Board of Directors Declares $0.17 per Share
Quarterly Cash Dividend
First Quarter 2016 Highlights
-
Strong Earnings and Returns:
-The
Company generated 1Q 2016 earnings of $129.9 million, providing a
1.10% return on average tangible assets and a 14.76% return on average
tangible stockholders’ equity. (1)
-
Solid Net Interest Margin:
-
Excluding prepayment income, the Company’s margin rose one basis point
sequentially to 2.72% in the quarter; including prepayment income, the
Company’s margin was 2.94% in 1Q 2016. (2)
-
Loan Production:
-
Loan originations totaled $3.0 billion in the quarter, exceeding the
pipeline reported in the Company’s January release.
-
Originations for investment represented $2.1 billion of the quarter’s
loan production, including $1.6 billion of multi-family loans.
-
Continued Loan Growth:
-
Absent sales of loan participations, the multi-family loan portfolio
would have risen $873.4 million in the first quarter, representing an
annualized growth rate of 13.4%.
- Total non-covered loans held
for investment rose $412.7 million sequentially, to $36.2 billion,
driven by a $434.6 million increase in multi-family loans to $26.4
billion.
-
Successful Balance Sheet Management:
-
Reflecting securities prepayments and loan sales, total assets
declined $1.8 billion sequentially to $48.5 billion at quarter-end.
-
The Company’s total consolidated assets over the past four quarters
averaged $49.1 billion as a result.
-
Exceptional Asset Quality:
-
Non-performing non-covered assets totaled $64.6 million, representing
0.14% of total non-covered assets at 3/31/2016.
- Non-performing
non-covered loans totaled $49.2 million, representing 0.14% of total
non-covered loans at that date.
-
Strong Efficiency:
-
The Company’s efficiency ratio was 43.07% in 1Q 2016.(3)
-
Solid Capital:
-
Tangible stockholders’ equity represented 7.70% of tangible assets and
a tangible book value per share of $7.28 at 3/31/2016. (1)
WESTBURY, N.Y.--(BUSINESS WIRE)--
New York Community Bancorp, Inc. (NYSE:NYCB) (the “Company”) today
reported GAAP earnings of $129.9 million, or $0.27 per diluted share,
for the three months ended March 31, 2016.
Please Note: Footnotes are located on the last page of text.
Commenting on the Company’s first quarter performance, President and
Chief Executive Officer Joseph R. Ficalora stated, “In the first quarter
of 2016, we demonstrated the merits of having repositioned our debt in
the trailing quarter, as well as our capacity for strong loan
production, strategic balance sheet management, and consistent asset
quality.
“Notwithstanding the challenges of lending in an increasingly slow
market, we generated first quarter earnings of $129.9 million, or $0.27
per diluted share. Our earnings were all the more notable, given their
production at a time when the income stemming from the prepayment of
loans declined in connection with the continued slowdown in property
sales and refinancing activity.
“The benefits of having repositioned our debt were therefore all the
more apparent in the strength of our net interest income and margin,
both of which rose meaningfully year-over-year as our cost of funds
declined. Despite the low level of interest rates and the total decline
in prepayment income, our margin rose to 2.94% in the current first
quarter, and our average cost of funds declined 43 basis points to
0.94%. Similarly, our net interest income rose $35.1 million
year-over-year, to $327.9 million, representing an increase of 12.0%.
These improvements were largely due to the 125-basis point decline in
the average cost of our borrowed funds from the year-earlier level to
1.47% in the first quarter of 2016.
“Another performance highlight was our volume of loan production, with
$3.0 billion of loans originated in the first three months of the year.
Loans originated for investment accounted for $2.1 billion of the total,
exceeding the pipeline reported in our last earnings release.
Multi-family loans represented the bulk of the loans we produced in the
current first quarter and continued to represent the bulk of our
held-for-investment portfolio. Specifically, multi-family loans rose
$434.6 million sequentially to $26.4 billion, and would have grown even
further were it not for the loan participations we sold. Including
multi-family loans of $438.9 million, loan sales totaled $579.9 million
in the quarter and generated gains of $5.8 million.
“While the sale of multi-family and commercial real estate loans has
been a large part of our effort to manage our assets below the current
SIFI threshold, our success in the current first quarter was
substantially supported by a $2.0 billion linked-quarter decline in the
balance of securities. The reduction was primarily due to a significant
increase in repayments in connection with the lower level of market
interest rates.
“With total assets declining $1.8 billion from the end of last year to
$48.5 billion, the four-quarter average of our total consolidated assets
was $49.1 billion as of March 31st. Based on the linked-quarter decline,
the timing of our transition to SIFI status could coincide with the
closing of our pending merger with Astoria Financial, the parent of
Astoria Bank. In addition to awaiting the necessary regulatory
approvals, the merger is currently pending the approval of our
shareholders and theirs.
“In the meantime, we continue to do what we do best: generate
held-for-investment loans in accordance with conservative underwriting
standards and operate efficiently. Our ability to do so was once again
reflected in our asset quality and profitability measures, with
non-performing non-covered assets representing 0.14% of total
non-covered assets at the end of the first quarter and our efficiency
ratio improving year-over-year to 43.07%.”
Board of Directors Declares $0.17 per Share
Dividend Payable on May 17, 2016
“In view of the strength of our earnings and our increasingly solid
capital position, the Board of Directors last night declared a quarterly
cash dividend of $0.17 per share. The dividend will be payable on May
17, 2016 to shareholders of record as of May 6th, and represents a
dividend yield of 4.3% based on last night’s closing price,” Mr.
Ficalora said.
BALANCE SHEET SUMMARY
Total assets declined $1.8 billion from the balance recorded at the end
of December to $48.5 billion at March 31, 2016. While loans, net rose
$441.9 million during this time to $38.5 billion, the increase was
exceeded by a $2.0 billion decline in securities to $4.2 billion,
primarily reflecting the high volume of repayments in the past three
months.
Loans
Covered Loans
Covered loans, net, represented $2.0 billion of total loans, net at the
end of the first quarter, a $71.1 million reduction from the balance at
December 31st. The linked-quarter decline was primarily due to
repayments.
Accretion on the covered loan portfolio was $33.3 million in the current
first quarter, as compared to $33.9 million and $35.6 million,
respectively, in the trailing and year-earlier three months.
Non-Covered Loans Held for Investment
Non-covered loans held for investment represented $36.2 billion, or
93.6%, of total loans at the end of the current first quarter,
reflecting a linked-quarter increase of $412.7 million and a
year-over-year increase of $3.2 billion, or 9.6%. In the three months
ended March 31, 2016, the Company originated $2.1 billion of loans held
for investment, reflecting a sequential decline of $1.6 billion and a
year-over-year decline of $535.7 million. While the volume of loans
produced for investment is typically more robust in the fourth quarter
of the year than in any other quarter, the linked-quarter decline in the
production of loans held for investment was also due to the decline in
refinancing activity during a period of lower-than-expected market
interest rates.
In the three months ended March 31, 2016, the Company sold $579.9
million of multi-family and commercial real estate (“CRE”) loans,
largely through participations, as compared to $355.9 million of
multi-family loans in the trailing quarter and $508.1 million of
multi-family and CRE loans in the year-earlier three months. In addition
to contributing to the decline in the quarter-end balance of total loans
and assets, the sales generated net gains of $5.8 million in the current
first quarter, as compared to $4.4 million and $5.9 million,
respectively, in the earlier periods.
The following table summarizes the Company’s production of loans held
for investment in the three months ended March 31, 2016, December 31,
2015, and March 31, 2015:
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
March 31,
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
2015
|
|
Mortgage Loans Originated for Investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
$
|
1,580,787
|
|
|
|
$
|
2,778,623
|
|
|
|
$
|
1,674,446
|
|
Commercial real estate
|
|
|
|
81,423
|
|
|
|
|
492,883
|
|
|
|
|
610,874
|
|
One-to-four family
|
|
|
|
75,207
|
|
|
|
|
12,863
|
|
|
|
|
788
|
|
Acquisition, development, and construction
|
|
|
|
39,145
|
|
|
|
|
13,433
|
|
|
|
|
70,794
|
|
Total mortgage loans originated for investment
|
|
|
$
|
1,776,562
|
|
|
|
$
|
3,297,802
|
|
|
|
$
|
2,356,902
|
|
Other Loans Originated for Investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty finance
|
|
|
$
|
197,212
|
|
|
|
$
|
334,525
|
|
|
|
$
|
230,670
|
|
Other commercial and industrial
|
|
|
|
170,359
|
|
|
|
|
87,001
|
|
|
|
|
91,501
|
|
Other
|
|
|
|
910
|
|
|
|
|
1,008
|
|
|
|
|
1,676
|
|
Total other loans originated for investment
|
|
|
$
|
368,481
|
|
|
|
$
|
422,534
|
|
|
|
$
|
323,847
|
|
Total loans originated for investment
|
|
|
$
|
2,145,043
|
|
|
|
$
|
3,720,336
|
|
|
|
$
|
2,680,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family loans represented $26.4 billion of the quarter-end balance,
reflecting a linked-quarter increase of $434.6 million. Were it not for
loan sales totaling $438.9 million, the portfolio of multi-family loans
would have grown $873.4 million sequentially.
CRE loans represented $7.7 billion of loans held for investment at the
end of the first quarter, reflecting a sequential reduction of $180.4
million. In addition to a $411.5 million decline in originations, the
lower balance reflects sales of CRE loans totaling $141.0 million in the
first three months of 2016.
