Market Overview

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

Share:

Board of Directors Declares a $0.17 per Common
Share Dividend

Fourth Quarter and Full Year 2017 Highlights

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

(1) Return on average assets and on average tangible assets is
calculated using net income. Return on average common stockholders'
equity and on average tangible common stockholders' equity is calculated
using net income available to common shareholders.

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

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

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

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

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

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

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

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

"All in all, we believe that this quarter's performance lays the
groundwork for solid growth in 2018."

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

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

BALANCE SHEET SUMMARY

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

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

Loans

Non-Covered Loans Held for Investment

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

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

Pipeline

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

Funding Sources

Deposits

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

Borrowed Funds

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

Stockholders' Equity

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

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

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

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

Asset Quality

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

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

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

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

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

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

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

Net Interest Income

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

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

Net Interest Margin

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

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

Provision for (Recovery of) Loan Losses

Provision for Losses on Non-Covered Loans

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

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

Recovery of Losses on Covered Loans

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

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

Non-Interest Income

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

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

Non-Interest Expense

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

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

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

Income Tax Expense

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

About New York Community Bancorp, Inc.

Based in Westbury, NY, New York Community Bancorp, Inc. is a leading
producer of multi-family loans on non-luxury, rent-regulated apartment
buildings in New York City, and the parent of New York Community Bank
and New York Commercial Bank. At December 31, 2017, the Company reported
assets of $49.1 billion, loans of $38.4 billion, deposits of $29.1
billion, stockholders' equity of $6.8 billion, and a market cap of $6.4
billion.

Reflecting our growth through a series of acquisitions, the Community
Bank operates 225 branches through seven local divisions, each with a
history of service and strength: Queens County Savings Bank, Roslyn
Savings Bank, Richmond County Savings Bank, and Roosevelt Savings Bank
in New York; Garden State Community Bank in New Jersey; Ohio Savings
Bank in Ohio; and AmTrust Bank in Florida and Arizona, while the
Commercial Bank operates 18 of its 30 New York-based branches under the
divisional name Atlantic Bank. Additional information about the Company
and its bank subsidiaries is available at www.myNYCB.com
and www.NewYorkCommercialBank.com.

Post-Earnings Release Conference Call

As previously announced, the Company will host a conference call on
Wednesday, January 31, 2018, at 8:30 a.m. (Eastern Time) to discuss its
fourth quarter 2017 performance. The conference call may be accessed by
dialing (877) 407-8293 (for domestic calls) or (201) 689-8349 (for
international calls) and asking for "New York Community Bancorp" or
"NYCB." A replay will be available approximately three hours following
completion of the call through 11:59 p.m. on February 4, 2018 and may be
accessed by calling (877) 660-6853 (domestic) or (201) 612-7415
(international) and providing the following conference ID: 13674879. In
addition, the conference call will be webcast at ir.myNYCB.com, and
archived through 5:00 p.m. on February 28, 2018.

Cautionary Statements Regarding Forward-Looking
Information

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

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

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

More information regarding some of these factors is provided in the Risk
Factors section of our Form 10‐K for the year ended December 31, 2016
and in other SEC reports we file. Our forward‐looking statements may
also be subject to other risks and uncertainties, including those we may
discuss in this news release, on our conference call, during investor
presentations, or in our SEC filings, which are accessible on our
website and at the SEC's website, www.sec.gov.

- Financial Statements and Highlights Follow -

       
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
December 31, December 31,
  2017     2016  
(in thousands, except share data) (unaudited)
Assets
Cash and cash equivalents $ 2,528,169 $ 557,850
Securities:
Available-for-sale 3,531,427 104,281
Held-to-maturity   -     3,712,776  
Total securities 3,531,427 3,817,057
Loans held for sale 35,258 409,152
Non-covered mortgage loans held for investment:
Multi-family 28,092,182 26,961,486
Commercial real estate 7,324,852 7,727,258
One-to-four family 477,244 381,081
Acquisition, development, and construction   435,707     380,522  
Total non-covered mortgage loans held for investment 36,329,985 35,450,347
Other non-covered loans:
Commercial and industrial 2,049,498 1,908,308
Other loans   8,488     24,067  
Total non-covered other loans held for investment   2,057,986     1,932,375  
Total non-covered loans held for investment 38,387,971 37,382,722
Less: Allowance for losses on non-covered loans   (158,046 )   (158,290 )
Non-covered loans held for investment, net 38,229,925 37,224,432
Covered loans - 1,698,133
Less: Allowance for losses on covered loans   -     (23,701 )
Covered loans, net   -     1,674,432  
Total loans, net 38,265,183 39,308,016
Federal Home Loan Bank stock, at cost 603,819 590,934
Premises and equipment, net 368,655 373,675
FDIC loss share receivable - 243,686
Goodwill 2,436,131 2,436,131
Core deposit intangibles, net - 208
Other assets (includes $16,990 of other real estate owned covered by
loss sharing agreements at December 31, 2016)   1,390,811     1,598,998  
Total assets $ 49,124,195   $ 48,926,555  
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing checking and money market accounts $ 12,936,301 $ 13,395,080
Savings accounts 5,210,001 5,280,374
Certificates of deposit 8,643,646 7,577,170
Non-interest-bearing accounts   2,312,215     2,635,279  
Total deposits   29,102,163     28,887,903  
Borrowed funds:
Wholesale borrowings 12,554,500 13,314,500
Junior subordinated debentures   359,179     358,879  
Total borrowed funds 12,913,679 13,673,379
Other liabilities   312,977     241,282  
Total liabilities   42,328,819     42,802,564  
Stockholders' equity:
Preferred stock at par $0.01 (5,000,000 shares authorized):
Series A (515,000 shares issued and outstanding) 502,840 -
Common stock at par $0.01 (900,000,000 shares authorized;
489,072,101 and 487,067,889
shares issued; and 488,490,352 and 487,056,676 shares outstanding,
respectively)
4,891 4,871
Paid-in capital in excess of par 6,072,559 6,047,558
Retained earnings 237,868 128,435
Treasury stock, at cost (581,749 and 11,213 shares, respectively) (7,615 ) (160 )
Accumulated other comprehensive loss, net of tax:
Net unrealized gain (loss) on securities available for sale, net of
tax
39,188 (753 )
Net unrealized loss on the non-credit portion of other-than-
temporary impairment losses, net of tax (5,221 ) (5,241 )
Pension and post-retirement obligations, net of tax   (49,134 )   (50,719 )
Total accumulated other comprehensive loss, net of tax   (15,167 )   (56,713 )
Total stockholders' equity   6,795,376     6,123,991  
Total liabilities and stockholders' equity $ 49,124,195   $ 48,926,555  
 

