earnings per common share 

0.29


0.39



0.20



Diluted earnings per common share 

0.29


0.39



0.20



Return on average assets

1.03

%

1.38

%


0.75

%


Return on average tangible assets (1)

1.08


1.44



0.79



Return on average common shareholders' equity

8.63


11.60



5.95



Return on average tangible common shareholders'









equity (1)

13.93


18.94



9.80



Efficiency ratio (2)

39.87


41.36



48.03



Operating expenses to average assets

0.94


0.97



0.94



Interest rate spread

2.38


2.35



1.82



Net interest margin

2.48


2.47



2.01



Effective tax rate

25.75


(6.35)



12.94



Shares used for basic common EPS computation

463,292,906


461,731,565



464,993,970



Shares used for diluted common EPS computation

463,886,937


462,592,213



465,412,644



Common shares outstanding at the respective









period-ends

465,074,384


463,901,808



466,360,703












(1)  See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 10 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.



 


March 31,


December 31,


March 31,



2021


2020


2020


CAPITAL MEASURES:







Book value per common share

$                 13.53


$                 13.66


$               13.15


Tangible book value per common share (1)

8.32


8.43


7.95


Common shareholders' equity to total assets

10.92

%

11.26

%

11.31

%

Tangible common shareholders' equity to tangible assets (1)

7.00


7.26


7.15









(1)  See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 12 of this release.


 

NEW YORK COMMUNITY BANCORP, INC.






SUPPLEMENTAL FINANCIAL INFORMATION




March 31, 2021













compared to


March 31,




December 31,



March 31,




December 31,

March 31,


2021




2020



2020




2020

2020


(unaudited)





(unaudited)





(in thousands, except share data)














Assets














Cash and cash equivalents

$        2,722,915




$        1,947,931



$        1,334,206




40%

104%

Securities:














Available-for-sale

6,177,905




5,813,333



5,455,245




6%

13%

    Equity investments with readily














        determinable fair values, at fair value

15,801




31,576



32,616




-50%

-52%

Total securities

6,193,706




5,844,909



5,487,861




6%

13%

Loans held for sale

141,435




117,136



-




21%

NM

Mortgage loans held for investment:














Multi-family

32,220,176




32,261,123



31,295,504




0%

3%

Commercial real estate 

7,030,532




6,839,075



7,037,363




3%

0%

One-to-four family

208,369




236,267



352,613




-12%

-41%

Acquisition, development, and construction

115,895




89,721



130,547




29%

-11%

Total mortgage loans held for investment

39,574,972




39,426,186



38,816,027




0%

2%

Other loans and leases held for investment: 














Specialty Finance

3,192,586




3,056,463



3,032,307




4%

5%

Commercial and industrial 

351,969




394,404



433,883




-11%

-19%

Other loans

5,612




6,545



9,542




-14%

-41%

Total other loans and leases  held for investment

3,550,167




3,457,412



3,475,732




3%

2%

Total loans and leases held for investment

43,125,139




42,883,598



42,291,759




1%

2%

Less:  Allowance for credit losses on loans and leases

(197,758)




(194,043)



(162,244)




2%

22%

Total loans and leases held for investment and held for sale, net

43,068,816




42,806,691



42,129,515




1%

2%

Federal Home Loan Bank stock, at cost

698,984




714,005



663,870




-2%

5%

Premises and equipment, net

282,407




287,447



306,657




-2%

-8%

Operating lease right-of-use assets

262,196




266,864



281,873




-2%

-7%

Goodwill

2,426,379




2,426,379



2,426,379




0%

0%

Other assets 

2,001,489




2,011,894



1,630,732




-1%

23%

Total assets

$      57,656,892




$      56,306,120



$      54,261,093




2%

6%

Liabilities and Shareholders' Equity














Deposits:














Interest-bearing checking and money market accounts

$      12,665,002




$      12,610,073



$      10,181,252




0%

24%

Savings accounts

7,043,602




6,415,608



4,955,670




10%

42%

Certificates of deposit

9,614,298




10,330,680



14,142,212




-7%

-32%

Non-interest-bearing accounts

4,874,234




3,080,452



2,693,632




58%

81%

Total deposits

34,197,136




32,436,813



31,972,766




5%

7%

Borrowed funds:














Wholesale borrowings

15,102,661




15,427,661



14,277,661




-2%

6%

Junior subordinated debentures

360,362




360,259



359,961




0%

0%

Subordinated notes

295,764




295,624



295,205




0%

0%

Total borrowed funds

15,758,787




16,083,544



14,932,827




-2%

6%

Operating lease liabilities

262,169




266,846



281,853




-2%

-7%

Other liabilities

642,360




677,273



436,262




-5%

47%

Total liabilities

50,860,452




49,464,476



47,623,708




3%

7%

Shareholders' 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 490,439,070 shares issued; and 465,074,384; 463,901,808; and 466,360,703

4,904




4,904



4,904




0%

0%

shares outstanding, respectively)














