COMPANY TARGETS PEER LEVEL PROFITABILITY BY
FOURTH QUARTER 2026 INCLUDING ROAA OF 1%, ROATCE OF 11% - 12%, AND
A CET1 CAPITAL RATIO OF 11% - 12%
SUCCESSFULLY RAISED OVER $1 BILLION IN EQUITY, BOLSTERING CAPITAL AND
LIQUIDITY POSITION
STRENGTHENED BOARD OF DIRECTORS AND EXECUTIVE
MANAGEMENT TEAM
INCREASED ALLOWANCE FOR CREDIT LOSSES ON
LOANS AND LEASES TO 1.48% COMPARED TO 1.17% LAST QUARTER
DEPOSITS REMAIN RESILIENT POST CAPITAL RAISE
ALONG WITH AMPLE LIQUIDITY
WELL CAPITALIZED WITH CET1 RATIO OF 9.45%, OR
10.14% FULLY CONVERTED
HICKSVILLE, N.Y., May 1, 2024
/PRNewswire/ -- New York Community Bancorp, Inc. (NYSE: NYCB) ("the
Company") today reported its results for the first quarter of 2024
and provided an update on its financial targets through 2026.
First Quarter 2024
Summary
|
|
Financial
Results: The Company reported a net loss of $327 million for
first quarter 2024 and a net loss available to common shareholders
of $335 million, or $0.45 per diluted share. As adjusted for
merger-related expenses and bargain purchase gain, the net loss was
$174 million and net loss available to common shareholders of $182
million, or $0.25 per diluted share.
|
Asset
Quality
|
|
Deposits
|
•
ACL on loans and leases totaled $1.2
billion, or 1.48% of LHFI
•
Office ACL coverage, excluding
owner-occupied, increased to 10.33%
•
Multi-family ACL coverage increased to
1.27%
•
Non-office CRE ACL coverage increased to
1.52%
•
Nonperforming loans were 97 basis points
of LHFI
|
•
Total deposits of $74.9 billion,
including 24% non-interest-bearing and 19% interest-bearing
DDA
•
83% of insured or collateralized deposits
($12.6 billion uninsured)
•
Available reciprocal capacity of $17.2
billion
|
Capital
|
|
Liquidity
|
•
At March 31, 2024:
–
CET1 ratio of 9.45%
–
CET1 ratio, fully converted of
10.14%
•
Tangible book value per share of $9.07 as
reported, or $6.33 fully converted
|
•
Total liquidity of $28.0
billion
•
Cash held on balance sheet of $12.9
billion
•
$4.1 billion of high quality liquid
assets ("HQLA")
•
$11.7 billion of available borrowing
capacity
|
CEO COMMENTARY
"During the first quarter, we took a number of decisive actions
designed to establish a strong foundation for future growth and
sustainable profitability," commented Joseph Otting, President and Chief Executive
Officer. "These actions included a $1.05 billion capital investment anchored by
Liberty Strategic Capital and we strengthened our senior executive
management team with the addition of four proven leaders, whose
backgrounds and expertise will be instrumental in our efforts to
improve the earnings profile of the bank and enhance long-term
shareholder value. We also completed an in-depth due
diligence of the loan portfolio, which included a thorough review
of the top 250 multi-family loans, the top 50 office loans, and the
top 50 non-office commercial real estate loans, and increased our
credit reserve during the quarter. We anticipate an elevated
level of loan loss provision over the remainder of 2024 related to
the potential for market and rate conditions to impact borrower
performance on certain portions of our loan portfolio."
Mr. Otting continued, "Since taking on the CEO role, my focus
has been on transforming New York Community Bank into a
high-performing, well-diversified regional bank. While this
year will be a transitional year for the Company, we have a clear
path to profitability over the following two years. By the
end of 2026, we target significantly higher profitability and
higher capital levels, including a return on average earnings
assets of 1%, a return on average tangible common equity of 11% to
12%, supported by a common equity tier 1 capital target in the
range of 11% to 12%."
"Finally, I would like to personally thank all of our
teammates. I know the past several months have been
tumultuous and you have endured multiple challenges along the
way. Your dedication has been nothing short of amazing.
My sincere thanks to each and every one of you."
NET INCOME (LOSS) | NET INCOME (LOSS) AVAILABLE TO COMMON
STOCKHOLDERS
The Company reported a first quarter 2024 net loss of
$327 million compared to a net loss
of $2.7 billion in the prior quarter
and net income of $2.0 billion in the
year ago quarter. Net loss available to common shareholders
in the current quarter was $335
million, or $0.45 per diluted
share, compared to $2.7 billion, or
$3.76 per diluted share, in the prior
quarter and net income of $2.0
billion, or $2.87 per diluted
share, in the year ago quarter. As adjusted for
merger-related items and a bargain purchase gain adjustment, the
net loss for the quarter ended March 31,
2024, was $174 million and net
loss available to common shareholders was $182 million, or $0.25 per diluted share.
The prior quarter net income and diluted EPS included goodwill
impairment of $2.4 billion. As adjusted for this
item and for merger-related items arising from both the Flagstar
acquisition and the Signature transaction, and the FDIC special
assessment, net loss for the quarter ended December 31, 2023, was $185 million.
Net income for the three months ended March
31, 2023 included a bargain purchase gain of $2.0 billion arising from the Signature
transaction. As adjusted for this item and for other
merger-related items arising from both the Flagstar acquisition and
the Signature transaction, net income for the quarter ended
March 31, 2023, was
$167 million.
EARNINGS SUMMARY FOR THE THREE MONTHS ENDED MARCH 31, 2024
Net Interest Income, Net Interest Margin, and Average Balance
Sheet
Net Interest Income
and Net Interest Margin Summary
|
|
|
|
|
|
|
March 31,
2024
|
|
For the Three Months
Ended
|
|
compared to
(%):
|
(dollars in
millions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Net interest
income
|
$
624
|
|
$
740
|
|
$
555
|
|
-16 %
|
|
12 %
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
compared to
(bp):
|
Yield/Cost
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Mortgage and other
loans, net
|
5.68 %
|
|
5.72 %
|
|
4.92 %
|
|
-4
|
|
76
|
Securities
|
4.30 %
|
|
4.39 %
|
|
3.86 %
|
|
-9
|
|
44
|
Interest-earning cash
and cash equivalents
|
5.52 %
|
|
5.28 %
|
|
4.96 %
|
|
24
|
|
56
|
Total
interest-earning assets
|
5.51 %
|
|
5.55 %
|
|
4.80 %
|
|
-4
|
|
71
|
Total interest-bearing
deposits
|
3.85 %
|
|
3.62 %
|
|
2.40 %
|
|
23
|
|
145
|
Borrowed
funds
|
4.99 %
|
|
4.14 %
|
|
3.56 %
|
|
85
|
|
143
|
Total
interest-bearing liabilities
|
4.19 %
|
|
3.73 %
|
|
2.77 %
|
|
46
|
|
142
|
Net interest
margin
|
2.28 %
|
|
2.82 %
|
|
2.60 %
|
|
-54
|
|
-32
|
Net Interest Income
Net interest income totaled $624 million in first quarter
2024, down $116 million, or 16%, compared to fourth quarter
2023, and an increase of $69 million,
or 12%, compared to the first quarter of 2023. The decrease
from the fourth quarter 2023 is primarily driven by a 54 basis
points reduction in the net interest margin and higher average
interest-bearing liabilities, partially offset by higher average
cash balances. The increase from the first quarter of 2023
was primarily driven by higher average loans, along with higher
average cash balances reflecting actions to proactively manage
liquidity needs. These increases were partially offset by a
32 basis points reduction in the net interest margin and higher
average interest-bearing liabilities.
