Board of Directors Declares $0.25 per Share
Quarterly Cash Dividend
First Quarter 2015 Highlights
-
Solid Earnings and Returns:
-
The Company generated first quarter GAAP earnings of $119.3 million,
providing a 1.04% return on average tangible assets and a 14.32%
return on average tangible stockholders’ equity. (2)
-
Strong Loan Production:
-
Loans originated for investment totaled $2.7 billion, including $1.7
billion of multi-family loans.
- Loans originated for sale rose
$517.5 million linked-quarter to $1.5 billion.
-
Superior Asset Quality:
-
Non-performing non-covered assets represented 0.29% of total
non-covered assets at 3/31/2015.
- Non-performing non-covered
loans represented 0.19% of total non-covered loans at that date.
-
Increased Net Interest Income and Margin:
- Net interest income rose $9.1 million sequentially to
$292.8 million.
- The Company’s net interest margin rose seven
basis points sequentially to 2.68%.
- Prepayment penalty income
rose $8.3 million linked-quarter to $30.1 million and contributed 28
basis points to the margin in 1Q 2015.
-
Strategic Balance Sheet Management:
- Assets declined $307.5 million from the year-end 2014
balance to $48.3 billion at 3/31/2015.
- Primarily reflecting
participations, loans sold totaled $553.3 million in 1Q 2015.
-
Continued Deposit Growth:
-
Deposits rose to $28.9 billion over the course of the quarter,
reflecting an annualized growth rate of 8.5%.
-
Strong Efficiency:
-
The efficiency ratio was 45.00% in 1Q 2015. (3)
-
Solid Capital Measures:
-
Excluding accumulated other comprehensive loss, net of tax (“AOCL”),
tangible stockholders’ equity represented 7.42% of tangible assets at
3/31/2015. (2)
WESTBURY, N.Y.--(BUSINESS WIRE)--
New York Community Bancorp, Inc. (NYSE:NYCB) (the “Company”) today
reported GAAP earnings of $119.3 million, or $0.27 per diluted share,
for the three months ended March 31, 2015, as compared to $131.2
million, or $0.30 per diluted share, in the trailing quarter and $115.3
million, or $0.26 per diluted share, in the year-earlier three months.
The Company also reported cash earnings of $129.0 million, or $0.29 per
diluted share, for the current first quarter, which contributed an
additional $9.7 million to tangible stockholders’ equity at March 31st. (1)(2)
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_______________
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Please Note: Footnotes are located on the last page of text. As
further discussed in the footnotes, “cash earnings,” “tangible
assets,” “average tangible assets,” “tangible stockholders’
equity,” “average tangible stockholders’ equity,” and the related
measures are all non-GAAP financial measures.
|
Commenting on the Company’s strong financial results, President and
Chief Executive Officer Joseph R. Ficalora stated, “We are very pleased
with our first quarter 2015 performance, which was highlighted by the
linked-quarter growth of our net interest income and margin, the
exceptional quality of our assets, and the effective management of our
balance sheet.
“Largely reflecting an increase in property transactions, prepayment
penalty income rose $8.3 million sequentially, to $30.1 million, and
added 28 basis points to our margin in the first quarter of this year.
As a result, our net interest income rose $9.1 million to $292.8
million, and our margin rose seven basis points to 2.68%.
“Our measures of asset quality were also worthy of mention. At the end
of March, non-performing non-covered assets represented 0.29% of total
non-covered assets, and non-performing non-covered loans represented
0.19% of total non-covered loans. In addition, we’ve now had net
recoveries for four consecutive quarters, bringing the twelve-month
total to $1.3 million.
“We also achieved our objective of maintaining our assets below the
current SIFI threshold; in fact, our assets fell $307.5 million to $48.3
billion at the end of March. While calls of securities contributed to
the reduction, the three-month decline was largely due to the sale of
loans. Consistent with the strategy we talked about early in the first
quarter, we sold $553.3 million of loans—including $410.5 million of
multi-family—while clearly retaining our dominant role in our primary
lending niche. Notwithstanding the sale of such loans, which was largely
through participations, multi-family loans accounted for $23.5 billion
of our quarter-end loans held for investment—and for $1.7 billion of the
loans we produced in the first three months of this year.
“I would also note that during this time, despite the decline in assets,
we generated solid earnings of $119.3 million, or $0.27 per diluted
share.”
Board of Directors Declares $0.25 per Share
Dividend Payable on May 22, 2015
“In view of our earnings and capital strength, the Board of Directors
last night declared our 45th consecutive quarterly cash dividend of
$0.25 per share. The dividend will be payable on May 22, 2015 to
shareholders of record as of May 11th,” Mr. Ficalora said.
Balance Sheet Summary
The Company recorded total assets of $48.3 billion at March 31, 2015, a
$307.5 million reduction from the balance at December 31st. Total loans
accounted for $35.7 billion, or 74.0%, of the current quarter-end
balance, while total securities accounted for $7.0 billion, or 14.4%.
Loans
Covered Loans
Primarily reflecting repayments, covered loans (i.e., the loans acquired
in the Company’s FDIC-assisted transactions) fell $87.2 million from the
year-end 2014 balance to $2.3 billion, representing 6.6% of total loans,
at the end of March. In the three months ended March 31, 2015, accretion
on the covered loan portfolio was $35.6 million, as compared to $35.9
million and $34.7 million, respectively, in the three months ended
December 31, and March 31, 2014.
Non-Covered Loans Held for Investment
Non-covered loans held for investment totaled $33.0 billion at the close
of the current first quarter, a $12.6 million reduction from the balance
at December 31st.
The following table summarizes the Company’s production of loans held
for investment in the three months ended March 31, 2015, December 31,
2014, and March 31, 2014:
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
(in thousands)
|
|
|
2015
|
|
2014
|
|
2014
|
|
Mortgage Loans Originated for Investment:
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
$
|
1,674,446
|
|
$
|
1,879,470
|
|
$
|
1,946,585
|
|
Commercial real estate
|
|
|
|
610,874
|
|
|
417,715
|
|
|
472,673
|
|
One-to-four family
|
|
|
|
788
|
|
|
24,525
|
|
|
85,209
|
|
Acquisition, development, and construction
|
|
|
|
70,794
|
|
|
17,351
|
|
|
55,929
|
|
Total mortgage loans originated for investment
|
|
|
$
|
2,356,902
|
|
$
|
2,339,061
|
|
$
|
2,560,396
|
|
Other Loans Originated for Investment:
|
|
|
|
|
|
|
|
|
Specialty finance
|
|
|
$
|
230,670
|
|
$
|
296,310
|
|
$
|
104,941
|
|
Other commercial and industrial
|
|
|
|
91,501
|
|
|
89,894
|
|
|
151,034
|
|
Other
|
|
|
|
1,676
|
|
|
1,386
|
|
|
1,584
|
|
Total other loans originated for investment
|
|
|
$
|
323,847
|
|
$
|
387,590
|
|
$
|
257,559
|
|
Total loans originated for investment
|
|
|
$
|
2,680,749
|
|
$
|
2,726,651
|
|
$
|
2,817,955
|
|
|
|
|
|
|
|
|
|
Multi-family loans represented $23.5 billion of loans held for
investment at the end of the current first quarter, reflecting a $381.3
million decrease from the balance at December 31st. In addition to the
modest decline in originations, the decline in multi-family loans
reflects an increase in property transactions and refinancing activity
(which resulted in higher prepayment penalty income), and the sale of
$410.5 million of multi-family loans.
