New York Community Bancorp, Inc. Reports Third Quarter 2021 Diluted EPS Of $0.30 Up 30%, And $0.31 On A Non-GAAP Basis, Up 35% Compared To The Year-Ago Quarter On Good Loan Growth, Higher PPNR, A Stable Net Interest Margin, And Strong Deposit Growth

BOARD OF DIRECTORS DECLARES A $0.17 DIVIDEND PER COMMON SHARE
Published: Oct. 27, 2021 at 7:00 AM EDT

HICKSVILLE, N.Y., Oct. 27, 2021 /PRNewswire/ --

Third Quarter 2021 Summary
Continued Double-Digit EPS Growth


•    Earnings/Net Income:

      -   Diluted EPS of $0.30, up 30% compared to the third quarter of 2020; non-GAAP diluted EPS of $0.31, up 35%, excluding $6 million in

           merger-related expenses.

      -   Net income available to common shareholders totaled $140 million, up 31% compared to third quarter 2020.

      -   On a non-GAAP basis, net income available to common shareholders, excluding merger-related expenses, totaled $145 million, up 36%.

      -   Pre-provision net revenue ("PPNR"), on a non-GAAP basis, was $198 million, up 19% compared to third quarter 2020; excluding merger

           related expenses, totaled $204 million, on a non-GAAP basis, up 22%.

      -   Recovery of credit losses was $1 million compared to a provision on credit losses of $13 million in the year-ago quarter.

      -   The efficiency ratio was 38.84%.

      -   Return on average assets was 1.04% and return on average common shareholders' equity was 8.69%.

      -   On a non-GAAP basis, return on average tangible assets was 1.08% and return on average tangible common shareholders' equity was 13.89%.


•    Net Interest Margin/Income:

      -   Net interest margin increased 15 basis points year-over-year to 2.44%, but declined sequentially, due to lower prepayments.

      -   Prepayment income totaled $16 million compared to $27 million in the previous quarter.

      -   Excluding prepayment income, the NIM, on a non-GAAP basis, would have been 2.32%, up two basis points sequentially.

      -   Net interest income totaled $318 million, up 13% compared to third quarter 2020.


•    Balance Sheet Trends:

      -   Total loans held for investment rose $858 million to $43.7 billion on a year-over-year basis and $112 million on a linked-quarter basis.

      -   Multi-family loans increased $738 million on a year-over-year basis and $298 million on a linked-quarter basis.

      -   Specialty finance loans increased $115 million year-over-year, but declined $81 million on a linked-quarter basis.                    

      -   Loan-related deposits totaled $4.2 billion, up $265 million compared to the previous quarter.

      -   Non-interest bearing deposits rose $355 million on a linked-quarter basis and $1.8 billion year-over-year.


•   Asset Quality:

      -   NPAs declined 8% compared to the previous quarter and were six basis points of total assets.

      -   As of September 30, 2021, full-payment deferrals were zero, while deferred loans paying interest-only and escrow totaled $914 million, down

           9% compared to the previous quarter.

      -   The allowance for credit losses at September 30, 2021 was $200 million, representing 711.96% of total non-performing loans and 0.46% of

           total loans.


•    Capital Position at September 30, 2021:

      -   Common Equity Tier 1 Capital Ratio was 9.92%.

      -   Tier 1 Risk-Based Capital Ratio was 11.13%.

      -   Total Risk-Based Capital Ratio was 13.11%.

      -   Leverage Capital Ratio was 8.50%.

New York Community Bancorp, Inc. (NYSE: NYCB) (the "Company") today reported net income for the three months ended September 30, 2021 of $149 million, up 28% compared to the $116 million we reported for the three months ended September 30, 2020.  Net income available to common shareholders for the third quarter of 2021 totaled $140 million, up 31% compared to the $107 million we reported for the third quarter of 2020. Diluted earnings per share were $0.30, up 30% compared to the $0.23 reported for the third quarter of 2020.  Excluding merger-related expenses of $6 million, diluted earnings per share were $0.31 on a non-GAAP basis, up 35%.

(PRNewsfoto/New York Community Bancorp, Inc.)
(PRNewsfoto/New York Community Bancorp, Inc.)

For the nine months ended September 30, 2021, net income totaled $446 million, up 39% compared to the $321 million reported for the nine months ended September 30, 2020.  Net income available for common shareholders for the nine months ended September 30, 2021 totaled $421 million, up 42% compared to the $296 million reported for the nine months ended September 30, 2020. Diluted earnings per share for the nine months ended September 30, 2021 totaled $0.90, up 43% compared to the $0.63 reported for the nine months ended September 30, 2020.  Excluding merger-related expenses of $16 million, diluted earnings per share were $0.93 on a non-GAAP basis, up 48%.

Commenting on the Company's third-quarter operating performance, Chairman, President, and Chief Executive Officer, Thomas R. Cangemi said: "We generated solid results, during the quarter, highlighted by double-digit year-over-year EPS growth, driven by higher PPNR, continued NIM expansion, stable operating expenses, strong deposit growth, and solid asset quality.  Additionally, the $0.90 of diluted EPS and the $0.93, on a non-GAAP basis, we recorded for the first nine months of 2021, are the best diluted EPS we have reported in the first nine months of a year since 2010.

"Diluted earnings per share, on a non-GAAP basis, were $0.31 per share, up 35% from the third quarter of last year as the net interest margin increased 15 basis points to 2.44% compared to the third-quarter 2020 margin driven primarily by a lower cost of deposits.  We continue to make significant strides in both growing our deposits and shifting the mix to core deposits.  Total deposits rose $444 million or 5% annualized compared to the previous quarter.  Certificates of deposits declined 10% on an annualized basis compared to the prior quarter, while all other deposit categories rose.  This reflects growth in our Banking as a Service business and continued success in gathering deposits from our borrowers.

"We were pleased to see good growth in the multi-family portfolio, despite modest overall loan growth.  Multi-family loans on a linked-quarter basis increased to nearly $33 billion, up about $300 million or 4% annualized compared to the previous quarter, while total loans held for investment rose 1% on an annualized basis compared to the previous quarter.

"Asset quality metrics improved as non-performing assets declined 8% and 33%, compared to the prior quarter and the year-ago quarter, respectively.  Loan deferrals consisting primarily of loans paying interest-only and escrow declined to $914 million or 2% of total loans, while loans on full-payment deferral remained at zero.

"As for our pending strategic merger with Flagstar, both sets of shareholders overwhelmingly approved the planned merger on August 4th. We continue to make significant progress on the integration planning front, while we await regulatory approval.  At this point, it does not appear that regulatory approval will be received in time to close the merger during the fourth quarter of 2021.  We now estimate an anticipated closing as soon in 2022 as we can obtain regulatory approvals.