Net Interest Margin
The net interest margin for the first quarter 2024 was 2.28%,
down 54 basis points compared to fourth quarter 2023 and down 32
basis points compared to first quarter 2023. The 54 basis
points reduction compared to fourth quarter 2023 was primarily
driven by a higher cost of funds with the average rate on borrowing
costs increasing 85 basis points and the impact from a deposit mix
shift from lower cost interest-bearing checking and MMA to higher
cost certificates of deposits. The 32 basis points reduction
compared to first quarter 2023 was primarily due to the impact from
higher interest rates on the cost of funds with average cost of
borrowed funds increasing 143 basis points and average cost of
interest-bearing deposits increasing 145 basis points, partially
offset by higher earning asset yields which increased 71 basis
points.
Average Balance Sheet
|
|
|
|
|
|
|
March 31,
2024
|
|
For the Three Months
Ended
|
|
compared
to:
|
(dollars in
billions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Mortgage and other
loans, net
|
$84
|
|
$86
|
|
$71
|
|
-2 %
|
|
19 %
|
Securities
|
12
|
|
11
|
|
11
|
|
1 %
|
|
7 %
|
Interest-earning cash
and cash equivalents
|
14
|
|
7
|
|
4
|
|
112 %
|
|
237 %
|
Other interest-earning
assets
|
0
|
|
0
|
|
1
|
|
NM
|
|
NM
|
Total
interest-earning assets
|
110
|
|
104
|
|
87
|
|
6 %
|
|
27 %
|
Total interest-bearing
deposits
|
60
|
|
60
|
|
48
|
|
— %
|
|
24 %
|
Borrowed
funds
|
26
|
|
16
|
|
22
|
|
64 %
|
|
15 %
|
Total
interest-bearing liabilities
|
85
|
|
75
|
|
70
|
|
13 %
|
|
21 %
|
Non-interest-bearing
deposits
|
$19
|
|
$23
|
|
$13
|
|
-15 %
|
|
47 %
|
Average loan balances decreased $1.5
billion, or 2%, to $84.1
billion compared to the previous quarter primarily driven by
lower consumer loans due to the sale of the RV/marine portfolio, as
well as, lower multi-family, and warehouse loan balances. Average
cash balances increased to $14.3
billion during the quarter, up $7.6
billion, reflecting actions to proactively manage liquidity
needs and average securities were relatively flat. The
year-over-year increases are primarily driven by the Signature
transaction.
Average interest-bearing liabilities increased $10.0 billion, or 13% to $85.3 billion on a quarter-over-quarter basis
primarily driven by higher average borrowed funds which increased
$10.0 billion to $25.7 billion, while average interest-bearing
deposits were flat at $59.5
billion.
Provision for Credit Losses
For the three months ended March 31,
2024, the provision for credit losses totaled $315 million compared to a $552 million provision for the three months ended
December 31, 2023, and a $170 million provision for the three months ended
March 31, 2023 which included a
$132 million initial provision for
credit losses for the acquired Signature loan portfolio. The
increase reflects changes in market conditions and interest rates
that are expected to affect portions of our portfolios that are
subject to current market stresses.
Net charge-offs totaled $81
million for the three months ended March 31, 2024, compared with $185 million for the three months ended
December 31, 2023. Net
charge-offs on a non-annualized basis represented 0.10% and 0.22%
of average loans outstanding for the three months ended
March 31, 2024, and for the three
months ended December 31, 2023,
respectively. First quarter net charge-offs were $104 million lower compared to the prior quarter
despite commercial real estate net charge-offs increasing
$22 million.
Pre-Provision Net Revenue
The tables below detail the Company's PPNR and related measures,
which are non-GAAP measures, for the periods noted:
|
|
|
|
|
|
|
March 31,
2024
|
|
For the Three Months
Ended
|
|
compared
to:
|
(dollars in
millions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Net interest
income
|
$
624
|
|
$
740
|
|
$
555
|
|
-16 %
|
|
12 %
|
Non-interest
income
|
9
|
|
127
|
|
2,098
|
|
-93 %
|
|
NM
|
Total
revenues
|
$
633
|
|
$
867
|
|
$
2,653
|
|
-27 %
|
|
-76 %
|
Total non-interest
expense
|
699
|
|
3,132
|
|
476
|
|
-78 %
|
|
47 %
|
Pre - provision net
revenue (non-GAAP)
|
$
(66)
|
|
$
(2,265)
|
|
$
2,177
|
|
NM
|
|
NM
|
Bargain purchase
gain
|
121
|
|
11
|
|
(2,001)
|
|
NM
|
|
NM
|
Provision for bond
related credit losses
|
—
|
|
—
|
|
20
|
|
NM
|
|
NM
|
Merger-related and
restructuring expenses
|
43
|
|
63
|
|
67
|
|
-32 %
|
|
-36 %
|
Goodwill
impairment
|
—
|
|
2,426
|
|
—
|
|
NM
|
|
NM
|
FDIC special
assessment
|
—
|
|
49
|
|
—
|
|
NM
|
|
NM
|
Pre - provision net
revenue excluding merger-related and restructuring expenses and
bargain purchase gain, as adjusted (non-GAAP)
|
$
98
|
|
$
284
|
|
$
263
|
|
-66 %
|
|
-63 %
|
For the three months ended March 31,
2024, pre-provision net loss totaled $66 million compared to a pre-provision net loss
of $2.3 billion for the three months
ended December 31, 2023.
Excluding the impact of merger-related and restructuring expenses,
FDIC special assessment, bargain purchase gain and goodwill
impairment, PPNR for the three months ended March 31, 2024, was $98
million, down $186 million, or
66%, compared to $284 million for the
three months ended December 31,
2023.
Non-Interest Income
|
|
|
|
|
|
|
March 31,
2024
|
|
For the Three Months
Ended
|
|
compared
to:
|
(dollars in
millions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Fee income
|
$34
|
|
$39
|
|
$27
|
|
-13 %
|
|
26 %
|
Bank-owned life
insurance
|
10
|
|
11
|
|
10
|
|
-9 %
|
|
— %
|
Net return on mortgage
servicing rights
|
21
|
|
33
|
|
22
|
|
-36 %
|
|
-5 %
|
Net gain on loan sales
and securitizations
|
20
|
|
16
|
|
20
|
|
25 %
|
|
— %
|
Net loan administration
income
|
16
|
|
17
|
|
7
|
|
-6 %
|
|
129 %
|
Bargain purchase
gain
|
(121)
|
|
(11)
|
|
2,001
|
|
NM
|
|
NM
|
Other income
|
29
|
|
22
|
|
11
|
|
32 %
|
|
164 %
|
Total non-interest
income
|
$9
|
|
$127
|
|
$2,098
|
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
Impact of Notable
Item:
|
|
|
|
|
|
|
|
|
|
Bargain purchase
gain
|
(121)
|
|
(11)
|
|
2,001
|
|
NM
|
|
NM
|
Adjusted noninterest
income (non-GAAP)
|
$130
|
|
$138
|
|
$97
|
|
-6 %
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
Net mortgage gain on
sale margin
|
0.48 %
|
|
0.32 %
|
|
0.76 %
|
|
16
|
|
-28
|
Loans subserviced
for others (accounts)
|
987,228
|
|
1,044,009
|
|
1,094,869
|
|
-5 %
|
|
-10 %
|
For the three months ended March 31,
2024, non-interest income totaled $9 million compared
to $127 million for the fourth quarter 2023 and $2.1 billion for the first quarter 2023.