Commercial real estate ("CRE") loans represented $7.8 billion of loans
held for investment at the end of the current first quarter, a $188.6
million increase from the balance at December 31st. While originations
of CRE loans rose sequentially and year-over-year, the growth of the
portfolio was partially offset by the sale of $97.6 million of CRE loans
in the first three months of 2015.
The following table provides additional information about the Company’s
multi-family and CRE loan portfolios at March 31, 2015 and December 31,
2014:
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
|
Multi-Family Loan Portfolio:
|
|
|
|
|
|
|
|
|
|
Loans outstanding
|
|
|
|
$23,467,737
|
|
|
$23,849,038
|
|
|
Percent of total held-for-investment loans
|
|
|
|
71.1
|
%
|
|
72.2
|
%
|
|
Average loan size
|
|
|
|
$4,894
|
|
|
$5,001
|
|
|
Expected weighted average life
|
|
|
|
2.6
|
years
|
|
3.0
|
years
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loan Portfolio:
|
|
|
|
|
|
|
|
|
|
Loans outstanding
|
|
|
|
$7,825,643
|
|
|
$7,637,061
|
|
|
Percent of total held-for-investment loans
|
|
|
|
23.7
|
%
|
|
23.1
|
%
|
|
Average loan size
|
|
|
|
$5,175
|
|
|
$4,991
|
|
|
Expected weighted average life
|
|
|
|
3.2
|
years
|
|
3.2
|
years
|
|
|
|
|
|
|
|
|
|
|
Also included in the March 31st balance of loans held for investment
were acquisition, development, and construction (“ADC”) loans, which
rose $50.3 million sequentially to $308.1 million; one-to-four family
loans, which fell $33.9 million sequentially to $105.1 million; and
other loans, which rose $163.7 million sequentially to $1.3 billion.
Included in other loans at the end of March were specialty finance loans
and leases of $633.6 million, reflecting a modest linked-quarter
increase, and other commercial and industrial (“C&I”) loans of $628.5
million, reflecting a $151.9 million linked-quarter rise. The latter
increase largely reflects the transfer of certain other C&I loans in the
amount of $158.5 million from “held for sale” to “held for investment”
in the first quarter of this year.
Non-Covered Loans Held for Sale
Non-covered loans held for sale totaled $351.5 million at the end of the
current first quarter, a $27.9 million reduction from the balance at
December 31st. All of the Company’s loans held for sale were one-to-four
family loans at March 31st.
In the three months ended March 31, 2015, the volume of loans originated
for sale totaled $1.5 billion, exceeding the volume produced in the
trailing and year-earlier quarters by $517.5 million and $855.4 million,
respectively. The increase in the production of one-to-four family loans
held for sale was largely due to the lower level of residential mortgage
interest rates in the first three months of this year.
In the first quarter of 2015, the average balance of loans held for sale
was $593.0 million, as compared to $738.5 million and $230.6 million,
respectively, in the trailing and year-earlier three months.
Pipeline
The Company currently has a loan pipeline of approximately $3.4 billion,
including loans held for investment of approximately $2.2 billion and
one-to‐four family loans held for sale of approximately $1.2 billion.
Asset Quality
The following discussion pertains only to the Company's portfolio of
non-covered loans held for investment (excluding purchased
credit-impaired loans) and non-covered other real estate owned ("OREO").
The Company’s asset quality reflected continued improvement in the three
months ended March 31, 2015:
-
Non-performing non-covered assets totaled $133.4 million at the end of
the current first quarter, a $5.5 million decrease from the balance at
December 31st. Partly reflecting the transfer of a non-performing
multi-family loan to OREO, non-performing loans declined $13.9 million
during this time to $63.1 million, offsetting the impact of an $8.4
million increase in OREO to $70.3 million.
-
Non-performing non-covered assets represented 0.29% of total
non-covered assets at the end of the current first quarter, while
non-performing non-covered loans represented 0.19% of total
non-covered loans. At December 31, 2014, the respective measures were
0.30% and 0.23%.
-
The Company recorded net recoveries of $766,000 and $113,000,
respectively, in the three months ended March 31, 2015 and December
31, 2014, in contrast to net charge-offs of $2.6 million in the first
quarter of last year.
The following table summarizes the Company’s non-performing non-covered
loans and assets at March 31, 2015, December 31, 2014, and March 31,
2014:
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|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
March 31,
2014
|
|
Non-Performing Non-Covered Assets:
|
|
|
|
|
|
|
|
|
|
Non-accrual non-covered mortgage loans:
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
|
$
|
18,779
|
|
$
|
31,089
|
|
$
|
68,012
|
|
Commercial real estate
|
|
|
|
|
23,698
|
|
|
24,824
|
|
|
27,014
|
|
One-to-four family
|
|
|
|
|
11,270
|
|
|
11,032
|
|
|
9,640
|
|
Acquisition, development, and construction
|
|
|
|
|
654
|
|
|
654
|
|
|
2,328
|
|
Total non-accrual non-covered mortgage loans
|
|
|
|
|
54,401
|
|
|
67,599
|
|
|
106,994
|
|
Other non-accrual non-covered loans
|
|
|
|
|
8,696
|
|
|
9,351
|
|
|
6,385
|
|
Total non-performing non-covered loans
|
|
|
|
$
|
63,097
|
|
$
|
76,950
|
|
$
|
113,379
|
|
Non-covered other real estate owned
|
|
|
|
|
70,311
|
|
|
61,956
|
|
|
70,655
|
|
Total non-performing non-covered assets
|
|
|
|
$
|
133,408
|
|
$
|
138,906
|
|
$
|
184,034
|
|
|
|
|
|
|
|
|
|
|
The following table presents the Company's asset quality measures at or
for the three months ended March 31, 2015, December 31, 2014, and March
31, 2014:
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
March 31,
2014
|
|
Non-performing non-covered loans to total
|
|
|
|
|
|
|
|
|
|
|
|
|
non-covered loans
|
|
|
|
0.19
|
%
|
|
0.23
|
%
|
|
0.37
|
%
|
|
Non-performing non-covered assets to total
|
|
|
|
|
|
|
|
|
|
|
|
|
non-covered assets
|
|
|
|
0.29
|
|
|
0.30
|
|
|
0.41
|
|
|
Net charge-offs during the period to average loans
|
|
|
|
|
|
|
|
|
|
|
|
|
during the period (non-annualized)
|
|
|
|
(0.00
|
)
|
|
(0.00
|
)
|
|
0.01
|
|
|
Allowance for losses on non-covered loans to non-
|
|
|
|
|
|
|
|
|
|
|
|
|
performing non-covered loans
|
|
|
|
225.32
|
|
|
181.75
|
|
|
122.92
|
|
|
Allowance for losses on non-covered loans to total
|
|
|
|
|
|
|
|
|
|
|
|
|
non-covered loans
|
|
|
|
0.43
|
|
|
0.42
|
|
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30 to 89 days past due totaled $6.8 million at the end of the
current first quarter, a $569,000 increase from the balance recorded at
December 31, 2014. While multi-family and CRE loans 30 to 89 days past
due rose $1.1 million and $1.8 million, respectively, over the course of
the quarter, the impact was largely offset by reductions in the balances
of one-to-four family and other loans 30 to 89 days past due. The net
effect of the increase in loans 30 to 89 days past due and the decline
in non-performing assets was a $4.9 million reduction in total
delinquencies at March 31, 2015.