"Also during the third quarter, we announced our investment in, and entered into a partnership with, Figure Technologies, one of the leading Fintech companies focusing on payment systems and lending, via blockchain technology.  We believe this partnership will support our strategic priorities including leveraging blockchain technology to support a faster and less expensive payments system, reducing the cost and complexity of the mortgage business, and supporting financial inclusion in banking and credit.

"Lastly, I am proud to announce that our bank subsidiary, New York Community Bank was named the number 1 bank in the country for the best overall customer experience, based on a survey conducted by American Banker and creative experience firm, Monigle.  This is a tremendous achievement and recognition.  Congratulations go out to all of our team members who made this happen.  This accomplishment speaks volumes about who we are and the caliber of our organization."

DIVIDEND DECLARATION

The Board of Directors declared a quarterly cash dividend of $0.17 per share on the Company's common stock. Based on a closing price of $13.94 as of October 26, 2021, this represents an annualized dividend yield of 4.9%. The dividend is payable on November 16, 2021 to common shareholders of record as of November 6, 2021.

BALANCE SHEET SUMMARY

At September 30, 2021, total assets were $57.9 billion, up $1.6 billion or 4% on an annualized basis compared to December 31, 2020, and up $421 million or 3% annualized compared to June 30, 2021.  Compared to the previous quarter, growth was driven by an increase in loans, specifically in the multi-family segment, and a $436 million or 21% increase in the level of cash and cash equivalents.  This growth was funded by continued growth in deposits, mainly growth in non-interest bearing accounts.

Total loans and leases held for investment of $43.7 billion rose $112 million or 1% annualized compared to June 30, 2021.  Third quarter loan growth was led by an increase in the multi-family loan segment, partially offset by declines in the other segments.

Total deposits of $34.6 billion rose $444 million or 5% annualized compared to the previous quarter.  Core deposits (total deposits excluding CDs), especially non-interest bearing deposits, continued to increase, while certificates of deposits ("CDs") declined.

Borrowed funds totaled $15.4 billion, unchanged from the prior quarter.

Loans

At September 30, 2021, the multi-family portfolio increased $298 million to $32.9 billion, compared to $32.6 billion at June 30, 2021,  and on a year-over-year basis, multi-family loans rose $738 million.

The specialty finance portfolio decreased $81 million to $3.2 billion compared to June 30, 2021, while on a year-over-year basis, the specialty finance portfolio grew $115 million.

The CRE portfolio declined on both a linked-quarter and year-over-year basis.  CRE loans declined $98 million on a linked-quarter basis to $6.7 billion and $170 million on a year-over-year basis.

Originations

For the three months ended September 30, 2021, loans and leases originated for investment totaled $3.0 billion, down 4% compared to the previous quarter and exceeded the second quarter pipeline by $1.6 billion.  On a linked-quarter basis, specialty finance originations increased 31%, while multi-family originations declined 14%.

For the nine months ended September 30, 2021, loans and leases originated for investment totaled $8.6 billion, down 5% compared to the nine months ended September 30, 2020.  Multi-family loan originations declined 10% while specialty finance originations declined 14%.

Pipeline

Heading into the final quarter of 2021, the current pipeline stands at $1.9 billion with 80% of this amount representing new money.  The current pipeline includes $1.4 billion of multi-family loans, $131 million of CRE loans, $338 million in specialty finance loans and leases, and $33 million in C&I loans.

Asset Quality

Non-Performing Assets

Non-performing assets ("NPAs") at September 30, 2021 declined modestly compared to June 30, 2021 levels. Total NPAs were $37 million, down 8% compared to $40 million in the prior quarter.  This represents six basis points of total assets compared to seven basis points of total assets in the previous quarter.  Total non-performing loans ("NPLs") at September 30, 2021 declined to $28 million or  six basis points of total loans compared to $32 million or seven basis points of total loans in the previous quarter.

During the third quarter, total loans 30-89 days past due increased to $447 million compared to $35 million during the second quarter of 2021.  Approximately $377 million of this increase is related to multiple loans to one borrower and consists primarily of multi-family and mixed-use properties, all of which are in the 30 days past due category. The Company is working with the borrower and has entered into a CARES Act deferral agreement for the loans in question.  The loans have an original weighted average LTV of 57% and the Bank is well collateralized.  Therefore, we do not expect to incur any losses on this relationship.

Allowance for Credit Losses
At September 30, 2021, the allowance for credit losses ("ACL") was $200 million, relatively flat compared to June 30, 2021 and up $6 million compared to December 31, 2020.  At September 30, 2021, the ACL represented 711.96% of total non-performing loans and 0.46% of total loans.

Loan Deferral Program Update

At September 30, 2021, deferred loans paying interest-only and escrow totaled $914 million, down $86 million or 9% compared to the balance at June 30, 2021.  On a year-over-year basis, loan deferrals declined from $5.8 billion to $914 million or 84%.

Deposits

At September 30, 2021, deposits totaled $34.6 billion, up $444 million on a linked-quarter basis and up $2.9 billion on a year-over-year basis.  Deposit growth during the third quarter was centered on non-interest bearing accounts, while CD balances continued to decline.  Non-interest bearing deposits rose $355 million on a linked-quarter basis and $1.8 billion on a year-over-year basis.

Included in non-interest bearing deposits are deposits related to our Banking as a Service initiative, which totaled $1.4 billion at September 30, 2021.  Also included in total deposits were $4.2 billion of loan-related deposits, deposits from our borrowers, which increased $265 million during the quarter, and $652 million since December 31, 2020.

CAPITAL POSITION

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

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


September 30,



June 30,



September 30,




2021



2021



2020



REGULATORY CAPITAL RATIOS: (1)










New York Community Bancorp, Inc.










Common equity tier 1 ratio


9.92


%


9.84


%


9.69


%

Tier 1 risk-based capital ratio


11.13




11.05




10.96



Total risk-based capital ratio


13.11




13.05




13.02



Leverage capital ratio


8.50




8.25




8.43



New York Community Bank










Common equity tier 1 ratio


12.32


%


12.26


%


12.22


%

Tier 1 risk-based capital ratio


12.32




12.26




12.22



Total risk-based capital ratio


12.76




12.71




12.67



Leverage capital ratio


9.41




9.15




9.40




(1)

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

EARNINGS SUMMARY FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021

Net Interest Income

For the three months ended September 30, 2021, net interest income increased $36 million or 13% on a year-over-year basis.  The higher level of net interest income was driven by a $39 million or 29% decrease in interest expense as funding costs declined while interest income was flat. Interest income for the three months ended September 30, 2021 totaled $415 million compared to $418 million for the three months ended September 30, 2020.

The year-over-year improvement in interest expense was driven by a lower cost of deposits, which declined 50 basis points to 0.35% during the current third quarter compared to the year-ago quarter.  Accordingly, interest expense on deposits dropped 57% to $26 million for the three months ended September 30, 2021 compared to $61 million for the three months ended September 30, 2020.

