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New York Community Bancorp, Inc. Reports Second Quarter 2018 Diluted Earnings per Common Share of $0.20 Driven by Expense Management and Loan Growth

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New York Community Bancorp, Inc. Reports Second Quarter 2018 Diluted Earnings per Common Share of $0.20 Driven by Expense Management and Loan Growth

COMPANY POISED TO BENEFIT FROM PASSAGE OF THE ECONOMIC GROWTH, REGULATORY RELIEF, AND CONSUMER PROTECTION ACT (S.2155)

Board of Directors Declares a $0.17 per Common Share Dividend

PR Newswire

WESTBURY, N.Y., July 25, 2018 /PRNewswire/ --

(PRNewsfoto/New York Community Bancorp, Inc.)

 

 

Second Quarter 2018 Highlights


  • Earnings:
    • Net income improved to $107.4 million compared to $106.6 million for March 31, 2018.
    • Net income available to common shareholders increased to $99.1 million compared to $98.3 million for March 31, 2018.
    • Non-interest expenses declined $25.6 million or 16% to $138.1 million versus the prior year's quarter; included in the current second quarter amount is a $1 million write-down of taxi medallions held as repossessed assets.
    • The efficiency ratio was 48.19% compared to 47.45% in the first quarter of 2018.
    • Return on average assets was 0.87%, unchanged from the previous quarter and return on average common stockholders' equity was 6.31% versus 6.26% at March 31, 2018. (1) 
    • Return on average tangible assets was 0.91%, virtually unchanged from the prior quarter and our return on average tangible common stockholders' equity was 10.30% compared to 10.21% at March 31, 2018. (1) (2)
  • Balance Sheet:
    • In reaction to the passage of S.2155, total assets exceeded the $50 billion level to $50.5 billion, up 7% annualized from March 31, 2018.
    • Loans held for investment totaled $39.4 billion up $558 million or 6% annualized compared to the prior quarter.
    • Total multi-family loans grew $556 million or 8% on an annualized basis.
    • Total commercial and industrial loans increased $134 million or 26% on an annualized basis.
    • Total deposits increased $320 million or 4% on an annualized basis.
  • Net Interest Margin:
    • The net interest margin declined nine basis points to 2.33% compared to the first quarter 2018 net interest margin.
    • Excluding prepayments, the net interest margin was 2.19%, down 10 basis points compared to the prior quarter margin.
    • Prepayment income on loans increased 34% on a linked quarter basis and 19% year-over-year to $15.8 million.
    • Prepayment income added 14 basis points to the net interest margin this quarter compared to 13 basis points in the prior quarter.
  • Asset Quality:
    • Non-performing assets declined 20% to $70.7 million or 0.14% of total assets on a linked-quarter basis.
    • Non-performing loans decreased 23% to $56.5 million or 0.14% of total loans on a linked-quarter basis.
    • Net charge-offs totaled $5.2 million or 0.01% of average loans.
    • The allowance for loan losses represented 284.44% of non-performing loans.
  • Capital Position at June 30, 2018:
    • Common Equity Tier 1 Capital Ratio was 11.16%. 
    • Tier 1 Risk-Based Capital Ratio was 12.59%.
    • Total Risk-Based Capital Ratio was 14.03%.
    • Leverage Capital Ratio was 9.41%.

(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 for the three months ended June 30, 2018 of $107.4 million, up about 1% from the $106.6 million reported for the three months ended March 31, 2018, and down 7% compared to the $115.3 million reported for the three months ended June 30, 2017.

Net income available to common shareholders was $99.1 million, also up about 1% compared to $98.3 million in the prior quarter, but down 7% from the $107.0 million in the year-ago quarter.

On a per share basis, diluted earnings per common share ("EPS") for the three months ended June 30, 2018 were $0.20, unchanged from the prior quarter and compared to $0.22 for the three months ended June 30, 2017. 

Commenting on the Company's second quarter performance, President and Chief Executive Officer, Joseph R. Ficalora stated, "Our second quarter 2018 performance and operating results reflect the strategy we have outlined in the past.  That is, grow our assets, reinvest our excess liquidity, and reduce operating expenses. In addition, we are pleased with the passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act (the "Dodd-Frank Reform Act"), late in the second quarter, and believe we are poised to benefit from its enactment.

"Over the past several years, we have restricted our balance sheet growth in order to stay below the $50 billion in assets SIFI threshold. With the threshold lifted, our assets this quarter grew 7% on an annualized basis compared to March 31, 2018, to $50.5 billion as we continued to grow our loan portfolio.  Our held-for-investment loan portfolio grew 6% on an annualized basis to $39.4 billion.  This includes 8% annualized growth in our multi-family portfolio and 26% annualized growth in our C&I portfolio, which is comprised mostly of specialty finance loans. Since we launched this business five years ago, this portfolio has grown at a compounded annual rate of 67%, while credit losses have been zero.  With the SIFI threshold increased to $250 billion, we expect continued loan growth going forward.

"Our asset quality remains pristine, despite our strong loan growth as we continue to adhere to our strict underwriting standards.  In fact, our asset quality metrics improved this quarter on both a year-over-year and linked-quarter basis.  Our core loan portfolio continues to generate little to no losses. In fact, combined, we had net recoveries on our multi-family and commercial real estate portfolios this quarter.

"Also, with the passage of the Dodd-Frank Reform Act, during the current quarter, the Company initiated its reinvestment strategy and re-deployed a portion of its excess cash position into higher yielding, shorter duration investment securities.  We expect to continue to re-deploy our cash into higher yielding loans and securities throughout the rest of the year, subject to market conditions.

"Another benefit from the Dodd-Frank Reform Act will be lower operating expenses going forward. During the current second quarter, operating expenses declined $25.6 million or 16% on a year-over-year basis.  On a year-to-date basis, operating expenses are down $53.3 million or 16% compared to the first six months of 2017. We remain on track to meet or exceed the $100 million in expense reductions in 2018 that we previously discussed. In addition, with Dodd-Frank reform completed, we expect additional opportunities to reduce expenses further over the next 18 months."