Securities
Securities represented $7.0 billion, or 14.4%, of total assets at the
end of the current first quarter, a $135.9 million reduction from the
balance at December 31st. The linked-quarter decline was attributable to
repayments and, to a lesser extent, calls of securities. At March 31st,
government-sponsored enterprise (“GSE”) obligations represented 95.5% of
total securities, consistent with the percentage at the end of 2014.
Securities held to maturity accounted for $6.8 billion, or 97.5%, of
total securities at the end of the current first quarter, and were down
$137.8 million from the balance at December 31st. Available-for-sale
securities accounted for the remaining $175.7 million of the March 31st
balance, and were up $1.9 million from the balance at year-end.
Funding Sources
Reflecting the Company’s deposit-gathering efforts, deposits rose $602.7
million from the December 31st balance to $28.9 billion at March 31st.
Reflecting both deposit growth and the decline in total assets, deposits
represented 60.0% of total assets at the end of the current first
quarter, as compared to 58.3% of total assets at the end of 2014.
The linked-quarter rise in deposits was primarily due to a $646.8
million increase in savings accounts to $7.7 billion, together with a
$448.2 million rise in non-interest-bearing accounts to $2.8 billion.
NOW and money market accounts also rose during this time, by $79.9
million, to $12.6 billion at March 31st. The benefit of these increases
was partly offset by a $572.2 million decline in certificates of deposit
(“CDs”) to $5.8 billion.
During this time, borrowed funds fell $962.1 million to $13.3 billion,
reflecting a like decline in wholesale borrowings to $12.9 billion.
Borrowed funds represented 27.5% of total assets at the end of the
current first quarter, a reduction from 29.3% at the end of 2014.
Stockholders’ Equity
Stockholders’ equity totaled $5.8 billion at the end of the current
first quarter, a $13.0 million increase from the balance recorded at
December 31st. Excluding goodwill and core deposit intangibles (“CDI”)
from the respective balances, tangible stockholders’ equity rose $14.6
million to $3.4 billion at March 31st. (2)
Reflecting the new capital rules under Basel III that took effect on
January 1, 2015, the regulatory capital ratios for both New York
Community Bank and New York Commercial Bank continued to exceed the
federal requirements for “well capitalized” classification, as indicated
in the table on the last page of this release.
Earnings Summary for the Three Months Ended
March 31, 2015
The Company generated GAAP earnings of $119.3 million in the current
first quarter, as compared to $131.2 million in the trailing quarter and
$115.3 million in the first quarter of 2014. The respective amounts were
equivalent to $0.27, $0.30, and $0.26 per diluted share.
Net Interest Income
Net interest income rose $9.1 million sequentially and $8.6 million
year-over-year to $292.8 million in the three months ended March 31,
2015. The linked-quarter rise was the net effect of a $6.1 million
increase in interest income to $428.9 million and a $3.0 million
reduction in interest expense to $136.1 million. The year-over-year
increase was the net effect of a $13.6 million increase in interest
income and a $5.0 million increase in interest expense. Although the
Company’s net interest margin dropped four basis points year-over-year,
it rose seven basis points linked-quarter, to 2.68% in the first quarter
of 2015.
The following factors contributed to the linked-quarter increases in net
interest income and net interest margin:
-
Prepayment penalty income contributed $30.1 million to net interest
income in the current first quarter, up $8.3 million from the level
recorded in the fourth quarter of 2014. The increase was largely
attributable to an increase in property transactions and refinancing
activity in the Company’s multi-family lending niche. Similarly,
prepayment penalty income contributed 28 basis points to the Company’s
current first-quarter margin, as compared to 20 basis points in the
fourth quarter of last year. Absent the contributions of prepayment
penalty income in the respective quarters, the margin would have
declined one basis point in the first quarter of 2015.
-
Interest-earning assets averaged $43.5 billion in the current first
quarter, a $112.8 million decrease from the average balance in the
trailing three-month period. The decrease was the net effect of a
$175.6 million rise in the average balance of loans to $36.0 billion,
and a $288.4 million decrease in the average balance of securities and
money market investments to $7.5 billion. Notwithstanding the decrease
in the average balance of interest-earning assets, the average yield
rose eight basis points linked-quarter, as the average yields on loans
and on securities and money market investments rose six and 14 basis
points, respectively, to 4.06% and 3.43%. The decline in the average
balance of interest-earning assets was not unexpected, given the steps
taken by management to limit asset growth in the quarter; the increase
in the average yield was primarily due to the aforementioned rise in
prepayment penalty income, in addition to yield maintenance fees
received on securities that prepaid in the first three months of this
year.
-
Interest-bearing liabilities averaged $40.2 billion in the current
first quarter, down $108.1 million from the average balance in the
fourth quarter of 2014. The decrease was the net effect of a $108.8
million decline in the average balance of interest-bearing deposits to
$26.0 billion and a nominal increase in the average balance of
borrowed funds to $14.2 billion. The average cost of funds was 1.37%
in both the current first and trailing quarters, as the average cost
of interest-bearing deposits rose a single basis point to 0.63%
linked-quarter, and the average cost of borrowed funds declined by a
like amount to 2.72%. The modest increase in the cost of
interest-bearing deposits also was not unexpected, given management’s
focus on increasing core deposits and the related increase in interest
rates paid on such accounts.
The following factors contributed to the year-over-year increase in net
interest income and the modest decline in net interest margin:
-
Prepayment penalty income rose $9.8 million year-over-year and
contributed nine basis points more to the current first-quarter margin
than it contributed to the margin in the first quarter of last year.
-
Average interest-earning assets rose $2.0 billion year-over-year, as a
$2.9 billion increase in the average loan balance more than offset the
impact of a $976.6 million decline in the average balance of
securities and money market investments. The benefit of the increase
in the average balance of interest-earning assets exceeded the impact
of a five-basis point reduction in the average yield on such assets,
as the benefit of a 14-basis point rise in the average yield on
securities and money market investments was partially offset by the
impact of a 13-basis point decline in the average yield on loans.
-
Average interest-bearing liabilities rose $1.6 billion year-over-year,
as the average balance of interest-bearing deposits rose $2.4 billion,
and the average balance of borrowed funds fell $803.3 million. The
impact of the increase in the average balance of interest-bearing
liabilities was somewhat tempered by the benefit of a one-basis point
decline in the average cost of funds. While the average cost of
interest-bearing deposits and borrowed funds rose five and ten basis
points, respectively, from the year-earlier level, the average cost of
interest-bearing liabilities was favorably impacted by declines in the
average balances of CDs and borrowed funds.