The following table provides additional information about the Company’s
multi-family and CRE loan portfolios at March 31, 2016, December 31,
2015, and March 31, 2015:
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
|
Multi-Family Loan Portfolio:
|
|
|
|
|
|
|
|
|
|
|
Loans outstanding
|
|
$26,423,675
|
|
|
$25,989,100
|
|
|
$23,467,737
|
|
|
Percent of total held-for-investment loans
|
|
73.0
|
%
|
|
72.7
|
%
|
|
71.1
|
%
|
|
Average principal balance
|
|
$5,353
|
|
|
$5,307
|
|
|
$4,894
|
|
|
Weighted average life
|
|
2.9
|
years
|
|
2.8
|
years
|
|
2.6
|
years
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loan Portfolio:
|
|
|
|
|
|
|
|
|
|
|
Loans outstanding
|
|
$7,679,780
|
|
|
$7,860,162
|
|
|
$7,825,643
|
|
|
Percent of total held-for-investment loans
|
|
21.2
|
%
|
|
22.0
|
%
|
|
23.7
|
%
|
|
Average principal balance
|
|
$5,355
|
|
|
$5,376
|
|
|
$5,175
|
|
|
Weighted average life
|
|
3.3
|
years
|
|
3.2
|
years
|
|
3.2
|
years
|
|
|
|
|
|
|
|
|
|
|
|
While the growth of held-for-investment loans was tempered by the
decline in CRE loans over the course of the quarter, the balances
increased in each of the remaining portfolios:
-
One-to-four family loans rose $69.2 million sequentially to $186.0
million;
-
Acquisition, development, and construction (“ADC”) loans rose $32.8
million sequentially to $344.2 million; and
-
Other loans rose $56.5 million to $1.5 billion, reflecting a $15.4
million increase in specialty finance loans and leases to $898.3
million and a $44.7 million increase in other commercial and
industrial loans to $614.8 million at March 31st.
Non-Covered Loans Held for Sale
The Company originated $899.1 million of loans for sale in the current
first quarter, reflecting a sequential increase of $66.6 million and a
year-over-year reduction of $593.1 million. The year-over-year decline
was attributable to a reduction in refinancing activity.
Non-covered loans held for sale totaled $471.3 million at the close of
the current first quarter, reflecting a linked-quarter increase of
$104.1 million and a year-over-year increase of $119.8 million. In the
three months ended March 31, 2016, the average balance of loans held for
sale was $348.1 million, as compared to $362.2 million and $593.0
million, respectively, in the three months ended December 31, and March
31, 2015.
Pipeline
The Company has approximately $2.9 billion of loans in its current
pipeline, including loans held for investment of approximately $2.0
billion and one-to-four family loans held for sale of approximately $900
million.
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").
Non-performing non-covered assets totaled $64.6 million at the end of
the current first quarter, a $3.8 million increase from the year-end
2015 balance and a $68.8 million reduction from the balance at March 31,
2015. The linked-quarter increase was attributable to a $2.4 million
rise in non-performing non-covered loans to $49.2 million and a $1.3
million rise in non-covered OREO to $15.4 million. The year-over-year
reduction was attributable to declines of $13.9 million and $54.9
million, respectively. Non-performing non-covered loans represented
0.14% of total non-covered loans at March 31,2016, and non-performing
non-covered assets represented 0.14% of total assets at that date.
The Company recorded net recoveries of $933,000 in the current first
quarter, as compared to $1.2 million and $766,000, respectively, in the
trailing and year-earlier three months.
The following table summarizes the Company’s non-performing non-covered
loans and assets at March 31, 2016, December 31, 2015, and March 31,
2015:
|
|
|
|
|
|
|
|
(in thousands)
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
Non-Performing Non-Covered Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual non-covered mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
$
|
15,900
|
|
|
|
$
|
13,904
|
|
|
|
$
|
18,779
|
|
Commercial real estate
|
|
|
11,863
|
|
|
|
|
14,920
|
|
|
|
|
23,698
|
|
One-to-four family
|
|
|
11,172
|
|
|
|
|
12,259
|
|
|
|
|
11,270
|
|
Acquisition, development, and construction
|
|
|
--
|
|
|
|
|
27
|
|
|
|
|
654
|
|
Total non-accrual non-covered mortgage loans
|
|
$
|
38,935
|
|
|
|
$
|
41,110
|
|
|
|
$
|
54,401
|
|
Other non-accrual non-covered loans
|
|
|
10,298
|
|
|
|
|
5,715
|
|
|
|
|
8,696
|
|
Total non-performing non-covered loans
|
|
$
|
49,233
|
|
|
|
$
|
46,825
|
|
|
|
$
|
63,097
|
|
Non-covered other real estate owned
|
|
|
15,414
|
|
|
|
|
14,065
|
|
|
|
|
70,311
|
|
Total non-performing non-covered assets
|
|
$
|
64,647
|
|
|
|
$
|
60,890
|
|
|
|
$
|
133,408
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the Company's asset quality measures at or
for the three months ended March 31, 2016, December 31, 2015, and March
31, 2015:
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
|
Non-performing non-covered loans to total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-covered loans
|
|
|
0.14
|
%
|
|
|
0.13
|
%
|
|
|
0.19
|
%
|
|
Non-performing non-covered assets to total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-covered assets
|
|
|
0.14
|
|
|
|
0.13
|
|
|
|
0.29
|
|
|
Net recoveries during the period to average loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
during the period (non-annualized)
|
|
|
(0.00
|
)
|
|
|
(0.00
|
)
|
|
|
(0.00
|
)
|
|
Allowance for losses on non-covered loans to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-performing non-covered loans (1)
|
|
|
302.77
|
|
|
|
310.08
|
|
|
|
221.49
|
|
|
Allowance for losses on non-covered loans to total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-covered loans (1)
|
|
|
0.41
|
|
|
|
0.41
|
|
|
|
0.42
|
|
|
|
|
(1) Excludes the allowance for losses on purchased credit-impaired
loans.
|
|
|
The following table presents the balance of loans 30 to 89 days past due
at March 31, 2016, December 31, 2015, and March 31, 2015:
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
Non-Covered Loans 30-89 Days Past Due:
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
$
|
760
|
|
|
|
$
|
4,818
|
|
|
|
$
|
1,594
|
|
Commercial real estate
|
|
|
|
--
|
|
|
|
|
178
|
|
|
|
|
3,259
|
|
One-to-four family
|
|
|
|
380
|
|
|
|
|
1,117
|
|
|
|
|
1,244
|
|
Acquisition, development, and construction
|
|
|
|
--
|
|
|
|
|
--
|
|
|
|
|
--
|
|
Other
|
|
|
|
2,045
|
|
|
|
|
492
|
|
|
|
|
664
|
|
Total non-covered loans 30 to 89 days past due
|
|
|
$
|
3,185
|
|
|
|
$
|
6,605
|
|
|
|
$
|
6,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reflecting the net effect of the linked-quarter decline in non-covered
loans 30 to 89 days past due and the linked-quarter rise in
non-performing non-covered assets, total delinquencies amounted to $67.8
million at the close of the current first quarter, comparable to the
$67.5 million total recorded at December 31, 2015. Year-over-year, total
delinquencies declined $72.3 million, reflecting a reduction of 51.6%.
Securities
Securities totaled $4.2 billion at the close of the current first
quarter, representing 8.7% of total assets, as compared to $6.2 billion,
representing 12.3% of total assets, at December 31, 2015. The 31.6%
decline was primarily due to securities repayments, which resulted from
the lower level of market interest rates.
Funding Sources
Deposits rose $555.6 million in the first three months of the year to
$29.0 billion, representing 59.7% of total assets, at March 31, 2016.
The linked-quarter increase was primarily due to a $332.3 million rise
in non-interest-bearing accounts to $2.8 billion and a $268.5 million
increase in NOW and money market accounts to $13.3 billion. While
certificates of deposit (“CDs”) rose $1.5 billion during this time to
$6.8 billion, the benefit was offset by a $1.5 billion decline in
savings accounts to $6.0 billion.
The balance of borrowed funds, meanwhile, declined to $13.3 billion,
representing 27.5% of total assets at the end of the current first
quarter, from $15.7 billion, representing 31.3%, at December 31st. The
decrease was attributable to a $2.4 billion decline in wholesale
borrowings to $13.0 billion, primarily in the form of short-term Federal
Home Loan Bank of New York advances.
Stockholders’ Equity
In the first three months of 2016, stockholders’ equity rose $50.1
million to $6.0 billion, representing 12.34% of total assets and a book
value per share of $12.29 at March 31st. At December 31, 2015,
stockholders’ equity totaled $5.9 billion, representing 11.79% of total
assets and a book value per share of $12.24.
Excluding goodwill and core deposit intangibles (“CDI”) from the
respective balances, tangible stockholders’ equity rose $51.0 million
during this time to $3.5 billion, representing 7.70% of tangible assets
and a tangible book value per share of $7.28. At December 31, 2015,
tangible stockholders’ equity totaled $3.5 billion and represented 7.30%
of tangible assets and a tangible book value per share of $7.21. (1)
In addition, 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, 2016
The Company generated GAAP earnings of $129.9 million, or $0.27 per
diluted share, in the current first quarter, as compared to $119.3
million, or $0.27 per diluted share, in the year-earlier three months.
Included in the current first-quarter amount were merger-related
expenses of $1.2 million. There were no comparable expenses in the first
quarter of 2015.