Paid-in capital in excess of par

6,103,251




6,122,690



6,101,540




0%

0%

Retained earnings 

552,566




494,229



344,344




12%

60%

Treasury stock, at cost (25,364,686; 26,537,262 and 24,078,367 shares, respectively)

(245,005)




(257,541)



(235,678)




-5%

4%

Accumulated other comprehensive loss, net of tax:














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

(41,809)




66,880



12,740




-163%

-428%

Pension and post-retirement obligations, net of tax

(54,855)




(59,345)



(57,803)




-8%

-5%

Net unrealized loss on cash flow hedges, net of tax

(25,452)




(33,013)



(35,502)




-23%

-28%

Total accumulated other comprehensive loss, net of tax

(122,116)




(25,478)



(80,565)




379%

52%

Total shareholders' equity

6,796,440




6,841,644



6,637,385




-1%

2%

Total liabilities and shareholders' equity

$      57,656,892




$      56,306,120



$      54,261,093




2%

6%















 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

(unaudited)
























March 31, 2021


For the Three Months Ended




compared to


March 31,



December 31,



March 31,




December 31,

March 31,


2021



2020



2020




2020

2020











(in thousands, except per share data)













Interest Income:













Loans and leases

$        383,430



$     388,082



$     391,911




-1%

-2%

Securities and money market investments

39,678



37,745



49,131




5%

-19%

Total interest income

423,108



425,827



441,042




-1%

-4%














Interest Expense:













Interest-bearing checking and money market accounts

8,652



8,988



28,564




-4%

-70%

Savings accounts 

6,255



6,915



8,934




-10%

-30%

Certificates of deposit

18,471



28,143



79,555




-34%

-77%

Borrowed funds

72,071



73,864



79,522




-2%

-9%

Total interest expense

105,449



117,910



196,575




-11%

-46%

Net interest income

317,659



307,917



244,467




3%

30%

Provision for credit losses

3,569



11,036



20,601




-68%

-83%

Net interest income after provision for credit losses

314,090



296,881



223,866




6%

40%














Non-Interest Income:













Fee income

5,539



6,045



7,018




-8%

-21%

Bank-owned life insurance

6,890



7,292



7,389




-6%

-7%

Net (losses) gains on securities 

(483)



128



534




-477%

-190%

Other income 

2,461



1,568



1,958




57%

26%

Total non-interest income  

14,407



15,033



16,899




-4%

-15%














Non-Interest Expense:













Operating expenses:













Compensation and benefits

78,026



72,576



79,451




8%

-2%

Occupancy and equipment

21,481



22,876



17,875




-6%

20%

General and administrative

32,894



38,116



28,196




-14%

17%

Total non-interest expense

132,401



133,568



125,522




-1%

5%

Income before income taxes

196,096



178,346



115,243




10%

70%

Income tax expense (benefit)

50,500



(11,318)



14,915




-546%

239%

Net Income 

145,596



189,664



100,328




-23%

45%

Preferred stock dividends

8,207



8,207



8,207




0%

0%

Net income available to common shareholders

$        137,389



$     181,457



$       92,121




-24%

49%














Basic earnings per common share 

$              0.29



$           0.39



$           0.20




-26%

45%

Diluted earnings per common share

$              0.29



$           0.39



$           0.20




-26%

45%

Dividends per common share

$              0.17



$           0.17



$           0.17




0%

0%














 

NEW YORK COMMUNITY  BANCORP, INC.
S
UPPLEMENTAL FINANCIAL INFORMATION (continued)

The following tables summarize 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


March 31, 2021 compared to



March 31,


December 31,


March 31,


December 31,


March 31,



2021


2020


2020


2020


2020


(dollars in thousands)






















Total Interest Income

$423,108


$425,827


$441,042


-1%


-4%













Prepayment Income:











     Loans

$18,749


$19,530


$10,189


-4%


84%


     Securities

921


1,337


348


-31%


165%


Total prepayment income

$19,670


$20,867


$10,537


-6%


87%













GAAP Net Interest Margin

2.48%


2.47%


2.01%


1

bp

47

bp

     Less:











     Prepayment income from loans

15

bp

16

bp

9

bp

-1

bp

6

bp

     Prepayment income from securities

-


1


-


-1

bp

0

bp

Total prepayment income contribution 











to net interest margin

15

bp

17

bp

9

bp

-2

bp

6

bp












Adjusted Net Interest Margin (non-GAAP)

2.33%


2.30%


1.92%


3

bp

41

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 and other items 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)








March 31, 2021


For the Three Months Ended


compared to


March 31,


December 31,


March 31,


December 31,


March 31,


2021


2020


2020


2020


2020

(in thousands)










Mortgage Loans Originated for Investment:










     Multi-family

$1,465,831


$2,776,301


$1,417,219


-47%


3%

     Commercial real estate

443,207


507,031


191,651


-13%


131%

     One-to-four family residential

21,520


12,972


27,196


66%


-21%

     Acquisition, development, and construction

6,622


10,347


4,908


-36%


35%

Total mortgage loans originated for investment

1,937,180


3,306,651


1,640,974


-41%


18%











Other Loans Originated for Investment:










     Specialty Finance

541,494


447,086


957,393


21%


-43%

     Other commercial and industrial

62,507


120,449


122,386


-48%


-49%

     Other

1,137


1,402


925


-19%


23%

Total other loans originated for investment

605,138


568,937


1,080,704


6%


-44%

Total Loans Originated for Investment

$2,542,318


$3,875,588


$2,721,678


-34%


-7%











 

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


respective dates:









March 31, 2021



At or For the Three Months Ended


compared to



March 31,


December 31,


March 31,


December 31,


March 31,



2021


2020


2020


2020


2020


(in thousands)











Multi-Family Loan Portfolio:











     Loans outstanding

$32,220,176


$32,261,123


$31,295,504


0%


3%


     Percent of total held-for-investment loans

74.7%


75.2%


74.0%


(52)

bp

71

bp

     Average principal balance

$6,596


$6,554


$6,408


1%


3%


     Weighted average life (in years)

2.4


2.3


1.9


4%


26%













Commercial Real Estate Loan Portfolio:











     Loans outstanding

$7,030,532


$6,839,075


$7,037,363


3%


0%


     Percent of total held-for-investment loans

16.3%


15.9%


16.6%


35

bp

-30

bp

     Average principal balance

$6,977


$6,716


$6,645


4%


5%


     Weighted average life (in years)

2.4


2.4


2.3


0%


4%


 

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

ASSET QUALITY SUMMARY

(unaudited)














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



























March 31, 2021











compared to


March 31,



December 31,



March 31,



December 31,


March 31,

(in thousands)

2021



2020



2020



2020


2020

Non-Performing Assets:













Non-accrual mortgage loans:













     Multi-family

$                      9,888



$                    4,068



$              4,242



143%


133%

     Commercial real estate

11,573



12,142



16,101



-5%


-28%

     One-to-four family residential

1,466



1,696



1,721



-14%


-15%

     Acquisition, development, and construction

-



-



-



NM


NM

Total non-accrual mortgage loans

22,927



17,906



22,064



28%


4%

Other non-accrual loans (1)

10,251



19,879



27,218



-48%


-62%

Total non-performing loans

33,178



37,785



49,282



-12%


-33%

Repossessed assets (2)

8,153



8,318



9,526



-2%


-14%

Total non-performing assets

$                    41,331



$                  46,103



$            58,808



-10%


-30%














(1) Includes $10.1 million, $18.6 million and $22.9 million of non-accrual taxi medallion-related loans at March 31, 2021, 
      December 31, 2020 and March 31, 2020, respectively.


















(2) Includes $4.8 million, $6.5 million and $7.6 million of repossessed taxi medallions at March 31, 2021, December 31, 2020, and March 31, 2020,
      respectively.


























































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






















March 31,



December 31,



March 31,







2021



2020



2020



















Non-performing loans to total loans

0.08


%

0.09


%

0.12


%

















Non-performing assets to total assets

0.07



0.08



0.11



















Allowance for losses on loans to non-performing loans

596.05



513.55



329.22



















Allowance for losses on loans to total loans

0.46



0.45



0.38



















 

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



















March 31,



December 31,



March 31,


2021



2020



2020

(in thousands)








Loans 30 to 89 Days Past Due:








     Multi-family

$                 961



$              4,091



$              2,679

     Commercial real estate

19,371



9,989



97

     One-to-four family residential

-



1,575



-

     Acquisition, development, and construction

-



-



-

     Other (1)

13



3



52

Total loans 30 to 89 days past due

$            20,345



$            15,658



$              2,828









(1) Does not include any taxi medallion loans at the respective dates.












 

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

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










For the Three Months Ended


March 31,



December 31,



March 31,


2021



2020



2020

(in thousands)








Charge-offs:








     Multi-family

$                 658



$                     -



$                     -

     Commercial real estate

-



1,870



-

     One-to-four family residential

-



-



-

     Acquisition, development, and








   construction

-



-



-

     Other (1)

3,666



4,908



10,385

Total charge-offs

$              4,324



$              6,778



$            10,385









Recoveries:








     Multi-family

$                     -



$                     -



$                     -

     Commercial real estate

-



(354)



-

     One-to-four family residential

(18)



-



-

     Acquisition, development, and








   construction

(2)



(1)



(11)

     Other (1)

(4,821)



(717)



(178)

Total recoveries

(4,841)



(1,072)



(189)









Net charge-offs  (recoveries)

$               (517)



$              5,706



$            10,196

















Net charge-offs to average loans (2)

0.00%



0.01%



0.02%









(1) Includes taxi medallion loans of $2.3 million, $3.3 million, and $6.7 million, respectively,



or the three months ended March 31, 2021, December 31, 2020, and March 31, 2020


(2) Three months ended presented on a non-annualized basis.





 

SOURCE New York Community Bancorp, Inc.

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