(Recovery of) Provision for Loan Losses
(Recovery of) Losses on Non-Covered Loans
Reflecting management’s assessment of the adequacy of the allowance for
losses on non-covered loans, the quarter’s net recoveries, and the
linked-quarter decline in the non-covered loan balance, the Company
recovered $870,000 from the allowance for non-covered loan losses in the
first quarter of 2015. In the trailing and year-earlier quarters, no
provision or recovery was recorded for losses on non-covered loans.
Provision for (Recovery of) Losses on Covered Loans
Reflecting a modest decrease in the cash flows expected from certain
pools of acquired loans covered by FDIC loss-sharing agreements, the
Company recorded an $877,000 provision for covered loan losses in the
first three months of 2015. In the trailing and year-earlier quarters,
the Company recovered $200,000 and $14.6 million, respectively, from the
allowance on covered loan losses, reflecting an increase in expected
cash flows from the covered loan portfolio. The provision recorded in
the current first quarter was partly offset by FDIC indemnification
income of $702,000, while the recoveries in the trailing and
year-earlier quarters were partly offset by FDIC indemnification expense
of $160,000 and $11.7 million, respectively. The FDIC indemnification
income and expense were recorded in non-interest income in the
respective periods, as discussed below.
Non-Interest Income
Non-interest income totaled $52.2 million in the current first quarter,
a linked-quarter decrease of $18.2 million and a year-over-year increase
of $15.0 million. In the fourth quarter of 2014, non-interest income
included the recovery of $17.3 million on a security that had been
written off in 2009. No comparable recovery was recorded in the current
first quarter or the year-earlier three months. In the first quarter of
2014, non-interest income included a $3.9 million gain on the sale of
Class B Visa shares; no comparable gain was recorded in the three months
ended March 31, 2015 or December 31, 2014.
In addition to the recovery in the trailing quarter, the linked-quarter
decrease in non-interest income largely reflects a decline in net
securities gains. Net securities gains totaled $211,000 in the current
first quarter and $8.7 million in the trailing three months. The impact
of this linked-quarter decline was only somewhat tempered by the
following factors: a $4.9 million increase in gains on the sale of loans
to $5.9 million (recorded in “other” income); the $862,000 difference
between the FDIC indemnification income recorded in the current first
quarter and the FDIC indemnification expense recorded in the fourth
quarter of last year; and a $2.0 million increase in mortgage banking
income to $18.4 million, as income from originations rose $6.8 million
to $15.5 million, and servicing income fell $4.8 million to $2.9 million.
The year-over-year increase in non-interest income was attributable to
the same factors that tempered the linked-quarter decline: Mortgage
banking income rose $3.8 million in the current first quarter, as income
from originations rose $11.7 million and exceeded the impact of a $7.9
million decline in servicing income to the level noted above. In
addition, the Company recorded FDIC indemnification income of $702,000
in the current first quarter, in contrast to FDIC indemnification
expense of $11.7 million in the year-earlier three months. Furthermore,
other non-interest income rose $7.9 million year-over-year to $17.8
million, primarily reflecting the aforementioned gains on the sale of
loans. The benefit of these increases was tempered by the impact of a
$4.7 million decline in net securities gains.
Non-Interest Expense
Non-interest expense totaled $156.8 million in the current first
quarter, reflecting a linked-quarter increase of $8.7 million and a
year-over-year increase of $10.5 million. Operating expenses accounted
for $155.3 million of non-interest expense in the current first quarter,
reflecting increases of $9.0 million and $11.3 million, respectively,
over the corresponding periods.
While occupancy and equipment expense and general and administrative
expense were relatively stable, compensation and benefits expense rose
$9.0 million sequentially and $11.5 million year-over-year, to $87.2
million, in the three months ended March 31, 2015. Both increases
include a $1.7 million increase in pension expense and $4.0 million of
severance expenses; in addition, the linked-quarter increase reflects a
$3.6 million increase in payroll taxes, while the year-over-year
increase also reflects the impact of normal salary increases.
Income Tax Expense
Income tax expense fell $6.2 million sequentially and $5.5 million
year-over-year to $68.9 million in the three months ended March 31,
2015. The respective declines were due, in part, to a drop in pre-tax
income, which fell $18.1 million and $1.5 million, respectively, to
$188.2 million in the first quarter of this year. Meanwhile, the
effective tax rate was 36.62% in the current first quarter, as compared
to 36.39% and 39.24%, respectively, in the trailing and year-earlier
three months. In the first quarter of 2014, the level of income tax
expense was increased by a one-time charge of $4.5 million in connection
with the enactment of new tax laws by the State of New York.
About New York Community Bancorp, Inc.
One of the largest U.S. bank holding companies, with assets of $48.3
billion, New York Community Bancorp, Inc. is a leading producer of
multi-family loans on rent-regulated buildings in New York City and the
parent of New York Community Bank and New York Commercial Bank. With
deposits of $28.9 billion and 272 branches in Metro New York, New
Jersey, Florida, Ohio, and Arizona, the Company also ranks among the
largest depositories in the United States.
Reflecting its growth through a series of acquisitions, the Community
Bank operates 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. Similarly, New York Commercial
Bank operates 18 of its 30 New York-based branches under the divisional
name Atlantic Bank. Additional information about the Company and its
bank subsidiaries is available at www.myNYCB.com
and www.NewYorkCommercialBank.com.
Post-Earnings Release Conference Call
As previously announced, the Company will host a conference call on
Wednesday, April 29, 2015, at 8:30 a.m. (Eastern Daylight Time) to
discuss its first quarter 2015 performance and strategies. The
conference call may be accessed by dialing (866)
952-1906 (for domestic calls) or (785)
424-1825 (for international calls) and providing the following
access code: 1Q15NYCB. A replay will be available approximately two
hours following completion of the call through midnight on May 3rd, and
may be accessed by calling (800) 374-0934
(domestic) or (402) 220-0680
(international) and providing the same access code. In addition, the
conference call will be webcast at ir.myNYCB.com, and archived through
5:00 p.m. on May 27, 2015.
Forward-Looking Statements
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 retain
key members of management; 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.
Greater detail regarding some of these factors is provided in the Risk
Factors section of our Form 10‐K for the year ended December 31, 2014
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.
|
|
|
Footnotes to the Text
|
|
|
|
(1)
|
|
Cash earnings and the related profitability measures are non-GAAP
financial measures. Please see the reconciliations of our GAAP
earnings and non-GAAP (cash) earnings on page 10 of this release.
|
|
(2)
|
|
Tangible assets and tangible stockholders’ equity are non-GAAP
financial measures. Please see the reconciliations of our GAAP and
non-GAAP financial measures on page 11 of this release.
|
|
(3)
|
|
We calculate our efficiency ratio by dividing our operating expenses
by the sum of our net interest income and non-interest income.