                   
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
 
For the Three Months Ended For the Twelve Months Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
(in thousands, except per share data)   2017   2017     2016     2017     2016  
Interest Income:
Mortgage and other loans $ 346,515 $ 350,990 $ 372,883 $ 1,417,237 $ 1,472,020
Securities and money market investments   43,855   42,685     42,465     165,002     202,849  
Total interest income   390,370   393,675     415,348     1,582,239     1,674,869  
 
Interest Expense:
Interest-bearing checking and money market accounts 27,567 27,620 16,395 98,980 62,166
Savings accounts 7,378 7,109 6,981 28,447 31,982
Certificates of deposit 28,569 27,649 21,746 102,355 76,875
Borrowed funds   55,882   54,954     54,706     222,454     216,464  
Total interest expense   119,396   117,332     99,828     452,236     387,487  
Net interest income 270,974 276,343 315,520 1,130,003 1,287,382
Provision for losses on non-covered loans 2,926 44,585 5,175 60,943 11,874
Recovery of losses on covered loans - - (1,659 ) (23,701 ) (7,694 )
Net interest income after provision for (recovery of)          
loan losses   268,048   231,758     312,004     1,092,761     1,283,202  
 
Non-Interest Income:
Fee income 7,776 7,972 8,185 31,759 32,665
Bank-owned life insurance 5,963 8,314 7,807 27,133 31,015
Mortgage banking income - 1,486 3,261 19,337 27,281
Net gain (loss) on sales of loans 101 (76 ) 688 1,156 15,806
Net gain on sales of securities 1,009 - 2,934 29,924 3,347
FDIC indemnification expense - - (1,327 ) (18,961 ) (6,155 )
Gain on sale of covered loans and mortgage banking operations - 82,026 - 82,026 -
Other income   10,494   9,206     10,826     44,506     41,613  
Total non-interest income   25,343   108,928     32,374     216,880     145,572  
 
Non-Interest Expense:
Operating expenses:
Compensation and benefits 80,977 91,594 90,206 360,985 351,436
Occupancy and equipment 25,368 25,133 24,706 98,963 98,543
General and administrative   42,139   45,483     49,290     181,270     188,130  
Total operating expenses 148,484 162,210 164,202 641,218 638,109
Amortization of core deposit intangibles - 24 397 208 2,391
Merger-related expenses   -   -     6,003     -     11,146  
Total non-interest expense   148,484   162,234     170,602     641,426     651,646  
Income before income taxes 144,907 178,452 173,776 668,215 777,128
Income tax expense   8,386   67,984     60,043     202,014     281,727  
Net Income 136,521 110,468 113,733 466,201 495,401
Preferred stock dividends   8,207   8,207     -     24,621     -  
Net income available to common shareholders $ 128,314 $ 102,261   $ 113,733   $ 441,580   $ 495,401  
 
Basic earnings per common share $ 0.26 $ 0.21   $ 0.23   $ 0.90   $ 1.01  
Diluted earnings per common share $ 0.26 $ 0.21   $ 0.23   $ 0.90   $ 1.01  
 

NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATIONS OF
CERTAIN GAAP AND NON-GAAP FINANCIAL MEASURES

(unaudited)

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

1. Tangible stockholders' equity is an important indication of the
Company's ability to grow organically and through business combinations,
as well as its ability to pay dividends and to engage in various capital
management strategies.
2. Returns on average tangible assets and
average tangible stockholders' equity are among the profitability
measures considered by current and prospective investors, both
independent of, and in comparison with, the Company's peers.
3.
Tangible book value per share and the ratio of tangible stockholders'
equity to tangible assets are among the capital measures considered by
current and prospective investors, both independent of, and in
comparison with, its peers.