Excluding the bargain purchase gain adjustment of $121 million in the first quarter 2024,
$11 million in the fourth quarter
2023 and $2.0 billion in the first
quarter 2023 related to the Signature transaction, non-interest
income decreased $8 million compared to fourth quarter 2023
and increased $33 million compared to first quarter 2023.
The $8 million decrease compared to the fourth quarter 2023
was primarily driven by a lower net return on MSR and lower fee
income from commercial and retail banking fees, partially offset by
higher other income. Net gain on loan sales increased to
$14 million from $11 million in the prior quarter. The
current quarter included a net gain of $6
million related to the sale of a loan we moved to
held-for-sale in the prior quarter and the sale of the RV/Marine
portfolio, both of which closed during the current quarter.
The $33 million increase compared to the first quarter 2023
was primarily driven by $18 million
higher other income, $9 million
higher net loan administration income, and $7 million higher fee income. Net mortgage
gain on sale margin decreased 28 basis points to 48 basis points
compared to 76 basis points in the first quarter 2023.
Non-Interest Expense
|
|
|
|
|
|
|
March 31,
2024
|
|
For the Three Months
Ended
|
|
compared
to:
|
(dollars in
millions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
$333
|
|
$295
|
|
$219
|
|
13 %
|
|
52 %
|
Other
|
288
|
|
312
|
|
173
|
|
-8 %
|
|
66 %
|
Total operating
expenses
|
621
|
|
607
|
|
392
|
|
2 %
|
|
58 %
|
Intangible asset
amortization
|
35
|
|
36
|
|
17
|
|
-3 %
|
|
106 %
|
Merger-related and
restructuring expenses
|
43
|
|
63
|
|
67
|
|
-32 %
|
|
-36 %
|
Goodwill
impairment
|
—
|
|
2,426
|
|
—
|
|
NM
|
|
NM
|
Total non-interest
expense
|
$699
|
|
$3,132
|
|
$476
|
|
-78 %
|
|
47 %
|
For the three months ended March 31, 2024, non-interest
expense totaled $699 million, down $2.4 billion on a linked-quarter basis and
up $223 million compared to the first
quarter 2023. Excluding merger-related and restructuring
expenses, intangible amortization expense, total operating expenses
were $621 million for first quarter
2024.
Excluding merger-related and restructuring expenses, intangible
amortization expense, goodwill impairment and the FDIC insurance
special assessment of $49 million,
total operating expenses were $558
million for the fourth quarter 2023. The
linked-quarter increase was primarily driven by higher compensation
and benefits expenses attributable to seasonal factors such as
payroll tax and 401(k) match resets, merit increases, and higher
incentive compensation.
Excluding merger-related and restructuring expenses, intangible
amortization expense, adjusted noninterest expense was $392 million for first quarter 2023. The
year-over-year increase was largely attributable to the impact from
the Signature transaction, which closed in late March of 2023.
Income Taxes
For the three months ended March 31,
2024, the Company reported a benefit for income taxes of
$54 million compared to a benefit for income taxes of
$112 million for the three months ended December 31, 2023. The decrease was driven
by the loss recognized in the current quarter. The effective tax
rate for the three months ended March 31,
2024, was 14.32% compared to 3.96% for the three months
ended December 31, 2023.
ASSET QUALITY
|
|
|
|
|
|
|
March 31,
2024
|
|
For the Three Months
Ended
|
|
compared
to:
|
(dollars in
millions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Total non-performing
loans ("NPLs")
|
$798
|
|
$428
|
|
$161
|
|
86 %
|
|
395 %
|
Total non-performing
assets ("NPAs")
|
$811
|
|
$442
|
|
$174
|
|
83 %
|
|
365 %
|
NPLs to total loans
held for investment
|
0.97 %
|
|
0.51 %
|
|
0.20 %
|
|
46
|
|
77
|
NPAs to total
assets
|
0.72 %
|
|
0.39 %
|
|
0.14 %
|
|
33
|
|
58
|
Net charge-offs
(recoveries)
|
$81
|
|
$185
|
|
$0
|
|
-56 %
|
|
NM
|
Net charge-offs
(recoveries) to average loans (1)
|
0.10 %
|
|
0.22 %
|
|
— %
|
|
-12
|
|
10
|
Allowance for credit
losses on loans and leases
|
$1,215
|
|
$992
|
|
$550
|
|
22 %
|
|
121 %
|
ACL % of total loans
held for investment
|
1.48 %
|
|
1.17 %
|
|
0.67 %
|
|
30
|
|
81
|
ACL % of
NPLs
|
152 %
|
|
232 %
|
|
341 %
|
|
|
|
|
(1)
Three months ended presented on a
non-annualized basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Assets
Total NPLs increased $370 million
to $798 million at March 31, 2024, compared to December 31, 2023 and equaled 97 basis points of
total loans held-for-investment compared to 51 basis points at
December 31, 2023. The increase
in NPLs compared to the prior quarter was primarily attributable to
an increase in non-performing multi-family and commercial real
estate loans. Total NPAs increased $369 million to
$811 million at March 31, 2024, compared to
December 31, 2023, and equaled 72 basis points of total assets
compared to 39 basis points at December 31, 2023.
Allowance for Credit Losses on Loans and
Leases
At March 31, 2024, the allowance for credit losses on loans
and leases was $1.2 billion
compared to $992 million at December 31, 2023, up
$223 million reflecting changes in market conditions,
including interest rates over the quarter. The in-depth due
diligence review we performed of the multi-family and commercial
real estate portfolios confirmed our expectations of the potential
credit losses that might occur in the portfolio. The
allowance for credit losses on loans and leases to total loans held
for investment ratio increased to 1.48% at March 31, 2024,
compared to 1.17% at December 31, 2023. Excluding loans
with government guarantees and warehouse loans, the allowance for
credit losses was 1.58% at March 31, 2024, compared to 1.26%
at December 31, 2023.
CAPITAL POSITION
The Company's 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, 2024
|
|
December 31, 2023
|
REGULATORY CAPITAL RATIOS:
(1)
|
|
|
|
New York Community Bancorp,
Inc.
|
|
|
|
Common equity tier 1
ratio
|
9.45 %
|
|
9.05 %
|
Tier 1 risk-based
capital ratio
|
10.73 %
|
|
9.62 %
|
Total risk-based
capital ratio
|
13.09 %
|
|
11.77 %
|
Leverage capital
ratio
|
7.90 %
|
|
7.75 %
|
|
|
|
|
Flagstar Bank, N.A.
|
|
|
|
Common equity tier 1
ratio
|
11.08 %
|
|
10.52 %
|
Tier 1 risk-based
capital ratio
|
11.08 %
|
|
10.52 %
|
Total risk-based
capital ratio
|
12.33 %
|
|
11.61 %
|
Leverage capital
ratio
|
8.16 %
|
|
8.48 %
|
|
|
(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%.
|
About New York Community Bancorp, Inc.
New York Community Bancorp, Inc. is the parent company of
Flagstar Bank, N.A., one of the largest regional banks in the
country. The Company is headquartered in Hicksville, New York. At March 31, 2024, the Company had $112.9 billion of assets, $83.3 billion of loans, deposits of $74.9 billion, and total stockholders' equity of
$8.4 billion.