In the fourth quarter of 2015, the Company reported a GAAP loss of
$404.8 million, or $0.87 per diluted share, reflecting the impact of an
after-tax debt repositioning charge in the amount of $546.8 million and
after-tax merger-related expenses of $3.2 million. Excluding the
after-tax impact of the debt repositioning charge and the merger-related
expenses, the Company generated non-GAAP earnings of $145.2 million, or
$0.31 per diluted share, in the fourth quarter of 2015. (4)
On a pre-tax basis, the debt repositioning charge amounted to $915.0
million. In accordance with Accounting Standards Codification No.
470-50, $773.8 million of the debt repositioning charge was recorded as
interest expense in net interest income and the remaining $141.2 million
of the charge was recorded as general and administrative (“G&A”) expense
in non-interest expense. In addition, the Company’s fourth quarter
non-interest expense included pre-tax merger-related expenses of $3.7
million in connection with the proposed merger with Astoria Financial
Corporation (NYSE: AF).
Net Interest Income (Loss)
Reflecting the benefit of the debt repositioning that took place in the
trailing quarter, the Company recorded net interest income of $327.9
million in the three months ended March 31, 2016, as compared to $292.8
million in the three months ended March 31, 2015. Similarly, the
Company’s net interest margin expanded to 2.94% in the current first
quarter from 2.68% in the year-earlier three months. Absent the
contribution of prepayment income in the respective quarters, the
Company’s margin was 2.72% and 2.36%.
In the trailing quarter, the Company recorded a net interest loss of
$449.2 million, as interest income of $424.5 million was exceeded by
$873.7 million of interest expense. Included in the latter amount was
the larger portion of the debt repositioning charge (i.e., $773.8
million) recorded in connection with the prepayment of $10.4 billion of
wholesale borrowings. Excluding the debt repositioning charge, the
Company would have recorded interest expense of $99.9 million and net
interest income of $324.6 million in the fourth quarter of last year.(5)
Given the significant impact of the debt repositioning charge on the
Company’s fourth quarter net interest income, a comparison with the
current first quarter’s net interest income would not be meaningful. To
clarify the net interest income produced through ongoing operations in
last year’s fourth quarter, the Company has presented its net interest
income analysis for the three months ended December 31, 2015 both
without and with the $773.8 million debt repositioning charge recorded
in interest expense. The respective net interest income analyses are
located on pages 15 and 16 of this release. In particular, readers are
encouraged to compare the following line items, which were directly
impacted by the debt repositioning charge: the interest expense and
average cost of borrowed funds; the interest expense and average cost of
interest-bearing liabilities; interest rate spread; net interest income;
and net interest margin.
Year-Over-Year Comparison:
-
Reflecting the significant benefit of the debt repositioning that took
place in the trailing quarter, net interest income rose $35.1 million
year-over-year to $327.9 million in the current first quarter, as a
$5.1 million decline in interest income was more than offset by a
$40.2 million decline in interest expense.
-
The substantial decline in interest expense was driven by a $40.4
million reduction in the interest expense on borrowed funds to $55.2
million, as the impact of an $818.9 million rise in the average
balance to $15.1 billion was far exceeded by the benefit of a
125-basis point decline in the average cost to 1.47%. The reduction in
the average cost of borrowed funds was attributable to the
fourth-quarter prepayment of $10.4 billion of wholesale borrowings
with an average cost of 3.16% and their replacement with $10.4 billion
of wholesale borrowings having an average cost of 1.58%.
-
The interest expense produced by interest-bearing deposits rose
modestly to $40.7 million, as the average balance rose $83.1 million
year-over-year to $26.1 billion, and the average cost held steady at
0.63%. While the interest expense produced by NOW and money market
accounts rose $3.6 million year-over-year, to $14.6 million, the
impact was largely offset by declines of $2.1 million and $1.2 million
in the interest expense produced by savings accounts and CDs,
respectively.
-
The $5.1 million decline in interest income was the net effect of a
$1.1 billion rise in the average balance of interest-earning assets to
$44.6 billion and a 15-basis point decline in the average yield to
3.80%. In addition, prepayment income on loans and securities
contributed $23.7 million to interest income in the current first
quarter, a year-over-year reduction of $10.6 million. Loans
represented $11.0 million and $30.1 million, respectively, of
prepayment income in the current and year-earlier first quarters,
while securities represented $12.7 million and $4.2 million,
respectively. Similarly, prepayment income contributed 22 basis points
to the current first-quarter margin, signifying a year-over-year
reduction of 10 basis points. Loans accounted for 10 of the basis
points contributed by prepayment income in the current first quarter,
as compared to 28 basis points in the year-earlier three months.
Securities, meanwhile, accounted for 12 of the basis points derived
from the current first quarter's prepayment income, as compared to
four basis points in the year-earlier three months. Absent the
contribution of prepayment income in the respective quarters, the
Company’s margin would have been 2.72% in the three months ended March
31, 2016 and 2.36% in the first three months of the prior year.
-
The interest income produced by loans fell $3.8 million year-over-year
to $360.7 million as the benefit of a $2.5 billion rise in the average
balance to $38.4 billion was exceeded by the impact of a 31-basis
point decline in the average yield to 3.75%. The decline in interest
income was partly due to a $19.1 million decrease in prepayment income
and the related 11-basis point decrease in its contribution to the
average yield. The reduction in the average yield also reflects the
low level of market interest rates in the current first quarter, which
resulted in the replenishment of the portfolio with lower-yielding
loans.
-
The interest income produced by securities and money market
investments fell $1.3 million year-over-year to $63.1 million as the
impact of a $1.4 billion decline in the average balance to $6.2
billion was tempered by the benefit of a 66-basis point rise in the
average yield to 4.09%. The increase in the average yield was largely
due to the 82-basis point increase in the contribution of prepayment
income on securities.
Linked-Quarter Comparison:
The following comparison of the net interest income recorded in the
first quarter of 2016 with that recorded in the trailing quarter is
limited to those components that were not impacted by the debt
repositioning charge (i.e., interest income and the interest expense
produced by interest-bearing deposits):
Interest Income
-
Interest income declined a modest amount from the trailing-quarter
level, the net effect of a $502.3 million rise in the average balance
of interest-earning assets and a five-basis point decline in the
average yield. Prepayment income contributed $2.1 million less to
interest income in the current first quarter than it did in the fourth
quarter of 2015. Similarly, the contribution of prepayment income to
the Company’s net interest margin was two basis points less in the
current first quarter than it was in the trailing three months. Absent
the contribution of prepayment income--and excluding the impact of the
debt repositioning charge recorded in the fourth quarter—the Company’s
margin would have been 2.71% in the three months ended December 31,
2015, one basis point narrower than the margin produced, excluding
prepayment income, in the first quarter of this year.
-
The interest income produced by loans also declined a modest amount as
the benefit of a $1.2 billion increase in the average balance was
tempered by the impact of a 13-basis point decline in the average
yield. The contribution of prepayment income to the interest income on
loans was $17.4 million in the trailing quarter, $6.3 million greater
than the contribution in the first quarter of this year. Similarly,
the contribution of prepayment income to the average yield on loans
was 19 basis points in the trailing quarter, exceeding the current
first-quarter amount by eight basis points.
-
The interest income produced by securities and money market
investments in the current first quarter was modestly lower than the
level produced in the fourth quarter of 2015. While the average yield
on securities and money market investments rose 41 basis points
sequentially, the benefit was tempered by the impact of a $695.3
million reduction in the average balance of such assets, primarily
reflecting the significant rise in securities prepayments discussed
above. Income from the prepayment of securities contributed $8.5
million to the interest income produced by securities in the trailing
quarter, $4.2 million less than the first quarter 2016 amount.
Similarly, income from the prepayment of securities contributed 49
basis points to the average yield on securities in the trailing
quarter, 33 basis points less than the current first-quarter amount.
Interest Expense on Interest-Bearing Deposits
-
The interest expense on interest-bearing deposits rose $1.5 million
sequentially from $39.2 million in the trailing quarter, as a $197.2
million increase in the average balance was coupled with a three-basis
point rise in the average cost.
Provision for (Recovery of) Loan Losses
Provision for (Recovery of) Losses on Non-Covered Loans
Reflecting management’s assessment of the adequacy of the non-covered
loan loss allowance, the Company recorded a $2.7 million provision for
non-covered loan losses in the three months ended March 31, 2016. In the
trailing and year-earlier quarters, the Company recovered $80,000 and
$870,000, respectively, from the allowance for losses on non-covered
loans.
(Recovery of) Provision for Losses on Covered Loans
Reflecting an increase in the cash flows expected from certain pools of
acquired loans covered by FDIC loss-sharing agreements, the Company
recovered $2.9 million and $6.2 million, respectively, from the
allowance for covered loan losses in the three months ended March 31,
2016 and December 31, 2015. In the first quarter of 2015, the Company
recorded a provision for covered loan losses of $877,000, reflecting a
reduction in the cash flows expected from certain pools of acquired
loans.
While the recoveries recorded in the current and trailing quarters were
largely offset by FDIC indemnification expense of $2.3 million and $5.0
million, the provision recorded in the year-earlier quarter was largely
offset by FDIC indemnification income of $702,000. FDIC indemnification
expense and income are recorded in “Other” non-interest income, as
further discussed below.