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

The following table presents reconciliations of our common stockholders'
equity and tangible common stockholders' equity, our total assets and
tangible assets, and the related GAAP and non-GAAP profitability and
capital measures at or for the three months ended December 31, 2017,
September 30, 2017, and December 31, 2016 and the twelve months ended
December 31, 2017 and 2016:

                   
At or for the At or for the
Three Months Ended Twelve Months Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
(dollars in thousands) 2017 2017 2016 2017 2016
Total Stockholders' Equity $ 6,795,376 $ 6,759,654 $ 6,123,991 $ 6,795,376 $ 6,123,991

Less:

Goodwill

(2,436,131 ) (2,436,131 ) (2,436,131 ) (2,436,131 ) (2,436,131 )

 

Core deposit intangibles ("CDI")

- - (208 ) - (208 )

 

Preferred stock

  (502,840 )   (502,840 )   -     (502,840 )   -  
Tangible common stockholders' equity $ 3,856,405 $ 3,820,683 $ 3,687,652 $ 3,856,405 $ 3,687,652
 
Total Assets $ 49,124,195 $ 48,457,891 $ 48,926,555 $ 49,124,195 $ 48,926,555

Less:

Goodwill

(2,436,131 ) (2,436,131 ) (2,436,131 ) (2,436,131 ) (2,436,131 )

 

CDI

  -     -     (208 )   -     (208 )
Tangible assets $ 46,688,064 $ 46,021,760 $ 46,490,216 $ 46,688,064 $ 46,490,216
 
Average Common Stockholders' Equity $ 6,253,482 $ 6,262,792 $ 6,123,550 $ 6,204,142 $ 6,052,051
Less: Average goodwill and CDI   (2,436,131 )   (2,436,146 )   (2,436,559 )   (2,436,184 )   (2,437,433 )
Average tangible common stockholders' equity $ 3,817,351 $ 3,826,646 $ 3,686,991 $ 3,767,958 $ 3,614,618
 
Average Assets $ 48,175,046 $ 48,526,259 $ 49,388,513 $ 48,624,882 $ 49,299,601
Less: Average goodwill and CDI   (2,436,131 )   (2,436,146 )   (2,436,559 )   (2,436,184 )   (2,437,433 )
Average tangible assets $ 45,738,915 $ 46,090,113 $ 46,951,954 $ 46,188,698 $ 46,862,168
 
Net Income Available to Common Shareholders $ 128,314 $ 102,261 $ 113,733 $ 441,580 $ 495,401
Add back: Amortization of CDI, net of tax   -     14     238     125     1,435  
Adjusted net income available to common shareholders $ 128,314 $ 102,275 $ 113,971 $ 441,705 $ 496,836
 
GAAP MEASURES:
Return on average assets (1) 1.13 % 0.91 % 0.92 % 0.96 % 1.00

%

Return on average common stockholders' equity (2) 8.21 6.53 7.43 7.12 8.19
Book value per common share $ 12.88 $ 12.79 $ 12.57 $ 12.88 $ 12.57
Common stockholders' equity to total assets 12.81 12.91 12.52 12.81 12.52
 
NON-GAAP MEASURES:
Return on average tangible assets (1) 1.19 % 0.96 % 0.97 % 1.01 % 1.06

%

Return on average tangible common stockholders' equity (2) 13.45 10.69 12.36 11.72 13.75
Tangible book value per common share $ 7.89 $ 7.81 $ 7.57 $ 7.89 $ 7.57
Tangible common stockholders' equity to tangible assets 8.26 8.30 7.93 8.26

 

7.93
 

(1)

 

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

 

(2)

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

 

                               
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
LINKED-QUARTER AND YEAR-OVER-YEAR COMPARISONS
(unaudited)
   
For the Three Months Ended
December 31, 2017 September 30, 2017 December 31, 2016
Average Average Average Average Average Average
Balance Interest Yield/Cost Balance Interest Yield/Cost Balance Interest Yield/Cost
(dollars in thousands)
Assets:
Interest-earning assets:
Mortgage and other loans, net $ 37,651,895 $ 346,515 3.68 % $ 37,791,476 $ 350,990 3.71 % $ 39,666,550 $ 372,883 3.76 %
Securities 3,792,557 35,628 3.75 3,597,699 34,359 3.81 4,496,252 42,460 3.77
Interest-earning cash and cash equivalents   2,410,081   8,227 1.35   2,474,307   8,326 1.34   19,042   5 0.10
Total interest-earning assets 43,854,533 390,370 3.56 43,863,482 393,675 3.59 44,181,844 415,348 3.76
Non-interest-earning assets   4,320,513   4,662,777   5,206,669
Total assets $ 48,175,046 $ 48,526,259 $ 49,388,513
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
Interest-bearing checking and money
market accounts $ 12,304,413 $ 27,567 0.89 % $ 12,672,720 $ 27,620 0.86 % $ 13,242,362 $ 16,395 0.49 %
Savings accounts 5,166,477 7,378 0.57 5,006,499 7,109 0.56 5,327,346 6,981 0.52
Certificates of deposit   8,595,905   28,569 1.32   8,533,404   27,649 1.29   7,493,925   21,746 1.15
Total interest-bearing deposits 26,066,795 63,514 0.97 26,212,623 62,378 0.94 26,063,633 45,122 0.69
Borrowed funds   12,374,681   55,882 1.79   12,397,681   54,954 1.76   13,988,313   54,706 1.56
Total interest-bearing liabilities 38,441,476 119,396 1.23 38,610,304 117,332 1.21 40,051,946 99,828 0.99
Non-interest-bearing deposits 2,665,971 2,766,701 2,990,053
Other liabilities   311,277   383,622   222,964
Total liabilities 41,418,724 41,760,627 43,264,963
Stockholders' equity   6,756,322   6,765,632   6,123,550
Total liabilities and stockholders' equity $ 48,175,046 $ 48,526,259 $ 49,388,513
Net interest income/interest rate spread $ 270,974 2.33 % $ 276,343 2.38 % $ 315,520 2.77 %
Net interest margin 2.48 % 2.53 % 2.86 %
Ratio of interest-earning assets to
interest-bearing liabilities 1.14 x 1.14 x 1.10 x
 

