Company Announcements

New York Community Bancorp, Inc. Reports Third Quarter 2019 Diluted Earnings Per Common Share Of $0.19 As Net Interest Margin Stabilizes

WESTBURY, N.Y., Oct. 30, 2019 /PRNewswire/ --

(PRNewsfoto/New York Community Bancorp, Inc.)

Third Quarter 2019 Summary

Earnings:

-     Net income for the third quarter of 2019 totaled $99.0 million compared to $97.2 million for the second quarter of 2019.

-     Net income available to common shareholders for the third quarter of 2019 was $90.8 million or $0.19 per common share, compared to $89.0 million for the second quarter of 2019, also $0.19 per common share.

-     Non-interest expenses came in at $123.3 million, compared to $123.1 million in the previous quarter and the efficiency ratio was 47.37%.

-     Return on average assets was 0.76% for the current third quarter while return on average common stockholders' equity was 5.86%. (1)

-     Return on average tangible assets was 0.80% for the current third quarter, while return on average tangible common stockholders' equity was 9.62%. (1) (2)

Balance Sheet:

-     Total assets were $52.5 billion, down slightly compared to the second quarter of 2019.

-     Total loans held for investment declined modestly on a linked quarter basis, but average loans held for investment increased $548.2 million or 5% annualized on a linked-quarter basis to $40.8 billion.

-     Average multi-family loans increased $488.7 million or 7% annualized to $30.5 billion.

-     Average specialty finance loans rose $131.1 million or 23% annualized to $2.5 billion.

-     Average interest-bearing deposits rose $54.3 million or 1% annualized to $29.1 billion, as we managed high cost deposit balances lower.

 Net Interest Margin:

-     The net interest margin for the third quarter was 1.99%, down one basis point compared to the second quarter 2019 margin.

-     Funding costs declined moderately, while asset yields remained unchanged.

-     Prepayment income increased 12% during the third quarter to $14.1 million compared to second quarter 2019.

-     Prepayment income added 11 basis points to the net interest margin this quarter, same as in the previous quarter.

Asset Quality:

-     Non-performing assets totaled $67.9 million or 0.13% of total assets.

-     Non-performing loans were $56.2 million or 0.14% of total loans.

-     Weighted average LTV for our rent-regulated multi-family portfolio was 53.54%.

Capital Position at September 30, 2019:

-    Common Equity Tier 1 Capital Ratio was 10.15%.

-    Tier 1 Risk-Based Capital Ratio was 11.49%.

-    Total Risk-Based Capital Ratio was 13.61%.

-    Leverage Capital Ratio was 8.65%.

(1)

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

(2)

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


New York Community Bancorp, Inc. (NYSE: NYCB) (the "Company") today reported net income for the three months ended September 30, 2019 of $99.0 million, up 2% from the $97.2 million reported for the three months ended June 30, 2019. On a year-to-date basis, net income was $293.9 million, down 8% compared to the first nine months of 2018.

Net income available to common shareholders for the third quarter of 2019 was $90.8 million, or $0.19 per common share, compared to $89.0 million, also $0.19 per common share for the second quarter of 2019. For the nine months ended September 30, 2019, net income available to common shareholders totaled $269.2 million, or $0.57 per common share, compared to $296.1 million or $0.60 per common share for the nine months ended September 30, 2018.

Commenting on the Company's third quarter 2019 performance, President and Chief Executive Officer Joseph R. Ficalora stated: "Overall, we are pleased with the Company's performance this quarter. With the FOMC having lowered short term interest rates twice so far during the third quarter, we are beginning to see a positive impact on our funding costs, marking an inflection point in the net interest margin and net interest income. The net interest margin during the third quarter stabilized at 1.99%, down only one basis point from the previous quarter, while net interest income was relatively unchanged.  We anticipate further improvements in our funding costs, and hence our net interest margin going forward due to our liability sensitive balance sheet.

"On the lending front, our loan portfolio continued to grow compared to the level at year-end 2018, led by our multi-family and specialty finance loan portfolios, but our end of period loan portfolio was down modestly compared to the prior quarter. However on an average basis, average total loan balances increased 5% annualized compared to the prior quarter to $40.8 billion. During the quarter, we experienced a number of loans refinancing away from us, as the dollars offered by alternative lenders did not meet our stringent underwriting standards.

"Our overall deposit growth slowed this quarter as we strategically chose to allow higher cost deposits to roll off.  This had a modest favorable impact on deposit costs during the third quarter.  We expect it to have a greater benefit going forward. As we adjust to a lower interest rate environment, we are aggressively managing our deposit costs lower and proactively reducing higher cost deposit balances.

"Our operating expenses, excluding certain items related to severance costs, declined compared to the previous quarter and the efficiency ratio improved to 47.37%.

"Finally, our asset quality metrics continue to be solid. More importantly, we are not seeing any negative credit trends in the rent-regulated portion of our multi-family portfolio post the passage of new rent control laws in June."

DIVIDEND DECLARATION
Reflecting our earnings, asset quality metrics, and strong capital position, the Board of Directors yesterday declared a quarterly cash dividend of $0.17 per share on the Company's common stock.  Based on a closing price of $13.69 as of October 29, 2019, this represents an annualized dividend yield of 5.0%. The dividend is payable on November 25, 2019 to common shareholders of record as of November 11, 2019.

BALANCE SHEET SUMMARY
On a year-to-date basis, total assets increased $638.3 million to $52.5 billion, a 2% increase on an annualized basis.  Similar to previous quarters, the year-to-date increase was primarily the result of loan growth and to a lesser extent, growth in the securities portfolio.  Our balance sheet growth has been funded through deposit growth, mainly through certificates of deposit ("CDs"), while borrowed funds have decreased.

Total loans held for investment rose $678.3 million, or 2% on an annualized basis, compared to December 31, 2018.  Loan growth during the first nine months of 2019, centered in our multi-family loan portfolio and in our commercial and industrial ("C&I") loan portfolio, the majority of which are comprised of specialty finance loans.