Non-Interest Income
Non-interest income totaled $35.2 million in the current first quarter,
having declined $23.8 million sequentially and $17.0 million
year-over-year. The following factors contributed to the linked-quarter
decline in non-interest income:
-
Mortgage banking income fell $8.1 million sequentially to $4.1
million, notwithstanding a $7.7 million increase in income from
originations to $13.6 million in the three months ended March 31,
2016. The linked-quarter increase included the reversal of $5.9
million from the representation and warranty reserve on one-to-four
family loans held for sale.
-
The benefit of the increase in income from originations was largely
offset by the $15.8 million difference between the $9.5 million
servicing loss recorded in the current first quarter and the $6.3
million of servicing income recorded in the fourth quarter of 2015.
The bulk of the first-quarter servicing loss was attributable to a
change in the valuation model assumptions relating to the Company’s
mortgage servicing rights (“MSRs”), with the remainder reflecting a
decline in hedge effectiveness during a period of unusual interest
rate volatility.
-
In the fourth quarter of 2015, the Company recorded a $13.3 million
gain on the sale of a bank-owned property in other income; no
comparable gain was recorded in the first quarter of this year.
Primarily reflecting the gain on sale recorded in the trailing
quarter, other non-interest income fell $17.6 million sequentially to
$16.0 million in the three months ended March 31, 2016.
-
Net securities gains fell $2.9 million in the current first quarter
from $3.1 million in the fourth quarter of 2015.
-
The impact of these declines was partially tempered by a $2.7 million
reduction in FDIC indemnification expense to $2.3 million and a $2.4
million increase in income from the Company’s investment in bank-owned
life insurance (“BOLI”) to $9.3 million.
-
Also included in other non-interest income in the three months ended
March 31, 2016 and December 31, 2015 were respective gains of $5.8
million and $4.4 million stemming from sales of multi-family and
commercial real estate loans.
The following factors contributed to the year-over-year decline in
non-interest income:
-
Mortgage banking income fell $14.3 million year-over-year, primarily
reflecting the $12.4 million difference between the servicing loss
recorded in the current first quarter and the servicing income
recorded in the year-earlier three months. In addition, income from
originations declined $1.9 million in the current first quarter from
the level recorded in the first quarter of last year.
-
In contrast to the FDIC indemnification expense recorded in the
current first quarter, the Company recorded $702,000 of
indemnification income in the first quarter of 2015. The difference
amounted to $3.0 million.
-
Other income fell $1.8 million year-over-year.
-
The impact of these declines was only partly tempered by a $2.6
million increase in BOLI income.
Non-Interest Expense
Non-interest expense totaled $158.4 million in the current first
quarter, a $151.3 million reduction from the trailing-quarter level and
a $1.6 million increase from the year-earlier amount. In the fourth
quarter of 2015, the Company’s non-interest expense was significantly
increased by the smaller portion of the debt repositioning charge (i.e.,
in the amount of $141.2 million), in addition to merger-related expenses
of $3.7 million. By comparison, the Company incurred $1.2 million of
merger-related expenses in the first quarter of 2016.
Operating expenses accounted for $156.4 million of total non-interest
expense in the current first quarter, as compared to $163.7 million and
$155.3 million, respectively, in the three months ended December 31, and
March 31, 2015. G&A expense accounted for $41.3 million, $50.3 million,
and $42.7 million of operating expenses in the respective three-month
periods. Included in the fourth quarter 2015 amount were non-income
taxes of $5.4 million relating to the total debt repositioning charge.
Primarily reflecting normal salary increases, compensation and benefits
rose $1.1 million sequentially and $2.1 million year-over-year to $89.3
million in the three months ended March 31, 2016. Occupancy and
equipment expense totaled $25.8 million in the current first quarter,
and was modestly higher than the levels recorded in the trailing and
year-earlier three months.
Income Tax Expense
The Company recorded income tax expense of $74.9 million in the current
first quarter, as compared to $68.9 million in the year-earlier three
months. The year-over-year increase was primarily due to a $16.7 million
rise in pre-tax income to $204.8 million and a modest decline in the
effective tax rate to 36.58% from 36.62%. Reflecting the $915.0 million
debt repositioning charge and the $3.7 million of merger-related
expenses, the Company recorded a pre-tax loss of $693.6 million in the
three months ended December 31, 2015. Reflecting this loss and an
effective tax rate of 41.64%, the Company recorded an income tax benefit
of $288.8 million in the three months ended December 31, 2015.
About New York Community Bancorp, Inc.
One of the largest U.S. bank holding companies, with assets of $48.5
billion, New York Community Bancorp, Inc. is a leading producer of
multi-family loans on non-luxury, rent-regulated apartment buildings in
New York City, and the parent of New York Community Bank and New York
Commercial Bank. With deposits of $29.0 billion and 256 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 currently 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 currently 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 20, 2016, at 8:30 a.m. (Eastern Daylight Time) to
discuss its first quarter 2016 earnings and strategies. 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 April
24th, and may be accessed by calling (877) 660-6853 (domestic) or (201)
612-7415 (international) and providing the following conference ID:
13632999. In addition, the conference call will be webcast at ir.myNYCB.com,
and archived through 5:00 p.m. on May 18, 2016.
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, including the proposed
merger with Astoria Financial; our estimates of future costs and
benefits of the actions we may take; our assessments of probable losses
on loans; our assessments of interest rate and other market risks; and
our ability to achieve our financial and other strategic goals.
Forward-looking statements are typically identified by such words as
“believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,”
“forecast,” “project,” and other similar words and expressions, and are
subject to numerous assumptions, risks, and uncertainties, which change
over time. Additionally, forward-looking statements speak only as of the
date they are made; the Company does not assume any duty, and does not
undertake, to update our forward-looking statements. Furthermore,
because forward-looking statements are subject to assumptions and
uncertainties, actual results or future events could differ, possibly
materially, from those anticipated in our statements, and our future
performance could differ materially from our historical results.
Our forward-looking statements are subject to the following principal
risks and uncertainties: general economic conditions and trends, either
nationally or locally; conditions in the securities markets; changes in
interest rates; changes in deposit flows, and in the demand for deposit,
loan, and investment products and other financial services; changes in
real estate values; changes in the quality or composition of our loan or
investment portfolios; changes in competitive pressures among financial
institutions or from non‐financial institutions; our ability to obtain
the necessary shareholder and regulatory approvals of any acquisitions
we may propose, including the proposed Astoria Financial merger; our
ability to successfully integrate any assets, liabilities, customers,
systems, and management personnel we may acquire into our operations,
and our ability to realize related revenue synergies and cost savings
within expected time frames; changes in legislation, regulations, and
policies; and a variety of other matters which, by their nature, are
subject to significant uncertainties and/or are beyond our control.
More information regarding some of these factors is provided in the Risk
Factors section of our Form 10‐K for the year ended December 31, 2015
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.
Important Additional Information
This press release and the related conference call include certain
communications that are made in respect of the proposed merger
transaction involving the Company and Astoria Financial. The Company has
filed a registration statement on Form S-4 with the SEC, which includes
a joint proxy statement of Astoria Financial and the Company and a
prospectus of the Company, and each party will file other documents
regarding the proposed transaction with the SEC. A definitive joint
proxy statement/prospectus was sent to shareholders of Astoria Financial
and of the Company seeking the required stockholder approvals. Before
making any voting or investment decision, investors and security holders
of Astoria Financial and the Company are urged to carefully read the
entire registration statement and joint proxy statement/prospectus, as
well as any amendments or supplements to these documents, because they
contain important information about the proposed transaction. The
documents filed by the Company and Astoria Financial with the SEC may be
obtained free of charge at the SEC’s website at www.sec.gov.
In addition, the documents filed by the Company may be obtained free of
charge at its website at http://ir.mynycb.com/
and the documents filed by Astoria Financial may be obtained free of
charge at its website at http://ir.astoriabank.com/.
Alternatively, these documents can be obtained free of charge from the
Company upon written request to New York Community Bancorp, Inc., Attn:
Corporate Secretary, 615 Merrick Avenue, Westbury, New York 11590 or by
calling (516) 683-4420, or from Astoria Financial upon written request
to Astoria Financial Corporation, Attn: Monte N. Redman, President, One
Astoria Bank Plaza, Lake Success, New York 11042 or by calling (516)
327-3000.
