NEW YORK COMMUNITY BANCORP, INC. REPORTS THIRD QUARTER 2024 GAAP NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS OF $0.79 PER DILUTED SHARE AND NON-GAAP NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS OF $0.69 PER DILUTED SHARE
New York Community Bancorp reported a Q3 2024 net loss of $280 million, with a net loss attributable to common stockholders of $289 million ($0.79 per diluted share). Adjusted for merger-related expenses and items from mortgage warehouse business sale, the net loss was $243 million ($0.69 per diluted share). Key highlights include deposit growth of $4 billion (5%), reduced wholesale borrowings by 31%, and maintained an allowance for credit losses ratio of 1.87%. The bank continued its de-risking strategy with commercial real estate exposure declining 3%. Net interest income decreased to $510 million, down 8% from Q2 2024 and 42% year-over-year.
New York Community Bancorp ha riportato una perdita netta di $280 milioni per il terzo trimestre del 2024, con una perdita netta attribuibile agli azionisti ordinari di $289 milioni ($0.79 per azione diluita). Regolata per le spese legate alla fusione e gli elementi derivanti dalla vendita del business di magazzinaggio ipotecario, la perdita netta è stata di $243 milioni ($0.69 per azione diluita). Punti salienti includono una crescita dei depositi di $4 miliardi (5%), una riduzione dei prestiti all’ingrosso del 31% e il mantenimento di un rapporto di accantonamento per perdite su crediti dell’1.87%. La banca ha continuato la sua strategia di de-risking con un’esposizione al settore immobiliare commerciale in calo del 3%. Il reddito netto da interessi è diminuito a $510 milioni, in calo dell'8% rispetto al secondo trimestre del 2024 e del 42% su base annua.
New York Community Bancorp reportó una pérdida neta de $280 millones en el tercer trimestre de 2024, con una pérdida neta atribuible a los accionistas comunes de $289 millones ($0.79 por acción diluida). Ajustando por gastos relacionados con la fusión y elementos derivados de la venta del negocio de almacenamiento hipotecario, la pérdida neta fue de $243 millones ($0.69 por acción diluida). Puntos destacados incluyen un crecimiento de depósitos de $4 mil millones (5%), una reducción del 31% en préstamos mayoristas y el mantenimiento de un ratio de provisiones para pérdidas crediticias del 1.87%. El banco continuó su estrategia de desriesgo con una exposición al sector inmobiliario comercial en descenso del 3%. Los ingresos netos por intereses disminuyeron a $510 millones, una caída del 8% con respecto al segundo trimestre de 2024 y del 42% interanual.
뉴욕 커뮤니티 뱅크는 2024년 3분기에 2억 8천만 달러의 순손실을 보고했으며, 일반 주주에게 귀속되는 순손실은 2억 8천9백만 달러($0.79 희석주당)입니다. 합병 관련 비용 및 주택 모기지 창고 사업 매각에서 발생한 항목을 조정한 결과, 순손실은 2억 4천3백만 달러($0.69 희석주당)였습니다. 주요 하이라이트로는 40억 달러(5%)의 예금 성장, 도매 차입 31% 감소, 신용 손실 비율을 1.87%로 유지한 것입니다. 은행은 상업용 부동산에 대한 위험 감소 전략을 계속해서 추진하며 3% 감소했습니다. 순이자 수익은 5억 1천만 달러로 감소하여 2024년 2분기 대비 8% 감소하고, 전년 동기 대비 42% 감소했습니다.
New York Community Bancorp a déclaré une perte nette de 280 millions de dollars pour le troisième trimestre de 2024, avec une perte nette attribuable aux actionnaires ordinaires de 289 millions de dollars (0,79 $ par action diluée). Ajustée des dépenses liées à la fusion et des éléments issus de la vente de l'activité d'entrepôt hypothécaire, la perte nette était de 243 millions de dollars (0,69 $ par action diluée). Points clés : croissance des dépôts de 4 milliards de dollars (5 %), réduction des emprunts de gros de 31 % et maintien d'un ratio de provisions pour pertes de crédit de 1,87 %. La banque a poursuivi sa stratégie de désensibilisation, avec une exposition aux biens immobiliers commerciaux en baisse de 3 %. Le produit net d'intérêts a diminué à 510 millions de dollars, en baisse de 8 % par rapport au deuxième trimestre de 2024 et de 42 % d'une année sur l'autre.