                   
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS
YEAR-OVER-YEAR COMPARISON
(unaudited)
   
For the Twelve Months Ended December 31,
2017 2016
Average Average Average Average
Balance Interest Yield/Cost Balance Interest Yield/Cost
(dollars in thousands)
Assets:
Interest-earning assets:
Mortgage and other loans, net $ 38,400,003 $ 1,417,237 3.69 % $ 39,076,298 $ 1,472,020 3.77 %
Securities 3,986,722 148,429 3.72 4,922,722 202,832 4.12
Interest-earning cash and cash equivalents   1,227,137   16,573 1.35   11,336   17 0.15
Total interest-earning assets 43,613,862 1,582,239 3.63 44,010,356 1,674,869 3.81
Non-interest-earning assets   5,011,020   5,289,245
Total assets $ 48,624,882 $ 49,299,601
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
Interest-bearing checking and money
market accounts $ 12,787,703 $ 98,980 0.77 % $ 13,322,346 $ 62,166 0.47 %
Savings accounts 5,170,342 28,447 0.55 5,915,020 31,982 0.54
Certificates of deposit   8,164,518   102,355 1.25   6,899,706   76,875 1.11
Total interest-bearing deposits 26,122,563 229,782 0.88 26,137,072 171,023 0.65
Borrowed funds   12,836,919   222,454 1.73   14,059,543   216,464 1.54
Total interest-bearing liabilities 38,959,482 452,236 1.16 40,196,615 387,487 0.96
Non-interest-bearing deposits 2,782,155 2,860,532
Other liabilities   279,466   190,403
Total liabilities 42,021,103 43,247,550
Stockholders' equity   6,603,779   6,052,051
Total liabilities and stockholders' equity $ 48,624,882 $ 49,299,601
Net interest income/interest rate spread $ 1,130,003 2.47 % $ 1,287,382 2.85 %
Net interest margin 2.59 % 2.93 %
Ratio of interest-earning assets to
interest-bearing liabilities 1.12 x 1.09 x
 

               
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
   
For the Three Months Ended For the Twelve Months Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
(dollars in thousands except share and per share data) 2017 2017

2016

2017 2016
PROFITABILITY MEASURES:
Net income $ 136,521 $ 110,468 $ 113,733 $ 466,201 $ 495,401
Net income available to common shareholders 128,314 102,261 113,733 441,580 495,401
Basic earnings per common share 0.26 0.21 0.23 0.90 1.01
Diluted earnings per common share 0.26 0.21 0.23 0.90 1.01
Return on average assets 1.13 % 0.91 % 0.92 % 0.96 % 1.00

%

Return on average tangible assets (1) 1.19 0.96 0.97 1.01 1.06
Return on average common stockholders' equity 8.21 6.53 7.43 7.12 8.19

Return on average tangible common stockholders'

equity (1) 13.45 10.69 12.36 11.72 13.75
Efficiency ratio (2) 50.11 42.10 47.20 47.61 44.53
Operating expenses to average assets 1.23 1.34 1.33 1.32 1.29
Interest rate spread 2.33 2.38 2.77 2.47 2.85
Net interest margin 2.48 2.53 2.86 2.59 2.93
Effective tax rate 5.79 38.10 34.55 30.23 36.25
Shares used for basic common EPS computation 487,217,383 487,274,303 485,337,734 487,073,951 485,150,173
Shares used for diluted common EPS computation 487,217,383 487,274,303 485,337,734 487,073,951 485,150,173
Common shares outstanding at the respective
period-ends 488,490,352 489,061,848 487,056,676 488,490,352 487,056,676
 

(1)

 

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

(2)

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

 
    Dec. 31,     Sept. 30,     Dec. 31,
2017 2017 2016
CAPITAL MEASURES:
Book value per common share $ 12.88 $ 12.79 $ 12.57
Tangible book value per common share (1) 7.89 7.81 7.57
Common stockholders' equity to total assets 12.81 % 12.91 % 12.52 %
Tangible common stockholders' equity to tangible assets (1) 8.26 8.30 7.93
 

(1)

 