Total securities, which consist mainly of available-for-sale securities, rose $243.4 million compared to the balance at December 31, 2018, or 6% on an annualized basis.  However, given the low interest rate environment in place over the past two quarters, we have refrained from meaningfully growing the securities portfolio.

Total deposits rose $807.7 million, or 4% on an annualized basis, to $31.6 billion and total borrowed funds decreased $581.5 million, or 5% on an annualized basis. 

Loans
Total loans, net were $40.7 billion at September 30, 2019, relatively unchanged from the level at the end of the prior quarter, and up $688.7 million or 2% annualized compared to the balance at December 31, 2018. During the quarter, a number of multi-family loans refinanced away from the Bank because other alternative lenders were willing to provide more credit than we were, which was inconsistent with our rigorous underwriting standards. However, on an average basis, average total loans held for investment were $40.8 billion, up $548.2 million or 5% annualized on a linked-quarter basis. Our loan growth on a year-to-date basis continues to be driven by our core multi-family loan product and by our specialty finance portfolio, while the commercial real estate ("CRE") loan portfolio declined modestly.

On a linked-quarter basis, average multi-family loans increased $488.7 million to $30.5 billion up 7% on an annualized basis, while average CRE loans declined modestly to $6.9 billion or 0.3% annualized.  Our specialty lending business reported another strong quarter, with average specialty finance loans and leases increasing $131.1 million to $2.5 billion, up 23% annualized.

The average loan size for multi-family loans is $6.2 million and for CRE loans it is $6.4 million, both relatively stable with the previous quarter. The average weighted life of the multi-family portfolio was 2.1 years and for the CRE portfolio, it was 2.4 years, both unchanged from the prior quarter.

Originations
For the quarter ended September 30, 2019, total loans originated for investment were $2.3 billion compared to $3.0 billion for the quarter ended June 30, 2019. Multi-family originations totaled $1.2 billion, CRE originations were $309.3 million, and specialty finance loans and leases were $637.8 million. During the current quarter, origination activity was tempered as some investors have temporarily postponed their purchase and sale decisions while they assess the full impact of the recently enacted New York State Housing Stability and Tenant Protection Act of 2019. 

Pipeline
Our pipeline remains strong heading into the fourth quarter of the year. Currently, it stands at $2.2 billion, up 10% compared to the loan pipeline at the end of the second quarter.  This includes $1.3 billion in multi-family loans, $250 million in CRE loans, and $540 million in specialty finance loans and leases.

Funding
Deposits
Historically, the Company has been able to gain large institutional deposit balances, during the time that our competitors were not in the market for these types of deposits.  During the current third quarter, several competitors re-entered this market with a demonstrated willingness to pay irrational interest rates on these deposit products.  Rather than compete with these financial institutions, the Company selectively exited many of these relationships during the third quarter, opting instead to grow lower cost retail deposits and other relatively inexpensive funding sources. As a result, the interest-bearing checking and money market accounts category declined $1.6 billion on a year-over-year basis and $810.0 million on a linked-quarter basis. Despite this, for the nine months ended September 30, 2019, total deposits increased $807.7 million or 4% annualized to $31.6 billion.

Given our liability sensitive balance sheet, we are aggressively managing our deposit costs lower and proactively reducing higher cost deposit balances.  The benefit of this strategy should become more apparent in upcoming quarters through lower deposit costs.

Borrowed Funds
At September 30, 2019, total borrowed funds were $13.6 billion, down $581.5 million or 5% annualized compared to the balance at December 31, 2018.  The majority of the decline was the result of a $582.0 million decrease in wholesale borrowings, consisting mainly of Federal Home Loan Bank of New York advances, which ended the quarter at $13.0 billion.

The cost of our borrowings declined three basis points on a linked quarter basis to 2.38%.  We have approximately $5.1 billion of wholesale borrowings at an average rate of 2.06% maturing over the next five quarters.

Asset Quality
The Company's asset quality and asset quality metrics remained solid during the third quarter despite a modest uptick in total non-performing assets ("NPAs").  NPAs increased 8% on a linked-quarter basis to $67.9 million, as a $575,000 decrease in other non-accrual loans was offset by a $5.4 million increase in non-accrual mortgage loans.  Included in this amount was $33.6 million of taxi medallion non-accrual loans.

Total repossessed assets of $11.7 million were unchanged on a linked-quarter basis.  Included in this amount is $9.7 million of repossessed taxi medallions.  As of September 30, 2019, our remaining taxi medallion-related loans totaled $61.0 million, compared to $65.3 million at June 30, 2019.

Net charge-offs for the quarter ended September 30, 2019 declined to $6.5 million or 0.02% of average loans compared to $7.4 million, also 0.02% of average loans in the previous quarter.  On a year-to-date basis, net charge-offs totaled $15.8 million or 0.04% of average loans compared to $13.9 million or 0.04% in the first nine months of 2018. Taxi medallion-related charge-offs were $6.8 million and $9.7 million, for the first nine months of 2019 and 2018, respectively.

More importantly, we are not seeing any negative credit trends in the rent-regulated portion of our multi-family portfolio post the passage of new rent control laws in June. The overall weighted average LTV for our multi-family portfolio was 57.16% at September 30, 2019 and the weighted average LTV for the rent-regulated portion of this portfolio was 53.54%.

EARNINGS SUMMARY FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019

Net Interest Income
Net interest income for the three months ended September 30, 2019 totaled $235.9 million, compared to the $237.7 million for the three months ended June 30, 2019, and down 5% compared to the $249.5 million for the three months ended September 30, 2018.  Total interest income for the current third quarter rose modestly on a linked-quarter basis, and 7% on a year-over-year basis. Total interest expense also rose modestly on a linked-quarter basis and 24% year-over-year.

For the nine months ended September 30, 2019, net interest income totaled $714.9 million, down $68.8 million, or 9%, compared to the nine months ended September 30, 2018.  Total interest income for the first nine months of 2019 rose $107.7 million or 9% versus the first nine months of 2018, while interest expense increased $176.5 million or 38% over the same time period.