Flagstar Bank, N.A. operates 419 branches, including strong
footholds in the Northeast and Midwest and exposure to high growth
markets in the Southeast and West Coast. Flagstar Mortgage operates
nationally through a wholesale network of approximately 3,000
third-party mortgage originators. In addition, the Bank has
approximately 100 private banking teams located in over 10 cities
in the metropolitan New York City
region and on the West Coast, which serve the needs of high-net
worth individuals and their businesses.
New York Community Bancorp, Inc. has market-leading positions in
several national businesses, including multi-family lending,
mortgage origination and servicing, and warehouse lending. Flagstar
Mortgage is the 7th largest bank originator of residential
mortgages for the 12-months ending March 31, 2024, while we
are the industry's 5th largest sub-servicer of mortgage loans
nationwide, servicing 1.4 million accounts with
$367 billion in unpaid principal balances. Additionally, the
Company is the 2nd largest mortgage warehouse lender nationally
based on total commitments.
Post-Earnings Release Conference Call
The Company will host a conference call on Wednesday,
May 1, 2024, at 8:00 a.m. (Eastern
Time) to discuss its first quarter 2024 performance. The
conference call may be accessed by dialing (888) 440-5675 (for
domestic calls) or (646) 960-0268 (for international calls) and
providing the following conference ID: 8007549. The live
webcast will be available at ir.myNYCB.com under Events.
A replay will be available approximately two hours following
completion of the call through 11:59
p.m. on May 5, 2024 and may be
accessed by calling (800) 770-2030 (domestic) or (609) 800-9909
(international) and providing the following conference ID: 8007549.
In addition, the conference call webcast at ir.myNYCB.com will be
archived through 5:00 p.m. on
May 29, 2024.
Investor Contact: Salvatore J. DiMartino
(516) 683-4286
Media Contact: Steven Bodakowski (248)
312-5872
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,
beliefs, intentions, and expectations regarding (a) revenues,
earnings, loan production, asset quality, liquidity position,
capital levels, risk analysis, divestitures, acquisitions, and
other material transactions, among other matters; (b) the future
costs and benefits of the actions we may take; (c) our assessments
of credit risk and probable losses on loans and associated
allowances and reserves; (d) our assessments of interest rate and
other market risks; (e) our ability to execute on our strategic
plan, including the sufficiency of our internal resources,
procedures and systems; (f) our ability to attract and retain key
personnel; and (g) our ability to achieve our financial and other
strategic goals, including those related to our merger with
Flagstar Bancorp, Inc., which was completed on December 1, 2022,
our acquisition of substantial portions of the former Signature
Bank through an FDIC-assisted transaction, and our ability to fully
and timely implement the risk management programs institutions
greater than $100 billion in assets must maintain.
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, among others, the
following principal risks and uncertainties: general economic
conditions and trends, either nationally or locally; conditions in
the securities, credit and financial 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, including associated allowances and
reserves; changes in future allowance for credit losses
requirements under relevant accounting and regulatory requirements;
the ability to pay future dividends; changes in our capital
management and balance sheet strategies and our ability to
successfully implement such strategies; changes in our strategic
plan, including changes in our internal resources, procedures and
systems, and our ability to successfully implement such plan;
changes in competitive pressures among financial institutions or
from non‐financial institutions; changes in legislation,
regulations, and policies; the success of our blockchain and
fintech activities, investments and strategic partnerships; the
restructuring of our mortgage business; the impact of failures or
disruptions in or breaches of the Company's operational or security
systems, data or infrastructure, or those of third parties,
including as a result of cyberattacks or campaigns; the impact of
natural disasters, extreme weather events, military conflict
(including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible
expansion of such conflicts and potential geopolitical
consequences), terrorism or other geopolitical events; and a
variety of other matters which, by their nature, are subject to
significant uncertainties and/or are beyond our control. Our
forward-looking statements are also subject to the following
principal risks and uncertainties with respect to our merger with
Flagstar Bancorp, which was completed on December 1, 2022, and our acquisition of
substantial portions of the former Signature Bank through an
FDIC-assisted transaction: the possibility that the anticipated
benefits of the transactions will not be realized when expected or
at all; the possibility of increased legal and compliance costs,
including with respect to any litigation or regulatory actions
related to the business practices of acquired companies or the
combined business; diversion of management's attention from ongoing
business operations and opportunities; the possibility that the
Company may be unable to achieve expected synergies and operating
efficiencies in or as a result of the transactions within the
expected timeframes or at all; and revenues following the
transactions may be lower than expected. Additionally, there can be
no assurance that the Community Benefits Agreement entered into
with NCRC, which was contingent upon the closing of the Company's
merger with Flagstar Bancorp, Inc., will achieve the results or
outcome originally expected or anticipated by us as a result of
changes to our business strategy, performance of the U.S. economy,
or changes to the laws and regulations affecting us, our customers,
communities we serve, and the U.S. economy (including, but not
limited to, tax laws and regulations).
More information regarding some of these factors is provided in
the Risk Factors section of our Annual Report on Form 10‐K for the
year ended December 31, 2023,
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30,
2023, and September 30, 2023
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
|
|
|
|
|
|
|
|
|
March 31,
2024
|
|
|
|
|
|
|
|
compared
to
|
(dollars in
millions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
12,890
|
|
$
11,475
|
|
$
22,250
|
|
12 %
|
|
-42 %
|
Securities:
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