Board of Directors Declares $0.17 per Common Share Dividend Payable on August 21, 2018

Reflecting our earnings and our capital position, the Board of Directors yesterday declared a quarterly cash dividend on the Company's common stock of $0.17 per share. The dividend is payable on August 21, 2018 to common shareholders of record as of August 7, 2018, and represents a dividend yield of 6.0% based on yesterday's closing price.

BALANCE SHEET SUMMARY

Total assets at June 30, 2018 were $50.5 billion, up $1.3 billion or 3% from year-end 2017 and up 7% annualized from the level at March 31, 2018.  Total loans held for investment increased $1.1 billion or 3% to $39.4 billion from December 31, 2017 and $558.4 million or 6% annualized compared to the balance at March 31, 2018.  As in previous quarters, overall loan growth was driven by our multi-family loans, which ended the quarter at $29.2 billion, up $1.1 billion or 4% compared to the balance at year-end 2017 and $556.1 million or 8% annualized compared to the balance at March 31, 2018.  During the current second quarter, the Company re-deployed a portion of its excess cash position by purchasing investment securities.  Accordingly, the balance of available-for-sale securities increased $730.9 million to $4.1 billion compared to the prior quarter and by $591.5 million from year-end 2017.

This quarter's growth was funded by a combination of deposits and wholesale borrowings.  Total deposits increased $320.4 million to $29.6 billion, compared to the prior quarter, up 4% annualized and $453.7 compared to year-end 2017.  The deposit growth was centered on certificates of deposit ("CDs").  Wholesale borrowings rose $450 million sequentially or 14% annualized and $880.0 million compared to the balance at year-end 2017.

Loans

Loans Held for Investment

Loans held for investment, net totaled $39.3 billion at June 30, 2018, a $1.1 billion improvement from year-end 2017 and a $558.9 million or 6% annualized increase from the prior quarter.  Both the year-to-date and sequential quarter improvements were driven by growth in the multi-family and commercial and industrial ("C&I") loan portfolios.  Total multi-family loans grew $556.1 million or 8% on an annualized basis compared to the prior quarter and $1.1 billion on a year-to-date basis.  C&I loans increased $134.1 million or 26% on an annualized basis compared to the prior quarter and $128.8 million on a year-to-date basis.

Commercial real estate ("CRE") loans declined $98.9 million to $7.2 billion or 5% annualized compared to the first quarter of the year and dropped $168.4 million year-to-date.  Acquisition, development, and construction ("ADC") loans declined $17.0 million sequentially to $424.6 million or 15% and $11.2 million compared to December 31, 2017.

Originations

Total loans originated for investment of $2.9 billion nearly doubled on a year-over-year basis and increased 22% compared to the first quarter of 2018.  With the exception of ADC and one-to-four family loans, originations increased across the board.

Pipeline

The current pipeline stands at approximately $1.8 billion.  This includes $1.2 billion in multi-family loans, $254 million in CRE loans, and $165 million in specialty finance loans.

Funding Sources

Deposits

Deposits totaled $29.6 billion at June 30, 2018 and represented a $320.4 million or a 4% annualized sequential increase and a $453.7 million increase on a year-to-date basis.  The deposit mix and customer preference continues to move toward short-term CDs.  As such, our CD balances increased $1.2 billion or 14% on a sequential basis and $1.7 billion year-to-date.  The remaining deposit categories declined on both a sequential and year-to-date basis, except for non-interest bearing accounts, which increased $185.8 million on a year-to-date basis.

Borrowed Funds

Total borrowed funds were $13.8 billion at June 30, 2018, up $450.1 million or 13% on an annualized basis compared to the balance at March 31, 2018, and increased $880.2 million compared to the balance at December 31, 2017.  The entire increase for both periods was related to higher balances of wholesale borrowings.

Stockholders' Equity

Total stockholders' equity at June 30, 2018 was $6.8 billion, unchanged from the level at March 31, 2018 and up $54.6 million from the level at June 30, 2017.

Common stockholders' equity to total assets represented 12.46% at June 30, 2018, compared to 12.64% and 12.89%, at March 31, 2018 and June 30, 2017, respectively.

Book value per common share equaled $12.82 at June 30, 2018, compared to $12.80 at March 31, 2018 and $12.74 at June 30, 2017.

Excluding goodwill of $2.4 billion, tangible common stockholders' equity totaled $3.9 billion at June 30, 2018 compared to $3.8 billion at both March 31, 2018 and June 30, 2017.

Tangible common stockholders' equity to tangible assets was 8.02%, 8.14%, and 8.27%, respectively, at June 30, 2018, March 31, 2018, and June 30, 2017.

Tangible book value per share equaled $7.85 at June 30, 2018, $7.83 at March 31, 2018, and $7.76 at June 30, 2017.

Asset Quality

Total non-performing assets ("NPAs") declined $18.2 million or 20% to $70.7 million or 0.14% of total assets at June 30, 2018, compared to $88.8 million or 0.18% of total assets at March 31, 2018, and decreased $20.9 million or 23% compared to $91.6 million or 0.20% of total assets at June 30, 2017.

The majority of the improvements in our NPAs stemmed from large decreases in non-performing mortgage loans ("NPLs").  NPLs declined 23% on a sequential basis and 31% on a year-over-year basis to $56.5 million, representing 14 basis points of total loans.  The majority of NPLs are taxi medallion-related loans which were $43.5 million for the current second quarter compared to $44.8 million in the prior quarter and $48.3 million in the year-ago quarter.

Repossessed assets of $14.2 million were down 8% compared to March 31, 2018, but increased 48% compared to June 30, 2017.

During the current second quarter, the Company recorded net charge-offs of $5.2 million or 0.01% of average loans, down 20% compared to the $6.5 million or 0.02% recorded during the prior quarter and down 54% compared to the $11.4 million or 0.03% recorded during the year-ago quarter.  The majority of this quarter's charge-offs were taxi medallion-related.  At June 30, 2018, the Company's total taxi medallion-related exposure was $85.8 million compared to $95.4 million in the prior quarter.