Net Interest Margin
The net interest margin ("NIM") for the third quarter of 2019 was 1.99%, down one basis point compared to the second quarter 2019 NIM.  The average asset yield for the current third quarter was 3.82%, unchanged from the prior quarter, while funding costs declined two basis points to 2.04% from the prior quarter.

Prepayment income for the third quarter was $14.1 million, up 12% from the $12.6 million recorded in the second quarter of 2019, contributing 11 basis points to this quarter's NIM, unchanged from the previous quarter. Excluding the impact from prepayment income, our third quarter NIM would have been 1.88%, on a non-GAAP basis, down one basis point compared to the previous quarter.

For the nine months ended September 30, 2019, the NIM was 2.01%, down 29 basis points compared to the nine months ended September 30, 2018.  This decrease was the result of higher funding costs due to the cumulative impact of multiple short-term interest rate increases during this time frame, offset partially by higher yields on our interest-earning assets.  The average asset yield increased 14 basis points to 3.81%, while the cost of funds increased 49 basis points to 2.03%.

Prepayment income for the nine months ended September 30, 2019 was $36.3 million, down 10% from the nine months ended September 30, 2018.  Prepayment income contributed 10 and 12 basis points, respectively to the NIM.  Excluding the impact from prepayment income, the NIM, on a non-GAAP basis, would have been 1.91%, compared to 2.18% for the prior nine months.

Provision for Loan Losses
For the third quarter of 2019, the Company reported a provision for loan losses of $4.8 million compared to a provision for loan losses of $1.8 million in the previous quarter. On a year-to-date basis, the Company reported a provision for loan losses of $5.4 million compared to a provision for loan losses of $15.5 million in the first nine months of 2018.

Non-Interest Income
For the three months ended September 30, 2019, total non-interest income increased $6.8 million to $24.4 million compared to $17.6 million in the three months ended June 30, 2019.  Included in the other income category in the current quarter is a $7.9 million gain on sale of a branch property located in Florida.

For the nine months ended September 30, 2019, non-interest income totaled $66.8 million compared to $68.5 million for the nine months ended September 30, 2018.  Included in the nine-month period for 2018 was revenue of $15.7 million related to our former wealth management business, Peter B. Cannell & Co., Inc. which was sold in the first quarter of 2019.  In addition to the aforementioned gain on the sale of a branch property, also included in the nine month period for 2019 was $7.8 million of net gains on securities compared to a net loss of $810,000 for the first nine months of 2018.

Non-Interest Expense
Total non-interest expense for the three months ended September 30, 2019 was $123.3 million, relatively unchanged from the prior quarter.  Included in the current third quarter was $1.4 million in severance costs.  For the nine months ended September 30, 2019, total non-interest expenses declined $26.6 million, or 6%, to $385.1 million. Our operating expenses during the first nine months of 2019 included certain items related to severance costs and branch rationalization, which totaled $10.4 million. The efficiency ratio for the current third quarter was 47.37% compared to 48.20% in the second quarter of the year.

Income Taxes
Income tax expense for the three months ended September 30, 2019 totaled $33.2 million, compared to $33.1 million in the prior quarter.  The effective tax rate was 25.09% during the current third quarter, compared to 25.42% in the second quarter of 2019. 

For the nine months ended September 30, 2019, income tax expense totaled $97.3 million, compared to $104.4 million for the nine months ended September 30, 2018.  The effective tax rate was 24.88% for the first nine months of 2019, compared to 24.56% for the year-ago nine months.

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 September 30, 2019, the Company reported assets of $52.5 billion, loans of $40.7 billion, deposits of $31.6 billion, and stockholders' equity of $6.7 billion.

Reflecting our growth through a series of acquisitions, the Company operates 239 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.

Post-Earnings Release Conference Call
The Company will host a conference call on Wednesday, October 30, 2019, at 8:30 a.m. (Eastern Time) to discuss its third quarter 2019 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 November 3, 2019 and may be accessed by calling (877) 660-6853 (domestic) or (201) 612-7415 (international) and providing the following conference ID: 13694726. In addition, the conference call will be webcast at ir.myNYCB.com, and archived through 5:00 p.m. on November 27, 2019.

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: 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, 2018 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


September 30,


December 31,


2019


2018


(unaudited)



(in thousands, except share data)




Assets




Cash and cash equivalents

$        854,678


$         1,474,955

Securities:




Available-for-sale

5,854,568


5,613,520

    Equity investments with readily




        determinable fair values, at fair value

32,861


30,551

Total securities

5,887,429


5,644,071

Mortgage loans held for investment:




Multi-family

30,289,364


29,904,063

Commercial real estate 

6,988,226


7,000,990

One-to-four family

395,347


446,413

Acquisition, development, and construction

297,565


407,875

Total mortgage loans held for investment

37,970,502


37,759,341

Other loans: 




Commercial and industrial 

2,864,944


2,397,784

Other loans

8,774


8,783

Total other loans held for investment

2,873,718


2,406,567

Total loans held for investment

40,844,220


40,165,908

Less:  Allowance for loan losses

(149,433)


(159,820)

Loans held for investment, net

40,694,787


40,006,088

Total loans, net

40,694,787


40,006,088

Federal Home Loan Bank stock, at cost

606,371


644,590

Premises and equipment, net

321,792


346,179

Operating lease right-of-use assets

300,955


-

Goodwill

2,426,379


2,436,131

Other assets 

1,445,238


1,347,362

Total assets

$   52,537,629


$       51,899,376

Liabilities and Stockholders' Equity




Deposits:




Interest-bearing checking and money market accounts

$     9,960,403


$       11,530,049

Savings accounts

4,817,697


4,643,260

Certificates of deposit

14,264,171


12,194,322

Non-interest-bearing accounts

2,529,905


2,396,799

Total deposits

31,572,176


30,764,430

Borrowed funds:




Wholesale borrowings

12,971,661


13,553,661

Junior subordinated debentures

359,773


359,508

Subordinated notes

294,926


294,697

Total borrowed funds

13,626,360


14,207,866

Operating lease liabilities

300,610


-

Other liabilities

343,476


271,845

Total liabilities

45,842,622


45,244,141

Stockholders' equity:




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




Series A (515,000 shares issued and outstanding)

502,840


502,840

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




shares issued; and 467,350,860 and 473,536,604 shares outstanding, respectively)

4,904


4,904

Paid-in capital in excess of par

6,107,376


6,099,940

Retained earnings 

328,407


297,202

Treasury stock, at cost (23,088,210 and 16,902,466 shares, respectively)

(220,669)


(161,998)

Accumulated other comprehensive loss, net of tax:




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

43,804


(10,534)

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




temporary impairment losses, net of tax

(6,042)


(6,042)

Pension and post-retirement obligations, net of tax

(65,613)


(71,077)

Total accumulated other comprehensive loss, net of tax

(27,851)


(87,653)

Total stockholders' equity

6,695,007


6,655,235

Total liabilities and stockholders' equity

$   52,537,629


$       51,899,376





 

 

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)






















For the Three Months Ended


For the Nine Months Ended


Sep. 30,


Jun. 30,


Sep. 30,


Sep. 30,


Sep. 30,


2019


2019


2018


2019


2018











(in thousands, except per share data)










Interest Income:










Mortgage and other loans

$ 391,920


$ 387,634


$ 368,264


$ 1,159,344


$ 1,092,637

Securities and money market investments

62,631


66,118


56,880


195,133


154,164

Total interest income

454,551


453,752


425,144


1,354,477


1,246,801











Interest Expense:










Interest-bearing checking and money market accounts

42,465


47,772


44,497


140,396


119,246

Savings accounts 

9,326


8,861


7,325


26,270


21,176

Certificates of deposit

86,934


80,651


51,249


235,360


121,298

Borrowed funds

79,911


78,778


72,567


237,521


201,322

Total interest expense

218,636


216,062


175,638


639,547


463,042

Net interest income

235,915


237,690


249,506


714,930


783,759

Provision for losses on loans

4,781


1,844


1,201


5,403


15,486

Net interest income after provision for loan losses

231,134


235,846


248,305


709,527


768,273











Non-Interest Income:










Fee income

7,580


7,487


7,237


22,295


22,056

Bank-owned life insurance

6,791


6,479


7,302


20,245


20,424

Net gain (loss) on securities 

275


493


(41)


7,755


(810)

Other income 

9,740


3,138


8,424


16,473


26,815

Total non-interest income  

24,386


17,597


22,922


66,768


68,485











Non-Interest Expense:










Operating expenses:










Compensation and benefits

75,159


72,573


78,283


229,172


242,572

Occupancy and equipment

21,748


21,889


24,401


66,599


74,311

General and administrative

26,395


28,590


31,749


89,350


94,799

Total non-interest expense

123,302


123,052


134,433


385,121


411,682

Income before income taxes

132,218


130,391


136,794


391,174


425,076

Income tax expense 

33,172


33,145


30,022


97,305


104,398

Net Income 

99,046


97,246


106,772


293,869


320,678

Preferred stock dividends

8,207


8,207


8,207


24,621


24,621

Net income available to common shareholders

$   90,839


$   89,039


$   98,565


$    269,248


$    296,057











Basic earnings per common share 

$       0.19


$       0.19


$       0.20


$          0.57


$          0.60

Diluted earnings per common share

$       0.19


$       0.19


$       0.20


$          0.57


$          0.60











 

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:


At or for the


At or for the



Three Months Ended


Nine Months Ended



Sep. 30,


Jun. 30,


Sep. 30,


Sep. 30,


Sep. 30,


(dollars in thousands)

2019


2019


2018


2019


2018


Total Stockholders' Equity

$    6,695,007


$    6,674,678


$    6,794,015


$    6,695,007


$    6,794,015


Less: Goodwill

(2,426,379)


(2,426,379)


(2,436,131)


(2,426,379)


(2,436,131)


Preferred stock

(502,840)


(502,840)


(502,840)


(502,840)


(502,840)


Tangible common stockholders' equity

$    3,765,788


$    3,745,459


$    3,855,044


$    3,765,788


$    3,855,044













Total Assets 

$  52,537,629


$  52,776,253


$  51,246,654


$  52,537,629


$  51,246,654


Less: Goodwill

(2,426,379)


(2,426,379)


(2,436,131)


(2,426,379)


(2,436,131)


Tangible assets

$  50,111,250


$  50,349,874


$  48,810,523


$  50,111,250


$  48,810,523













Average Common Stockholders' Equity

$    6,201,970


$    6,149,275


$    6,301,525


$    6,152,253


$    6,291,911


Less: Average goodwill 

(2,426,379)


(2,426,379)


(2,436,131)


(2,429,487)


(2,436,131)


Average tangible common stockholders' equity

$    3,775,591


$    3,722,896


$    3,865,394


$    3,722,766


$    3,855,780













Average Assets

$  52,257,718


$  52,072,326


$  50,608,283


$  51,984,879


$  49,685,717


Less: Average goodwill 

(2,426,379)


(2,426,379)


(2,436,131)


(2,429,487)


(2,436,131)


Average tangible assets

$  49,831,339


$  49,645,947


$  48,172,152


$  49,555,392


$  47,249,586













Net Income Available to Common Shareholders 

$         90,839


$         89,039


$         98,565


$       269,248


$       296,057













GAAP MEASURES:











Return on average assets (1)

0.76

%

0.75

%

0.84

%

0.75

%

0.86

%

Return on average common stockholders' equity (2)

5.86


5.79


6.26


5.84


6.27


Book value per common share

$           13.25


$           13.21


$           12.83


$           13.25


$           12.83


Common stockholders' equity to total assets

11.79


11.69


12.28


11.79


12.28













NON-GAAP MEASURES:











Return on average tangible assets (1)

0.80

%

0.78

%

0.89

%

0.79

%

0.90

%

Return on average tangible common stockholders' equity (2) 