9,336
|
|
9,145
|
|
7,599
|
|
2 %
|
|
23 %
|
Equity investments with
readily determinable fair values, at fair value
|
14
|
|
14
|
|
14
|
|
— %
|
|
— %
|
Total securities net of
allowance for credit losses
|
9,350
|
|
9,159
|
|
7,613
|
|
2 %
|
|
23 %
|
Loans held for
sale
|
981
|
|
1,182
|
|
1,305
|
|
-17 %
|
|
-25 %
|
Loans and leases held
for investment:
|
|
|
|
|
|
|
|
|
|
Multi-family
|
36,859
|
|
37,265
|
|
38,004
|
|
-1 %
|
|
-3 %
|
Commercial real estate
and acquisition, development, and construction
|
13,530
|
|
13,382
|
|
12,667
|
|
1 %
|
|
7 %
|
One-to-four family
first mortgage
|
5,807
|
|
6,061
|
|
5,934
|
|
-4 %
|
|
-2 %
|
Commercial and
industrial
|
24,418
|
|
25,254
|
|
23,357
|
|
-3 %
|
|
5 %
|
Other loans
|
1,713
|
|
2,657
|
|
2,585
|
|
-36 %
|
|
-34 %
|
Total loans and leases
held for investment
|
82,327
|
|
84,619
|
|
82,547
|
|
-3 %
|
|
— %
|
Less: Allowance for
credit losses on loans and leases
|
(1,215)
|
|
(992)
|
|
(550)
|
|
22 %
|
|
121 %
|
Total loans and leases
held for investment, net
|
81,112
|
|
83,627
|
|
81,997
|
|
-3 %
|
|
-1 %
|
Federal Home Loan Bank
stock and Federal Reserve Bank stock, at cost
|
1,550
|
|
1,392
|
|
1,356
|
|
11 %
|
|
14 %
|
Premises and equipment,
net
|
679
|
|
652
|
|
628
|
|
4 %
|
|
8 %
|
Core deposit and other
intangibles
|
590
|
|
625
|
|
734
|
|
-6 %
|
|
-20 %
|
Goodwill
|
—
|
|
—
|
|
2,426
|
|
NM
|
|
NM
|
Mortgage servicing
rights
|
1,092
|
|
1,111
|
|
1,034
|
|
-2 %
|
|
6 %
|
Bank-owned life
insurance
|
1,586
|
|
1,580
|
|
1,564
|
|
— %
|
|
1 %
|
Other assets
|
3,070
|
|
3,254
|
|
2,799
|
|
-6 %
|
|
10 %
|
Total
assets
|
$
112,900
|
|
$
114,057
|
|
$
123,706
|
|
-1 %
|
|
-9 %
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
checking and money market accounts
|
$
22,172
|
|
$
30,700
|
|
$
32,146
|
|
-28 %
|
|
-31 %
|
Savings
accounts
|
8,171
|
|
8,773
|
|
10,302
|
|
-7 %
|
|
-21 %
|
Certificates of
deposit
|
26,763
|
|
21,554
|
|
19,355
|
|
24 %
|
|
38 %
|
Non-interest-bearing
accounts
|
17,752
|
|
20,499
|
|
22,997
|
|
-13 %
|
|
-23 %
|
Total
deposits
|
74,858
|
|
81,526
|
|
84,800
|
|
-8 %
|
|
-12 %
|
Borrowed
funds:
|
|
|
|
|
|
|
|
|
|
Wholesale
borrowings
|
25,708
|
|
20,250
|
|
20,350
|
|
27 %
|
|
26 %
|
Junior subordinated
debentures
|
580
|
|
579
|
|
576
|
|
— %
|
|
1 %
|
Subordinated
notes
|
439
|
|
438
|
|
434
|
|
— %
|
|
1 %
|
Total borrowed
funds
|
26,727
|
|
21,267
|
|
21,360
|
|
26 %
|
|
25 %
|
Other
liabilities
|
2,330
|
|
2,897
|
|
6,764
|
|
-20 %
|
|
-66 %
|
Total
liabilities
|
103,915
|
|
105,690
|
|
112,924
|
|
-2 %
|
|
-8 %
|
Mezzanine
equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock -
Series B and C
|
595
|
|
—
|
|
—
|
|
NM
|
|
NM
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock -
Series A
|
503
|
|
503
|
|
503
|
|
— %
|
|
— %
|
Common stock
|
8
|
|
7
|
|
7
|
|
14 %
|
|
14 %
|
Paid-in capital in
excess of par
|
8,648
|
|
8,231
|
|
8,197
|
|
5 %
|
|
6 %
|
Retained
earnings
|
73
|
|
443
|
|
2,923
|
|
-84 %
|
|
-98 %
|
Treasury stock, at
cost
|
(225)
|
|
(218)
|
|
(219)
|
|
3 %
|
|
3 %
|
Accumulated other
comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
Net unrealized loss on
securities available for sale, net of tax
|
(651)
|
|
(581)
|
|
(566)
|
|
12 %
|
|
15 %
|
Pension and
post-retirement obligations, net of tax
|
(27)
|
|
(28)
|
|
(44)
|
|
-4 %
|
|
-39 %
|
Net unrealized gain
(loss) on cash flow hedges, net of tax
|
61
|
|
10
|
|
(19)
|
|
510 %
|
|
-421 %
|
Total accumulated other
comprehensive loss, net of tax
|
(617)
|
|
(599)
|
|
(629)
|
|
3 %
|
|
-2 %
|
Total stockholders'
equity
|
8,390
|
|
8,367
|
|
10,782
|
|
— %
|
|
-22 %
|
Total liabilities,
Mezzanine and Stockholders' Equity
|
$
112,900
|
|
$
114,057
|
|
$
123,706
|
|
-1 %
|
|
-9 %
|
NEW YORK COMMUNITY
BANCORP, INC.
CONSOLIDATED
STATEMENTS OF (LOSS) INCOME
|
|
|
|
|
|
|
|
|
March 31,
2024
|
|
For the Three Months
Ended
|
|
compared
to
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
(dollars in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
Interest
Income:
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$
1,193
|
|
$
1,230
|
|
$
867
|
|
-3 %
|
|
38 %
|
Securities and money
market investments
|
320
|
|
217
|
|
167
|
|
47 %
|
|
92 %
|
Total interest
income
|
1,513
|
|
1,447
|
|
1,034
|
|
5 %
|
|
46 %
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
|
Interest-bearing
checking and money market accounts
|
232
|
|
286
|
|
157
|
|
-19 %
|
|
48 %
|
Savings
accounts
|
47
|
|
47
|
|
39
|
|
— %
|
|
21 %
|
Certificates of
deposit
|
291
|
|
210
|
|
87
|
|
39 %
|
|
234 %
|
Borrowed
funds
|
319
|
|
164
|
|
196
|
|
95 %
|
|
63 %
|
Total interest
expense
|
889
|
|
707
|
|
479
|
|
26 %
|
|
86 %
|
Net interest
income
|
624
|
|
740
|
|
555
|
|
-16 %
|
|
12 %
|
Provision for credit
losses
|
315
|
|
552
|
|
170
|
|
-43 %
|
|
85 %
|
Net interest income
after provision for credit losses
|
309
|
|
188
|
|
385
|
|
64 %
|
|
-20 %
|
|
|
|
|
|
|
|
|
|
|
Non-Interest
Income:
|
|
|
|
|
|
|
|
|
|
Fee income
|
34
|
|
39
|
|
27
|
|
-13 %
|
|
26 %
|
Bank-owned life
insurance
|
10
|
|
11
|
|
10
|
|
-9 %
|
|
— %
|
Net losses on
securities
|
—
|
|
—
|
|
—
|
|
NM
|
|
NM
|
Net return on mortgage
servicing rights
|
21
|
|
33
|
|
22
|
|
-36 %
|
|
-5 %
|
Net gain on loan sales
and securitizations
|
20
|
|
16
|
|
20
|
|
25 %
|
|
— %
|
Net loan administration
income
|
16
|
|
17
|
|
7
|
|
-6 %
|
|
129 %
|
Bargain purchase
gain
|
(121)
|
|
(11)
|
|
2,001
|
|
NM
|
|
NM
|
Other income
|
29
|
|
22
|
|
11
|
|
32 %
|
|
164 %
|
Total non-interest
income
|
9
|
|
127
|
|
2,098
|
|
-93 %
|
|
-100 %
|
|
|
|
|
|
|
|
|
|
|
Non-Interest
Expense:
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
333
|
|
295
|
|
219
|
|
13 %
|
|
52 %
|
Other
|
288
|
|
312
|
|
173
|
|
-8 %
|
|
66 %
|
Total operating
expenses
|
621
|
|
607
|
|
392
|
|
2 %
|
|
58 %
|
Intangible asset
amortization
|
35
|
|
36
|
|
17
|
|
-3 %
|
|
106 %
|
Merger-related and
restructuring expenses
|
43
|
|
63
|
|
67
|
|
-32 %
|
|
-36 %
|
Goodwill
impairment
|
—
|
|
2,426
|
|
—
|
|
|
|
|
Total non-interest
expense
|
699
|
|
3,132
|
|
476
|
|
-78 %
|
|
47 %
|
(Loss) income before
income taxes
|
(381)
|
|
(2,817)
|
|
2,007
|
|
-86 %
|
|
-119 %
|
Income tax (benefit)
expense
|
(54)
|
|
(112)
|
|
1
|
|
-52 %
|
|
NM
|
Net (loss)
income
|
(327)
|
|
(2,705)
|
|
2,006
|
|
-88 %
|
|
-116 %
|
Preferred stock
dividends
|
8
|
|
8
|
|
8
|
|
— %
|
|
— %
|
Net (loss) income
available to common stockholders
|
$
(335)
|
|
$
(2,713)
|
|
$
1,998
|
|
-88 %
|
|
-117 %
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)
earnings per common share
|
$
(0.45)
|
|
$
(3.76)
|
|
$
2.88
|
|
NM
|
|
NM
|
Diluted (loss)
earnings per common share
|
$
(0.45)
|
|
$
(3.76)
|
|
$
2.87
|
|
NM
|
|
NM
|
Dividends per common
share
|
$
0.05
|
|
$
0.17
|
|
$
0.17
|
|
-71 %
|
|
-71 %
|
NEW YORK
COMMUNITY BANCORP, INC.