Included in net interest income for the three months ended September 30, 2021 is $16 million of prepayment income, down 41% or $11 million compared to the three months ended June 30, 2021.  Excluding the impact from prepayment income, net interest income on a non-GAAP basis would have been $302 million, down $2 million or 3% annualized compared to the previous quarter.











September 30, 2021


For the Three Months Ended



compared to


September 30,



June 30,



September 30,



June 30,


September 30,


2021



2021



2020



2021


2020

(dollars in millions)













Total interest income

$

415



$

431



$

418



-4%


-1%

Total interest expense


97




100




136



-3%


-29%

Net interest income

$

318



$

331



$

282



-4%


13%

Less:













Total prepayment income


16




27




12



-41%


33%

Net interest income excluding prepayment income

$

302



$

304



$

270



-1%


12%

Net interest income for the nine months ended September 30, 2021 was $967 million, up $175 million or 22% compared to the nine months ended September 30, 2020.  As with our quarterly results, our year-to-date results were also driven by lower interest expense.  Interest expense for the nine months ended September 30, 2021 decreased $188 million or 38% to $302 million compared to the nine months ended September 30, 2020, while interest income for the nine months ended September 30, 2021 declined modestly.

On a year-over-year basis, deposit costs for the nine months ended September 30, 2021 declined 81 basis points to 0.40% compared to the nine months ended September 30, 2020.  Interest expense on deposits for the nine months ended September 30, 2021 decreased $175 million or 67% to $87 million compared to the nine months ended September 30, 2020.

Prepayment income for the nine months ended September 30, 2021 was $63 million, up $29 million or 85% compared to the nine months ended September 30, 2020.  Excluding the impact from prepayment income, net interest income on a non-GAAP basis was $904 million, up $146 million or 19%.


For the Nine Months Ended





September 30,



September 30,





2021



2020



% Change

(dollars in millions)








Total interest income

$

1,269



$

1,282



-1%

Total interest expense


302




490



-38%

Net interest income

$

967



$

792



22%

Less:








Total prepayment income


63




34



85%

Net interest income excluding prepayment income

$

904



$

758



19%

Net Interest Margin

During the three months ended September 30, 2021, the net interest margin ("NIM") was 2.44%, down six basis points sequentially and up 15 basis points year-over-year.  Prepayment income contributed 12 basis points to the third quarter 2021 NIM compared to 20 basis points in the second quarter of 2021 and nine basis points in the third quarter of 2020.  Excluding the impact from prepayment income, the NIM on a non-GAAP basis would have been 2.32%, up 12 basis points on a year-over-year basis and up two basis points sequentially.

For the nine months ended September 30, 2021, the NIM rose 32 basis points to 2.48% compared to the nine months ended September 30, 2020.  Prepayment income contributed 16 basis points to the NIM for the nine months ended September 30, 2021.  Excluding the impact from prepayment income, the NIM on a non-GAAP basis was 2.32% for the nine months ended September 30, 2021, up 23 basis points compared to the nine months ended September 30, 2020.

(Recovery of) Provision for Credit Losses

For the three months ended September 30, 2021, the Company recorded a recovery of credit losses of $1 million compared to a provision for credit losses of $13 million in the year-ago quarter and a recovery of $4 million in the prior quarter.  For the three months ended September 30, 2021, net charge-offs were zero compared to net recoveries of $1 million in the year-ago quarter and net recoveries of $6 million in the prior quarter.

For the nine months ended September 30, 2021, the Company recorded a recovery of credit losses of $1 million compared to a provision for credit losses of $51 million for the nine months ended September 30, 2020.  The Company recorded net recoveries of $7 million for the first nine months of September 2021 compared to net charge-offs of $13 million or 0.03% of average loans for the first nine months of 2020.

Pre-Provision Net Revenue ("PPNR")

The tables below detail the Company's PPNR and related measures, which are non-GAAP measures, for the periods noted.

For the three months ended September 30, 2021, PPNR rose $31 million or 19% to $198 million compared to the three months ended September 30, 2020.  This year's third quarter includes $6 million of merger-related expenses.  Excluding these expenses, PPNR would have increased $37 million or 22% to $204 million.

For the nine months ended September 30, 2021, PPNR totaled $606 million, up $146 million or 32% compared to the nine months ended September 30, 2020.  Excluding year-to-date merger-related expenses of $16 million, PPNR would have increased $162 million to $622 million.











September 30, 2021


For the Three Months Ended



compared to


September 30,



June 30,



September 30,



June 30,


September 30,


2021



2021



2020



2021


2020

(dollars in millions)













Net interest income

$

318



$

331



$

282



-4%


13%

Non-interest income


15




16




14



-6%


7%

Total revenues


333




347




296



-4%


13%

Total non-interest expense


135




139




129



-3%


5%

Pre-(recovery of) provision for net revenue (PPNR)


198




208




167



-5%


19%

(Recovery of) provision for credit losses


(1)




(4)




13



-75%


-108%

Income before taxes


199




212




154



-6%


29%

Income tax expense


50




60




38



-17%


32%

Net Income


149




152




116



-2%


28%

Preferred stock dividends


9




8




9



13%


0%

Net income available to common shareholders

$

140



$

144



$

107



-3%


31%















For the Nine Months Ended





September 30,



September 30,





2021



2020



% Change

(dollars in millions)








Net interest income

$

967



$

792



22%

Non-interest income


45




46



-2%

Total revenues


1,012




838



21%

Total non-interest expense


406




378



7%

Pre-(recovery of) provision for net revenue (PPNR)


606




460



32%

(Recovery of) provision for credit losses


(1)




51



-102%

Income before taxes


607




409



48%

Income tax expense


161




88



83%

Net Income


446




321



39%

Preferred stock dividends


25




25



0%

Net income available to common shareholders

$

421



$

296



42%

Non-Interest Income

For the three months ended September 30, 2021, total non-interest income was $15 million, up $1 million compared to the three months ended September 30, 2020.  For the nine months ended September 30, 2021, non-interest income totaled $45 million, down $1 million compared to the nine months ended September 30, 2020.  The year-ago nine-month period included net gain on securities of $1 million compared to no such gain during the comparable period of 2021.

Non-Interest Expense

For the three months ended September 30, 2021, total non-interest expenses were $135 million, up $6 million or 5% on a year-over-year basis and down $4 million or 3% on a linked-quarter basis.  Included in third-quarter 2021 results are $6 million in merger-related expenses related to our strategic partnership with Flagstar Bancorp, Inc., compared to $10 million in such expenses during the second quarter of 2021.  Excluding this expense, total non-interest expense on a non-GAAP basis would have been $129 million, unchanged compared to both the previous and year-ago quarters.  The efficiency ratio for the three months ended September 30, 2021 was 38.84%, up modestly compared to 37.11% for the three months ended June 30, 2021.