|
|
|
- Financial Statements and Highlights Follow ‐
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
|
|
CONSOLIDATED STATEMENTS OF CONDITION
|
|
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
582,558
|
|
|
|
$
|
564,150
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
|
|
175,710
|
|
|
|
|
173,783
|
|
|
Held-to-maturity
|
|
|
|
|
6,784,883
|
|
|
|
|
6,922,667
|
|
|
Total securities
|
|
|
|
|
6,960,593
|
|
|
|
|
7,096,450
|
|
|
Loans held for sale
|
|
|
|
|
351,467
|
|
|
|
|
379,399
|
|
|
Non-covered mortgage loans held for investment:
|
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
|
|
23,467,737
|
|
|
|
|
23,849,038
|
|
|
Commercial real estate
|
|
|
|
|
7,825,643
|
|
|
|
|
7,637,061
|
|
|
One-to-four family
|
|
|
|
|
105,054
|
|
|
|
|
138,915
|
|
|
Acquisition, development, and construction
|
|
|
|
|
308,114
|
|
|
|
|
257,850
|
|
|
Total non-covered mortgage loans held for investment
|
|
|
|
|
31,706,548
|
|
|
|
|
31,882,864
|
|
|
Non-covered other loans held for investment
|
|
|
|
|
1,305,810
|
|
|
|
|
1,142,092
|
|
|
Total non-covered loans held for investment
|
|
|
|
|
33,012,358
|
|
|
|
|
33,024,956
|
|
|
Less: Allowance for losses on non-covered loans
|
|
|
|
|
(142,168
|
)
|
|
|
|
(139,857
|
)
|
|
Non-covered loans held for investment, net
|
|
|
|
|
32,870,190
|
|
|
|
|
32,885,099
|
|
|
Covered loans
|
|
|
|
|
2,341,428
|
|
|
|
|
2,428,622
|
|
|
Less: Allowance for losses on covered loans
|
|
|
|
|
(43,942
|
)
|
|
|
|
(45,481
|
)
|
|
Covered loans, net
|
|
|
|
|
2,297,486
|
|
|
|
|
2,383,141
|
|
|
Total loans, net
|
|
|
|
|
35,519,143
|
|
|
|
|
35,647,639
|
|
|
Federal Home Loan Bank stock, at cost
|
|
|
|
|
464,942
|
|
|
|
|
515,327
|
|
|
Premises and equipment, net
|
|
|
|
|
322,039
|
|
|
|
|
319,002
|
|
|
FDIC loss share receivable
|
|
|
|
|
378,577
|
|
|
|
|
397,811
|
|
|
Goodwill
|
|
|
|
|
2,436,131
|
|
|
|
|
2,436,131
|
|
|
Core deposit intangibles, net
|
|
|
|
|
6,359
|
|
|
|
|
7,943
|
|
|
Other assets (includes $31,015 and $32,048, respectively, of other
real estate owned
|
|
|
|
|
|
|
|
|
|
|
covered by loss sharing agreements)
|
|
|
|
|
1,581,373
|
|
|
|
|
1,574,764
|
|
|
Total assets
|
|
|
|
$
|
48,251,715
|
|
|
|
$
|
48,559,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
|
|
$
|
12,629,459
|
|
|
|
$
|
12,549,600
|
|
|
Savings accounts
|
|
|
|
|
7,698,404
|
|
|
|
|
7,051,622
|
|
|
Certificates of deposit
|
|
|
|
|
5,848,389
|
|
|
|
|
6,420,598
|
|
|
Non-interest-bearing accounts
|
|
|
|
|
2,755,135
|
|
|
|
|
2,306,914
|
|
|
Total deposits
|
|
|
|
|
28,931,387
|
|
|
|
|
28,328,734
|
|
|
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
Wholesale borrowings
|
|
|
|
|
12,905,987
|
|
|
|
|
13,868,132
|
|
|
Junior subordinated debentures
|
|
|
|
|
358,415
|
|
|
|
|
358,355
|
|
|
Total borrowed funds
|
|
|
|
|
13,264,402
|
|
|
|
|
14,226,487
|
|
|
Other liabilities
|
|
|
|
|
261,129
|
|
|
|
|
222,181
|
|
|
Total liabilities
|
|
|
|
|
42,456,918
|
|
|
|
|
42,777,402
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
Preferred stock at par $0.01 (5,000,000 shares authorized; none
issued)
|
|
|
|
--
|
|
|
|
|
--
|
|
|
Common stock at par $0.01 (600,000,000 shares authorized;
444,278,206 and 442,659,460
|
|
|
|
|
|
|
|
|
|
|
shares issued; and 444,277,802 and 442,587,190 shares outstanding,
respectively)
|
|
|
|
|
4,443
|
|
|
|
|
4,427
|
|
|
Paid-in capital in excess of par
|
|
|
|
|
5,370,090
|
|
|
|
|
5,369,623
|
|
|
Retained earnings
|
|
|
|
|
472,977
|
|
|
|
|
464,569
|
|
|
Treasury stock, at cost (404 and 72,270 shares, respectively)
|
|
|
|
|
(7
|
)
|
|
|
|
(1,118
|
)
|
|
Accumulated other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gain on securities available for sale, net of tax
|
|
|
|
|
4,705
|
|
|
|
|
2,990
|
|
|
Net unrealized loss on the non-credit portion of
other-than-temporary impairment losses,
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
|
|
|
(5,370
|
)
|
|
|
|
(5,387
|
)
|
|
Pension and post-retirement obligations, net of tax
|
|
|
|
|
(52,041
|
)
|
|
|
|
(53,289
|
)
|
|
Total accumulated other comprehensive loss, net of tax
|
|
|
|
|
(52,706
|
)
|
|
|
|
(55,686
|
)
|
|
Total stockholders’ equity
|
|
|
|
|
5,794,797
|
|
|
|
|
5,781,815
|
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
48,251,715
|
|
|
|
$
|
48,559,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans
|
|
|
|
$
|
364,504
|
|
|
$
|
358,298
|
|
|
$
|
345,530
|
|
|
Securities and money market investments
|
|
|
|
|
64,409
|
|
|
|
64,505
|
|
|
|
69,781
|
|
|
Total interest income
|
|
|
|
|
428,913
|
|
|
|
422,803
|
|
|
|
415,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
|
|
|
11,052
|
|
|
|
11,109
|
|
|
|
8,396
|
|
|
Savings accounts
|
|
|
|
|
12,333
|
|
|
|
11,254
|
|
|
|
6,473
|
|
|
Certificates of deposit
|
|
|
|
|
17,116
|
|
|
|
18,657
|
|
|
|
19,060
|
|
|
Borrowed funds
|
|
|
|
|
95,644
|
|
|
|
98,101
|
|
|
|
97,232
|
|
|
Total interest expense
|
|
|
|
|
136,145
|
|
|
|
139,121
|
|
|
|
131,161
|
|
|
Net interest income
|
|
|
|
|
292,768
|
|
|
|
283,682
|
|
|
|
284,150
|
|
|
(Recovery of) losses on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-covered loans
|
|
|
|
|
(870
|
)
|
|
|
--
|
|
|
|
--
|
|
|
Provision for (recovery of) losses on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
covered loans
|
|
|
|
|
877
|
|
|
|
(200
|
)
|
|
|
(14,630
|
)
|
|
Net interest income after (recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of) provisions for loan losses
|
|
|
|
|
292,761
|
|
|
|
283,882
|
|
|
|
298,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking income
|
|
|
|
|
18,406
|
|
|
|
16,446
|
|
|
|
14,610
|
|
|
Fee income
|
|
|
|
|
8,394
|
|
|
|
9,073
|
|
|
|
8,894
|
|
|
Bank-owned life insurance
|
|
|
|
|
6,704
|
|
|
|
6,620
|
|
|
|
6,829
|
|
|
Net gain on sales of securities
|
|
|
|
|
211
|
|
|
|
8,712
|
|
|
|
4,873
|
|
|
FDIC indemnification income (expense)
|
|
|
|
|
702
|
|
|
|
(160
|
)
|
|
|
(11,704
|
)
|
|
Gain on Visa shares sold
|
|
|
|
|
--
|
|
|
|
--
|
|
|
|
3,856
|
|
|
Other income
|
|
|
|
|
17,817
|
|
|
|
29,788
|
|
|
|