RECONCILIATIONS OF CERTAIN
GAAP AND NON-GAAP FINANCIAL MEASURES
(dollars in
millions)
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:
- 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.
- 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.
- 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
|
|
|
|
|
|
Three Months Ended,
|
|
|
|
|
(dollars in millions)
|
March 31, 2024
|
|
December 31,
2023
|
|
March 31, 2023
|
|
|
|
|
Total Stockholders' Equity
|
$
8,390
|
|
$
8,367
|
|
$
10,782
|
|
|
|
|
Less: Goodwill and
other intangible assets
|
(590)
|
|
(625)
|
|
(3,160)
|
|
|
|
|
Less: Preferred
stock
|
(503)
|
|
(503)
|
|
(503)
|
|
|
|
|
Tangible common stockholders'
equity
|
$
7,297
|
|
$
7,239
|
|
$
7,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
112,900
|
|
$
114,057
|
|
$
123,706
|
|
|
|
|
Less: Goodwill and
other intangible assets
|
(590)
|
|
(625)
|
|
(3,160)
|
|
|
|
|
Tangible Assets
|
$
112,310
|
|
$
113,432
|
|
$
120,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common stockholders'
equity
|
$
7,900
|
|
$
10,533
|
|
$
8,670
|
|
|
|
|
Less: Average goodwill
and other intangible assets
|
(613)
|
|
(3,048)
|
|
(2,698)
|
|
|
|
|
Average tangible common stockholders'
equity
|
$
7,287
|
|
$
7,485
|
|
$
5,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets
|
$
115,726
|
|
$
111,683
|
|
$
94,530
|
|
|
|
|
Less: Average goodwill
and other intangible assets
|
(613)
|
|
(3,048)
|
|
(2,698)
|
|
|
|
|
Average tangible assets
|
$
115,113
|
|
$
108,635
|
|
$
91,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP MEASURES:
|
|
|
|
|
|
|
|
|
|
(Loss) return on
average assets (1)
|
(1.13) %
|
|
(9.69) %
|
|
8.49 %
|
|
|
|
|
(Loss) return on
average common stockholders' equity (2)
|
(16.97)
|
|
(103.01)
|
|
92.18
|
|
|
|
|
Book value per common
share
|
$
9.81
|
|
$
10.88
|
|
$
14.23
|
|
|
|
|
Common stockholders'
equity to total assets
|
6.99 %
|
|
6.90 %
|
|
8.31 %
|
|
|
|
|
NON-GAAP MEASURES:
|
|
|
|
|
|
|
|
|
|
(Loss) return on
average tangible assets (1)
|
(0.61) %
|
|
(0.68) %
|
|
0.73 %
|
|
|
|
|
(Loss) return on
average tangible common stockholders' equity
(2)
|
(10.02) %
|
|
(10.27)
|
|
10.63
|
|
|
|
|
Tangible book value per
common share
|
$
9.07
|
|
$
10.03
|
|
$
9.86
|
|
|
|
|
Tangible common
stockholders' equity to tangible assets
|
6.50 %
|
|
6.38 %
|
|
5.91 %
|
|
|
|
|
|
|
(1)
|
To calculate return on
average assets for a period, we divide net income, or non-GAAP 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 stockholders, or non-GAAP net income
available to common stockholders, 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 stockholders
generated during that period by average tangible common
stockholders' equity recorded during that period.
|
While diluted earnings per common share, net income, net income
available to common stockholders, and total non-interest income are
financial measures that are recorded in accordance with GAAP,
financial measures that adjust these GAAP measures to exclude
expenses and the bargain purchase gains related to our merger with
Flagstar and the Signature transaction, and initial provision for
credit losses are not. Nevertheless, it is management's belief that
these non-GAAP measures should be disclosed in our earnings release
and other investor communications because they are not considered
part of recurring operations and are included because the Company
believes they may provide useful supplemental information for
evaluating the underlying performance trends of the Company.
|
For the Three Months
Ended
|
(dollars in
millions, except per share data)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
Net (loss) income -
GAAP
|
$
(327)
|
|
$
(2,704)
|
|
$
2,006
|
Merger-related and
restructuring expenses, net of tax (1)
|
32
|
|
46
|
|
50
|
Goodwill
impairment
|
—
|
|
2,426
|
|
—
|
FDIC special
assessment, net of tax
|
—
|
|
36
|
|
—
|
Bargain purchase
gain
|
121
|
|
11
|
|
(2,001)
|
Initial provision for
credit losses, net of tax
|
—
|
|
—
|
|
97
|
Provision for bond
related credit losses, net of tax
|
—
|
|
—
|
|
15
|
Net (loss) income, as
adjusted - non-GAAP
|
$
(174)
|
|
$
(185)
|
|
$
167
|
Preferred stock
dividends
|
8
|
|
8
|
|
8
|
Net (loss) income
available to common stockholders, as adjusted - non-GAAP
|
$
(182)
|
|
$
(193)
|
|
$
159
|
|
|
|
|
|
|
Diluted (loss) earnings
per common share - GAAP
|
$
(0.45)
|
|
$
(3.76)
|
|
$
2.87
|
Diluted (loss) earnings
per common share, as adjusted - non-GAAP
|
$
(0.25)
|
|
$
(0.27)
|
|
$
0.23
|
(1)
|
Certain merger-related
items are not taxable or deductible.