EARNINGS SUMMARY FOR THE THREE MONTHS ENDED JUNE 30, 2018

For the three months ended June 30, 2018, the Company reported net income of $107.4 million, up 1% from the $106.6 million reported for the three months ended March 31, 2018, but down 7% from the $115.3 million reported for the three months ended June 30, 2017.

Net income available to common shareholders was $99.1 million for the current second quarter period, up 1% from the trailing three months and down 7% from the prior year.

Diluted EPS for the three months ended June 30, 2018 were $0.20 compared to $0.20 for the three months ended March 31, 2018 and $0.22 for the three months ended June 30, 2017.

Net Interest Income

Net interest income for the three months ended June 30, 2018 totaled $264.0 million, down 8% on a year-over-year basis and down 2% on a sequential basis.  The decline relative to both periods was the result of higher deposit balances, specifically CDs, and higher levels of wholesale borrowings along with higher rates paid during the quarter on those balances.  These increases were somewhat mitigated by an increase in interest income compared to prior periods, as our loan growth continued, along with higher yields on those loan balances, and the reinvestment of excess liquidity into securities.

Net Interest Margin

The net interest margin for the second quarter of 2018 decreased nine basis points to 2.33% compared to the first quarter of 2018 and 32 basis points compared to the second quarter of 2017.  Excluding the contribution to net interest income from prepayment income, the second quarter 2018 net interest margin declined 10 basis points to 2.19% compared to the first quarter of 2018 and 32 basis points compared to the second quarter of 2017.

Provision for Loan Losses

The provision for loan losses for the second quarter of 2018 was $4.7 million, down 51% compared to the first quarter of 2018 and 60% compared to the second quarter of 2017.

Non-Interest Income

Non-interest income for the second quarter of 2018 totaled $22.7 million, down modestly from the $22.9 million reported in the first quarter of 2018 and down 55% from the $50.4 million reported in the second quarter of 2017.

Non-Interest Expense

Total non-interest expense for the second quarter of 2018 was $138.1 million.  Included in this amount was approximately $1.0 million related to a write down on taxi medallion-related repossessed assets. The year-over-year improvement was driven by lower compensation and benefits expense and lower general and administrative expense offset by a slight increase in occupancy and equipment expense.  The linked-quarter improvement was due to lower compensation and benefits expense.

The efficiency ratio was 48.19% in the second quarter as compared to 47.45% in the first quarter of 2018 and 48.41% in the second quarter of 2017.

Income Tax Expense

The Company recorded an effective tax rate of 25.35% during the current second quarter and income tax expense of $36.5 million.  This is slightly lower than the 26.25% tax rate in the prior quarter and well-below the 36.22% tax rate recorded in the second quarter of last year.

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 June 30, 2018, the Company reported assets of $50.5 billion, loans of $39.4 billion, deposits of $29.6 billion, and stockholders' equity of $6.8 billion.

Reflecting our growth through a series of acquisitions, the Community Bank operates 223 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

The Company will host a conference call on Wednesday, July 25, 2018, at 8:30 a.m. (Eastern Time) to discuss its second quarter 2018 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 July 29, 2018 and may be accessed by calling (877) 660-6853 (domestic) or (201) 612-7415 (international) and providing the following conference ID: 13680932.  In addition, the conference call will be webcast at ir.myNYCB.com, and archived through 5:00 p.m. on August 22, 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, 2017 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


June 30,


December 31,


2018


2017


(unaudited)



(in thousands, except share data)




Assets




Cash and cash equivalents

$     2,204,397


$         2,528,169

Securities:




Available-for-sale

4,122,883


3,531,427

    Equity investments with readily




        determinable fair values, at fair value

31,766


-

Total securities

4,154,649


3,531,427

Loans held for sale 

-


35,258

Mortgage loans held for investment:




Multi-family

29,230,112


28,092,182

Commercial real estate 

7,156,484


7,324,852

One-to-four family

449,681


477,244

Acquisition, development, and construction

424,552


435,707

Total mortgage loans held for investment

37,260,829


36,329,985

Other loans: 




Commercial and industrial 

2,178,288


2,049,498

Other loans

8,708


8,488

Total other loans held for investment

2,186,996


2,057,986

Total loans held for investment

39,447,825


38,387,971

Less:  Allowance for loan losses

(160,652)


(158,046)

Loans held for investment, net

39,287,173


38,229,925

Total loans, net

39,287,173


38,265,183

Federal Home Loan Bank stock, at cost

653,075


603,819

Premises and equipment, net

359,725


368,655

Goodwill

2,436,131


2,436,131

Other assets 

1,374,020


1,390,811

Total assets

$   50,469,170


$       49,124,195

Liabilities and Stockholders' Equity




Deposits:




Interest-bearing checking and money market accounts

$   11,830,315


$       12,936,301

Savings accounts

4,920,967


5,210,001

Certificates of deposit

10,306,519


8,643,646

Non-interest-bearing accounts

2,498,044


2,312,215

Total deposits

29,555,845


29,102,163

Borrowed funds:




Wholesale borrowings

13,434,500


12,554,500

Junior subordinated debentures

359,339


359,179

Total borrowed funds

13,793,839


12,913,679

Other liabilities

330,134


312,977

Total liabilities

43,679,818


42,328,819

Stockholders' equity:




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




Series A (515,000 shares issued and outstanding)

502,840


502,840

Common stock at par $0.01 (900,000,000 shares authorized; 490,439,070 and 489,072,101




shares issued; and 490,379,705 and 488,490,352 shares outstanding, respectively)

4,904


4,891

Paid-in capital in excess of par

6,082,394


6,072,559

Retained earnings 

271,559


237,868

Treasury stock, at cost (59,365 and 581,749 shares, respectively)

(757)


(7,615)

Accumulated other comprehensive loss, net of tax:




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

(9,069)


39,188

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




temporary impairment losses, net of tax

(6,042)


(5,221)

Pension and post-retirement obligations, net of tax

(56,477)


(49,134)

Total accumulated other comprehensive loss, net of tax

(71,588)


(15,167)