The Company, Astoria Financial, their directors, executive officers, and
certain other persons may be deemed to be participants in the
solicitation of proxies from the Company’s and Astoria Financial’s
stockholders in favor of the approval of the merger. Information about
the directors and executive officers of the Company and their ownership
of its common stock is set forth in the preliminary proxy statement for
its 2016 annual meeting of stockholders, as previously filed with the
SEC on April 4, 2016. Information about the directors and executive
officers of Astoria Financial and their ownership of its common stock is
set forth in Amendment No.1 to the annual report of Astoria Financial
for the year ended December 31, 2015, as previously filed with the SEC
on April 11, 2016. Stockholders may obtain additional information
regarding the interests of such participants by reading the registration
statement and the proxy statement/prospectus.
|
|
|
Footnotes to the Text
|
|
(1)
|
|
|
Tangible assets and tangible stockholders’ equity are non-GAAP
financial measures. Please see the reconciliations of these GAAP and
non-GAAP financial measures on page 14 of this release.
|
|
(2)
|
|
|
In addition to excluding the contribution of prepayment income to
the Company’s net interest margin, the trailing-quarter margin
excludes the impact of the $773.8 million debt repositioning
charge recorded in interest expense in the three months ended
December 31, 2015. Including the debt repositioning charge and the
contribution of prepayment income, the Company’s margin was
(4.01)% during that period.
|
|
(3)
|
|
|
We calculate our efficiency ratio by dividing our operating expenses
by the sum of our net interest income and non-interest income.
|
|
(4)
|
|
|
Please see the reconciliation of the GAAP loss and the non-GAAP
earnings we reported for the fourth quarter of 2015 on page 13 of
this release.
|
|
(5)
|
|
|
Please see page 16 of this release for a presentation of our GAAP
net interest income analysis for the three months ended December
31, 2015 (i.e., including the debt repositioning charge) and page
15 of this release for a presentation of our non-GAAP net interest
income analysis for that quarter (i.e., excluding the debt
repositioning charge).
|
|
|
|
|
|
- Financial Statements and Highlights Follow ‐
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
650,880
|
|
|
|
$
|
537,674
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
152,249
|
|
|
|
|
204,255
|
|
|
Held-to-maturity
|
|
|
4,068,750
|
|
|
|
|
5,969,390
|
|
|
Total securities
|
|
|
4,220,999
|
|
|
|
|
6,173,645
|
|
|
Loans held for sale
|
|
|
471,276
|
|
|
|
|
367,221
|
|
|
Non-covered mortgage loans held for investment:
|
|
|
|
|
|
|
|
|
Multi-family
|
|
|
26,423,675
|
|
|
|
|
25,989,100
|
|
|
Commercial real estate
|
|
|
7,679,780
|
|
|
|
|
7,860,162
|
|
|
Acquisition, development, and construction
|
|
|
344,247
|
|
|
|
|
311,479
|
|
|
One-to-four family
|
|
|
186,033
|
|
|
|
|
116,841
|
|
|
Total non-covered mortgage loans held for investment
|
|
|
34,633,735
|
|
|
|
|
34,277,582
|
|
|
Non-covered other loans held for investment
|
|
|
1,542,147
|
|
|
|
|
1,485,622
|
|
|
Total non-covered loans held for investment
|
|
|
36,175,882
|
|
|
|
|
35,763,204
|
|
|
Less: Allowance for losses on non-covered loans
|
|
|
(150,778
|
)
|
|
|
|
(147,124
|
)
|
|
Non-covered loans held for investment, net
|
|
|
36,025,104
|
|
|
|
|
35,616,080
|
|
|
Covered loans
|
|
|
1,986,054
|
|
|
|
|
2,060,089
|
|
|
Less: Allowance for losses on covered loans
|
|
|
(28,498
|
)
|
|
|
|
(31,395
|
)
|
|
Covered loans, net
|
|
|
1,957,556
|
|
|
|
|
2,028,694
|
|
|
Total loans, net
|
|
|
38,453,936
|
|
|
|
|
38,011,995
|
|
|
Federal Home Loan Bank stock, at cost
|
|
|
551,247
|
|
|
|
|
663,971
|
|
|
Premises and equipment, net
|
|
|
325,017
|
|
|
|
|
322,307
|
|
|
FDIC loss share receivable
|
|
|
296,953
|
|
|
|
|
314,915
|
|
|
Goodwill
|
|
|
2,436,131
|
|
|
|
|
2,436,131
|
|
|
Core deposit intangibles, net
|
|
|
1,753
|
|
|
|
|
2,599
|
|
|
Other assets (includes $24,455 and $25,817, respectively, of other
real estate owned
covered by loss sharing agreements)
|
|
|
1,578,656
|
|
|
|
|
1,854,559
|
|
|
Total assets
|
|
$
|
48,515,572
|
|
|
|
$
|
50,317,796
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
$
|
13,337,556
|
|
|
|
$
|
13,069,019
|
|
|
Savings accounts
|
|
|
6,020,058
|
|
|
|
|
7,541,566
|
|
|
Certificates of deposit
|
|
|
6,788,712
|
|
|
|
|
5,312,487
|
|
|
Non-interest-bearing accounts
|
|
|
2,835,986
|
|
|
|
|
2,503,686
|
|
|
Total deposits
|
|
|
28,982,312
|
|
|
|
|
28,426,758
|
|
|
Borrowed funds:
|
|
|
|
|
|
|
|
|
Wholesale borrowings
|
|
|
12,986,100
|
|
|
|
|
15,389,800
|
|
|
Junior subordinated debentures
|
|
|
358,672
|
|
|
|
|
358,605
|
|
|
Total borrowed funds
|
|
|
13,344,772
|
|
|
|
|
15,748,405
|
|
|
Other liabilities
|
|
|
203,688
|
|
|
|
|
207,937
|
|
|
Total liabilities
|
|
|
42,530,772
|
|
|
|
|
44,383,100
|
|
|
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;
486,931,184 and 484,968,024
shares issued; and 486,929,814
and 484,943,308 shares outstanding, respectively)
|
|
|
4,869
|
|
|
|
|
4,850
|
|
|
Paid-in capital in excess of par
|
|
|
6,023,421
|
|
|
|
|
6,023,882
|
|
|
Retained earnings (accumulated deficit)
|
|
|
11,135
|
|
|
|
|
(36,568
|
)
|
|
Treasury stock, at cost (1,370 and 24,716 shares, respectively)
|
|
|
(21
|
)
|
|
|
|
(447
|
)
|
|
Accumulated other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
Net unrealized gain on securities available for sale, net of tax
|
|
|
4,093
|
|
|
|
|
3,031
|
|
|
Net unrealized loss on the non-credit portion of
other-than-temporary impairment losses,
net of tax
|
|
|
(5,299
|
)
|
|
|
|
(5,318
|
)
|
|
Pension and post-retirement obligations, net of tax
|
|
|
(53,398
|
)
|
|
|
|
(54,734
|
)
|
|
Total accumulated other comprehensive loss, net of tax
|
|
|
(54,604
|
)
|
|
|
|
(57,021
|
)
|
|
Total stockholders’ equity
|
|
|
5,984,800
|
|
|
|
|
5,934,696
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
48,515,572
|
|
|
|
$
|
50,317,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
Dec. 31,
|
|
March 31,
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans
|
|
|
$
|
360,723
|
|
|
|
|
$
|
361,043
|
|
|
|
|
$
|
364,504
|
|
|
Securities and money market investments
|
|
|
|
63,087
|
|
|
|
|
|
63,458
|
|
|
|
|
|
64,409
|
|
|
Total interest income
|
|
|
|
423,810
|
|
|
|
|
|
424,501
|
|
|
|
|
|
428,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
|
|
14,619
|
|
|
|
|
|
11,918
|
|
|
|
|
|
11,052
|
|
|
Savings accounts
|
|
|
|
10,208
|
|
|
|
|
|
12,779
|
|
|
|
|
|
12,333
|
|
|
Certificates of deposit
|
|
|
|
15,890
|
|
|
|
|
|
14,522
|
|
|
|
|
|
17,116
|
|
|
Borrowed funds
|
|
|
|
55,227
|
|
|
|
|
|
60,728
|
|
|
|
|
|
95,644
|
|
|
Borrowed funds (debt repositioning charge)
|
|
|
|
--
|
|
|
|
|
|
773,756
|
|
|
|
|
|
--
|
|
|
Total interest expense
|
|
|
|
95,944
|
|
|
|
|
|
873,703
|
|
|
|
|
|
136,145
|
|
|
Net interest income (loss)
|
|
|
|
327,866
|
|
|
|
|
|
(449,202
|
)
|
|
|
|
|
292,768
|
|
|
Provision for (recovery of) losses on non-covered loans
|
|
|
|
2,721
|
|
|
|
|
|
(80
|
)
|
|
|
|
|
(870
|
)
|
|
(Recovery of) provision for losses on covered loans
|
|
|
|
(2,897
|
)
|
|
|
|
|
(6,237
|
)
|
|
|
|
|
877
|
|
|
Net interest income (loss) after provision for
(recovery of)
loan losses
|
|
|
|
328,042
|
|
|
|
|
|
(442,885
|
)
|
|
|
|
|
292,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking income
|
|
|
|
4,138
|
|
|
|
|
|
12,265
|
|
|
|
|
|
18,406
|
|
|
Fee income
|
|
|
|
7,923
|
|
|
|
|
|
8,121
|
|
|
|
|
|
8,394
|
|
|
Bank-owned life insurance
|
|
|
|
9,336
|
|
|
|
|
|
6,946
|
|
|
|
|
|
6,704
|
|
|
Net gain on sales of securities
|
|
|
|
163
|
|
|
|
|
|
3,111
|
|
|
|
|
|
211
|
|
|
FDIC indemnification (expense) income
|
|
|
|
(2,318
|
)
|
|
|
|
|
(4,989
|
)
|
|
|
|
|
702
|
|
|
Other income
|
|
|
|
15,995
|
|
|
|
|
|
33,587
|
|
|
|
|
|
17,817
|
|
|
Total non-interest income
|
|
|
|
35,237
|
|
|
|
|
|
59,041
|
|
|
|
|
|
52,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
89,304
|
|
|
|
|
|
88,171
|
|
|
|
|
|
87,209
|
|
|
Occupancy and equipment
|
|
|
|
25,815
|
|
|
|
|
|
25,219
|
|
|
|
|
|
25,299
|
|
|
General and administrative
|
|
|
|
41,270
|
|
|
|
|
|
50,345
|
|
|
|
|
|
42,744
|
|
|
Total operating expenses
|
|
|
|
156,389
|
|
|
|
|
|
163,735
|
|
|
|
|
|
155,252
|
|
|
Amortization of core deposit intangibles
|
|
|
|
846
|
|
|
|
|
|
1,135
|
|
|
|
|
|
1,584
|
|
|
Debt repositioning charge
|
|
|
|
--
|
|
|
|
|
|
141,209
|
|
|
|
|
|
--
|
|
|
Merger-related expenses
|
|
|
|
1,213
|
|
|
|
|
|
3,702
|
|
|
|
|
|
--
|
|
|
Total non-interest expense
|
|
|
|
158,448
|
|
|
|
|
|
309,781
|
|
|
|
|
|
156,836
|
|
|
Income (loss) before income taxes
|
|
|
|
204,831
|
|
|
|
|
|
(693,625
|
)
|
|
|
|
|
188,159
|
|
|
Income tax expense (benefit)
|
|
|
|
74,922
|
|
|
|
|
|
(288,818
|
)
|
|
|
|
|
68,900
|
|
|
Net Income (Loss)
|
|
|
$
|
129,909
|
|
|
|
|
$
|
(404,807
|
)
|
|
|
|
$
|
119,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
|
$0.27
|
|
|
|
|
$(0.87
|
)
|
|
|
|
$0.27
|
|
|
Diluted earnings (loss) per share
|
|
|
$0.27
|
|
|
|
|
$(0.87
|
)
|
|
|
|
$0.27
|
|
|
Adjustments to diluted GAAP earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt repositioning charge
|
|
|
|
--
|
|
|
|
|
|
1.17
|
|
|
|
|
|
|
|
Merger-related expenses
|
|
|
|
--
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
Diluted non-GAAP earnings per share(1)
|
|
|
$0.27
|
|
|
|
|
$0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Please see the discussion and reconciliation of the GAAP loss and
non-GAAP earnings we reported for the fourth quarter of 2015 on page 13
of this release.