|
While net income is a financial measure that is calculated in
accordance with GAAP, PPNR and PPNR excluding bargain purchase
gains, FDIC special assessment and merger-related and restructuring
expenses are non-GAAP financial measures. Nevertheless, it is
management's belief that these non-GAAP measures should be
disclosed in our earnings releases and other investor
communications because management believes these measures are
relevant to understanding the performance of the Company
attributable to elements other than the provision for credit losses
and the ability of the Company to generate earnings sufficient to
cover estimated credit losses. These measures also provide a
meaningful basis for comparison to other financial institutions
since it is commonly employed and is a measure frequently cited by
investors and analysts. The following table reconciles the non-GAAP
financial measures of PPNR and PPNR excluding bargain purchase
gains, FDIC special assessment and merger-related and restructuring
expenses to the comparable GAAP financial measures of net income
for the stated periods:
|
|
|
|
|
|
|
March 31, 2024
|
|
For the Three Months Ended
|
|
compared to:
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
(dollars in millions)
|
|
Net interest
income
|
$
624
|
|
$
740
|
|
$
555
|
|
-16 %
|
|
12 %
|
Non-interest
income
|
9
|
|
127
|
|
2,098
|
|
-93 %
|
|
NM
|
Total revenues
|
$
633
|
|
$
867
|
|
$
2,653
|
|
-27 %
|
|
-76 %
|
Total non-interest
expense
|
699
|
|
3,132
|
|
476
|
|
NM
|
|
47 %
|
Pre - provision net revenue
(non-GAAP)
|
$
(66)
|
|
$
(2,265)
|
|
$
2,177
|
|
NM
|
|
NM
|
Bargain purchase
gain
|
121
|
|
11
|
|
(2,001)
|
|
NM
|
|
NM
|
Provision for bond
related credit losses
|
—
|
|
—
|
|
20
|
|
NM
|
|
NM
|
Merger-related and
restructuring expenses
|
43
|
|
63
|
|
67
|
|
-32 %
|
|
-36 %
|
Goodwill
impairment
|
—
|
|
2,426
|
|
—
|
|
|
|
|
FDIC special
assessment
|
—
|
|
49
|
|
—
|
|
NM
|
|
NM
|
Pre - provision net revenue excluding merger-related
and restructuring expenses and bargain purchase gain, as adjusted
(non-GAAP)
|
$
98
|
|
$
284
|
|
$
263
|
|
-66 %
|
|
-63 %
|
Provision for credit
losses
|
315
|
|
552
|
|
170
|
|
-43 %
|
|
85 %
|
Bargain purchase
gain
|
(121)
|
|
(11)
|
|
2,001
|
|
NM
|
|
NM
|
Provision for bond
related credit losses
|
—
|
|
—
|
|
(20)
|
|
NM
|
|
NM
|
Merger-related and
restructuring expenses
|
(43)
|
|
(63)
|
|
(67)
|
|
-32 %
|
|
-36 %
|
Goodwill
impairment
|
—
|
|
(2,426)
|
|
—
|
|
NM
|
|
NM
|
FDIC special
assessment
|
—
|
|
(49)
|
|
—
|
|
NM
|
|
NM
|
(Loss) income before
taxes
|
$
(381)
|
|
$
(2,817)
|
|
$
2,007
|
|
-86 %
|
|
NM
|
Income tax (benefit)
expense
|
(54)
|
|
(112)
|
|
1
|
|
-52 %
|
|
NM
|
Net (Loss) Income (GAAP)
|
$
(327)
|
|
$
(2,705)
|
|
$
2,006
|
|
-88 %
|
|
-116 %
|
NEW YORK COMMUNITY
BANCORP, INC.
NET INTEREST INCOME
ANALYSIS
LINKED-QUARTER AND
YEAR-OVER-YEAR COMPARISONS
(dollars in
millions)
|
|
|
For the Three Months
Ended
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
(dollars in
millions)
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and
other loans, net
|
$ 84,123
|
$
1,193
|
5.68 %
|
|
$ 85,671
|
$
1,230
|
5.72 %
|
|
$ 70,774
|
$ 867
|
4.92 %
|
Securities
|
11,576
|
123
|
4.30
|
|
11,493
|
126
|
4.39
|
|
10,850
|
104
|
3.86
|
Reverse
repurchase agreements
|
—
|
—
|
—
|
|
46
|
1
|
6.91
|
|
785
|
11
|
5.53
|
Interest-earning cash and cash equivalents
|
14,345
|
197
|
5.52
|
|
6,753
|
90
|
5.28
|
|
4,257
|
52
|
4.96
|
Total interest-earning
assets
|
110,044
|
$
1,513
|
5.51
|
|
103,963
|
$
1,447
|
5.55
|
|
86,666
|
$
1,034
|
4.80
|
Non-interest-earning
assets
|
5,682
|
|
|
|
7,719
|
|
|
|
7,864
|
|
|
Total assets
|
$
115,726
|
|
|
|
$
111,683
|
|
|
|
$ 94,530
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking and money market accounts
|
$ 26,428
|
$ 232
|
3.54 %
|
|
$ 31,958
|
$
286
|
3.55 %
|
|
$ 23,098
|
$ 157
|
2.76 %
|
Savings
accounts
|
8,400
|
47
|
2.24
|
|
9,055
|
47
|
2.03
|
|
11,093
|
39
|
1.44
|
Certificates of
deposit
|
24,711
|
291
|
4.74
|
|
18,491
|
210
|
4.52
|
|
13,712
|
87
|
2.57
|
Total interest-bearing
deposits
|
59,539
|
570
|
3.85
|
|
59,504
|
543
|
3.62
|
|
47,903
|
283
|
2.40
|
Borrowed
funds
|
25,728
|
319
|
4.99
|
|
15,714
|
164
|
4.14
|
|
22,326
|
196
|
3.56
|
Total interest-bearing
liabilities
|
85,267
|
$ 889
|
4.19
|
|
75,218
|
$
707
|
3.73
|
|
70,229
|
$ 479
|
2.77
|
Non-interest-bearing
deposits
|
19,355
|
|
|
|
22,676
|
|
|
|
13,189
|
|
|
Other
liabilities
|
2,563
|
|
|
|
2,753
|
|
|
|
1,939
|
|
|
Total
liabilities
|
107,185
|
|
|
|
100,647
|
|
|
|
85,357
|
|
|
Stockholders'
equity
|
8,541
|
|
|
|
11,036
|
|
|
|
9,173
|
|
|
Total liabilities and
stockholders' equity
|
$
115,726
|
|
|
|
$
111,683
|
|
|
|
$ 94,530
|
|
|
Net interest
income/interest rate spread
|
|
$ 624
|
1.32 %
|
|
|
$
740
|
1.82 %
|
|
|
$ 555
|
2.03 %
|
Net interest
margin
|
|
|
2.28 %
|
|
|
|
2.82 %
|
|
|
|
2.60 %
|
Ratio of
interest-earning assets to interest-bearing liabilities
|
|
|
1.29
x
|
|
|
|
1.38
x
|
|
|
|
1.23
x
|
NEW YORK COMMUNITY
BANCORP, INC.
CONSOLIDATED
FINANCIAL HIGHLIGHTS
(dollars in
millions)
|
|
|
For the Three Months
Ended
|
(dollars in
millions, except share and per share data)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
PROFITABILITY
MEASURES:
|
|
|
|
|
|
Net (loss)
income
|
$
(327)
|
|
$ (2,705)
|
|
$
2,006
|
Net (loss) income
available to common stockholders
|
(335)
|
|
(2,713)
|
|
1,998
|
Basic earnings per
common share
|
(0.45)
|
|
(3.76)
|
|
2.88
|
Diluted earnings per
common share
|
(0.45)
|
|
(3.76)
|
|
2.87
|
(Loss) return on
average assets
|
(1.13) %
|
|
(9.69) %
|
|
8.49 %
|
(Loss) return on
average tangible assets (1)
|
(0.61)
|
|
(0.68)
|
|
0.73
|
(Loss) return on
average common stockholders' equity
|
(16.97)
|
|
(103.01)
|
|
92.18
|
(Loss) return on
average tangible common stockholders' equity
(1)
|
(10.02)
|
|
(10.27)
|
|
10.63
|
Efficiency ratio
(2)
|
82.47
|
|
68.99
|
|
60.21
|
Operating expenses to
average assets
|
2.15
|
|
2.17
|
|
1.66
|
Interest rate
spread
|
1.32
|
|
1.82
|
|
2.03
|
Net interest
margin
|
2.28
|
|
2.82
|
|
2.60
|
Effective tax
rate
|
14.32
|
|
3.96
|
|
0.03
|
Shares used for basic
common EPS computation
|
740,047,777
|
|
722,424,143
|
|
686,911,555
|
Shares used for diluted
common EPS computation
|
740,047,777
|
|
722,424,143
|
|
688,271,611
|
Common shares
outstanding at the respective period-ends
|
804,285,598
|
|
722,066,370
|
|
722,150,297
|
|
|
(1)
|
See
the reconciliations of these non-GAAP measures with the
comparable GAAP measures on page 13 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, excluding the
bargain purchase gain.