9,877
|
|
|
Total non-interest income
|
|
|
|
|
52,234
|
|
|
|
70,479
|
|
|
|
37,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
|
87,209
|
|
|
|
78,232
|
|
|
|
75,740
|
|
|
Occupancy and equipment
|
|
|
|
|
25,299
|
|
|
|
25,019
|
|
|
|
25,998
|
|
|
General and administrative
|
|
|
|
|
42,744
|
|
|
|
42,987
|
|
|
|
42,264
|
|
|
Total operating expenses
|
|
|
|
|
155,252
|
|
|
|
146,238
|
|
|
|
144,002
|
|
|
Amortization of core deposit intangibles
|
|
|
|
|
1,584
|
|
|
|
1,873
|
|
|
|
2,323
|
|
|
Total non-interest expense
|
|
|
|
|
156,836
|
|
|
|
148,111
|
|
|
|
146,325
|
|
|
Income before income taxes
|
|
|
|
|
188,159
|
|
|
|
206,250
|
|
|
|
189,690
|
|
|
Income tax expense
|
|
|
|
|
68,900
|
|
|
|
75,053
|
|
|
|
74,436
|
|
|
Net Income
|
|
|
|
$
|
119,259
|
|
|
$
|
131,197
|
|
|
$
|
115,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
$0.27
|
|
|
|
$0.30
|
|
|
|
$0.26
|
|
|
Diluted earnings per share
|
|
|
|
|
$0.27
|
|
|
|
$0.30
|
|
|
|
$0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATIONS OF GAAP
EARNINGS AND NON-GAAP EARNINGS (CASH EARNINGS)
(unaudited)
Although cash earnings are not a measure of performance calculated in
accordance with U.S. generally accepted accounting principles (“GAAP”),
we believe that they are important because of their contribution to
tangible stockholders’ equity. (Please see the discussion and
reconciliations of stockholders’ equity and tangible stockholders’
equity that appear under “Reconciliations of GAAP and Non-GAAP Financial
Measures” on page 11 of this release.)
We calculate cash earnings by adding back to GAAP earnings certain items
that have been charged against them but that are added to, rather than
subtracted from, tangible stockholders’ equity. For this reason, we
believe that cash earnings, although non-GAAP, are useful to investors
seeking to evaluate our financial performance and to compare our
performance with that of other companies in the banking industry that
also report cash earnings.
Cash earnings should not be considered in isolation or as a substitute
for net income, cash flows from operating activities, or other income or
cash flow statement data calculated in accordance with GAAP. Moreover,
the manner in which we calculate cash earnings may differ from that of
other companies reporting non-GAAP measures with similar names.
Reconciliations of our GAAP and cash earnings for the three months ended
March 31, 2015, December 31, 2014, and March 31, 2014, follow:
|
|
|
|
|
|
|
(in thousands, except per share data)
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
March 31,
2014
|
|
GAAP Earnings
|
|
|
|
$119,259
|
|
|
$131,197
|
|
|
$115,254
|
|
|
Additional contributions to tangible stockholders’ equity: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and appreciation of shares held in stock-related
|
|
|
|
|
|
|
|
|
|
|
|
|
benefit plans
|
|
|
|
7,165
|
|
|
6,734
|
|
|
6,664
|
|
|
Associated tax effects
|
|
|
|
996
|
|
|
656
|
|
|
1,496
|
|
|
Amortization of core deposit intangibles
|
|
|
|
1,584
|
|
|
1,873
|
|
|
2,323
|
|
|
Total additional contributions to tangible stockholders’ equity (1)
|
|
|
|
9,745
|
|
|
9,263
|
|
|
10,483
|
|
|
Cash earnings
|
|
|
|
$129,004
|
|
|
$140,460
|
|
|
$125,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted GAAP Earnings per Share
|
|
|
|
$0.27
|
|
|
$0.30
|
|
|
$0.26
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and appreciation of shares held in stock-related
|
|
|
|
|
|
|
|
|
|
|
|
|
benefit plans
|
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
Associated tax effects
|
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
Amortization of core deposit intangibles
|
|
|
|
--
|
|
|
--
|
|
|
0.01
|
|
|
Total additions
|
|
|
|
0.02
|
|
|
0.02
|
|
|
0.03
|
|
|
Diluted cash earnings per share
|
|
|
|
$0.29
|
|
|
$0.32
|
|
|
$0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Earnings Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash return on average assets
|
|
|
|
1.06
|
%
|
|
1.15
|
%
|
|
1.07
|
%
|
|
Cash return on average tangible assets (1)
|
|
|
|
1.11
|
|
|
1.21
|
|
|
1.13
|
|
|
Cash return on average stockholders’ equity
|
|
|
|
8.89
|
|
|
9.69
|
|
|
8.77
|
|
|
Cash return on average tangible stockholders’ equity (1)
|
|
|
|
15.36
|
|
|
16.76
|
|
|
15.33
|
|
|
Cash efficiency ratio (2)
|
|
|
|
42.92
|
|
|
39.39
|
|
|
42.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Tangible assets and tangible stockholders’ equity are non-GAAP
financial measures. Please see the reconciliations of our GAAP and
non-GAAP financial measures on page 11 of this release.
|
|
(2)
|
|
We calculate our cash efficiency ratio by excluding the amortization
and appreciation of shares held in our stock-related benefit plans
from our operating expenses and dividing the resultant amount by the
sum of our net interest income and non-interest income.
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATIONS OF GAAP
AND NON-GAAP FINANCIAL MEASURES
(unaudited)
Although tangible stockholders’ equity, adjusted tangible stockholders’
equity, tangible assets, and adjusted tangible assets are not calculated
in accordance with GAAP, management uses these non-GAAP financial
measures in their analysis of our performance. We believe that these
non-GAAP financial measures are an important indication of our ability
to grow both organically and through business combinations, and, with
respect to tangible stockholders’ equity and adjusted tangible
stockholders’ equity, our ability to pay dividends and engage in various
capital management strategies.
Tangible stockholders’ equity, adjusted tangible stockholders’ equity,
tangible assets, adjusted tangible assets, and the related non-GAAP
financial measures should not be considered in isolation or as a
substitute for stockholders’ equity, total assets, or any other measure
calculated in accordance with GAAP. Moreover, the manner in which we
calculate these non-GAAP financial measures may differ from that of
other companies reporting non-GAAP measures with similar names.