New York Community Bancorp berichtete über einen Nettoverlust von 280 Millionen Dollar im dritten Quartal 2024, wobei der den Stammaktionären zurechenbare Nettoverlust 289 Millionen Dollar ($0.79 pro verwässerter Aktie) betrug. Bereinigt um mit der Fusion verbundene Kosten und Posten aus dem Verkauf des Hypothekenlagergeschäfts betrug der Nettoverlust 243 Millionen Dollar ($0.69 pro verwässerter Aktie). Wesentliche Höhepunkte umfassen ein Einlagenwachstum von 4 Milliarden Dollar (5 %), eine Reduzierung der Großhandelsverschuldung um 31 % und eine Beibehaltung des Verlustvorbehaltsverhältnisses von 1,87 %. Die Bank setzte ihre De-Risking-Strategie fort, wobei die Exposition gegenüber gewerblichen Immobilien um 3 % zurückging. Die zinsertragsseitigen Nettoeinnahmen sanken auf 510 Millionen Dollar, was einem Rückgang von 8 % gegenüber dem zweiten Quartal 2024 und 42 % im Jahresvergleich entspricht.
- Deposits increased by $4 billion (5%) to $83 billion
- Reduced wholesale borrowings by $8.6 billion (31%)
- Strong capital levels with CET1 ratio of 10.8%
- Total liquidity over $41 billion with 299% coverage ratio on uninsured deposits
- Net loss of $280 million in Q3 2024
- Net interest income declined 42% year-over-year to $510 million
- Net interest margin decreased to 1.79%, down 148 basis points year-over-year
- Net charge-offs increased to $240 million from $24 million year-over-year
Insights
The Q3 2024 results reveal significant challenges for NYCB with a
- Net interest margin compressed to
1.79% , down 148 basis points year-over-year - Net interest income dropped
42% year-over-year to$510 million - Credit quality deterioration with
$240 million in net charge-offs
However, there are some positive developments in the turnaround strategy: deposits grew
The bank's risk profile shows concerning trends despite de-risking efforts. The allowance for credit losses increased to
STRONG MOMENTUM CONTINUES WITH OUR TURNAROUND STRATEGY AS DEPOSITS GREW ANOTHER
WHOLESALE BORROWINGS DECREASED OVER
MAINTAINED A SOLID ALLOWANCE FOR CREDIT LOSSES RATIO OF
CONTINUE TO DE-RISK LOAN PORTFOLIO AS COMMERCIAL REAL ESTATE EXPOSURE DECLINED ANOTHER
STRONG CAPITAL LEVELS AND LIQUIDITY POSITION
Third Quarter 2024 Summary | ||
Asset Quality | Loans, Deposits, and Funding | |
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Capital | Liquidity | |
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CEO COMMENTARY
Commenting on the Company's third quarter performance, Chairman, President, and Chief Executive Officer, Joseph M. Otting stated, "During the third quarter, we made significant progress on each of our strategic priorities, as we continue to transition into a diversified regional bank. The first of which is our funding mix. We had a second consecutive quarter of strong deposit growth, especially in the Private Bank, where we are seeing many customers returning to Flagstar and we are winning new relationships. Also, we utilized a portion of our liquidity from deposit growth and previously announced business transaction, to pay down a significant amount of wholesale borrowings. Wholesale borrowings declined nearly
"On the asset quality front, we have completed
"We have also continued to invest in our business. We continue to invest in our risk management infrastructure and have enhanced our risk team with several new hires. In addition, we expanded our C&I leadership team with the hiring of several accomplished senior executives while building out our coverage and infrastructure by recruiting over 30 teammates in commercial banking, to bolster our commercial banking growth strategy.
"Following the end of the quarter, we took actions to reduce costs across our entire organization. These steps reflect our commitment to our financial objectives, and we anticipate further cost reductions as we continue to implement efficiency initiatives.