For the nine months ended September 30, 2021, total non-interest expenses were $406 million, up $28 million or 7% compared to the nine months ended September 30, 2020.  Excluding merger-related expenses of $16 million, total non-interest expenses on a non-GAAP basis were $390 million, up $12 million or 3% on a year-over-year basis.  The efficiency ratio for the nine months ended September 30, 2021 was 38.58% compared to 45.05% for the nine months ended September 30, 2020.

Income Taxes

For the three months ended September 30, 2021, income tax expense totaled $50 million, down $10 million or 17% compared to the previous quarter, mainly due to lower pre-tax income. The effective tax rate for the third quarter was 25.19%.  For the nine months ended September 30, 2021, income tax expense was $161 million.  The effective tax rate for the year-to-date period was 26.48% due to the non-deductibility of certain merger-related expenses and an increase in the New York State tax rate.

About New York Community Bancorp, Inc.

Based in Hicksville, NY, New York Community Bancorp, Inc. is a leading producer of multi-family loans on non-luxury, rent-regulated apartment buildings in New York City, and the parent of New York Community Bank. At September 30, 2021, the Company reported assets of $57.9 billion, loans of $43.7 billion, deposits of $34.6 billion, and stockholders' equity of $7.0 billion.

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

Post-Earnings Release Conference Call

The Company will host a conference call on Wednesday, October 27, 2021, at 8:30 a.m. (Eastern Time) to discuss its third quarter 2021 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 October 31, 2021 and may be accessed by calling (877) 660-6853 (domestic) or (201) 612-7415 (international) and providing the following conference ID: 13723178. In addition, the conference call will be webcast at ir.myNYCB.com, and archived through 5:00 p.m. on November 24, 2021.

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, including those related to the pending merger with Flagstar Bancorp, Inc. and the strategic relationship with Figure Technologies, Inc.

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

Our forward–looking statements are subject to the following principal risks and uncertainties: the effect of the COVID-19 pandemic, including the length of time that the pandemic continues, the potential imposition of future shelter in place orders or additional restrictions on travel in the future, the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligation, the remedial actions and stimulus measures adopted by federal, state, and local governments; the inability of employees to work due to illness, quarantine, or government mandates; general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios; changes in competitive pressures among financial institutions or from non–financial institutions; and 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.  Our forward-looking statements are also subject to the following principal risks and uncertainties with respect to our pending merger with Flagstar Bancorp; our strategic relationship with Figure Technologies, Inc.; the occurrence of any event, change or other circumstances that could give rise to the right of any of the parties to the pending transactions to terminate the agreements governing such transactions; the outcome of any legal proceedings that may be instituted against the Company or any other party to the transactions; the possibility that the proposed transactions will not close when expected or at all because required regulatory or other approvals are not received or other conditions to the closings are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated; the possibility that the anticipated benefits of the proposed transactions will not be realized when expected or at all; diversion of management's attention from ongoing business operations and opportunities; the possibility that the Company may be unable to achieve expected synergies and operating efficiencies in or as a result of the proposed transactions within the expected timeframes or at all; and revenues following the proposed transactions may be lower than expected.

More information regarding some of these factors is provided in the Risk Factors section of our Annual Report on Form 10–K for the year ended December 31, 2020, the Risk Factors section in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021,  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.

Investor/Media Contact: Salvatore J. DiMartino
                                       (516) 683-4286

- Financial Statements and Highlights Follow -

NEW YORK COMMUNITY BANCORP, INC.


CONSOLIDATED STATEMENTS OF CONDITION











September 30,



December 31,




2021



2020




(unaudited)





(dollars in millions, except share data)







Assets







Cash and cash equivalents


$

2,522



$

1,948


Securities:







Available-for-sale



5,898




5,813


    Equity investments with readily







        determinable fair values, at fair value



16




32


Total securities



5,914




5,845


Loans held for sale



-




117


Mortgage loans held for investment:







Multi-family



32,863




32,261


Commercial real estate



6,718




6,839


One-to-four family



171




236


Acquisition, development, and construction



198




90


Total mortgage loans held for investment



39,950




39,426


Other loans and leases held for investment:







Specialty Finance



3,171




3,057


Commercial and industrial



560




394


Other loans



6




7


Total other loans and leases  held for investment



3,737




3,458


Total loans and leases held for investment



43,687




42,884


Less:  Allowance for credit losses on loans and leases



(200)




(194


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



43,487




42,807


Federal Home Loan Bank stock, at cost



684




714


Premises and equipment, net



274




287


Operating lease right-of-use assets



252




267


Goodwill



2,426




2,426


Other assets



2,331




2,012


Total assets


$

57,890



$

56,306


Liabilities and Shareholders' Equity







Deposits:







Interest-bearing checking and money market accounts


$

13,028



$

12,610


Savings accounts



7,979




6,416


Certificates of deposit



8,724




10,331


Non-interest-bearing accounts



4,890




3,080


Total deposits



34,621




32,437


Borrowed funds:







Wholesale borrowings



14,778




15,428


Junior subordinated debentures



360




360


Subordinated notes



296




296


Total borrowed funds



15,434




16,084


Operating lease liabilities



252




267


Other liabilities



616




676


Total liabilities



50,923




49,464


Shareholders' equity:







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







Series A (515,000 shares issued and outstanding)



503




503


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







490,439,070 shares issued; and 465,020,799 and 463,901,808 shares outstanding, respectively)



5




5


Paid-in capital in excess of par



6,119




6,123


Retained earnings



678




494


Treasury stock, at cost (25,418,271 and 26,537,262 shares, respectively)



(246)




(258


Accumulated other comprehensive loss, net of tax:







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



(22)




67


Pension and post-retirement obligations, net of tax



(52)




(59


Net unrealized loss on cash flow hedges, net of tax



(18)




(33


Total accumulated other comprehensive loss, net of tax



(92)




(25


Total shareholders' equity



6,967




6,842


Total liabilities and shareholders' equity


$

57,890



$

56,306


NEW YORK COMMUNITY BANCORP, INC.