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

           
Dec. 31, Sept. 30, Dec. 31,
2017 2017 2016
REGULATORY CAPITAL RATIOS: (1)
New York Community Bancorp, Inc.
Common equity tier 1 ratio

11.36

% 11.54 % 10.62 %
Tier 1 risk-based capital ratio

12.84

13.06 10.62
Total risk-based capital ratio

14.32

14.59 12.12
Leverage capital ratio 9.58 9.40 8.00
New York Community Bank
Common equity tier 1 ratio

13.43

% 13.60 % 11.23 %
Tier 1 risk-based capital ratio

13.43

13.60 11.23
Total risk-based capital ratio

13.86

14.02 11.71
Leverage capital ratio 10.06 9.80 8.45
New York Commercial Bank
Common equity tier 1 ratio

15.95

% 15.30 % 14.14 %
Tier 1 risk-based capital ratio

15.95

15.30 14.14
Total risk-based capital ratio

16.97

16.55 15.15
Leverage capital ratio 11.37 11.07 10.53
 

(1)

 

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

 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

 
                Dec. 31, 2017
compared to
Dec. 31, Sept. 30, Dec. 31, Sept. 30,     Dec. 31,
  2017   2017   2016 2017 2016
(in thousands, except share data) (unaudited) (unaudited)
Assets
Cash and cash equivalents $ 2,528,169 $ 3,277,427 $ 557,850 -22.9% 353.2%
Securities:
Available-for-sale 3,531,427 3,031,026 104,281 16.5% NM
Held-to-maturity   -   -   3,712,776 NM NM
Total securities 3,531,427 3,031,026 3,817,057 16.5% -7.5%
Loans held for sale 35,258 104,938 409,152 -66.4% -91.4%
Non-covered mortgage loans held for investment:
Multi-family 28,092,182 27,162,401 26,961,486 3.4% 4.2%
Commercial real estate 7,324,852 7,552,777 7,727,258 -3.0% -5.2%
One-to-four family 477,244 413,235 381,081 15.5% 25.2%
Acquisition, development, and construction   435,707   385,543   380,522 13.0% 14.5%
Total non-covered mortgage loans held for investment 36,329,985 35,513,956 35,450,347 2.3% 2.5%
Other non-covered loans:
Commercial and industrial 2,049,498 1,988,577 1,908,308 3.1% 7.4%
Other loans   8,488   3,666   24,067 131.5% -64.7%
Total non-covered other loans held for investment   2,057,986   1,992,243   1,932,375 3.3% 6.5%
Total non-covered loans held for investment 38,387,971 37,506,199 37,382,722 2.4% 2.7%
Less: Allowance for losses on non-covered loans   (158,046)   (158,918)   (158,290) -0.5% -0.2%
Non-covered loans held for investment, net 38,229,925 37,347,281 37,224,432 2.4% 2.7%
Covered loans - - 1,698,133 NM NM
Less: Allowance for losses on covered loans   -   -   (23,701) NM NM
Covered loans, net   -   -   1,674,432 NM NM
Total loans, net 38,265,183 37,452,219 39,308,016 2.2% -2.7%
Federal Home Loan Bank stock, at cost 603,819 579,474 590,934 4.2% 2.2%
Premises and equipment, net 368,655 375,482 373,675 -1.8% -1.3%
FDIC loss share receivable - - 243,686 NM NM
Goodwill 2,436,131 2,436,131 2,436,131 0.0% 0.0%
Core deposit intangibles, net - - 208 NM NM
Other assets (includes $16,990 of other real estate owned covered
loss sharing agreements at December 31, 2016)   1,390,811   1,306,132   1,598,998 6.5% -13.0%
Total assets $ 49,124,195 $ 48,457,891 $ 48,926,555 1.4% 0.4%
 
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing checking and money market accounts $ 12,936,301 $ 12,338,949 $ 13,395,080 4.8% -3.4%
Savings accounts 5,210,001 4,996,578 5,280,374 4.3% -1.3%
Certificates of deposit 8,643,646 8,802,573 7,577,170 -1.8% 14.1%
Non-interest-bearing accounts   2,312,215   2,755,097   2,635,279 -16.1% -12.3%
Total deposits   29,102,163   28,893,197   28,887,903 0.7% 0.7%
Borrowed funds:
Wholesale borrowings 12,554,500 12,004,500 13,314,500 4.6% -5.7%
Junior subordinated debentures   359,179   359,102   358,879 0.0% 0.1%
Total borrowed funds 12,913,679 12,363,602 13,673,379 4.4% -5.6%
Other liabilities   312,977   441,438   241,282 -29.1% 29.7%
Total liabilities   42,328,819   41,698,237   42,802,564 1.5% -1.1%
Stockholders' equity:
Preferred stock at par $0.01 (5,000,000 shares authorized):
Series A (515,000 shares issued and outstanding) 502,840 502,840 - 0.0% NM
Common stock at par $0.01 (900,000,000 shares authorized;
489,072,101,
489,072,101 and 487,067,889 shares issued; and 489,490,352,
489,061,848 and 487,056,676 shares outstanding, respectively) 4,891 4,891 4,871 0.0% 0.4%
Paid-in capital in excess of par 6,072,559 6,063,813 6,047,558 0.1% 0.4%
Retained earnings 237,868 192,607 128,435 23.5% 85.2%
Treasury stock, at cost (581,749, 10,253 and 11,213 shares,
respectively)
(7,615) (130) (160) NM NM
Accumulated other comprehensive loss, net of tax:
Net unrealized gain (loss) on securities available for sale, net of
tax
39,188 47,917 (753) -18.2% NM
Net unrealized loss on the non-credit portion of other-than-temporary
impairment losses, net of tax (5,221) (5,221) (5,241) 0.0% -0.4%
Pension and post-retirement obligations, net of tax   (49,134)   (47,063)   (50,719) 4.4% -3.1%
Total accumulated other comprehensive loss, net of tax   (15,167)   (4,367)   (56,713) 247.3% -73.3%
Total stockholders' equity   6,795,376   6,759,654   6,123,991 0.5% 11.0%
Total liabilities and stockholders' equity $ 49,124,195 $ 48,457,891 $ 48,926,555 1.4% 0.4%
 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