"Also, ten days ago we announced another milestone in our ongoing transformation, changing our holding company name to Flagstar Financial, Inc. and our stock symbol to FLG, effective at 5 p.m. today. We expect to begin trading under the new symbol on Monday. The new holding company name complements the re-branding of the Bank and our branches we undertook earlier in the year. The Company name change is a continuation of those efforts and unifies the organization and our vision under one brand.
"Moreover, at yesterday's Board of Directors meeting, director Peter Schoels tendered his resignation from both the Bank and the Company boards. Peter has been a director of the Company since the close of the merger almost two years ago. Before then he was a long-standing director at legacy Flagstar. For myself and my fellow board members, Peter's insights and business acumen have served the organization well and I would like to thank him for his many years of service. The Board intends to fill the vacancy left by his departure.
"I remain confident in our ability to successfully execute on our strategic plan and transform the Company into a regional bank with meaningful earnings power and a strong balance sheet.
"Finally, I would like to thank each of our teammates for their unwavering commitment and dedication to the Bank and its customers."
NET INCOME (LOSS) | NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
The Company reported a third quarter 2024 net loss of
For the first nine months of 2024, the Company reported a net loss of
Included in the net loss and diluted EPS for the first nine months of 2024 is a
EARNINGS SUMMARY FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024
Net Interest Income, Net Interest Margin, and Average Balance Sheet
Net Interest Income and Net Interest Margin Summary | September 30, 2024 | ||||||||
For the Three Months Ended | compared to (%): | ||||||||
(dollars in millions) | September 30, | June 30, | September 30, | June 30, | September 30, | ||||
Net interest income | $ 510 | $ 557 | $ 882 | -8 % | -42 % | ||||
For the Three Months Ended | compared to (bp): | ||||||||
Yield/Cost | September 30, | June 30, | September 30, | June 30, | September 30, | ||||
Mortgage and other loans, net | 5.53 % | 5.62 % | 5.82 % | -9 | -29 | ||||
Securities | 4.85 % | 4.68 % | 4.30 % | 17 | 55 | ||||
Interest-earning cash and cash equivalents | 5.40 % | 5.44 % | 5.31 % | -4 | 9 | ||||
Total interest-earning assets | 5.42 % | 5.48 % | 5.62 % | -6 | -20 | ||||
Total interest-bearing deposits | 4.37 % | 4.15 % | 3.33 % | 22 | 104 | ||||
Borrowed funds | 5.28 % | 5.28 % | 3.53 % | 0 | 175 | ||||
Total interest-bearing liabilities | 4.62 % | 4.52 % | 3.37 % | 10 | 125 | ||||
Net interest margin | 1.79 % | 1.98 % | 3.27 % | -19 | -148 |
Net Interest Income and Net Interest Margin Summary | |||||
For the Nine Months Ended | |||||
(dollars in millions) | September 30, | September 30, | % Change | ||
Net interest income | $ 1,691 | $ 2,337 | -28 % | ||
For the Nine Months Ended | |||||
Yield/Cost | September 30, | September 30, | (bp) Change | ||
Mortgage and other loans, net | 5.62 % | 5.43 % | 19 | ||
Securities | 4.59 % | 4.11 % | 48 | ||
Interest-earning cash and cash equivalents | 5.44 % | 5.11 % | 33 | ||
Total interest-earning assets | 5.47 % | 5.27 % | 20 | ||
Total interest-bearing deposits | 4.13 % | 2.94 % | 119 | ||
Borrowed funds | 5.31 % | 3.52 % | 179 | ||
Total interest-bearing liabilities | 4.45 % | 3.09 % | 136 | ||
Net interest margin | 2.01 % | 3.05 % | -104 |
Net Interest Income
Net interest income for the third quarter 2024 totaled
For the first nine months of 2024, net interest income decreased
Net Interest Margin
The net interest margin for the third quarter 2024 was
The 148 basis point reduction in the net interest margin compared to the third quarter of 2023 was also due to the result of a higher level of average interest-bearing liabilities combined with an increase in the average cost of funds. Average interest-bearing liabilities increased