Reconciliations of our stockholders’ equity, tangible stockholders’
equity, and adjusted tangible stockholders’ equity; total assets,
tangible assets, and adjusted tangible assets; and the related measures
at or for the three months ended March 31, 2015, December 31, 2014, and
March 31, 2014, follow:
|
|
|
|
|
|
|
|
|
|
|
At or for the
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
(in thousands)
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
Total Stockholders’ Equity
|
|
|
|
$
|
5,794,797
|
|
|
$
|
5,781,815
|
|
|
$
|
5,742,652
|
|
|
Less: Goodwill
|
|
|
|
|
(2,436,131
|
)
|
|
|
(2,436,131
|
)
|
|
|
(2,436,131
|
)
|
|
Core deposit intangibles
|
|
|
|
|
(6,359
|
)
|
|
|
(7,943
|
)
|
|
|
(13,918
|
)
|
|
Tangible stockholders’ equity
|
|
|
|
$
|
3,352,307
|
|
|
$
|
3,337,741
|
|
|
$
|
3,292,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
$
|
48,251,715
|
|
|
$
|
48,559,217
|
|
|
$
|
47,567,470
|
|
|
Less: Goodwill
|
|
|
|
|
(2,436,131
|
)
|
|
|
(2,436,131
|
)
|
|
|
(2,436,131
|
)
|
|
Core deposit intangibles
|
|
|
|
|
(6,359
|
)
|
|
|
(7,943
|
)
|
|
|
(13,918
|
)
|
|
Tangible assets
|
|
|
|
$
|
45,809,225
|
|
|
$
|
46,115,143
|
|
|
$
|
45,117,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Stockholders’ Equity
|
|
|
|
$
|
3,352,307
|
|
|
$
|
3,337,741
|
|
|
$
|
3,292,603
|
|
|
Add back: Accumulated other comprehensive loss,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
|
|
|
52,706
|
|
|
|
55,686
|
|
|
|
35,125
|
|
|
Adjusted tangible stockholders’ equity
|
|
|
|
$
|
3,405,013
|
|
|
$
|
3,393,427
|
|
|
$
|
3,327,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Assets
|
|
|
|
$
|
45,809,225
|
|
|
$
|
46,115,143
|
|
|
$
|
45,117,421
|
|
|
Add back: Accumulated other comprehensive loss,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
|
|
|
52,706
|
|
|
|
55,686
|
|
|
|
35,125
|
|
|
Adjusted tangible assets
|
|
|
|
$
|
45,861,931
|
|
|
$
|
46,170,829
|
|
|
$
|
45,152,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Stockholders’ Equity
|
|
|
|
$
|
5,802,309
|
|
|
$
|
5,798,260
|
|
|
$
|
5,732,105
|
|
|
Less: Average goodwill and core deposit intangibles
|
|
|
|
|
(2,443,528
|
)
|
|
|
(2,445,262
|
)
|
|
|
(2,451,571
|
)
|
|
Average tangible stockholders’ equity
|
|
|
|
$
|
3,358,781
|
|
|
$
|
3,352,998
|
|
|
$
|
3,280,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets
|
|
|
|
$
|
48,769,552
|
|
|
$
|
48,870,512
|
|
|
$
|
46,872,770
|
|
|
Less: Average goodwill and core deposit intangibles
|
|
|
|
|
(2,443,528
|
)
|
|
|
(2,445,262
|
)
|
|
|
(2,451,571
|
)
|
|
Average tangible assets
|
|
|
|
$
|
46,326,024
|
|
|
$
|
46,425,250
|
|
|
$
|
44,421,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
$119,259
|
|
|
|
$131,197
|
|
|
|
$115,254
|
|
|
Add back: Amortization of core deposit intangibles,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
|
|
|
950
|
|
|
|
1,124
|
|
|
|
1,394
|
|
|
Adjusted net income
|
|
|
|
|
$120,209
|
|
|
|
$132,321
|
|
|
|
$116,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
|
|
NET INTEREST INCOME ANALYSIS
|
|
(dollars in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans, net
|
|
|
|
$
|
35,960,395
|
|
$
|
364,504
|
|
4.06
|
%
|
|
$
|
35,784,839
|
|
$
|
358,298
|
|
4.00
|
%
|
|
Securities and money market investments
|
|
|
|
|
7,542,579
|
|
|
64,409
|
|
3.43
|
|
|
|
7,830,979
|
|
|
64,505
|
|
3.29
|
|
|
Total interest-earning assets
|
|
|
|
|
43,502,974
|
|
|
428,913
|
|
3.95
|
|
|
|
43,615,818
|
|
|
422,803
|
|
3.87
|
|
|
Non-interest-earning assets
|
|
|
|
|
5,266,578
|
|
|
|
|
|
|
|
5,254,694
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
48,769,552
|
|
|
|
|
|
|
$
|
48,870,512
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
|
|
$
|
12,366,830
|
|
$
|
11,052
|
|
0.36
|
%
|
|
$
|
12,478,182
|
|
$
|
11,109
|
|
0.35
|
%
|
|
Savings accounts
|
|
|
|
|
7,528,983
|
|
|
12,333
|
|
0.66
|
|
|
|
7,100,938
|
|
|
11,254
|
|
0.63
|
|
|
Certificates of deposit
|
|
|
|
|
6,085,108
|
|
|
17,116
|
|
1.14
|
|
|
|
6,510,626
|
|
|
18,657
|
|
1.14
|
|
|
Total interest-bearing deposits
|
|
|
|
|
25,980,921
|
|
|
40,501
|
|
0.63
|
|
|
|
26,089,746
|
|
|
41,020
|
|
0.62
|
|
|
Borrowed funds
|
|
|
|
|
14,245,073
|
|
|
95,644
|
|
2.72
|
|
|
|
14,244,337
|
|
|
98,101
|
|
2.73
|
|
|
Total interest-bearing liabilities
|
|
|
|
|
40,225,994
|
|
|
136,145
|
|
1.37
|
|
|
|
40,334,083
|
|
|
139,121
|
|
1.37
|
|
|
Non-interest-bearing deposits
|
|
|
|
|
2,510,976
|
|
|
|
|
|
|
|
2,545,450
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
|
230,273
|
|
|
|
|
|
|
|
192,719
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
42,967,243
|
|
|
|
|
|
|
|
43,072,252
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
5,802,309
|
|
|
|
|
|
|
|
5,798,260
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
48,769,552
|
|
|
|
|
|
|
$
|
48,870,512
|
|
|
|
|
|
|
Net interest income/interest rate spread
|
|
|
|
|
|
$
|
292,768
|
|
2.58
|
%
|
|
|
|
$
|
283,682
|
|
2.50
|
%
|
|
Net interest margin
|
|
|
|
|
|
|
|
2.68
|
%
|
|
|
|
|
|
2.61
|
%
|
|
Ratio of interest-earning assets to interest-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
bearing liabilities
|
|
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits (1)
|
|
|
|
|
$22,406,789
|
|
|
$23,385
|
|
0.42
|
%
|
|
|
$22,124,570
|
|
|
$22,363
|
|
0.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Refers to all deposits other than certificates of deposit.