CONSOLIDATED STATEMENTS OF INCOME


(unaudited)



























For the Three Months Ended



For the Nine Months Ended



September 30,


June 30,


September 30,



September 30,


September 30,



2021


2021


2020



2021


2020














(dollars in millions, except per share data)












Interest Income:












Loans and leases

$

376


$

386


$

380



$

1,145


$

1,154


Securities and money market investments


39



45



38




124



128


Total interest income


415



431



418




1,269



1,282














Interest Expense:












Interest-bearing checking and money market accounts


8



7



9




24



48


Savings accounts


7



7



8




20



25


Certificates of deposit


11



14



44




43



189


Borrowed funds


71



72



75




215



228


Total interest expense


97



100



136




302



490


Net interest income


318



331



282




967



792


(Recovery of) provision for credit losses


(1)



(4)



13




(1)



51


Net interest income after (recovery of) provision for credit losses


319



335



269




968



741














Non-Interest Income:












Fee income


6



6



5




17



16


Bank-owned life insurance


7



8



7




22



24


Net gains on securities


-



-



-




-



1


Other income


2



2



2




6



5


Total non-interest income 


15



16



14




45



46














Non-Interest Expense:












Operating expenses:












Compensation and benefits


77



74



74




229



229


Occupancy and equipment


22



22



24




65



63


General and administrative


30



33



31




96



86


Total operating expenses


129



129



129




390



378


Merger-related expenses


6



10



-




16



-


Total non-interest expense


135



139



129




406



378


Income before income taxes


199



212



154




607



409


Income tax expense


50



60



38




161



88


Net Income


149



152



116




446



321


Preferred stock dividends


9



8



9




25



25


Net income available to common shareholders

$

140


$

144


$

107



$

421


$

296














Basic earnings per common share 

$

0.30


$

0.30


$

0.23



$

0.90


$

0.63


Diluted earnings per common share

$

0.30


$

0.30


$

0.23



$

0.90


$

0.63














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

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

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

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

The following table presents reconciliations of our common stockholders' equity and tangible common stockholders' equity, our total assets and tangible assets, and the related GAAP and non-GAAP profitability and capital measures at or for the periods indicated:


At or for the



At or for the



Three Months Ended



Nine Months Ended



September 30,



June 30,



September 30,



September 30,



September 30,


(dollars in millions)

2021



2021



2020



2021



2020


Total Stockholders' Equity

$

6,967



$

6,916



$

6,735



$

6,967



$

6,735


Less: Goodwill


(2,426)




(2,426)




(2,426)




(2,426)




(2,426)


    Preferred stock


(503)




(503)




(503)




(503)




(503)


Tangible common stockholders' equity

$

4,038



$

3,987



$

3,806



$

4,038



$

3,806

















Total Assets

$

57,890



$

57,469



$

54,932



$

57,890



$

54,932


Less: Goodwill


(2,426)




(2,426)




(2,426)




(2,426)




(2,426)


Tangible Assets

$

55,464



$

55,043



$

52,506



$

55,464



$

52,506

















Average common stockholders' equity

$

6,474



$

6,368



$

6,219



$

6,404



$

6,187


Less: Average goodwill


(2,426)




(2,426)




(2,426)




(2,426)




(2,426)


Average tangible common stockholders' equity

$

4,048



$

3,942



$

3,793



$

3,978



$

3,761

















Average Assets

$

57,307



$

58,114



$

54,269



$

57,246



$

53,823


Less: Average goodwill


(2,426)




(2,426)




(2,426)




(2,426)




(2,426)


Average tangible assets

$

54,881



$

55,688



$

51,843



$

54,820



$

51,397

















Net income available to common stockholders

$

140



$

144



$

107



$

421



$

296


GAAP MEASURES:















Return on average assets (1)


1.04

%



1.04

%



0.85

%



1.04

%



0.80

%

Return on average common stockholders' equity (2)


8.69




9.00




6.92




8.77




6.40


Book value per common share

$

13.90



$

13.79



$

13.43



$

13.90



$

13.43


Common stockholders' equity to total assets


11.17




11.16




11.34




11.17




11.34


NON-GAAP MEASURES:















Return on average tangible assets (1)


1.08

%



1.09

%



0.89

%



1.08

%



0.83

%

Return on average tangible common stockholders' equity (2)


13.89




14.54




11.34




14.12




10.52


Tangible book value per common share

$

8.68



$

8.57



$

8.20



$

8.68



$

8.20


Tangible common stockholders' equity to tangible assets


7.28




7.24




7.25




7.28




7.25




(1)

To calculate return on average assets for a period, we divide net income generated during that period by average assets recorded during that period. To calculate return on average tangible assets for a period, we divide net income by average tangible assets recorded during that period.

(2)

To calculate return on average common stockholders' equity for a period, we divide net income available to common shareholders generated during that period by average common stockholders' equity recorded during that period. To calculate return on average tangible common stockholders' equity for a period, we divide net income available to common shareholders generated during that period by average tangible common shareholders' equity recorded during that period.


While diluted earnings per common share, net income, net income available to common shareholders, and total non-interest income are financial measures that are recorded in accordance with GAAP, financial measures that adjust these GAAP measures to exclude expenses to our pending merger with Flagstar and the revaluation of deferred taxes related to New York State tax rate change are not. Nevertheless, it is management's belief that these non-GAAP measures should be disclosed in our earnings release and other investor communications because they are not considered part of recurring operations and are included because the Company believes they may provide useful supplemental information for evaluating the underlying performance trends of the Company.



For the Three



For the Nine




Months Ended



Months Ended




September 30,



September 30,


(dollars in millions)


2021



2021


Net income - GAAP


$

149



$

446


Merger-related expenses, net of tax(1)



5




15


Revaluation of deferred taxes related to New York State tax rate change



-




2


Net income - non-GAAP



154




463


Preferred stock dividends



9




25


Net income available to common shareholders - non-GAAP


$

145



$

438









Diluted earnings per common share - GAAP


$

0.30



$

0.90


Diluted earnings per common share - non-GAAP


$

0.31



$

0.93









(1) Certain merger-related expenses are non-deductible.







While net income is a financial measure that is calculated in accordance with GAAP, PPNR and PPNR excluding merger-related expenses are non-GAAP financial measures. Nevertheless, it is management's belief that these non-GAAP measures should be disclosed in our earnings releases and other investor communications because management believes these measures are relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses and the ability of the Company to generate earnings sufficient to cover estimated credit losses, particularly in view of the volatility of the provision for credit losses resulting from the implementation of CECL and the economic impact of the COVID-19 pandemic. These measures also provide a meaningful basis for comparison to other financial institutions since it is commonly employed and is a measure frequently cited by investors and analysts. The following table reconciles the non-GAAP financial measures of PPNR and PPNR excluding merger-related expenses to the comparable GAAP financial measures of net income for the stated periods:











September 30, 2021


For the Three Months Ended



compared to


September 30,



June 30,



September 30,



June 30,


September 30,


2021



2021



2020



2021


2020

(dollars in millions)













Net interest income

$

318



$

331



$

282



-4%


13%

Non-interest income


15




16




14



-6%


7%

Total revenues


333




347




296



-4%


13%

Total non-interest expense


135




139




129



-3%


5%

Pre-(recovery of) provision for net revenue (non-GAAP)