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
CAPITAL
MEASURES:
|
|
|
|
|
|
Book value per common
share
|
$
9.81
|
|
$
10.88
|
|
$
14.23
|
Tangible book value per
common share - as reported (1)
|
9.07
|
|
10.03
|
|
9.86
|
Tangible book value per
common share - as converted (1)
|
6.33
|
|
N/A
|
|
N/A
|
Common stockholders'
equity to total assets
|
6.99 %
|
|
6.90 %
|
|
8.31 %
|
Tangible common
stockholders' equity to tangible assets (1)
|
6.50
|
|
6.38
|
|
5.91
|
|
|
(1)
|
See
the reconciliations of these non-GAAP measures with the
comparable GAAP measures on page 13 of this release.
|
NEW YORK
COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL
HIGHLIGHTS
ASSET QUALITY SUMMARY
The following table presents the Company's asset quality
measures at the respective dates:
|
|
|
|
|
|
|
March 31,
2024
|
|
|
|
|
|
|
|
compared
to
|
(dollars in
millions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Non-Performing
Loans:
|
|
|
|
|
|
|
|
|
|
Non-accrual mortgage
loans:
|
|
|
|
|
|
|
|
|
|
Multi-family
|
$
339
|
|
$
138
|
|
$
13
|
|
146 %
|
|
NM
|
Commercial real
estate
|
264
|
|
128
|
|
21
|
|
106 %
|
|
NM
|
One-to-four
family first mortgage
|
98
|
|
95
|
|
84
|
|
3 %
|
|
17 %
|
Acquisition,
development, and construction
|
3
|
|
2
|
|
—
|
|
50 %
|
|
NM
|
Total non-accrual
mortgage loans
|
704
|
|
363
|
|
118
|
|
94 %
|
|
497 %
|
Commercial and
industrial
|
73
|
|
43
|
|
15
|
|
70 %
|
|
387 %
|
Other non-accrual
loans
|
21
|
|
22
|
|
15
|
|
-5 %
|
|
40 %
|
Total non-accrual
loans
|
798
|
|
428
|
|
148
|
|
86 %
|
|
439 %
|
Loans 90 days or more
past due and still accruing
|
—
|
|
—
|
|
13
|
|
NM
|
|
-100 %
|
Total non-performing
loans
|
798
|
|
428
|
|
161
|
|
86 %
|
|
396 %
|
Repossessed
assets
|
13
|
|
14
|
|
13
|
|
-7 %
|
|
— %
|
Total non-performing
assets
|
811
|
|
442
|
|
174
|
|
83 %
|
|
366 %
|
|
|
|
|
|
|
|
|
|
|
The following table presents the Company's asset quality
measures at the respective dates:
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
Non-performing loans to
total loans held for investment
|
0.97 %
|
|
0.51 %
|
|
0.20 %
|
Non-performing assets
to total assets
|
0.72
|
|
0.39
|
|
0.14
|
Allowance for
credit losses on loans to non-performing loans
|
152.11
|
|
231.51
|
|
340.60
|
Allowance for credit
losses on loans to total loans held for investment
|
1.48
|
|
1.17
|
|
0.67
|
NEW YORK
COMMUNITY BANCORP, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
The following table presents the Company's loans 30 to 89 days
past due at the respective dates:
|
|
|
|
|
|
|
March 31,
2024
|
|
|
|
|
|
|
|
compared
to
|
(dollars in
millions)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
March 31,
2023
|
Loans 30 to 89 Days
Past Due:
|
|
|
|
|
|
|
|
|
|
Multi-family
|
$
103
|
|
$
121
|
|
$
72
|
|
-15 %
|
|
43 %
|
Commercial real
estate
|
9
|
|
28
|
|
15
|
|
-68 %
|
|
-40 %
|
One-to-four family
first mortgage
|
26
|
|
40
|
|
20
|
|
-35 %
|
|
30 %
|
Acquisition,
development, and construction
|
6
|
|
2
|
|
—
|
|
200 %
|
|
NM
|
Commercial and
industrial
|
60
|
|
37
|
|
57
|
|
62 %
|
|
5 %
|
Other loans
|
8
|
|
22
|
|
11
|
|
-64 %
|
|
-27 %
|
Total loans 30 to 89
days past due
|
$
212
|
|
$
250
|
|
$
175
|
|
-15 %
|
|
21 %
|
The following table summarizes the Company's net charge-offs
(recoveries) for the respective periods:
|
For the Three Months
Ended
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
(dollars in
millions)
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
Multi-family
|
$
11
|
|
$
117
|
|
$
—
|
Commercial real
estate
|
64
|
|
42
|
|
—
|
One-to-four family
residential
|
—
|
|
1
|
|
2
|
Acquisition,
development and construction
|
—
|
|
—
|
|
—
|
Commercial and
industrial
|
11
|
|
24
|
|
—
|
Other
|
5
|
|
5
|
|
3
|
Total
charge-offs
|
$
91
|
|
$
189
|
|
$
5
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
Multi-family
|
$
(1)
|
|
$
—
|
|
$
—
|
Commercial real
estate
|
—
|
|
—
|
|
—
|
One-to-four family
residential
|
—
|
|
—
|
|
—
|
Acquisition,
development and construction
|
—
|
|
—
|
|
—
|
Commercial and
industrial
|
(7)
|
|
(3)
|
|
(4)
|
Other
|
(2)
|
|
(1)
|
|
(1)
|
Total
recoveries
|
$
(10)
|
|
$
(4)
|
|
$
(5)
|
|
|
|
|
|
|
Net charge-offs
(recoveries)
|
$
81
|
|
$
185
|
|
$
—
|
|
|
|
|
|
|
Net charge-offs
(recoveries) to average loans (1)
|
0.10 %
|
|
0.22 %
|
|
— %
|
|
|
(1)
|
Three months ended
presented on a non-annualized basis.
|
NEW YORK COMMUNITY
BANCORP, INC.
|
SUPPLEMENTAL
FINANCIAL INFORMATION
|
|
LOANS SERVICED AND
SUBSERVICED
|
|
|
March 31,
2024
|
|
December 31,
2023
|
(dollars in
millions)
|
Unpaid Principal
Balance (1)
|
Number of
accounts
|
|
Unpaid Principal
Balance (1)
|
Number of
accounts
|
Subserviced for others
(2)
|
$
282,399
|
987,228
|
|
$
294,947
|
1,044,009
|
Serviced for others
(3)
|
76,890
|
319,890
|
|
78,336
|
307,479
|
Serviced for own loan
portfolio (4)
|
8,034
|
50,447
|
|
8,941
|
70,486
|
Total loans
serviced
|
$
367,323
|
1,357,565
|
|
$
382,224
|
1,421,974
|
|
|
(1)
|
UPB, net of write
downs, does not include premiums or discounts.
|
(2)
|
Loans subserviced for a
fee for non-Company owned loans or MSRs. Includes temporary
short-term subservicing performed as a result of sales of
servicing-released MSRs.
|
(3)
|
Loans for which the
Company owns the MSR.
|
(4)
|
Includes LHFI
(residential first mortgage, home equity and other consumer), LHFS
(residential first mortgage), loans with government guarantees
(residential first mortgage), and repossessed assets.
|
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SOURCE New York Community Bancorp, Inc.