Total stockholders' equity

6,789,352


6,795,376

Total liabilities and stockholders' equity

$   50,469,170


$       49,124,195

 

 

 

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)






















For the Three Months Ended


For the Six Months Ended


June 30,


March 31,


June 30,


June 30,


June 30,


2018


2018


2017


2018


2017











(in thousands, except per share data)










Interest Income:










Mortgage and other loans

$ 368,456


$ 355,917


$ 361,330


$    724,373


$    719,732

Securities and money market investments

48,876


48,408


37,745


97,284


78,462

Total interest income

417,332


404,325


399,075


821,657


798,194











Interest Expense:










Interest-bearing checking and money market accounts

40,380


34,369


24,084


74,749


43,793

Savings accounts 

6,630


7,221


7,150


13,851


13,960

Certificates of deposit

39,534


30,515


24,006


70,049


46,137

Borrowed funds

66,833


61,922


56,066


128,755


111,618

Total interest expense

153,377


134,027


111,306


287,404


215,508

Net interest income

263,955


270,298


287,769


534,253


582,686

Provision for losses on loans

4,714


9,571


11,645


14,285


13,432

Recovery of losses on covered loans

-


-


(17,906)


-


(23,701)

Net interest income after provision for (recovery of)










loan losses

259,241


260,727


294,030


519,968


592,955











Non-Interest Income:










Fee income

7,492


7,327


8,151


14,819


16,011

Bank-owned life insurance

6,318


6,804


6,519


13,122


12,856

Mortgage banking income

-


-


8,196


-


17,960

Net (loss) gain on securities 

(303)


(466)


26,936


(769)


28,915

FDIC indemnification expense

-


-


(14,325)


-


(18,961)

Other income 

9,199


9,192


14,960


18,391


25,828

Total non-interest income  

22,706


22,857


50,437


45,563


82,609











Non-Interest Expense:










Operating expenses:










Compensation and benefits

80,314


83,975


93,512


164,289


189,718

Occupancy and equipment

25,026


24,884


23,403


49,910


48,462

General and administrative

32,802


30,248


46,820


63,050


92,344

Total operating expenses

138,142


139,107


163,735


277,249


330,524

Amortization of core deposit intangibles

-


-


30


-


184

Total non-interest expense

138,142


139,107


163,765


277,249


330,708

Income before income taxes

143,805


144,477


180,702


288,282


344,856

Income tax expense 

36,451


37,925


65,447


74,376


125,644

Net Income 

107,354


106,552


115,255


213,906


219,212

Preferred stock dividends

8,207


8,207


8,207


16,414


8,207

Net income available to common shareholders

$   99,147


$   98,345


$ 107,048


$    197,492


$    211,005











Basic earnings per common share 

$       0.20


$       0.20


$       0.22


$          0.40


$          0.43

Diluted earnings per common share

$       0.20


$       0.20


$       0.22


$          0.40


$          0.43











 

 

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 June 30, 2018, March 31, 2018, and June 30, 2017 and for the six months ended June 30, 2018 and 2017:


At or for the


At or for the



Three Months Ended


Six Months Ended



June 30,


Mar. 31,


June 30,


June 30,


June 30,


(dollars in thousands)

2018


2018


2017


2018


2017


Total Stockholders' Equity

$    6,789,352


$    6,780,717


$    6,734,778


$    6,789,352


$    6,734,778


Less: Goodwill

(2,436,131)


(2,436,131)


(2,436,131)


(2,436,131)


(2,436,131)


Core deposit intangibles ("CDI")

-


-


(24)


-


(24)


Preferred stock

(502,840)


(502,840)


(502,840)


(502,840)


(502,840)


Tangible common stockholders' equity

$    3,850,381


$    3,841,746


$    3,795,783


$    3,850,381


$    3,795,783













Total Assets 

$  50,469,170


$  49,654,874


$  48,347,658


$  50,469,170


$  48,347,658


Less: Goodwill

(2,436,131)


(2,436,131)


(2,436,131)


(2,436,131)


(2,436,131)


CDI

-


-


(24)


-


(24)


Tangible assets

$  48,033,039


$  47,218,743


$  45,911,503


$  48,033,039


$  45,911,503













Average Common Stockholders' Equity

$    6,286,326


$    6,287,730


$    6,147,238


$    6,287,024


$    6,149,251


Less: Average goodwill and CDI

(2,436,131)


(2,436,131)


(2,436,175)


(2,436,131)


(2,436,230)


Average tangible common stockholders' equity

$    3,850,195


$    3,851,599


$    3,711,063


$    3,850,893


$    3,713,021













Average Assets

$  49,567,386


$  48,862,383


$  49,069,164


$  49,216,789


$  48,903,656


Less: Average goodwill and CDI

(2,436,131)


(2,436,131)


(2,436,175)


(2,436,131)


(2,436,230)


Average tangible assets

$  47,131,255


$  46,426,252


$  46,632,989


$  46,780,658


$  46,467,426













Net Income Available to Common Shareholders 

$         99,147


$         98,345


$       107,048


$       197,492


$       211,005


Add back: Amortization of CDI, net of tax

-


-


18


-


110


Adjusted net income available to common shareholders

$         99,147


$         98,345


$       107,066


$       197,492


$       211,115













GAAP MEASURES:











Return on average assets (1)

0.87

%

0.87

%

0.94

%

0.87

%

0.90

%

Return on average common stockholders' equity (2)

6.31


6.26


6.97


6.28


6.86


Book value per common share

$           12.82


$           12.80


$           12.74


$           12.82


$           12.74


Common stockholders' equity to total assets

12.46


12.64


12.89


12.46


12.89













NON-GAAP MEASURES:











Return on average tangible assets (1)

0.91

%

0.92

%

0.99

%

0.91

%

0.94

%

Return on average tangible common stockholders' equity (2) 