9.62


9.57


10.20


9.64


10.24


Tangible book value per common share

$             8.06


$             8.01


$             7.86


$             8.06


$             7.86


Tangible common stockholders' equity to tangible assets

7.51


7.44


7.90


7.51


7.90













(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



September 30, 2019


June 30, 2019


September 30, 2018



Average
Balance


Interest


Average
Yield/Cost


Average
Balance


Interest


Average
Yield/Cost


Average
Balance


Interest


Average
Yield/Cost


(dollars in thousands)



















Assets:



















Interest-earning assets:



















Mortgage and other loans, net 

$ 40,756,495


$  391,920


3.84

%

$ 40,208,256


$  387,634


3.86

%

$   39,465,876


$  368,264


3.73

%

Securities

6,324,588


59,785


3.78


6,320,252


60,340


3.82


5,279,319


49,084


3.71


Interest-earning cash and cash equivalents

511,730


2,846


2.21


967,364


5,778


2.40


1,557,465


7,796


1.99


Total interest-earning assets

47,592,813


454,551


3.82


47,495,872


453,752


3.82


46,302,660


425,144


3.67


Non-interest-earning assets

4,664,905






4,576,454






4,305,623






Total assets

$ 52,257,718






$ 52,072,326






$   50,608,283






Liabilities and Stockholders' Equity:



















Interest-bearing deposits:



















Interest-bearing checking and money



















market accounts

$ 10,263,331


$    42,465


1.64

%

$ 10,811,077


$    47,772


1.77

%

$   11,732,410


$    44,497


1.50

%

Savings accounts

4,747,843


9,326


0.78


4,729,517


8,861


0.75


4,872,126


7,325


0.60


Certificates of deposit

14,093,146


86,934


2.45


13,509,392


80,651


2.39


10,740,927


51,249


1.89


Total interest-bearing deposits

29,104,320


138,725


1.89


29,049,986


137,284


1.90


27,345,463


103,071


1.50


Borrowed funds

13,325,104


79,911


2.38


13,111,692


78,778


2.41


13,704,208


72,567


2.10


Total interest-bearing liabilities

42,429,424


218,636


2.04


42,161,678


216,062


2.06


41,049,671


175,638


1.70


Non-interest-bearing deposits

2,491,796






2,698,578






2,488,674






Other liabilities

631,688






559,955






265,573






Total liabilities

45,552,908






45,420,211






43,803,918






Stockholders' equity

6,704,810






6,652,115






6,804,365






Total liabilities and stockholders' equity

$ 52,257,718






$ 52,072,326






$   50,608,283






Net interest income/interest rate spread



$  235,915


1.78

%



$  237,690


1.76

%



$  249,506


1.97

%

Net interest margin





1.99

%





2.00

%





2.16

%

Ratio of interest-earning assets to



















interest-bearing liabilities 





1.12

x





1.13

x





1.13

x




















 

 

NEW YORK COMMUNITY BANCORP, INC.


NET INTEREST INCOME ANALYSIS


YEAR-OVER-YEAR COMPARISON


(unaudited)
















For the Nine Months Ended September 30,



2019


2018



Average
Balance


Interest


Average
Yield/Cost


Average
Balance


Interest


Average
Yield/Cost


(dollars in thousands)













Assets:













Interest-earning assets:













Mortgage and other loans, net 

$ 40,288,311


$ 1,159,344


3.84

%

$ 38,902,370


$ 1,092,637


3.75

%

Securities

6,303,147


181,162


3.83


4,463,058


127,038


3.80


Interest-earning cash and cash equivalents

789,034


13,971


2.37


1,991,558


27,126


1.82


Total interest-earning assets

47,380,492


1,354,477


3.81


45,356,986


1,246,801


3.67


Non-interest-earning assets

4,604,387






4,328,731






Total assets

$ 51,984,879






$ 49,685,717






Liabilities and Stockholders' Equity:













Interest-bearing deposits:













Interest-bearing checking and money













market accounts

$ 10,846,624


$    140,396


1.73

%

$ 12,178,512


$    119,246


1.31

%

Savings accounts

4,716,014


26,270


0.74


4,956,358


21,176


0.57


Certificates of deposit

13,306,845


235,360


2.36


9,732,912


121,298


1.67


Total interest-bearing deposits

28,869,483


402,026


1.86


26,867,782


261,720


1.30


Borrowed funds

13,308,941


237,521


2.39


13,255,400


201,322


2.03


Total interest-bearing liabilities

42,178,424


639,547


2.03


40,123,182


463,042


1.54


Non-interest-bearing deposits

2,555,984






2,522,784






Other liabilities

595,378






245,000






Total liabilities

45,329,786






42,890,966






Stockholders' equity

6,655,093






6,794,751






Total liabilities and stockholders' equity

$ 51,984,879






$ 49,685,717






Net interest income/interest rate spread



$    714,930


1.78

%



$    783,759


2.13

%

Net interest margin





2.01

%





2.30

%

Ratio of interest-earning assets to













interest-bearing liabilities 





1.12

x





1.13

x















 

 

NEW YORK COMMUNITY BANCORP, INC.


CONSOLIDATED FINANCIAL HIGHLIGHTS


(unaudited)














For the Three Months Ended


For the Nine Months Ended



Sep. 30,


June. 30,


Sep. 30,


Sep. 30,


Sep. 30,


(dollars in thousands except share and per share data)

2019


2019


2018


2019


2018


PROFITABILITY MEASURES:











Net income

$        99,046


$        97,246


$      106,772


$      293,869


$      320,678


Net income available to common shareholders

90,839


89,039


98,565


269,248


296,057


Basic earnings per common share 

0.19


0.19


0.20


0.57


0.60


Diluted earnings per common share 

0.19


0.19


0.20


0.57


0.60


Return on average assets

0.76

%

0.75

%

0.84

%

0.75

%

0.86

%

Return on average tangible assets (1)

0.80


0.78


0.89


0.79


0.90


Return on average common stockholders' equity

5.86


5.79


6.26


5.84


6.27


Return on average tangible common stockholders'











equity (1)

9.62


9.57


10.20


9.64


10.24


Efficiency ratio (2)

47.37


48.20


49.35


49.27


48.31


Operating expenses to average assets

0.94


0.95


1.06


0.99


1.10


Interest rate spread

1.78


1.76


1.97


1.78


2.13


Net interest margin

1.99


2.00


2.16


2.01


2.30


Effective tax rate

25.09


25.42


21.95


24.88


24.56


Shares used for basic common EPS computation

465,357,326


465,351,586


488,476,340


465,400,372


488,383,554


Shares used for diluted common EPS computation

465,776,000


465,641,437


488,476,340


465,638,080


488,383,554


Common shares outstanding at the respective











period-ends

467,350,860


467,358,939


490,341,864


467,350,860


490,341,864













(1)

See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 9 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.