(unaudited)

 
                Dec. 31, 2017
For the Three Months Ended compared to
Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,
2017 2017 2016 2017   2016
(in thousands, except per share data)
Interest Income:
Mortgage and other loans $ 346,515 $ 350,990 $ 372,883 -1.3% -7.1%
Securities and money market investments   43,855   42,685   42,465 2.7% 3.3%
Total interest income   390,370   393,675   415,348 -0.8% -6.0%
 
Interest Expense:
Interest-bearing checking and money market accounts 27,567 27,620 16,395 -0.2% 68.1%
Savings accounts 7,378 7,109 6,981 3.8% 5.7%
Certificates of deposit 28,569 27,649 21,746 3.3% 31.4%
Borrowed funds   55,882   54,954   54,706 1.7% 2.1%
Total interest expense   119,396   117,332   99,828 1.8% 19.6%
Net interest income 270,974 276,343 315,520 -1.9% -14.1%
Provision for losses on non-covered loans 2,926 44,585 5,175 -93.4% -43.5%
Recovery of losses on covered loans   -   -   (1,659) NM NM
 
Net interest income after provision for (recovery of)
loan losses   268,048   231,758   312,004 15.7% -14.1%
 
Non-Interest Income:
Fee income 7,776 7,972 8,185 -2.5% -5.0%
Bank-owned life insurance 5,963 8,314 7,807 -28.3% -23.6%
Mortgage banking income - 1,486 3,261 NM NM
Net gain (loss) on sales of loans 101 (76) 688 NM -85.3%
Net gain on sales of securities 1,009 - 2,934 NM -65.6%
FDIC indemnification expense - - (1,327) NM NM
Gain on sale of covered loans and mortgage banking
operations - 82,026 - NM NM
Other income   10,494   9,206   10,826 14.0% -3.1%
Total non-interest income   25,343   108,928   32,374 -76.7% -21.7%
 
Non-Interest Expense:
Operating expenses:
Compensation and benefits 80,977 91,594 90,206 -11.6% -10.2%
Occupancy and equipment 25,368 25,133 24,706 0.9% 2.7%
General and administrative   42,139   45,483   49,290 -7.4% -14.5%
Total operating expenses 148,484 162,210 164,202 -8.5% -9.6%
Amortization of core deposit intangibles - 24 397 NM NM
Merger-related expenses   -   -   6,003 NM NM
Total non-interest expense   148,484   162,234   170,602 -8.5% -13.0%
 
Income before taxes 144,907 178,452 173,776 -18.8% -16.6%
Income tax expense   8,386   67,984   60,043 -87.7% -86.0%
Net Income $ 136,521 $ 110,468 $ 113,733 23.6% 20.0%
Preferred stock dividends   8,207   8,207   - 0.0% NM
Net Income available to common shareholders $ 128,314 $ 102,261 $ 113,733 25.5% 12.8%
 
Basic earnings per common share $ 0.26 $ 0.21 $ 0.23 23.8% 13.0%
Diluted earnings per common share $ 0.26 $ 0.21 $ 0.23 23.8% 13.0%
 
Dividends per common share $ 0.17 $ 0.17 $ 0.17
 

 
NEW YORK COMMUNITY BANCORP, INC.
SUPPLEMENTAL FINANCIAL INFORMATION (continued)
(unaudited)
           
For the Twelve Months Ended Dec. 31, 2017
Dec. 31, Dec. 31, compared to
2017 2016 Dec. 31, 2016
(in thousands, except per share data)
Interest Income:
Mortgage and other loans $ 1,417,237 $ 1,472,020 -3.7%
Securities and money market investments   165,002   202,849 -18.7%
Total interest income   1,582,239   1,674,869 -5.5%
 
Interest Expense:
Interest-bearing checking and money market accounts 98,980 62,166 59.2%
Savings accounts 28,447 31,982 -11.1%
Certificates of deposit 102,355 76,875 33.1%
Borrowed funds   222,454   216,464 2.8%
Total interest expense   452,236   387,487 16.7%
Net interest income 1,130,003 1,287,382 -12.2%
Provision for losses on non-covered loans 60,943 11,874 413.2%
Recovery of losses on covered loans   (23,701)   (7,694) NM
 