10.30


10.21


11.54


10.26


11.37


Tangible book value per common share

$             7.85


$             7.83


$             7.76


$             7.85


$             7.76


Tangible common stockholders' equity to tangible assets

8.02


8.14


8.27


8.02


8.27


(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



June 30, 2018


March 31, 2018


June 30, 2017



Average Balance


Interest


Average Yield/Cost


Average Balance


Interest


Average Yield/Cost


Average Balance


Interest


Average Yield/Cost


(dollars in thousands)



















Assets:



















Interest-earning assets:



















Mortgage and other loans, net 

$ 38,937,521


$  368,456


3.79

%

$ 38,290,886


$  355,917


3.72

%

$   39,113,348


$  361,330


3.70

%

Securities

4,029,967


37,962


3.77


4,066,613


39,992


3.95


4,226,369


37,732


3.55


Interest-earning cash and cash equivalents

2,288,581


10,914


1.91


2,134,976


8,416


1.60


8,858


13


0.59


Total interest-earning assets

45,256,069


417,332


3.69


44,492,475


404,325


3.64


43,348,575


399,075


3.68


Non-interest-earning assets

4,311,317






4,369,908






5,720,589






Total assets

$ 49,567,386






$ 48,862,383






$   49,069,164






Liabilities and Stockholders' Equity:



















Interest-bearing deposits:



















Interest-bearing checking and money



















market accounts

$ 12,185,478


$    40,380


1.33

%

$ 12,627,483


$    34,369


1.10

%

$   12,971,440


$    24,084


0.74

%

Savings accounts

4,935,936


6,630


0.54


5,063,110


7,221


0.58


5,260,397


7,150


0.55


Certificates of deposit

9,631,672


39,534


1.65


8,804,862


30,515


1.41


7,827,633


24,006


1.23


Total interest-bearing deposits

26,753,086


86,544


1.30


26,495,455


72,105


1.10


26,059,470


55,240


0.85


Borrowed funds

13,126,137


66,833


2.04


12,927,318


61,922


1.94


13,195,987


56,066


1.70


Total interest-bearing liabilities

39,879,223


153,377


1.54


39,422,773


134,027


1.38


39,255,457


111,306


1.14


Non-interest-bearing deposits

2,675,223






2,401,542






2,960,164






Other liabilities

223,774






247,498






203,237






Total liabilities

42,778,220






42,071,813






42,418,858






Stockholders' equity

6,789,166






6,790,570






6,650,306






Total liabilities and stockholders' equity

$ 49,567,386






$ 48,862,383






$   49,069,164






Net interest income/interest rate spread



$  263,955


2.15

%



$  270,298


2.26

%



$  287,769


2.54

%

Net interest margin





2.33

%





2.42

%





2.65

%

Ratio of interest-earning assets to



















interest-bearing liabilities 





1.13

x





1.13

x





1.10

x




















 

 

 

NEW YORK COMMUNITY BANCORP, INC.


NET INTEREST INCOME ANALYSIS


YEAR-OVER-YEAR COMPARISON


(unaudited)
















For the Six Months Ended June 30,



2018


2017



Average Balance


Interest


Average Yield/Cost


Average Balance


Interest


Average Yield/Cost


(dollars in thousands)













Assets:













Interest-earning assets:













Mortgage and other loans, net 

$ 38,615,946


$    724,373


3.75

%

$ 39,091,457


$    719,732


3.68

%

Securities

4,048,189


77,954


3.86


4,283,149


78,442


3.65


Interest-earning cash and cash equivalents

2,212,203


19,330


1.76


8,664


20


0.47


Total interest-earning assets

44,876,338


821,657


3.67


43,383,270


798,194


3.68


Non-interest-earning assets

4,340,451






5,520,386






Total assets

$ 49,216,789






$ 48,903,656






Liabilities and Stockholders' Equity:













Interest-bearing deposits:













Interest-bearing checking and money













market accounts

$ 12,405,260


$      74,749


1.22

%

$ 13,091,797


$      43,793


0.67

%

Savings accounts

4,999,171


13,851


0.56


5,255,587


13,960


0.54


Certificates of deposit

9,220,551


70,049


1.53


7,757,749


46,137


1.20


Total interest-bearing deposits

26,624,982


158,649


1.20


26,105,133


103,890


0.80


Borrowed funds

13,027,277


128,755


1.99


13,295,127


111,618


1.69


Total interest-bearing liabilities

39,652,259


287,404


1.46


39,400,260


215,508


1.10


Non-interest-bearing deposits

2,540,102






2,848,482






Other liabilities

234,564






210,939






Total liabilities

42,426,925






42,459,681






Stockholders' equity

6,789,864






6,443,975






Total liabilities and stockholders' equity

$ 49,216,789






$ 48,903,656






Net interest income/interest rate spread



$    534,253


2.21

%



$    582,686


2.58

%

Net interest margin





2.37

%





2.68

%

Ratio of interest-earning assets to













interest-bearing liabilities 





1.13

x





1.10

x














 

 

 

NEW YORK COMMUNITY BANCORP, INC.


CONSOLIDATED FINANCIAL HIGHLIGHTS


(unaudited)














For the Three Months Ended


For the Six Months Ended



June 30,


March 31,


June 30,


June 30,


June 30,


(dollars in thousands except share and per share data)

2018


2018


2017


2018


2017


PROFITABILITY MEASURES:











Net income

$      107,354


$      106,552


$      115,255


$      213,906


$      219,212


Net income available to common shareholders

99,147


98,345


107,048


197,492


211,005


Basic earnings per common share 

0.20


0.20


0.22


0.40


0.43


Diluted earnings per common share 

0.20


0.20


0.22


0.40


0.43


Return on average assets

0.87

%

0.87

%

0.94

%

0.87

%

0.90

%

Return on average tangible assets (1)

0.91


0.92


0.99


0.91


0.94


Return on average common stockholders' equity

6.31


6.26


6.97


6.28


6.86


Return on average tangible common stockholders'











equity (1)

10.30


10.21


11.54


10.26


11.37


Efficiency ratio (2)

48.19


47.45


48.41


47.82


49.68


Operating expenses to average assets

1.11


1.14


1.33


1.13


1.35


Interest rate spread

2.15


2.26


2.54


2.21


2.58


Net interest margin

2.33


2.42


2.65


2.37


2.68


Effective tax rate

25.35


26.25


36.22


25.80


36.43


Shares used for basic common EPS computation

488,530,527


488,140,102


487,282,404


488,336,395


486,899,209


Shares used for diluted common EPS computation

488,530,527


488,140,102


487,282,404


488,336,395


486,899,209


Common shares outstanding at the respective











period-ends

490,379,705


490,379,532


489,023,298


490,379,705


489,023,298


 

(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.