 


Sep. 30,


Jun. 30,


Sep. 30,



2019


2019


2018


CAPITAL MEASURES:







Book value per common share

$      13.25


$      13.21


$      12.83


Tangible book value per common share (1)

8.06


8.01


7.86


Common stockholders' equity to total assets

11.79

%

11.69

%

12.28

%

Tangible common stockholders' equity to tangible assets (1)

7.51


7.44


7.90









(1)

See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 9 of this release.

 


Sep. 30,


Jun. 30,


Sep. 30,



2019


2019


2018


REGULATORY CAPITAL RATIOS: (1)







New York Community Bancorp, Inc.







Common equity tier 1 ratio

10.15

%

10.02

%

11.07

%

Tier 1 risk-based capital ratio

11.49


11.36


12.48


Total risk-based capital ratio

13.61


13.46


13.90


Leverage capital ratio

8.65


8.64


9.26


New York Community Bank







Common equity tier 1 ratio

12.76

%

12.63

%

13.06

%

Tier 1 risk-based capital ratio

12.76


12.63


13.06


Total risk-based capital ratio

13.16


13.03


13.46


Leverage capital ratio

9.60


9.60


9.61




(1)

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

 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION








Sep. 30, 2019








compared to


Sep. 30,


Jun. 30,


Sep. 30,


Jun. 30,


Sep. 30,


2019


2019


2018


2019


2018

(in thousands, except share data)

(unaudited)


(unaudited)


(unaudited)





Assets










Cash and cash equivalents

$            854,678


$         1,228,295


$1,731,754


-30%


-51%

Securities:










     Available-for-sale

5,854,568


5,738,146


4,764,283


2%


23%

     Equity investments with readily determinable fair values, at fair value

32,861


32,585


31,724


1%


4%

Total securities

5,887,429


5,770,731


4,796,007


2%


23%

Mortgage loans held for investment:










     Multi-family

30,289,364


30,486,301


29,566,170


-1%


2%

     Commercial real estate

6,988,226


6,901,345


7,036,315


1%


-1%

     One-to-four family

395,347


417,923


456,626


-5%


-13%

     Acquisition, development, and construction

297,565


266,305


433,877


12%


-31%

Total mortgage loans held for investment

37,970,502


38,071,874


37,492,988


0%


1%

Other loans:










     Commercial and industrial

2,864,944


2,796,462


2,336,183


2%


23%

     Other loans

8,774


8,365


9,100


5%


-4%

Total other loans held for investment

2,873,718


2,804,827


2,345,283


2%


23%

Total loans held for investment

40,844,220


40,876,701


39,838,271


0%


3%

Less:  Allowance for losses on loans

(149,433)


(151,112)


(159,655)


-1%


-6%

Loans held for investment, net

40,694,787


40,725,589


39,678,616


0%


3%

Total loans, net

40,694,787


40,725,589


39,678,616


0%


3%

Federal Home Loan Bank stock, at cost

606,371


582,348


654,939


4%


-7%

Premises and equipment, net

321,792


327,788


352,518


-2%


-9%

Operating lease right-of-use assets

300,955


308,412


-


-2%


NM

Goodwill

2,426,379


2,426,379


2,436,131


0%


0%

Other assets 

1,445,238


1,406,711


1,596,689


3%


-9%

Total assets

$52,537,629


$52,776,253


$51,246,654


0%


3%











Liabilities and Stockholders' Equity










Deposits:










     Interest-bearing checking and money market accounts

$        9,960,403


$       10,770,360


$11,559,687


-8%


-14%

     Savings accounts

4,817,697


4,800,023


4,826,845


0%


0%

     Certificates of deposit

14,264,171


14,286,286


11,409,974


0%


25%

     Non-interest-bearing accounts

2,529,905


2,475,857


2,522,778


2%


0%

Total deposits

31,572,176


32,332,526


30,319,284


-2%


4%

Borrowed funds:










     Wholesale borrowings

12,971,661


12,427,661


13,481,000


4%


-4%

     Junior subordinated debentures

359,773


359,683


359,422


0%


0%

    Subordinated notes

294,926


294,794


-


0%


NM

Total borrowed funds

13,626,360


13,082,138


13,840,422


4%


-2%

Operating lease liabilities

300,610


308,073


-


-2%


NM

Other liabilities

343,476


378,838


292,933


-9%


17%

Total liabilities

45,842,622


46,101,575


44,452,639


-1%


3%

Stockholders' equity:










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










      Series A (515,000 shares issued and outstanding)

502,840


502,840


502,840


0%


0%

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










490,439,070 and 490,439,070 shares issued; and 467,350,860,










467,358,939 and 490,341,864 shares outstanding, respectively)

4,904


4,904


4,904


0%


0%

     Paid-in capital in excess of par

6,107,376


6,099,474


6,091,749


0%


0%

     Retained earnings

328,407


316,921


286,763


4%


15%

     Treasury stock, at cost (23,088,210, 23,080,131, and 97,206 shares, respectively)

(220,669)


(220,546)


(1,177)


0%


NM

     Accumulated other comprehensive loss, net of tax:










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

43,804


44,561


(29,859)