Net interest income after provision for (recovery of)
loan losses   1,092,761   1,283,202 -14.8%
 
Non-Interest Income:
Fee income 31,759 32,665 -2.8%
Bank-owned life insurance 27,133 31,015 -12.5%
Mortgage banking income 19,337 27,281 -29.1%
Net gain on sales of loans 1,156 15,806 -92.7%
Net gain on sales of securities 29,924 3,347 794.1%
FDIC indemnification expense (18,961) (6,155) 208.1%
Gain on sale of covered loans and mortgage banking
operations 82,026 - NM
Other income   44,506   41,613 7.0%
Total non-interest income   216,880   145,572 49.0%
 
Non-Interest Expense:
Operating expenses:
Compensation and benefits 360,985 351,436 2.7%
Occupancy and equipment 98,963 98,543 0.4%
General and administrative   181,270   188,130 -3.6%
Total operating expenses 641,218 638,109 0.5%
Amortization of core deposit intangibles 208 2,391 -91.3%
Merger-related expenses   -   11,146 NM
Total non-interest expense   641,426   651,646 -1.6%
 
Income before taxes 668,215 777,128 -14.0%
Income tax expense   202,014   281,727 -28.3%
Net Income $ 466,201 $ 495,401 -5.9%
Preferred stock dividends   24,621   - NM
Net Income available to common shareholders $ 441,580 $ 495,401 -10.9%
 
Basic earnings per common share $ 0.90 $ 1.01 -10.9%
Diluted earnings per common share $ 0.90 $ 1.01 -10.9%
 
Dividends per common share $ 0.68 $ 0.68
 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 

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

 
    For the Three Months Ended     Sept. 30, 2017 compared to  
Dec. 31,     Sept. 30,     Dec. 31, Sept. 30,     Dec. 31,
2017 2017 2016 2017 2016
(dollars in thousands)
Total Interest Income $ 390,370 $ 393,675 $ 415,348 -1% -6%
 
Prepayment Income:
Loans $ 10,078 $ 14,076 $ 18,243 -28% -45%
Securities   1,387   2,488   3,814 -44% -64%
Total prepayment income $ 11,465 $ 16,564 $ 22,057 -31% -48%
 
GAAP Net Interest Margin 2.48% 2.53% 2.86% -5 bp -38 bp
Less:
Prepayment income from loans 9 bp 13 bp 17 bp -4 bp -8 bp
Prepayment income from securities   2   3   3 -1 bp -1 bp
Total prepayment income contribution
to net interest margin   11 bp   16 bp   20 bp -5 bp -9 bp
 
Adjusted Net Interest Margin (non-GAAP) 2.37% 2.37% 2.66% 0 bp -29 bp
 
         
For the Twelve Months Ended
Dec. 31,     Dec. 31,
2017 2016 Change (%)
(dollars in thousands)
 
Total Interest Income $1,582,239 $1,674,869 -6%
 
Prepayment Income:
Loans $47,004 $60,891 -23%
Securities 8,130 33,509 -76%
Total prepayment income $55,134 $94,400 -42%
 
GAAP Net Interest Margin 2.59% 2.93% -34 bp
Less:
Prepayment income from loans 11 bp 14 bp -3 bp
Prepayment income from securities 2 8 -6 bp
Total prepayment income contribution
to net interest margin 13 bp 22 bp -9 bp
 
Adjusted Net Interest Margin (non-GAAP) 2.46% 2.71% -25 bp
 

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

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

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 
LOANS ORIGINATED FOR INVESTMENT
(unaudited)
              Dec. 31, 2017
For the Three Months Ended compared to
Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,
2017 2017 2016 2017   2016
(in thousands)
Mortgage Loans Originated for Investment:
Multi-family $2,038,298 $1,432,424 $1,154,934 42% 76%
Commercial real estate 346,918 249,773 287,754 39% 21%
One-to-four family residential 8,160 22,047 55,857 -63% -85%
Acquisition, development, and construction 21,644 21,754 26,328 -1% -18%
Total mortgage loans originated for investment 2,415,020 1,725,998 1,524,873 40% 58%
 
Other Loans Originated for Investment:
Specialty Finance 547,732 468,735 358,811 17% 53%
Other commercial and industrial 122,905 115,569 140,910 6% -13%
Other 789 700 846 13% -7%
Total other loans originated for investment 671,426 585,004 500,567 15% 34%
Total Loans Originated for Investment $3,086,446 $2,311,002 $2,025,440 34% 52%
 
 
 
For the Twelve Months Ended
Dec. 31, Dec. 31,
2017 2016 Change (%)
(in thousands)
Mortgage Loans Originated for Investment:
Multi-family $5,377,600 $5,684,838 -5%
Commercial real estate 1,039,105 1,180,430 -12%
One-to-four family residential 124,763 303,877 -59%
Acquisition, development, and construction 77,153 150,177 -49%
Total mortgage loans originated for investment 6,618,621 7,319,322 -10%
 