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATIONS OF GAAP
AND NON-GAAP EARNINGS (LOSS)
(unaudited)
Although they are not calculated in accordance with U.S. generally
accepted accounting principles (“GAAP”), we believe that the non-GAAP
earnings we reported for the three months ended March 31, 2016 and
December 31, 2015 are an important indication of our ability to generate
earnings through our fundamental business. Since they exclude the
effects of certain items that are non-routine or difficult to predict,
we believe that providing our non-GAAP earnings for the respective
quarters facilitates the evaluation of our performance by both
management and investors.
Our non-GAAP earnings should not be considered in isolation or as a
substitute for net (loss) income, cash flows from operating activities,
or other (loss) income or cash flow statement data that are calculated
in accordance with GAAP. Moreover, the manner in which we calculate our
non-GAAP earnings may differ from that of other companies also reporting
non-GAAP results.
Reconciliations of our GAAP and non-GAAP earnings for the three months
ended March 31, 2016 and of our GAAP loss and non-GAAP earnings for the
three months ended December 31, 2015 follow:
|
|
|
|
|
|
|
For the Three Months Ended
|
|
(in thousands, except per share data)
|
|
March 31, 2016
|
|
December 31, 2015
|
|
GAAP Income (Loss)
|
|
|
$129,909
|
|
|
|
|
$(404,807
|
)
|
|
Adjustments to GAAP Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
Debt repositioning charge
|
|
|
--
|
|
|
|
|
914,965
|
|
|
State and local non-income taxes resulting from the debt
repositioning
charge and recorded in G&A expense
|
|
|
--
|
|
|
|
|
5,440
|
|
|
Merger-related expenses
|
|
|
1,213
|
|
|
|
|
3,702
|
|
|
Income tax effect
|
|
|
--
|
|
|
|
|
(374,110
|
)
|
|
Non-GAAP Earnings
|
|
|
$131,122
|
|
|
|
|
$ 145,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted GAAP Income (Loss) per Share
|
|
|
$0.27
|
|
|
|
|
$(0.87
|
)
|
|
Adjustments to diluted GAAP income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
Debt repositioning charge
|
|
|
--
|
|
|
|
|
1.17
|
|
|
Merger-related expenses
|
|
|
--
|
|
|
|
|
0.01
|
|
|
Diluted non-GAAP earnings per share
|
|
|
$0.27
|
|
|
|
|
$ 0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
Similarly, the following table reconciles our efficiency ratio for the
three months ended December 31, 2015 (which was calculated by dividing
our GAAP operating expenses by the sum of our GAAP net interest income
and non-interest income) and our adjusted efficiency ratio during that
quarter (which was calculated by dividing our non-GAAP operating
expenses by the sum of our non-GAAP net interest income and non-interest
income):
|
|
|
|
|
(dollars in thousands)
|
|
For the Three Months Ended
December 31, 2015
|
|
Operating expenses (GAAP)
|
|
|
|
$ 163,735
|
|
|
Adjustment:
|
|
|
|
|
|
State and local non-income taxes resulting from the debt
repositioning
charge and recorded in G&A expense
|
|
|
|
(5,440
|
)
|
|
Adjusted operating expenses (non-GAAP)
|
|
|
|
$ 158,295
|
|
|
|
|
|
|
|
|
Net interest loss (GAAP)
|
|
|
|
$(449,202
|
)
|
|
Non-interest income (GAAP)
|
|
|
|
59,041
|
|
|
Sum of net interest loss and non-interest income (GAAP)
|
|
|
|
$(390,161
|
)
|
|
Adjustment:
|
|
|
|
|
|
Debt repositioning charge recorded in net interest loss
|
|
|
|
$ 773,756
|
|
|
Adjusted sum of net interest income and non-interest income
(non-GAAP)
|
|
|
|
$ 383,595
|
|
|
|
|
|
|
|
|
Efficiency ratio
|
|
|
|
(41.97
|
)%
|
|
Adjusted efficiency ratio
|
|
|
|
41.27
|
%
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
RECONCILIATIONS OF
ADDITIONAL 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, 2016, December 31, 2015, and
March 31, 2015 follow:
|
|
|
|
|
|
|
|
|
At or for the
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
(in thousands)
|
|
|
2016
|
|
2015
|
|
2015
|
|
Total Stockholders’ Equity
|
|
|
$
|
5,984,800
|
|
|
$
|
5,934,696
|
|
|
$
|
5,794,797
|
|
|
Less: Goodwill
|
|
|
|
(2,436,131
|
)
|
|
|
(2,436,131
|
)
|
|
|
(2,436,131
|
)
|
|
Core deposit intangibles
|
|
|
|
(1,753
|
)
|
|
|
(2,599
|
)
|
|
|
(6,359
|
)
|
|
Tangible stockholders’ equity
|
|
|
$
|
3,546,916
|
|
|
$
|
3,495,966
|
|
|
$
|
3,352,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
$
|
48,515,572
|
|
|
$
|
50,317,796
|
|
|
$
|
48,251,715
|
|
|
Less: Goodwill
|
|
|
|
(2,436,131
|
)
|
|
|
(2,436,131
|
)
|
|
|
(2,436,131
|
)
|
|
Core deposit intangibles
|
|
|
|
(1,753
|
)
|
|
|
(2,599
|
)
|
|
|
(6,359
|
)
|
|
Tangible assets
|
|
|
$
|
46,077,688
|
|
|
$
|
47,879,066
|
|
|
$
|
45,809,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Stockholders’ Equity
|
|
|
$
|
3,546,916
|
|
|
$
|
3,495,966
|
|
|
$
|
3,352,307
|
|
|
Add back: Accumulated other comprehensive loss, net of tax
|
|
|
|
54,604
|
|
|
|
57,021
|
|
|
|
52,706
|
|
|
Adjusted tangible stockholders’ equity
|
|
|
$
|
3,601,520
|
|
|
$
|
3,552,987
|
|
|
$
|
3,405,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Assets
|
|
|
$
|
46,077,688
|
|
|
$
|
47,879,066
|
|
|
$
|
45,809,225
|
|
|
Add back: Accumulated other comprehensive loss, net of tax
|
|
|
|
54,604
|
|
|
|
57,021
|
|
|
|
52,706
|
|
|
Adjusted tangible assets
|
|
|
$
|
46,132,292
|
|
|
$
|
47,936,087
|
|
|
$
|
45,861,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Stockholders’ Equity
|
|
|
$
|
5,973,381
|
|
|
$
|
5,819,461
|
|
|
$
|
5,802,309
|
|
|
Less: Average goodwill and core deposit intangibles
|
|
|
|
(2,438,438
|
)
|
|
|
(2,439,433
|
)
|
|
|
(2,443,528
|
)
|
|
Average tangible stockholders’ equity
|
|
|
$
|
3,534,943
|
|
|
$
|
3,380,028
|
|
|
$
|
3,358,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets
|
|
|
$
|
49,951,947
|
|
|
$
|
49,403,650
|
|
|
$
|
48,769,552
|
|
|
Less: Average goodwill and core deposit intangibles
|
|
|
|
(2,438,438
|
)
|
|
|
(2,439,433
|
)
|
|
|
(2,443,528
|
)
|
|
Average tangible assets
|
|
|
$
|
47,513,509
|
|
|
$
|
46,964,217
|
|
|
$
|
46,326,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
|
$129,909
|
|
|
$(404,807
|
)
|
|
$119,259
|
|
|
Add back: Amortization of core deposit intangibles, net of tax
|
|
|
|
508
|
|
|
|
681
|
|
|
|
950
|
|
|
Adjusted net income (loss)
|
|
|
$130,417
|
|
|
$(404,126
|
)
|
|
$120,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
|
$131,122
|
|
|
$145,190
|
|
|
$119,259
|
|
|
Add back: Amortization of core deposit intangibles, net of tax
|
|
|
|
508
|
|
|
|
681
|
|
|
|
950
|
|
|
Adjusted non-GAAP net income
|
|
|
$131,630
|
|
|
$145,871
|
|
|
$120,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME
ANALYSIS (GAAP AND NON-GAAP)
LINKED-QUARTER COMPARISON
(unaudited)
The following table compares the Company’s GAAP net interest income
analysis for the first quarter of 2016 with its non-GAAP net interest
income analysis for the fourth quarter of 2015 as if the $773.8 million
debt repositioning charge recorded in interest expense in accordance
with ASC 470-50 had not been recorded. Although such non-GAAP net
interest income is not a measure of performance calculated in accordance
with GAAP, we believe that it is an important indication of our ability
to generate net interest income through our fundamental banking business
and thus provides useful supplemental information to management and
investors in evaluating our financial results.