198




208




167



-5%


19%

Merger-related expenses


6




10




-



-40%


NM

Pre-(recovery of) provision for net revenue excluding merger-related
expenses (non-GAAP)


204




218




167



-6%


22%

(Recovery of) provision for credit losses


(1)




(4)




13



-75%


-108%

Merger-related expenses


6




10




-



-40%


NM

Income before taxes


199




212




154



-6%


29%

Income tax expense


50




60




38



-17%


32%

Net Income (GAAP)

$

149



$

152



$

116



-2%


28%















For the Nine Months Ended





September 30,



September 30,





2021



2020



% Change

(dollars in millions)








Net interest income

$

967



$

792



22%

Non-interest income


45




46



-2%

Total revenues


1,012




838



21%

Total non-interest expense


406




378



7%

Pre-(recovery of) provision for net revenue (non-GAAP)


606




460



32%

Merger-related expenses


16




-



NM

Pre-provision net revenue excluding merger-related expenses (non-GAAP)


622




460



35%

(Recovery of) provision for credit losses


(1)




51



-102%

Merger-related expenses


16




-



NM

Income before taxes


607




409



48%

Income tax expense


161




88



83%

Net Income (GAAP)

$

446



$

321



39%

NEW YORK COMMUNITY BANCORP, INC.

NET INTEREST INCOME ANALYSIS

LINKED-QUARTER AND YEAR-OVER-YEAR COMPARISONS

(unaudited)



For the Three Months Ended



September 30, 2021


June 30, 2021


September 30, 2020



Average
Balance


Interest


Average
Yield/Cost


Average
Balance


Interest


Average
Yield/Cost


Average
Balance


Interest


Average
Yield/Cost


(dollars in millions)



















Assets:



















Interest-earning assets:



















Mortgage and other loans, net (1)

$

43,159


$

376



3.48

%

$

42,817


$

386



3.60

%

$

42,302


$

380



3.60

%

Securities (2)(3)


6,657



37



2.21



6,790



43



2.55



5,748



38



2.60


Interest-earning cash and cash
   equivalents


2,109



2



0.40



3,415



2



0.27



1,224





0.10


Total interest-earning assets


51,925


$

415



3.20

%


53,022


$

431



3.25



49,274


$

418



3.39


Non-interest-earning assets


5,382







5,092







4,995






Total assets

$

57,307






$

58,114






$

54,269






Liabilities and Stockholders' Equity:



















Interest-bearing deposits:



















Interest-bearing checking and
   money market accounts

$

12,783


$

8



0.23

%

$

12,699


$

7



0.24

%

$

11,232


$

9



0.33

%

Savings accounts


7,974



7



0.36



7,487



7



0.36



5,755



8



0.52


Certificates of deposit


8,716



11



0.53



9,154



14



0.58



11,654



44



1.52


Total interest-bearing deposits


29,473



26



0.35



29,340



28



0.38



28,641



61



0.85


Borrowed funds


15,529



71



1.84



15,724



72



1.82



15,139



75



1.97


Total interest-bearing liabilities


45,002


$

97



0.87



45,064


$

100



0.88



43,780


$

136



1.24


Non-interest-bearing deposits


4,462







5,488







2,992






Other liabilities


866







691







775






Total liabilities


50,330







51,243







47,547






Stockholders' equity


6,977







6,871







6,722






Total liabilities and stockholders'
   equity

$

57,307






$

58,114






$

54,269






Net interest income/interest rate
   spread



$

318



2.33

%



$

331



2.37

%



$

282



2.15

%

Net interest margin






2.44

%






2.50

%






2.29

%

Ratio of interest-earning assets to
   interest-bearing liabilities





1.15x






1.18x






1.13x


NEW YORK COMMUNITY BANCORP, INC.

NET INTEREST INCOME ANALYSIS

YEAR-OVER-YEAR COMPARISONS

(unaudited)



For the Nine Months Ended September 30,



2021



2020



Average
Balance



Interest



Average
Yield/Cost



Average
Balance



Interest



Average
Yield/Cost


(dollars in millions)


















Assets:


















Interest-earning assets:


















Mortgage and other loans, net

$

42,905



$

1,145




3.56

%


$

41,890



$

1,154




3.67

%

Securities


6,655




118




2.38




6,004




126




2.79


Interest-earning cash and cash
   equivalents


2,454




6




0.31




916




2




0.35


Total interest-earning assets


52,014



$

1,269




3.25




48,810



$

1,282




3.50


Non-interest-earning assets


5,232










5,013








Total assets

$

57,246









$

53,823








Liabilities and Stockholders' Equity:


















Interest-bearing deposits:


















Interest-bearing checking and money
   market accounts

$

12,703



$

24




0.25

%


$

10,616



$

48




0.60

%

Savings accounts


7,396




20




0.36




5,310




25




0.62


Certificates of deposit


9,280




43




0.63




12,965




189




1.95


Total interest-bearing deposits


29,379




87




0.40




28,891




262




1.21


Borrowed funds


15,748




215




1.83




14,662




228




2.08


Total interest-bearing liabilities


45,127



$

302




0.90




43,553



$

490




1.50


Non-interest-bearing deposits


4,402










2,868








Other liabilities


810










712








Total liabilities


50,339










47,133








Stockholders' equity


6,907










6,690








Total liabilities and stockholders' equity

$

57,246









$

53,823








Net interest income/interest rate spread




$

967




2.35

%





$

792




2.00

%

Net interest margin








2.48

%









2.16

%

Ratio of interest-earning assets to
   interest-bearing liabilities







1.15x









1.12x


NEW YORK COMMUNITY BANCORP, INC.



CONSOLIDATED FINANCIAL HIGHLIGHTS



(unaudited)




















For the Three Months Ended



For the Nine Months Ended




September 30,



June 30,



September 30,



September 30,



September 30,



(dollars in millions except share and per share data)

2021



2021



2020



2021



2020



PROFITABILITY MEASURES:
















Net income

$

149



$

152



$

116



$

446



$

321



Net income available to common shareholders


140




144




107




421




296



Basic earnings per common share 


0.30




0.30




0.23




0.90




0.63



Diluted earnings per common share


0.30




0.30




0.23




0.90




0.63



Return on average assets


1.04


%


1.04


%


0.85


%


1.04


%


0.80


%

Return on average tangible assets (1)


1.08




1.09




0.89




1.08




0.83



Return on average common shareholders' equity


8.69




9.00




6.92




8.77




6.40



Return on average tangible common shareholders' equity (1)


13.89




14.54




11.34




14.12




10.52



Efficiency ratio (2)


38.84




37.11




43.47




38.58




45.05



Operating expenses to average assets


0.90




0.89




0.95




0.91




0.94



Interest rate spread


2.33




2.37




2.15




2.35




2.00



Net interest margin


2.44




2.50




2.29




2.48




2.16



Effective tax rate


25.19




28.38




24.89




26.48




21.50



Shares used for basic common EPS computation


464,047,337




464,092,947




461,780,959




463,813,827




462,898,726



Shares used for diluted common EPS computation


464,881,949




464,894,538




462,645,814




464,558,119




463,512,808



Common shares outstanding at the respective
















period-ends


465,020,799




465,056,962




463,904,084




465,020,799




463,904,084



















  (1)  See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 11 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.




