Other Loans Originated for Investment:
Specialty Finance 1,784,549 1,266,362 41%
Other commercial and industrial 511,416 592,250 -14%
Other 3,159 3,856 -18%
Total other loans originated for investment 2,299,124 1,862,468 23%
Total Loans Originated for Investment $8,917,745 $9,181,790 -3%
 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 

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

 

                     
Dec. 31, 2017
At or For the Three Months Ended compared to
Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,
2017 2017 2016 2017 2016
(dollars in thousands)
Multi-Family Loan Portfolio:
Loans outstanding $28,092,182 $27,162,401 $26,961,486 3% 4%
Percent of total held-for-investment loans 73.2% 72.4% 72.1% 80 bp 110 bp
Average principal balance $5,790 $5,558 $5,454 4% 6%
Weighted average life (in years) 2.6 2.7 2.9 -4% -10%
 
Commercial Real Estate Loan Portfolio:
Loans outstanding $7,324,852 $7,552,777 $7,727,258 -3% -5%
Percent of total held-for-investment loans 19.1% 20.1% 20.7% -100 bp -160 bp
Average principal balance $5,691 $5,721 $5,644 -1% 1%
Weighted average life (in years) 3.0 2.9 3.4 3% -12%
 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 
ASSET QUALITY SUMMARY
(unaudited)
           
The following table presents the Company's non-performing
non-covered loans and assets at the respective dates:
 
Dec. 31, 2017
compared to
Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,
(in thousands) 2017 2017 2016 2017 2016
Non-Performing Non-Covered Assets:
Non-accrual non-covered mortgage loans:
Multi-family $11,078 $11,018 $13,558 0.5% -18.3%
Commercial real estate 6,659 4,923 9,297 35.3% -28.4%
One-to-four family residential 1,966 2,179 9,679 -9.8% -79.7%
Acquisition, development, and construction 6,200 6,200 6,200 0.0% 0.0%
Total non-accrual non-covered mortgage loans 25,903 24,320 38,734 6.5% -33.1%
Other non-accrual non-covered loans (1) 47,779 44,650 17,735 7.0% 169.4%
Total non-performing non-covered loans 73,682 68,970 56,469 6.8% 30.5%
Non-covered repossessed assets (2) 16,400 15,753 11,607 4.1% 41.3%
Total non-performing non-covered assets $90,082 $84,723 $68,076 6.3% 32.3%
 

(1)

 

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

(2)

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

 
The following table presents the Company's asset quality measures at
the respective dates:
           
Dec. 31, Sept. 30, Dec. 31,
2017 2017 2016
Non-performing non-covered loans to total
non-covered loans 0.19 % 0.18 % 0.15 %
Non-performing non-covered assets
to total non-covered assets 0.18 0.17 0.14
Allowance for losses on non-covered loans to
non-performing non-covered loans 214.50 230.42 277.19 (1)
Allowance for losses on non-covered loans to
total non-covered loans 0.41 0.42 0.42 (1)
 
(1)   Excludes the allowance for losses on PCI loans.
 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

 
The following table presents the Company's non-covered loans 30 to
89 days past due at the respective dates:
 
Dec. 31, 2017
compared to
Dec. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31,
2017 2017 2016 2017 2016
(in thousands)
Non-Covered Loans 30 to 89 Days Past Due:
Multi-family $1,258 $602 $28 109% 4393%
Commercial real estate 13,227 450 - 2839% NM
One-to-four family residential 585 676 2,844 -13% -79%
Acquisition, development, and construction - - - NA NA
Other (1) 2,719 3,425 7,511 -21% -64%
Total non-covered loans 30 to 89 days past due $17,789 $5,153

$10,383

245% 71%

 

(1)   Includes $2.7 million, $3.4 million, and $6.8 million of non-accrual
taxi medallion loans at December 31, 2017, September 30, 2017, and
December 31, 2016, respectively.
 
The following table summarizes the Company's net charge-offs
(recoveries) for the respective periods:
                   
For the Three Months Ended For the Twelve Months Ended
Sept. 30, Sept. 30, Dec 31, Dec 31, Dec 31,
2017 2017 2016 2017 2016
(dollars in thousands)
Charge-offs:
Multi-family $ - $ 279 $ - $ 279 $ -
Commercial real estate - - - - -
One-to-four family residential - 6 - 96 170
Acquisition, development, and
construction - - - - -
Other (1)   4,772     40,557     2,258     62,975     3,413  
Total charge-offs   4,772     40,842     2,258     63,350     3,583  
 
Recoveries:
Multi-family $ - ($28 ) $ - ($28 ) ($78 )
Commercial real estate (10 ) (373 ) (19 ) (408 ) (799 )
One-to-four family residential - - (2 ) - (228 )
Acquisition, development, and
construction - (14 ) - (169 ) (167 )
Other (1)   (964 )   (77 )   (648 )   (1,558 )   (1,604 )
Total recoveries   (974 )   (492 )   (669 )   (2,163 )   (2,876 )
 
Net charge-offs (recoveries) $ 3,798   $ 40,350   $ 1,589   $ 61,187   $ 707  
 
Net charge-offs (recoveries) to
average loans (2) 0.01 % 0.11 % 0.00 % 0.16 % 0.00 %
 

(1)

 

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

(2)

Three months ended presented on a non-annualized basis.

 

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