-2%


-247%

       Net unrealizedloss on the non-credit portion of other-than-temporary










          impairment losses, net of tax

(6,042)


(6,042)


(6,042)


0%


0%

       Pension and post-retirement obligations, net of tax

(65,613)


(67,434)


(55,163)


-3%


19%

     Total accumulated other comprehensiveloss, net of tax

(27,851)


(28,915)


(91,064)


-4%


-69%

Total stockholders' equity

6,695,007


6,674,678


6,794,015


0%


-1%

Total liabilities and stockholders' equity

$52,537,629


$52,776,253


$51,246,654


0%


3%











 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

(unaudited)









Sep. 30, 2019



For the Three Months Ended


compared to



Sep. 30,


Jun. 30,


Sep. 30,


Jun. 30,


Sep. 30,



2019


2019


2018


2019


2018

(in thousands, except per share data)











Interest Income:











     Mortgage and other loans


$391,920


$387,634


$368,264


1%


6%

     Securities and money market investments


62,631


66,118


56,880


-5%


10%

Total interest income


454,551


453,752


425,144


0%


7%












Interest Expense:











     Interest-bearing checking and money market accounts

42,465


47,772


44,497


-11%


-5%

     Savings accounts


9,326


8,861


7,325


5%


27%

     Certificates of deposit


86,934


80,651


51,249


8%


70%

     Borrowed funds


79,911


78,778


72,567


1%


10%

Total interest expense


218,636


216,062


175,638


1%


24%

     Net interest income


235,915


237,690


249,506


-1%


-5%

Provision for losses on loans


4,781


1,844


1,201


159%


298%












     Net interest income after provision for 











       loan losses


231,134


235,846


248,305


-2%


-7%












Non-Interest Income:











     Fee income


7,580


7,487


7,237


1%


5%

     Bank-owned life insurance


6,791


6,479


7,302


5%


-7%

     Net gain (loss) on securities


275


493


(41)


-44%


-771%

     Other income


9,740


3,138


8,424


210%


16%

Total non-interest income


24,386


17,597


22,922


39%


6%












Non-Interest Expense:











     Operating expenses:











       Compensation and benefits


75,159


72,573


78,283


4%


-4%

       Occupancy and equipment


21,748


21,889


24,401


-1%


-11%

       General and administrative


26,395


28,590


31,749


-8%


-17%

Total operating expenses


123,302


123,052


134,433


0%


-8%

Total non-interest expense


123,302


123,052


134,433


0%


-8%












Income before taxes


132,218


130,391


136,794


1%


-3%

Income tax expense


33,172


33,145


30,022


0%


10%

     Net Income


$      99,046


$      97,246


$    106,772


2%


-7%

Preferred stock dividends


8,207


8,207


8,207


0%


0%

     Net Income available to common shareholders


$90,839


$89,039


$98,565


2%


-8%












     Basic earnings per common share


$0.19


$0.19


$0.20


0%


-5%

     Diluted earnings per common share


$0.19


$0.19


$0.20


0%


-5%












     Dividends per common share


$0.17


$0.17


$0.17


0%


0%












 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL 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


Sep. 30, 2019 compared to



Sep. 30,


Jun. 30,


Sep. 30,


Jun. 30,


Sep. 30,



2019


2019


2018


2019


2018


(dollars in thousands)






















Total Interest Income

$454,551


$453,752


$425,144


0%


7%













Prepayment Income:











     Loans

$12,279


$11,842


$8,288


4%


48%


     Securities

1,866


780


1,037


139%


80%


Total prepayment income

$14,145


$12,622


$9,325


12%


52%













GAAP Net Interest Margin

1.99%


2.00%


2.16%


-1

bp

-17

bp

     Less:











     Prepayment income from loans

10

bp

10

bp

7

bp

0

bp

3

bp

     Prepayment income from securities

1


1


1


0

bp

0

bp

Total prepayment income contribution 











to net interest margin

11

bp

11

bp

8

bp

0

bp

3

bp












Adjusted Net Interest Margin (non-GAAP)

1.88%


1.89%


2.08%


-1

bp

-20

bp



































For the Nine Months Ended









Sep. 30,


Sep. 30,









2019


2018


Change (%)






(dollars in thousands)






















Total Interest Income

$1,354,477


$1,246,801


9%

















Prepayment Income:











     Loans

$33,462


$35,848


-7%






     Securities

2,873


4,604


-38%






Total prepayment income

$36,335


$40,452


-10%

















GAAP Net Interest Margin

2.01%


2.30%


-29

bp




     Less:











     Prepayment income from loans

10

bp

11

bp

-1

bp




     Prepayment income from securities

-


1


-1

bp




Total prepayment income contribution











to net interest margin

10

bp

12

bp

-2

bp















Adjusted Net Interest Margin (non-GAAP)

1.91%


2.18%


-27

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)








Sep. 30, 2019


For the Three Months Ended


compared to


Sep. 30,


Jun. 30,


Sep. 30,


Jun. 30,


Sep. 30,


2019


2019


2018


2019


2018

(in thousands)










Mortgage Loans Originated for Investment:










     Multi-family

$1,180,054


$1,800,659


$1,566,861


-34%


-25%

     Commercial real estate

309,314


382,915


301,414


-19%


3%

     One-to-four family residential

20,745


1,554


5,025


1235%


313%

     Acquisition, development, and construction

36,961


9,242


15,233


300%


143%

Total mortgage loans originated for investment

1,547,074


2,194,370


1,888,533


-29%


-18%











Other Loans Originated for Investment:










     Specialty Finance

637,843


677,345


509,165


-6%


25%

     Other commercial and industrial

93,905


104,178


140,452


-10%


-33%

     Other

1,343


1,230


839


9%


60%

Total other loans originated for investment

733,091


782,753


650,456


-6%


13%

Total Loans Originated for Investment

$2,280,165


$2,977,123


$2,538,989


-23%


-10%
































For the Nine Months Ended








Sep. 30,


Sep. 30,








2019


2018


Change (%)





(in thousands)










Mortgage Loans Originated for Investment:










     Multi-family

$3,990,064


$5,343,294


-25%





     Commercial real estate

899,438


733,364


23%





     One-to-four family residential

25,508


7,724


230%





     Acquisition, development, and construction

58,227


44,358


31%





Total mortgage loans originated for investment

4,973,237


6,128,740


-19%















Other Loans Originated for Investment:










     Specialty Finance

2,000,799


1,392,944


44%





     Other commercial and industrial

303,030


377,515


-20%





     Other

3,493


3,039


15%





Total other loans originated for investment

2,307,322


1,773,498


30%





Total Loans Originated for Investment

$7,280,559


$7,902,238


-8%









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


respective dates:


















Sep. 30, 2019



At or For the Three Months Ended


compared to



Sep. 30,


Jun. 30,


Sep. 30,


Jun. 30,


Sep. 30,



2019


2019


2018


2019


2018


(dollars in thousands)











Multi-Family Loan Portfolio:











     Loans outstanding

$30,289,364


$30,486,301


$29,566,170


-1%


2%


     Percent of total held-for-investment loans

74.2%


74.6%


74.2%


(40)

bp

0

bp

     Average principal balance

$6,162


$6,192


$5,950


0%


4%


     Weighted average life (in years)

2.1


2.1


2.9


0%


-28%













Commercial Real Estate Loan Portfolio:











     Loans outstanding

$6,988,226


$6,901,345


$7,036,315


1%


-1%


     Percent of total held-for-investment loans

17.1%


16.9%


17.7%


20

bp

-60

bp

     Average principal balance

$6,399


$6,193


$5,857


3%


9%


     Weighted average life (in years)

2.4


2.4


3.0


0%


-20%


 

 

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:






















Sep. 30, 2019









compared to



Sep. 30,


Jun. 30,


Sep. 30,


Jun. 30,


Sep. 30,


(in thousands)

2019


2019


2018


2019


2018


Non-Performing Assets:











Non-accrual mortgage loans:











     Multi-family

$5,793


$3,906


$5,236


48%


11%


     Commercial real estate

5,563


2,993


4,547


86%


22%


     One-to-four family residential

2,040


1,143


1,665


78%


23%


     Acquisition, development, and construction

-


-


-


NM


NM


Total non-accrual mortgage loans

13,396


8,042


11,448


67%


17%


Other non-accrual loans (1)

42,797


43,372


42,624


-1%


0%


Total non-performing loans

56,193


51,414


54,072


9%


4%


Repossessed assets (2)

11,691


11,691


13,765


0%


-15%


Total non-performing assets

$67,884


$63,105


$67,837


8%


0%













(1) Includes $33.6 million, $32.9 million and $41.3 million of non-accrual taxi medallion-related loans at September 30, 2019, 



June 30, 2019 and September 30, 2018, respectively.











(2) Includes $9.7 million, $9.7 million and $8.6 million of repossessed taxi medallions at September 30, 2019, June 30, 2019 and September 30, 2018, 

respectively.












































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
















Sep. 30,


Jun. 30,


Sep. 30,







2019


2019


2018






Non-performing loans to total 











     loans

0.14

%

0.13

%

0.14

%





Non-performing assets 











     to total assets

0.13


0.12


0.13






Allowance for losses on loans to











     non-performing loans

265.93


293.91


295.26






Allowance for losses on loans to











     total loans

0.37


0.37


0.40

















 

 

NEW YORK COMMUNITY BANCORP, INC.




SUPPLEMENTAL FINANCIAL INFORMATION (continued)




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






















Sep. 30, 2019









compared to



Sep. 30,


Jun. 30,


Sep. 30,


Jun. 30,


Sep. 30,



2019


2019


2018


2019


2018


(in thousands)











Loans 30 to 89 Days Past Due:











     Multi-family

$               -


$        1,312


$           288


-100%


-100%


     Commercial real estate

9,750


-


567


NM


NM


     One-to-four family residential

-


1,869


1,967


NM


NM


     Acquisition, development, and construction

-


-


-


NM


NM


     Other (1)

489


1,108


831


-56%


-41%


Total loans 30 to 89 days past due

$      10,239


$        4,289


$        3,653


139%


180%













(1) Includes $483,000, $204,000 and $534,000 of taxi medallion loans at September 30, 2019, 




June 30, 2019 and September 30, 2018, respectively.





















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














For the Three Months Ended


For the Nine Months Ended



Sep. 30,


Jun. 30,


Sep. 30,


Sep. 30,


Sep. 30,



2019


2019


2018


2019


2018


(dollars in thousands)











Charge-offs:











     Multi-family

$           437


$               -


$               -


$              437


$                  34


     Commercial real estate

-


-


-


-


3,191


     One-to-four family residential

949


-


-


949


-


     Acquisition, development, and











   construction

-


-


-


-


2,220


     Other (1)

5,180


7,751


2,301


15,010


9,705


Total charge-offs

6,566


7,751


2,301


16,396


15,150













Recoveries:











     Multi-family

$               -


$               -


$               -


$                  -


$                     -


     Commercial real estate

-


-


(7)


-


(137)


     One-to-four family residential

-


-


-


-


-


     Acquisition, development, and











   construction

(21)


(15)


(6)


(43)


(105)


     Other (1)

(84)


(368)


(91)


(562)


(1,031)


Total recoveries

(105)


(383)


(104)


(605)


(1,273)













Net charge-offs 

$        6,461


$        7,368


$        2,197


$         15,791


$           13,877
























Net charge-offs to average loans (2)

0.02%


0.02%


0.01%


0.04%


0.04%













(1) Includes taxi medallion loans of $2.7 million, $2.0 million, and $2.3 million, respectively,





 for the three months ended September 30, 2019, June 30, 2019, and September 30, 2018 and




 $6.8 million and $9.7 million, respectively, for the nine months ended September 30, 2019 and 2018.




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



















 

Investor/Media Contact:

Salvatore J. DiMartino


(516) 683-4286

 

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SOURCE New York Community Bancorp, Inc.