 

 


June 30,


March 31,


June 30,



2018


2018


2017


CAPITAL MEASURES:







Book value per common share

$      12.82


$      12.80


$      12.74


Tangible book value per common share (1)

7.85


7.83


7.76


Common stockholders' equity to total assets

12.46

%

12.64

%

12.89

%

Tangible common stockholders' equity to tangible assets (1)

8.02


8.14


8.27




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


 

 


June 30,


March 31,


June 30,



2018


2018


2017


REGULATORY CAPITAL RATIOS: (1)







New York Community Bancorp, Inc.







Common equity tier 1 ratio

11.16

%

11.46

%

11.16

%

Tier 1 risk-based capital ratio

12.59


12.93


12.64


Total risk-based capital ratio

14.03


14.43


14.11


Leverage capital ratio

9.41


9.50


9.23


New York Community Bank







Common equity tier 1 ratio

13.19

%

13.55

%

13.11

%

Tier 1 risk-based capital ratio

13.19


13.55


13.11


Total risk-based capital ratio

13.60


13.97


13.52


Leverage capital ratio

9.81


10.00


9.53


New York Commercial Bank







Common equity tier 1 ratio

15.04

%

15.69

%

15.36

%

Tier 1 risk-based capital ratio

15.04


15.69


15.36


Total risk-based capital ratio

16.04


16.81


16.47


Leverage capital ratio

12.10


11.00


11.24


(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








Jun. 30, 2018








compared to


Jun. 30,


Mar. 31,


Jun. 30,


Mar. 31,


Jun. 30,


2018


2018


2017


2018


2017

(in thousands, except share data)

(unaudited)


(unaudited)


(unaudited)





Assets










Cash and cash equivalents

$2,204,397


$2,680,772


$1,129,846


-18%


95%

Securities:










     Available-for-sale

4,122,883


3,391,952


3,171,117


22%


30%

     Equity investments with readily determinable fair values, at fair value

31,766


32,069


-


-1%


NM

Total securities

4,154,649


3,424,021


3,171,117


21%


31%

Loans held for sale

-


31,402


1,803,724


NM


NM

Mortgage loans held for investment:










     Multi-family

29,230,112


28,673,988


26,875,621


2%


9%

     Commercial real estate

7,156,484


7,255,396


7,543,501


-1%


-5%

     One-to-four family

449,681


465,981


412,945


-3%


9%

     Acquisition, development, and construction

424,552


441,588


372,571


-4%


14%

Total mortgage loans held for investment

37,260,829


36,836,953


35,204,638


1%


6%

Other loans:










     Commercial and industrial

2,178,288


2,044,202


2,036,867


7%


7%

     Other loans

8,708


8,268


9,534


5%


-9%

Total other loans held for investment

2,186,996


2,052,470


2,046,401


7%


7%

Total loans held for investment

39,447,825


38,889,423


37,251,039


1%


6%

Less:  Allowance for losses on loans

(160,652)


(161,140)


(154,683)


0%


4%

Loans held for investment, net

39,287,173


38,728,283


37,096,356


1%


6%

Total loans, net

39,287,173


38,759,685


38,900,080


1%


1%

Federal Home Loan Bank stock, at cost

653,075


622,989


589,067


5%


11%

Premises and equipment, net

359,725


364,312


380,322


-1%


-5%

FDIC loss share receivable

-


-


187,973


NM


NM

Goodwill

2,436,131


2,436,131


2,436,131


0%


0%

Core deposit intangibles, net

-


-


24


NM


NM

Other assets 

1,374,020


1,366,964


1,553,098


1%


-12%

Total assets

$50,469,170


$49,654,874


$48,347,658


2%


4%











Liabilities and Stockholders' Equity










Deposits:










     Interest-bearing checking and money market accounts

$11,830,315


$12,633,937


$12,813,876


-6%


-8%

     Savings accounts

4,920,967


5,019,698


5,136,373


-2%


-4%

     Certificates of deposit

10,306,519


9,063,320


8,230,853


14%


25%

     Non-interest-bearing accounts

2,498,044


2,518,479


2,712,463


-1%


-8%

Total deposits

29,555,845


29,235,434


28,893,565


1%


2%

Borrowed funds:










     Wholesale borrowings

13,434,500


12,984,500


12,004,500


3%


12%

     Junior subordinated debentures

359,339


359,259


359,026


0%


0%

Total borrowed funds

13,793,839


13,343,759


12,363,526


3%


12%

Other liabilities

330,134


294,964


355,789


12%


-7%

Total liabilities

43,679,818


42,874,157


41,612,880


2%


5%

Stockholders' equity:










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










      Series A (515,000 shares issued and outstanding)

502,840


502,840


502,840


0%


0%

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










490,439,070 and 489,060,712 shares issued; and 490,379,705,










490,379,532 and 489,023,298 shares outstanding, respectively)

4,904


4,904


4,891


0%


0%

     Paid-in capital in excess of par

6,082,394


6,073,755


6,055,441


0%


0%

     Retained earnings

271,559


255,777


173,409


6%


57%

     Treasury stock, at cost (59,365, 59,538, and 37,414 shares, respectively)

(757)


(777)


(502)


-3%


51%

     Accumulated other comprehensive loss, net of tax:










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

(9,069)


8,050


52,202


-213%


-117%

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










          impairment losses, net of tax

(6,042)


(6,042)


(5,221)


0%


16%

       Pension and post-retirement obligations, net of tax

(56,477)


(57,790)


(48,282)


-2%


17%

     Total accumulated other comprehensive loss, net of tax

(71,588)


(55,782)


(1,301)