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
|
|
NET INTEREST INCOME ANALYSIS
|
|
(dollars in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans, net
|
|
|
|
$
|
35,960,395
|
|
$
|
364,504
|
|
4.06
|
%
|
|
$
|
33,011,094
|
|
$
|
345,530
|
|
4.19
|
%
|
|
Securities and money market investments
|
|
|
|
|
7,542,579
|
|
|
64,409
|
|
3.43
|
|
|
|
8,519,165
|
|
|
69,781
|
|
3.29
|
|
|
Total interest-earning assets
|
|
|
|
|
43,502,974
|
|
|
428,913
|
|
3.95
|
|
|
|
41,530,259
|
|
|
415,311
|
|
4.00
|
|
|
Non-interest-earning assets
|
|
|
|
|
5,266,578
|
|
|
|
|
|
|
|
5,342,511
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
48,769,552
|
|
|
|
|
|
|
$
|
46,872,770
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
|
|
$
|
12,366,830
|
|
$
|
11,052
|
|
0.36
|
%
|
|
$
|
10,609,142
|
|
$
|
8,396
|
|
0.32
|
%
|
|
Savings accounts
|
|
|
|
|
7,528,983
|
|
|
12,333
|
|
0.66
|
|
|
|
5,907,399
|
|
|
6,473
|
|
0.44
|
|
|
Certificates of deposit
|
|
|
|
|
6,085,108
|
|
|
17,116
|
|
1.14
|
|
|
|
7,023,958
|
|
|
19,060
|
|
1.10
|
|
|
Total interest-bearing deposits
|
|
|
|
|
25,980,921
|
|
|
40,501
|
|
0.63
|
|
|
|
23,540,499
|
|
|
33,929
|
|
0.58
|
|
|
Borrowed funds
|
|
|
|
|
14,245,073
|
|
|
95,644
|
|
2.72
|
|
|
|
15,048,416
|
|
|
97,232
|
|
2.62
|
|
|
Total interest-bearing liabilities
|
|
|
|
|
40,225,994
|
|
|
136,145
|
|
1.37
|
|
|
|
38,588,915
|
|
|
131,161
|
|
1.38
|
|
|
Non-interest-bearing deposits
|
|
|
|
|
2,510,976
|
|
|
|
|
|
|
|
2,341,013
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
|
230,273
|
|
|
|
|
|
|
|
210,737
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
42,967,243
|
|
|
|
|
|
|
|
41,140,665
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
5,802,309
|
|
|
|
|
|
|
|
5,732,105
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
48,769,552
|
|
|
|
|
|
|
$
|
46,872,770
|
|
|
|
|
|
|
Net interest income/interest rate spread
|
|
|
|
|
|
$
|
292,768
|
|
2.58
|
%
|
|
|
|
$
|
284,150
|
|
2.62
|
%
|
|
Net interest margin
|
|
|
|
|
|
|
|
2.68
|
%
|
|
|
|
|
|
2.72
|
%
|
|
Ratio of interest-earning assets to interest-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
bearing liabilities
|
|
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits (1)
|
|
|
|
|
$22,406,789
|
|
|
$23,385
|
|
0.42
|
%
|
|
|
$18,857,554
|
|
|
$14,869
|
|
0.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Refers to all deposits other than certificates of deposit.
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
|
|
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
(dollars in thousands, except share and per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
GAAP EARNINGS DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$119,259
|
|
|
$131,197
|
|
|
$115,254
|
|
|
Basic earnings per share
|
|
|
|
0.27
|
|
|
0.30
|
|
|
0.26
|
|
|
Diluted earnings per share
|
|
|
|
0.27
|
|
|
0.30
|
|
|
0.26
|
|
|
Return on average assets
|
|
|
|
0.98
|
%
|
|
1.07
|
%
|
|
0.98
|
%
|
|
Return on average tangible assets (1)
|
|
|
|
1.04
|
|
|
1.14
|
|
|
1.05
|
|
|
Return on average stockholders’ equity
|
|
|
|
8.22
|
|
|
9.05
|
|
|
8.04
|
|
|
Return on average tangible stockholders’ equity (1)
|
|
|
|
14.32
|
|
|
15.79
|
|
|
14.22
|
|
|
Efficiency ratio (2)
|
|
|
|
45.00
|
|
|
41.29
|
|
|
44.81
|
|
|
Operating expenses to average assets
|
|
|
|
1.27
|
|
|
1.20
|
|
|
1.23
|
|
|
Interest rate spread
|
|
|
|
2.58
|
|
|
2.50
|
|
|
2.62
|
|
|
Net interest margin
|
|
|
|
2.68
|
|
|
2.61
|
|
|
2.72
|
|
|
Effective tax rate
|
|
|
|
36.62
|
|
|
36.39
|
|
|
39.24
|
|
|
Shares used for basic EPS computation
|
|
|
|
441,990,338
|
|
|
441,091,905
|
|
|
440,570,598
|
|
|
Shares used for diluted EPS computation
|
|
|
|
441,990,338
|
|
|
441,091,905
|
|
|
440,570,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Tangible assets and tangible stockholders’ equity are non-GAAP
financial measures. Please see the reconciliations of our GAAP and
non-GAAP financial 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
March 31,
2014
|
|
CAPITAL MEASURES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share
|
|
|
|
$13.04
|
|
|
$13.06
|
|
|
$12.97
|
|
|
Tangible book value per share (1)
|
|
|
|
7.55
|
|
|
7.54
|
|
|
7.44
|
|
|
Stockholders’ equity to total assets
|
|
|
|
12.01
|
%
|
|
11.91
|
%
|
|
12.07
|
%
|
|
Tangible stockholders’ equity to tangible assets (1)
|
|
|
|
7.32
|
|
|
7.24
|
|
|
7.30
|
|
|
Tangible stockholders’ equity to tangible assets excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
accumulated other comprehensive loss, net of tax (1)
|
|
|
|
7.42
|
|
|
7.35
|
|
|
7.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Tangible assets and tangible stockholders’ equity are non-GAAP
financial measures. Please see the reconciliations of our GAAP and
non-GAAP financial measures on page 11 of this release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
March 31,
2014
|
|
REGULATORY CAPITAL RATIOS: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
New York Community Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital ratio
|
|
|
|
11.73
|
%
|
|
NA
|
%
|
|
NA
|
%
|
|
Leverage capital ratio
|
|
|
|
7.83
|
|
|
7.73
|
|
|
7.79
|
|
|
Tier 1 risk-based capital ratio
|
|
|
|
11.73
|
|
|
12.02
|
|
|
11.98
|
|
|
Total risk-based capital ratio
|
|
|
|
12.35
|
|
|
12.66
|
|
|
12.65
|
|
|
New York Commercial Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital ratio
|
|
|
|
11.87
|
%
|
|
NA
|
%
|
|
NA
|
%
|
|
Leverage capital ratio
|
|
|
|
9.01
|
|
|
9.25
|
|
|
10.82
|
|
|
Tier 1 risk-based capital ratio
|
|
|
|
11.87
|
|
|
12.08
|
|
|
14.69
|
|
|
Total risk-based capital ratio
|
|
|
|
12.28
|
|
|
12.47
|
|
|
15.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
At March 31, 2015, the minimum regulatory requirements for
classification as a well capitalized institution were a common
equity tier 1 capital ratio of 6.50%; a leverage capital ratio of
5.00%; a Tier 1 risk-based capital ratio of 8.00%; and a total
risk-based capital ratio of 10.00%.
|
New York Community Bancorp, Inc.
Investors:
Ilene A. Angarola,
(516) 683-4420
or
Media:
Kelly Maude Leung, (516) 683-4032
Source: New York Community Bancorp, Inc.