The following line items are presented in the fourth quarter 2015
analysis absent the impact of the debt repositioning charge: interest
expense on and average cost of borrowed funds; interest expense on and
average cost of interest-bearing liabilities; net interest income;
interest rate spread; and net interest margin. No adjustments have been
made to these items for the three months ended March 31, 2016.
Furthermore, none of these adjusted items should be considered in
isolation or as a substitute for net interest (loss) income or its
component measures, which appear in the table on the following page.
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
|
|
(GAAP)
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
(dollars in thousands)
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans, net
|
|
$
|
38,437,915
|
|
$
|
360,723
|
|
3.75
|
%
|
|
$
|
37,240,361
|
|
$
|
361,043
|
|
3.88
|
%
|
|
Securities and money market investments
|
|
|
6,176,122
|
|
|
63,087
|
|
4.09
|
|
|
|
6,871,407
|
|
|
63,458
|
|
3.68
|
|
|
Total interest-earning assets
|
|
|
44,614,037
|
|
|
423,810
|
|
3.80
|
|
|
|
44,111,768
|
|
|
424,501
|
|
3.85
|
|
|
Non-interest-earning assets
|
|
|
5,337,910
|
|
|
|
|
|
|
|
5,291,882
|
|
|
|
|
|
|
Total assets
|
|
$
|
49,951,947
|
|
|
|
|
|
|
$
|
49,403,650
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
$
|
13,285,335
|
|
$
|
14,619
|
|
0.44
|
%
|
|
$
|
12,930,306
|
|
$
|
11,918
|
|
0.37
|
%
|
|
Savings accounts
|
|
|
6,863,220
|
|
|
10,208
|
|
0.60
|
|
|
|
7,579,895
|
|
|
12,779
|
|
0.67
|
|
|
Certificates of deposit
|
|
|
5,915,482
|
|
|
15,890
|
|
1.08
|
|
|
|
5,356,629
|
|
|
14,522
|
|
1.08
|
|
|
Total interest-bearing deposits
|
|
|
26,064,037
|
|
|
40,717
|
|
0.63
|
|
|
|
25,866,830
|
|
|
39,219
|
|
0.60
|
|
|
Borrowed funds
|
|
|
15,063,985
|
|
|
55,227
|
|
1.47
|
|
|
|
14,813,371
|
|
|
60,728
|
|
1.63
|
|
|
Total interest-bearing liabilities
|
|
|
41,128,022
|
|
|
95,944
|
|
0.94
|
|
|
|
40,680,201
|
|
|
99,947
|
|
0.98
|
|
|
Non-interest-bearing deposits
|
|
|
2,647,331
|
|
|
|
|
|
|
|
2,740,355
|
|
|
|
|
|
|
Other liabilities
|
|
|
203,213
|
|
|
|
|
|
|
|
163,633
|
|
|
|
|
|
|
Total liabilities
|
|
|
43,978,566
|
|
|
|
|
|
|
|
43,584,189
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
5,973,381
|
|
|
|
|
|
|
|
5,819,461
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
49,951,947
|
|
|
|
|
|
|
$
|
49,403,650
|
|
|
|
|
|
|
Net interest income/interest rate spread
|
|
|
|
$
|
327,866
|
|
2.86
|
%
|
|
|
|
$
|
324,554
|
|
2.87
|
%
|
|
Net interest margin
|
|
|
|
|
|
2.94
|
%
|
|
|
|
|
|
2.95
|
%
|
|
Ratio of interest-earning assets to interest-bearing
liabilities
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME
ANALYSIS (GAAP)
LINKED-QUARTER COMPARISON
(unaudited)
The following table compares the Company’s GAAP net interest income
analysis for the first quarter of 2016 with its GAAP net interest income
analysis for the fourth quarter of 2015 (i.e., including the $773.8
million debt repositioning charge recorded in interest expense in
accordance with ASC 470-50).
The impact of the debt repositioning charge is reflected in the
following line items in the fourth quarter 2015 analysis: interest
expense on and average cost of borrowed funds; interest expense on and
average cost of interest-bearing liabilities; net interest income;
interest rate spread; and net interest margin.
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
|
|
(GAAP)
|
|
(GAAP)
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
(dollars in thousands)
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans, net
|
|
$
|
38,437,915
|
|
$
|
360,723
|
|
|
3.75
|
%
|
|
$
|
37,240,361
|
|
$
|
361,043
|
|
3.88
|
|
%
|
|
Securities and money market investments
|
|
|
6,176,122
|
|
|
63,087
|
|
|
4.09
|
|
|
|
6,871,407
|
|
|
63,458
|
|
3.68
|
|
|
|
Total interest-earning assets
|
|
|
44,614,037
|
|
|
423,810
|
|
|
3.80
|
|
|
|
44,111,768
|
|
|
424,501
|
|
3.85
|
|
|
|
Non-interest-earning assets
|
|
|
5,337,910
|
|
|
|
|
|
|
|
|
5,291,882
|
|
|
|
|
|
|
Total assets
|
|
$
|
49,951,947
|
|
|
|
|
|
|
|
$
|
49,403,650
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
$
|
13,285,335
|
|
$
|
14,619
|
|
|
0.44
|
%
|
|
$
|
12,930,306
|
|
$
|
11,918
|
|
0.37
|
|
%
|
|
Savings accounts
|
|
|
6,863,220
|
|
|
10,208
|
|
|
0.60
|
|
|
|
7,579,895
|
|
|
12,779
|
|
0.67
|
|
|
|
Certificates of deposit
|
|
|
5,915,482
|
|
|
15,890
|
|
|
1.08
|
|
|
|
5,356,629
|
|
|
14,522
|
|
1.08
|
|
|
|
Total interest-bearing deposits
|
|
|
26,064,037
|
|
|
40,717
|
|
|
0.63
|
|
|
|
25,866,830
|
|
|
39,219
|
|
0.60
|
|
|
|
Borrowed funds
|
|
|
15,063,985
|
|
|
55,227
|
|
|
1.47
|
|
|
|
14,813,371
|
|
|
834,484
|
|
22.35
|
|
|
|
Total interest-bearing liabilities
|
|
|
41,128,022
|
|
|
95,944
|
|
|
0.94
|
|
|
|
40,680,201
|
|
|
873,703
|
|
8.52
|
|
|
|
Non-interest-bearing deposits
|
|
|
2,647,331
|
|
|
|
|
|
|
|
|
2,740,355
|
|
|
|
|
|
|
Other liabilities
|
|
|
203,213
|
|
|
|
|
|
|
|
|
163,633
|
|
|
|
|
|
|
Total liabilities
|
|
|
43,978,566
|
|
|
|
|
|
|
|
|
43,584,189
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
5,973,381
|
|
|
|
|
|
|
|
|
5,819,461
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
49,951,947
|
|
|
|
|
|
|
|
$
|
49,403,650
|
|
|
|
|
|
|
Net interest income (loss)/interest rate spread
|
|
|
|
$
|
327,866
|
|
|
2.86
|
%
|
|
|
|
$
|
(449,202
|
)
|
(4.67
|
)
|
%
|
|
Net interest margin
|
|
|
|
|
|
|
2.94
|
%
|
|
|
|
|
|
(4.01
|
)
|
%
|
|
Ratio of interest-earning assets to interest-bearing
liabilities
|
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
NET INTEREST INCOME ANALYSIS (GAAP)
YEAR-OVER-YEAR COMPARISON
(unaudited)
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
|
|
(GAAP)
|
|
(GAAP)
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
(dollars in thousands)
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and other loans, net
|
|
$
|
38,437,915
|
|
$
|
360,723
|
|
3.75
|
%
|
|
$
|
35,960,395
|
|
$
|
364,504
|
|
4.06
|
%
|
|
Securities and money market investments
|
|
|
6,176,122
|
|
|
63,087
|
|
4.09
|
|
|
|
7,542,579
|
|
|
64,409
|
|
3.43
|
|
|
Total interest-earning assets
|
|
|
44,614,037
|
|
|
423,810
|
|
3.80
|
|
|
|
43,502,974
|
|
|
428,913
|
|
3.95
|
|
|
Non-interest-earning assets
|
|
|
5,337,910
|
|
|
|
|
|
|
|
5,266,578
|
|
|
|
|
|
|
Total assets
|
|
$
|
49,951,947
|
|
|
|
|
|
|
$
|
48,769,552
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money market accounts
|
|
$
|
13,285,335
|
|
$
|
14,619
|
|
0.44
|
%
|
|
$
|
12,366,830
|
|
$
|
11,052
|
|
0.36
|
%
|
|
Savings accounts
|
|
|
6,863,220
|
|
|
10,208
|
|
0.60
|
|
|
|
7,528,983
|
|
|
12,333
|
|
0.66
|
|
|
Certificates of deposit
|
|
|
5,915,482
|
|
|
15,890
|
|
1.08
|
|
|
|
6,085,108
|
|
|
17,116
|
|
1.14
|
|
|
Total interest-bearing deposits
|
|
|
26,064,037
|
|
|
40,717
|
|
0.63
|
|
|
|
25,980,921
|
|
|
40,501
|
|
0.63
|
|
|
Borrowed funds
|
|
|
15,063,985
|
|
|
55,227
|
|
1.47
|
|
|
|
14,245,073
|
|
|
95,644
|
|
2.72
|
|
|
Total interest-bearing liabilities
|
|
|
41,128,022
|
|
|
95,944
|
|
0.94
|
|
|
|
40,225,994
|
|
|
136,145
|
|
1.37
|
|
|
Non-interest-bearing deposits
|
|
|
2,647,331
|
|
|
|
|
|
|
|
2,510,976
|
|
|
|
|
|
|
Other liabilities
|
|
|
203,213
|
|
|
|
|
|
|
|
230,273
|
|
|
|
|
|
|
Total liabilities
|
|
|
43,978,566
|
|
|
|
|
|
|
|
42,967,243
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
5,973,381
|
|
|
|
|
|
|
|
5,802,309
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
49,951,947
|
|
|
|
|
|
|
$
|
48,769,552
|
|
|
|
|
|
|
Net interest income/interest rate spread
|
|
|
|
$
|
327,866
|
|
2.86
|
%
|
|
|
|
$
|
292,768
|
|
2.58
|
%
|
|
Net interest margin
|
|
|
|
|
|
2.94
|
%
|
|
|
|
|
|
2.68
|
%
|
|
Ratio of interest-earning assets to interest-
bearing
liabilities
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
1.08
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL
HIGHLIGHTS
(unaudited)
The following table presents our non-GAAP earnings and the related
measures for the three months ended March 31, 2016 and December 31,
2015, which exclude the after-tax impact of the merger-related expenses
recorded in connection with the proposed Astoria Financial merger in the
respective three-month periods. In addition, our non-GAAP earnings for
the three months ended December 31, 2015 exclude the after-tax impact of
the $546.8 million debt repositioning charge recorded during that time.