28%


NM

Total stockholders' equity

6,789,352


6,780,717


6,734,778


0%


1%

Total liabilities and stockholders' equity

$50,469,170


$49,654,874


$48,347,658


2%


4%

 

 

 

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

(unaudited)









Jun. 30, 2018



For the Three Months Ended


compared to



Jun. 30,


Mar. 31,


Jun. 30,


Mar. 31,


Jun. 30,



2018


2018


2017


2018


2017

(in thousands, except per share data)











Interest Income:











     Mortgage and other loans


$368,456


$355,917


$361,330


4%


2%

     Securities and money market investments


48,876


48,408


37,745


1%


29%

Total interest income


417,332


404,325


399,075


3%


5%












Interest Expense:











     Interest-bearing checking and money market accounts

40,380


34,369


24,084


17%


68%

     Savings accounts


6,630


7,221


7,150


-8%


-7%

     Certificates of deposit


39,534


30,515


24,006


30%


65%

     Borrowed funds


66,833


61,922


56,066


8%


19%

Total interest expense


153,377


134,027


111,306


14%


38%

     Net interest income


263,955


270,298


287,769


-2%


-8%

Provision for losses on loans


4,714


9,571


11,645


-51%


-60%

Recovery of losses on covered loans


-


-


(17,906)


NM


NM












     Net interest income after provision for (recovery of)










       loan losses


259,241


260,727


294,030


-1%


-12%












Non-Interest Income:











     Fee income


7,492


7,327


8,151


2%


-8%

     Bank-owned life insurance


6,318


6,804


6,519


-7%


-3%

     Mortgage banking income


-


-


8,196


NM


NM

     Net (loss) gain on securities


(303)


(466)


26,936


-35%


-101%

     FDIC indemnification expense


-


-


(14,325)


NM


NM

     Other income


9,199


9,192


14,960


0%


-39%

Total non-interest income


22,706


22,857


50,437


-1%


-55%












Non-Interest Expense:











     Operating expenses:











       Compensation and benefits


80,314


83,975


93,512


-4%


-14%

       Occupancy and equipment


25,026


24,884


23,403


1%


7%

       General and administrative


32,802


30,248


46,820


8%


-30%

Total operating expenses


138,142


139,107


163,735


-1%


-16%

       Amortization of core deposit intangibles


-


-


30


NM


NM

Total non-interest expense


138,142


139,107


163,765


-1%


-16%












Income before taxes


143,805


144,477


180,702


0%


-20%

Income tax expense


36,451


37,925


65,447


-4%


-44%

     Net Income


$    107,354


$    106,552


$    115,255


1%


-7%

Preferred stock dividends


8,207


8,207


8,207


0%


0%

     Net Income available to common shareholders


$99,147


$98,345


$107,048


1%


-7%












     Basic earnings per common share


$0.20


$0.20


$0.22


0%


-9%

     Diluted earnings per common share


$0.20


$0.20


$0.22


0%


-9%












     Dividends per common share


$0.17


$0.17


$0.17


0%


0%

 

 

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

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


For the Three Months Ended


Jun. 30, 2018 compared to



Jun. 30,


Mar. 31,


Jun. 30,


Mar. 31,


Jun. 30,



2018


2018


2017


2018


2017


(dollars in thousands)






















Total Interest Income

$417,332


$404,325


$399,075


3%


5%













Prepayment Income:











     Loans

$15,781


$11,779


$13,285


34%


19%


     Securities

634


2,933


1,708


-78%


-63%


Total prepayment income

$16,415


$14,712


$14,993


12%


9%













GAAP Net Interest Margin

2.33%


2.42%


2.65%


-9

bp

-32

bp

     Less:











     Prepayment income from loans

14

bp

11

bp

12

bp

3

bp

2

bp

     Prepayment income from securities

-


2


2


-2

bp

-2

bp

Total prepayment income contribution











to net interest margin

14

bp

13

bp

14

bp

1

bp

0

bp












Adjusted Net Interest Margin (non-GAAP)

2.19%


2.29%


2.51%


-10

bp

-32

bp












 


For the Six Months Ended






Jun. 30,


Jun. 30,






2018


2017


Change (%)



(dollars in thousands)
















Total Interest Income

$821,657


$798,194


3%











Prepayment Income:








     Loans

$27,560


$22,851


21%



     Securities

3,567


4,256


-16%



Total prepayment income

$31,127


$27,107


15%











GAAP Net Interest Margin

2.37%


2.68%


-31

bp

     Less:








     Prepayment income from loans

12

bp

11

bp

1

bp

     Prepayment income from securities

1


2


-1

bp

Total prepayment income contribution








to net interest margin

13

bp

13

bp

0

bp









Adjusted Net Interest Margin (non-GAAP)

2.24%


2.55%


-31

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)








Jun. 30, 2018


For the Three Months Ended


compared to


Jun. 30,


Mar. 31,


Jun. 30,


Mar. 31,


Jun. 30,


2018


2018


2017


2018


2017

(in thousands)










Mortgage Loans Originated for Investment:










     Multi-family

$2,070,222


$1,706,211


$952,265


21%


117%

     Commercial real estate

254,808


177,142


192,072


44%


33%

     One-to-four family residential

-


2,699


50,697


NM


NM

     Acquisition, development, and construction

13,804


15,321


20,836


-10%


-34%

Total mortgage loans originated for investment

2,338,834


1,901,373


1,215,870


23%


92%











Other Loans Originated for Investment:










     Specialty Finance

486,890


396,889


498,918


23%


-2%

     Other commercial and industrial

119,449


117,614


150,787


2%


-21%

     Other

1,322


878


785


51%


68%

Total other loans originated for investment

607,661


515,381


650,490


18%


-7%

Total Loans Originated for Investment

$2,946,495


$2,416,754


$1,866,360


22%


58%

 


For the Six Months Ended




Jun. 30,


Jun. 30,




2018


2017


Change (%)

(in thousands)






Mortgage Loans Originated for Investment:






     Multi-family

$3,776,433


$1,906,878


98%

     Commercial real estate

431,950


442,414


-2%

     One-to-four family residential

2,699


94,556


-97%

     Acquisition, development, and construction

29,125


33,755


-14%

Total mortgage loans originated for investment

4,240,207


2,477,603


71%







Other Loans Originated for Investment:






     Specialty Finance

883,779


768,082


15%

     Other commercial and industrial

237,063


272,942


-13%

     Other

2,200


1,670


32%

Total other loans originated for investment

1,123,042


1,042,694


8%

Total Loans Originated for Investment

$5,363,249


$3,520,297


52%







 

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

respective dates:

















Jun. 30, 2018



At or For the Three Months Ended


compared to



Jun. 30,


Mar. 31,


Jun. 30,


Mar. 31,


Jun. 30,



2018


2018


2017


2018


2017


(dollars in thousands)











Multi-Family Loan Portfolio:











     Loans outstanding

$29,230,112


$28,673,988


$26,875,621


2%


9%


     Percent of total held-for-investment loans

74.1%


73.7%


72.1%


40

bp

200

bp

     Average principal balance

$5,916


$5,843


$5,457


1%


8%


     Weighted average life (in years)

2.8


2.7


3.2


4%


-13%













Commercial Real Estate Loan Portfolio:











     Loans outstanding

$7,156,484


$7,255,396


$7,543,501


-1%


-5%


     Percent of total held-for-investment loans

18.1%


18.7%


20.3%


-60

bp

-220

bp

     Average principal balance

$5,845


$5,778


$5,727


1%


2%


     Weighted average life (in years)

2.9


2.9


3.0


0%


-3%


 

 

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

 

ASSET QUALITY SUMMARY

(unaudited)











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



















Jun. 30, 2018








compared to


Jun. 30,


Mar. 31,


Jun. 30,


Mar. 31,


Jun. 30,

(in thousands)

2018


2018


2017


2018


2017

Non-Performing Assets:










Non-accrual mortgage loans:










     Multi-family

$5,408


$11,881


$9,820


-54%


-45%

     Commercial real estate

4,917


13,611


4,497


-64%


9%

     One-to-four family residential

1,669


1,949


10,724


-14%


-84%

     Acquisition, development, and construction

-


-


6,200


NM


NM

Total non-accrual mortgage loans

11,994


27,441


31,241


-56%


-62%

Other non-accrual loans (1)

44,487


45,945


50,747


-3%


-12%

Total non-performing loans

56,481


73,386


81,988


-23%


-31%

Repossessed assets (2)

14,204


15,458


9,593


-8%


48%

Total non-performing assets

$70,685


$88,844


$91,581


-20%


-23%











(1) Includes $43.5 million, $44.8 million, and $48.3 million of non-accrual taxi medallion-related loans at June 30, 2018, March 31, 2018, and June 30, 2017, respectively.


(2) Includes $9.0 million and $8.8 million of repossessed taxi medallions at June 30, 2018 and March 31, 2018, respectively.


 

 

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














Jun. 30,


Mar. 31,


Jun. 30,






2018


2018


2017





Non-performing loans to total 










     loans

0.14

%

0.19

%

0.22

%




Non-performing assets 










     to total assets

0.14


0.18


0.20





Allowance for losses on loans to










     non-performing loans

284.44


219.58


186.39

(1)




Allowance for losses on loans to










     total loans

0.41


0.41


0.41

(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 loans 30 to 89 days past due at the respective dates:




















Jun. 30, 2018








compared to


Jun. 30,


Mar. 31,


Jun. 30,


Mar. 31,


Jun. 30,


2018


2018


2017


2018


2017

(in thousands)










Loans 30 to 89 Days Past Due:










     Multi-family

$5


$            -


$4,201


NM


NM

     Commercial real estate

-


3,191


1,586


NM


NM

     One-to-four family residential

214


397


297


-46%


-28%

     Other (1)

6,059


6,763


6,051


-10%


0%

Total loans 30 to 89 days past due

$6,278


$10,351


$12,135


-39%


-48%











(1) Includes $2.0 million, $6.7 million and $6.0 million of taxi medallion loans at June 30, 2018, March 31, 2018 and June 30, 2017, respectively.











 

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












For the Three Months Ended


For the Six Months Ended


Jun. 30,


Mar. 31,


Jun. 30,


Jun. 31,


Jun. 31,


2018


2018


2017


2018


2017

(dollars in thousands)










Charge-offs:










     Multi-family

$             34


$               -


$               -


$             34


$                    -

     Commercial real estate

-


3,191


-


3,191


-

     One-to-four family residential

-


-


90


-


90

     Acquisition, development, and










   construction

-


2,220


-


2,220


-

     Other (1)

5,824


1,580


11,816


7,404


17,646

Total charge-offs

5,858


6,991


11,906


12,849


17,736











Recoveries:










     Multi-family

$               -


$               -


$               -


$               -


$                    -

     Commercial real estate

(104)


(26)


(10)


(130)


(25)

     One-to-four family residential

-


-


-


-


-

     Acquisition, development, and










   construction

(15)


(84)


(55)


(99)


(155)

     Other (1)

(536)


(404)


(429)


(940)


(517)

Total recoveries

(655)


(514)


(494)


(1,169)


(697)











Net charge-offs 

$        5,203


$        6,477


$      11,412


$      11,680


$          17,039





















Net charge-offs to average loans (2)

0.01%


0.02%


0.03%


0.03%


0.04%











(1) Includes taxi medallion loans of $5.8 million, $1.6 million, and $11.3 million, respectively,



 for the three months ended June 30, 2018, March 31, 2018, and June 30, 2017 and



 $7.4 million and $17.2 million, respectively, for the six months ended June 30, 2018 and 2017.


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



 

Investor Contact:

Salvatore J. DiMartino


(516) 683-4286



Media Contact:

Kelly Maude Leung


(516) 683-4032

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/new-york-community-bancorp-inc-reports-second-quarter-2018-diluted-earnings-per-common-share-of-0-20-driven-by-expense-management-and-loan-growth-300685973.html

SOURCE New York Community Bancorp, Inc.

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