September 30,



June 30,



September 30,




2021



2021



2020



CAPITAL MEASURES:










Book value per common share

$

13.90



$

13.79



$

13.43



Tangible book value per common share (1)


8.68




8.57




8.20



Common shareholders' equity to total assets


11.17


%


11.16


%


11.34


%

Tangible common shareholders' equity to tangible assets (1)


7.28




7.24




7.25













(1)  See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 11 of this release.



NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(unaudited)











September 30, 2021




compared to


September 30,



June 30,



September 30,



June 30,

September 30,


2021



2021



2020



2021

2020













(dollars in millions, except share data)












Assets












Cash and cash equivalents

$

2,522



$

2,086



$

1,459



21%

73%

Securities:












Available-for-sale


5,898




6,077




5,234



-3%

13%

    Equity investments with readily












        determinable fair values, at fair value


16




16




31



0%

-48%

Total securities


5,914




6,093




5,265



-3%

12%

Loans held for sale


-




-




117



NM

NM

Mortgage loans held for investment:












Multi-family


32,863




32,565




32,125



1%

2%

Commercial real estate


6,718




6,816




6,888



-1%

-2%

One-to-four family


171




190




274



-10%

-38%

Acquisition, development, and construction


198




187




86



6%

130%

Total mortgage loans held for investment


39,950




39,758




39,373



0%

1%

Other loans and leases held for investment:












Specialty Finance


3,171




3,252




3,056



-2%

4%

Commercial and industrial


560




553




394



1%

42%

Other loans


6




12




6



-50%

0%

Total other loans and leases  held for investment


3,737




3,817




3,456



-2%

8%

Total loans and leases held for investment


43,687




43,575




42,829



0%

2%

Less:  Allowance for credit losses on loans and leases


(200)




(202)




(188)



-1%

6%

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


43,487




43,373




42,758



0%

2%

Federal Home Loan Bank stock, at cost


684




686




697



0%

-2%

Premises and equipment, net


274




278




290



-1%

-6%

Operating lease right-of-use assets


252




256




272



-2%

-7%

Goodwill


2,426




2,426




2,426



0%

0%

Other assets


2,331




2,271




1,765



3%

32%

Total assets

$

57,890



$

57,469



$

54,932



1%

5%

Liabilities and Shareholders' Equity












Deposits:












Interest-bearing checking and money market accounts

$

13,028



$

12,803



$

11,694



2%

11%

Savings accounts


7,979




7,890




5,965



1%

34%

Certificates of deposit


8,724




8,949




10,990



-3%

-21%

Non-interest-bearing accounts


4,890




4,535




3,056



8%

60%

Total deposits


34,621




34,177




31,705



1%

9%

Borrowed funds:












Wholesale borrowings


14,778




14,803




15,028



0%

-2%

Junior subordinated debentures


360




360




360



0%

0%

Subordinated notes


296




296




295



0%

0%

Total borrowed funds


15,434




15,459




15,683



0%

-2%

Operating lease liabilities


252




256




272



-2%

-7%

Other liabilities


616




661




537



-7%

15%

Total liabilities


50,923




50,553




48,197



1%

6%

Shareholders' equity:












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












Series A (515,000 shares issued and outstanding)                      


503




503




503



0%

0%

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












and 490,439,070 shares issued; and 465,020,799; 465,056,962; and 463,904,084


5




5




5



0%

0%

shares outstanding, respectively)












Paid-in capital in excess of par


6,119




6,111




6,118



0%

0%

Retained earnings


678




617




392



10%

73%

Treasury stock, at cost 25,418,271; 25,382,108 and 26,534,986 shares, respectively)


(246)




(245)




(258)



0%

-5%

Accumulated other comprehensive loss, net of tax:












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


(22)




1




68



NM

-132%

Pension and post-retirement obligations, net of tax


(52)




(54)




(55)



-4%

-5%

Net unrealized loss on cash flow hedges, net of tax


(18)




(22)




(38)



-18%

-53%

Total accumulated other comprehensive loss, net of tax


(92)




(75)




(25)



23%

268%

Total shareholders' equity


6,967




6,916




6,735



1%

3%

Total liabilities and shareholders' equity

$

57,890



$

57,469



$

54,932



1%

5%













NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

(unaudited)






















September 30, 2021


For the Three Months Ended



compared to


September 30,



June 30,



September 30,



June 30,

September 30,


2021



2021



2020



2021

2020













(dollars in millions, except per share data)












Interest Income:












Loans and leases

$

376



$

386



$

380



-3%

-1%

Securities and money market investments


39




45




38



-13%

3%

Total interest income


415




431




418



-4%

-1%













Interest Expense:












Interest-bearing checking and money market accounts


8




7




9



14%

-11%

Savings accounts


7




7




8



0%

-13%

Certificates of deposit


11




14




44



-21%

-75%

Borrowed funds


71




72




75



-1%

-5%

Total interest expense


97




100




136



-3%

-29%

Net interest income


318




331




282



-4%

13%

(Recovery of) provision for credit losses


(1)




(4)




13



NM

NM

Net interest income after (recovery of) provision for credit losses


319




335




269



-5%

19%













Non-Interest Income:












Fee income


6




6




5



0%

20%

Bank-owned life insurance


7




8




7



-13%

0%

Net gains on securities


-




-




-



NM

NM

Other income


2




2




2



0%

0%

Total non-interest income 


15




16




14



-6%

7%













Non-Interest Expense:












Operating expenses:












Compensation and benefits


77




74




74



4%

4%

Occupancy and equipment


22




22




24



0%

-8%

General and administrative


30




33




31



-9%

-3%

Total operating expenses


129




129




129



0%

0%

Merger-related expenses


6




10




-



-40%

NM

Total non-interest expense


135




139




129



-3%

5%

Income before income taxes


199




212




154



-6%

29%

Income tax expense


50




60




38



-17%

32%

Net Income


149




152




116



-2%

28%

Preferred stock dividends


9




8




9



13%

0%

Net income available to common shareholders

$

140



$

144



$

107



-3%

31%













Basic earnings per common share 

$

0.30



$

0.30



$

0.23



0%

30%

Diluted earnings per common share

$

0.30



$

0.30



$

0.23



0%

30%

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



September 30, 2021
compared to




September 30,



June 30,



September 30,



June 30,



September 30,




2021



2021



2020



2021



2020



(dollars in millions)
