No adjustments have been made to our earnings for the three months ended
March 31, 2015.
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
(dollars in thousands except share and per share data)
|
|
2016
|
|
2015
|
|
2015
|
|
NON-GAAP EARNINGS: (1)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
|
|
$
|
131,122
|
|
|
$
|
145,190
|
|
|
$
|
119,259
|
|
|
Basic non-GAAP earnings per share
|
|
|
0.27
|
|
|
|
0.31
|
|
|
|
0.27
|
|
|
Diluted non-GAAP earnings per share
|
|
|
0.27
|
|
|
|
0.31
|
|
|
|
0.27
|
|
|
Return on average assets
|
|
|
1.05
|
%
|
|
|
1.18
|
%
|
|
|
0.98
|
%
|
|
Return on average tangible assets (2)
|
|
|
1.11
|
|
|
|
1.24
|
|
|
|
1.04
|
|
|
Return on average stockholders’ equity
|
|
|
8.78
|
|
|
|
9.98
|
|
|
|
8.22
|
|
|
Return on average tangible stockholders’ equity (2)
|
|
|
14.89
|
|
|
|
17.26
|
|
|
|
14.32
|
|
|
Efficiency ratio (3)
|
|
|
43.07
|
|
|
|
41.27
|
|
|
|
45.00
|
|
|
Operating expenses to average assets
|
|
|
1.25
|
|
|
|
1.28
|
|
|
|
1.27
|
|
|
Interest rate spread
|
|
|
2.86
|
|
|
|
2.87
|
|
|
|
2.58
|
|
|
Net interest margin
|
|
|
2.94
|
|
|
|
2.95
|
|
|
|
2.68
|
|
|
Effective tax rate
|
|
|
36.36
|
|
|
|
37.01
|
|
|
|
36.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Please see the reconciliation of our fourth quarter 2015 GAAP loss
and our fourth quarter 2015 non-GAAP earnings on page 13 of this
release.
|
|
(2)
|
|
|
Please see the reconciliations of these non-GAAP measures with the
comparable GAAP measures on page 14 of this release.
|
|
(3)
|
|
|
Please see the reconciliation of our efficiency ratio and adjusted
efficiency ratio for the three months ended December 31, 2015 on
page 13 of this release.
|
|
|
|
|
|
The following table presents our GAAP earnings for the three months
ended March 31, 2016, December 31, 2015, and March 31, 2015. The GAAP
earnings for the first quarter of 2016 and the GAAP loss for the fourth
quarter of 2015 include the items excluded from the calculation of
non-GAAP earnings (loss) provided in the preceding table.
|
|
|
For the Three Months Ended
|
|
(dollars in thousands except share and per share data)
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
GAAP INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
129,909
|
|
|
$
|
(404,807
|
)
|
|
$
|
119,259
|
|
|
Basic earnings (loss) per share
|
|
|
0.27
|
|
|
|
(0.87
|
)
|
|
|
0.27
|
|
|
Diluted earnings (loss) per share
|
|
|
0.27
|
|
|
|
(0.87
|
)
|
|
|
0.27
|
|
|
Return on average assets
|
|
|
1.04
|
%
|
|
|
(3.28
|
)%
|
|
|
0.98
|
%
|
|
Return on average tangible assets (1)
|
|
|
1.10
|
|
|
|
(3.44
|
)
|
|
|
1.04
|
|
|
Return on average stockholders’ equity
|
|
|
8.70
|
|
|
|
(27.82
|
)
|
|
|
8.22
|
|
|
Return on average tangible stockholders’ equity (1)
|
|
|
14.76
|
|
|
|
(47.83
|
)
|
|
|
14.32
|
|
|
Efficiency ratio (2)
|
|
|
43.07
|
|
|
|
(41.97
|
)
|
|
|
45.00
|
|
|
Operating expenses to average assets
|
|
|
1.25
|
|
|
|
1.33
|
|
|
|
1.27
|
|
|
Interest rate spread
|
|
|
2.86
|
|
|
|
(4.67
|
)
|
|
|
2.58
|
|
|
Net interest margin
|
|
|
2.94
|
|
|
|
(4.01
|
)
|
|
|
2.68
|
|
|
Effective tax rate
|
|
|
36.58
|
|
|
|
41.64
|
|
|
|
36.62
|
|
|
Shares used for basic EPS computation
|
|
|
484,605,397
|
|
|
|
468,289,624
|
|
|
|
441,990,338
|
|
|
Shares used for diluted EPS computation
|
|
|
484,605,397
|
|
|
|
468,289,624
|
|
|
|
441,990,338
|
|
|
Shares outstanding at the respective period-ends
|
|
|
486,929,814
|
|
|
|
484,943,308
|
|
|
|
444,277,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Please see the reconciliations of these non-GAAP measures with the
comparable GAAP measures on page 14 of this release.
|
|
(2)
|
|
|
We calculate our efficiency ratio by dividing our operating earnings
by the sum of our net interest income and non-interest income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2015
|
|
CAPITAL MEASURES:
|
|
|
|
|
|
|
|
|
|
|
Book value per share
|
|
$
|
12.29
|
|
|
$
|
12.24
|
|
|
$
|
13.04
|
|
|
Tangible book value per share (1)
|
|
|
7.28
|
|
|
|
7.21
|
|
|
|
7.55
|
|
|
Stockholders’ equity to total assets
|
|
|
12.34
|
%
|
|
|
11.79
|
%
|
|
|
12.01
|
%
|
|
Tangible stockholders’ equity to tangible assets (1)
|
|
|
7.70
|
|
|
|
7.30
|
|
|
|
7.32
|
|
|
Tangible stockholders’ equity to tangible assets excluding
accumulated
other comprehensive loss, net of tax (1)
|
|
|
7.81
|
|
|
|
7.41
|
|
|
|
7.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL RATIOS: (2)
|
|
|
|
|
|
|
|
|
|
|
New York Community Bank
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 ratio
|
|
|
11.01
|
%
|
|
|
11.04
|
%
|
|
|
11.73
|
%
|
|
Leverage capital ratio
|
|
|
8.03
|
|
|
|
8.05
|
|
|
|
7.83
|
|
|
Tier 1 risk-based capital ratio
|
|
|
11.01
|
|
|
|
11.04
|
|
|
|
11.73
|
|
|
Total risk-based capital ratio
|
|
|
11.53
|
|
|
|
11.57
|
|
|
|
12.35
|
|
|
New York Commercial Bank
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 ratio
|
|
|
14.47
|
%
|
|
|
14.15
|
%
|
|
|
11.87
|
%
|
|
Leverage capital ratio
|
|
|
10.46
|
|
|
|
10.01
|
|
|
|
9.01
|
|
|
Tier 1 risk-based capital ratio
|
|
|
14.47
|
|
|
|
14.15
|
|
|
|
11.87
|
|
|
Total risk-based capital ratio
|
|
|
15.14
|
|
|
|
14.74
|
|
|
|
12.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Please see the reconciliations of these non-GAAP measures with the
comparable GAAP measures on page 14 of this release.
|
|
(2)
|
|
|
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.