Total Interest Income

$

415



$

431



$

418




-4

%



-1

%


Prepayment Income:
















Loans

$

15



$

22



$

12




-32

%



25

%


Securities


1




5







-80

%


NM



Total prepayment income

$

16



$

27



$

12




-41

%



33

%


GAAP Net Interest Margin


2.44

%



2.50

%



2.29

%


-6

bp


15

 bp


Adjustments:
















Less prepayment income from loans


-11

bp



-17

bp



-9

bp


6

bp


-2

bp


Less prepayment income from securities

-1




-3






2

bp


-1

bp


Total prepayment income contribution to net interest margin


-12

bp



-20

bp



-9

bp



8

bp


-3

bp


Adjusted Net Interest Margin (non-GAAP) (1)


2.32

%



2.30

%



2.20

%


2

bp


12

bp




For the Nine Months Ended





September 30,



September 30,







2021



2020



% Change



(dollars in millions)










Total Interest Income

$

1,269



$

1,282




-1

%


Prepayment Income:










     Loans

$

56



$

33




70

%


     Securities


7




1




600

%


Total prepayment income

$

63



$

34




85

%


GAAP Net Interest Margin


2.48

%



2.16

%



33

bp


     Adjustments:










     Less prepayment income from loans


-14

bp



-6

bp


-8

bp


     Less prepayment income from securities


-2




-1




-1

bp


Total prepayment income contribution to net interest margin


-16

bp



-7

bp


-9

bp


Adjusted Net Interest Margin (non-GAAP) (1)


2.32

%



2.09

%


23

bp


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

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

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)


LOANS ORIGINATED FOR INVESTMENT

(unaudited)











September 30, 2021


For the Three Months Ended



compared to


September 30,



June 30,



September 30,



June 30,


September 30,


2021



2021



2020



2021


2020

(dollars in millions)













Mortgage Loans Originated for Investment:













     Multi-family

$

1,796



$

2,078



$

2,104



-14%


-15%

     Commercial real estate


143




70




170



104%


-16%

     One-to-four family residential


70




46




-



52%


NM

     Acquisition, development, and construction


18




70




19



-74%


-5%

Total mortgage loans originated for investment


2,027




2,264




2,293



-10%


-12%














Other Loans Originated for Investment:













     Specialty Finance


796




606




590



31%


35%

     Other commercial and industrial


127




193




93



-34%


37%

     Other


2




2




1



0%


100%

Total other loans originated for investment


925




801




684



15%


35%

Total Loans Originated for Investment

$

2,952



$

3,065



$

2,977



-4%


-1%



For the Nine Months Ended





September 30,



September 30,





2021



2020



% Change

(dollars in millions)








Mortgage Loans Originated for Investment:








     Multi-family

$

5,341



$

5,935



-10%

     Commercial real estate


655




451



45%

     One-to-four family residential


138




45



207%

     Acquisition, development, and construction


94




25



276%

Total mortgage loans originated for investment


6,228




6,456



-4%









Other Loans Originated for Investment:








     Specialty Finance


1,943




2,247



-14%

     Other commercial and industrial


383




273



40%

     Other


5




3



67%

Total other loans originated for investment


2,331




2,523



-8%

Total Loans Originated for Investment

$

8,559



$

8,979



-5%









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:
























September 30, 2021











compared to


September 30,



June 30,



September 30,



June 30,


September 30,

(dollars in millions)

2021



2021



2020



2021


2020

Non-Performing Assets:













Non-accrual mortgage loans:













     Multi-family

$

8



$

9



$

4



-11%


100%

     Commercial real estate


12




12




12



0%


0%

     One-to-four family residential


1




2




2



-50%


-50%

     Acquisition, development, and construction


-




-




-



NM


NM

Total non-accrual mortgage loans


21




23




18



-9%


17%

Other non-accrual loans (1)


7




9




27



-22%


-74%

Total non-performing loans


28




32




45



-13%


-38%

Repossessed assets (2)


9




8




10



13%


-10%

Total non-performing assets

$

37



$

40



$

55



-8%


-33%


(1)

Includes $7 million, $9 million and $24 million of non-accrual taxi medallion-related loans at September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

(2)

Includes $5 million, $5 million and $8 million of repossessed taxi medallions at September 30, 2021, June 30, 2021, and September 30, 2020, respectively.


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










September 30,


June 30,


September 30,



2021


2021


2020








Non-performing loans to total loans


0.06%


0.07%


0.11%

Non-performing assets to total assets


0.06


0.07


0.10

Allowance for losses on loans to non-performing loans


711.96


641.41


415.22

Allowance for losses on loans to total loans


0.46


0.46


0.44


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
























September 30, 2021











compared to


September 30,



June 30,



September 30,



June 30,


September 30,


2021



2021



2020



2021


2020

(dollars in millions)













Loans 30 to 89 Days Past Due:













     Multi-family

$

426



$

9



$

-



4633%


NM

     Commercial real estate


11




15




3



-27%


267%

     One-to-four family residential


10




-




2



NM


400%

     Acquisition, development, and construction


-




-




-



NM


NM

     Other (1)


-




11




-



-100%


NM

Total loans 30 to 89 days past due

$

447



$

35



$

5



1177%


8840%














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

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)


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


















For the Three Months Ended



For the Nine Months Ended



September 30,



June 30,



September 30,



September 30,



September 30,



2021



2021



2020



2021



2020


(dollars in millions)















Charge-offs:















     Multi-family

$

-



$

1



$

-



$

1



$

-


     Commercial real estate


-




-




-




-




-


     One-to-four family residential


1




-




-




1




-


     Acquisition, development, and















   construction


-




-




-




-




-


     Other (1)


-




-




1




4




15


Total charge-offs

$

1



$

1



$

1



$

6



$

15

















Recoveries:















     Multi-family

$

-



$

-



$

-



$

-



$

-


     Commercial real estate


-




(2)




(1)




(2)




(1)


     One-to-four family residential


-




-




-




-




-


     Acquisition, development, and















   construction


-




-




-




-




-


     Other (1)


(1)




(5)




(1)




(11)




(1)


Total recoveries


(1)




(7)




(2)




(13)




(2)

















Net (recoveries) charge-offs 

$

-



$

(6)



$

(1)



$

(7)



$

13
































Net (recoveries) charge-offs  to average loans (2)


0.00

%



(0.01)

%



0.00

%



(0.02)

%



0.03

%


(1)

Includes taxi medallion loans of $(1) million, $(1) million, and $(1) million, respectively, for the three months ended September 30, 2021, June 30, 2021, and September 30, 2020  and $0 and $9 million, respectively, for the nine months ended September 30, 2021 and 2020.

(2)

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

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SOURCE New York Community Bancorp, Inc.

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