During the first nine months of 2024, the net interest margin was
Average Balance Sheet
September 30, 2024 | |||||||||
For the Three Months Ended | compared to: | ||||||||
(dollars in millions) | September 30, | June 30, | September 30, | June 30, | September 30, | ||||
Mortgage and other loans, net | -8 % | -11 % | |||||||
Securities | 12,862 | 12,094 | 10,317 | 6 % | 25 % | ||||
Reverse repurchase agreements | — | — | 299 | NM | -100 % | ||||
Interest-earning cash and cash | 23,561 | 17,883 | 10,788 | 32 % | 118 % | ||||
Total interest-earning assets | 112,976 | 113,212 | 107,095 | — % | 5 % | ||||
Total interest-bearing deposits | 63,647 | 59,607 | 58,494 | 7 % | 9 % | ||||
Borrowed funds | 24,456 | 28,612 | 15,596 | -15 % | 57 % | ||||
Total interest-bearing liabilities | 88,103 | 88,219 | 74,090 | — % | 19 % | ||||
Non-interest-bearing deposits | — % | -28 % |
For the Nine Months Ended | ||||||
(dollars in millions) | September 30, | September 30, | % Change | |||
Mortgage and other loans, net | 1 % | |||||
Securities | 12,180 | 10,314 | 18 % | |||
Reverse repurchase agreements | — | 503 | -100 % | |||
Interest-earning cash and cash | 18,615 | 11,127 | 67 % | |||
Total interest-earning assets | 112,081 | 102,513 | 9 % | |||
Total interest-bearing deposits | 60,941 | 55,252 | 10 % | |||
Borrowed funds | 26,259 | 18,683 | 41 % | |||
Total interest-bearing liabilities | 87,200 | 73,935 | 18 % | |||
Non-interest-bearing deposits | -11 % |
During third quarter 2024, average loan balances decreased
Average interest-bearing liabilities were relatively flat compared to the previous quarter, as an increase in average interest-bearing deposits was offset by a decrease in average borrowed funds. Average deposits rose
For the first nine months of 2024, average loans increased modestly, rising
For the first nine months of 2024, average interest-bearing liabilities increased
Provision for Credit Losses
For third quarter 2024, the provision for credit losses totaled
Net charge-offs totaled
For the first nine months of 2024, the provision for credit losses totaled
Pre-Provision Net Revenue
The tables below detail the Company's PPNR and related measures, which are non-GAAP measures, for the periods noted:
September 30, 2024 | |||||||||
For the Three Months Ended | compared to: | ||||||||
(dollars in millions) | September 30, | June 30, | September 30, | June 30, | September 30, | ||||
Net interest income | $ 510 | $ 557 | $ 882 | -8 % | -42 % | ||||
Non-interest income | 113 | 114 | 160 | -1 % | -29 % | ||||
Total revenues | $ 623 | $ 671 | $ 1,042 | -7 % | -40 % | ||||
Total non-interest expense | 716 | 705 | 712 | 2 % | 1 % | ||||
Pre - provision net revenue (non-GAAP) | $ (93) | $ (34) | $ 330 | 174 % | -128 % | ||||
Merger-related and restructuring expenses | 18 | 34 | 91 | -47 % | -80 % | ||||
Certain items related to the sale of the mortgage warehouse business | 32 | — | — | NM | NM | ||||
Pre - provision net revenue excluding merger-related and | $ (43) | $ — | $ 421 | NM | NM |
For the third quarter 2024, pre-provision net loss totaled
For the Nine Months Ended | |||||
(dollars in millions) | September 30, | September 30, | % Change | ||
Net interest income | $ 1,691 | $ 2,337 | -28 % | ||
Non-interest income | 236 | 2,560 | -91 % | ||
Total revenues | $ 1,927 | $ 4,897 | -61 % | ||
Total non-interest expense | 2,120 | 1,849 | 15 % | ||
Pre - provision net revenue (non-GAAP) | $ (193) | $ 3,048 | -106 % | ||
Bargain purchase gain | 121 | (2,142) | -106 % | ||
Merger-related and restructuring expenses | 95 | 267 | -64 % | ||
Certain items related to the sale of the mortgage warehouse business | 32 | — | |||
Pre - provision net revenue excluding merger-related and restructuring expenses and bargain | $ 55 | $ 1,173 | -95 % |
For the first nine months of 2024, pre-provision net loss was
Non-Interest Income
September 30, 2024 | |||||||||
For the Three Months Ended | compared to: | ||||||||
(dollars in millions) | September 30, | June 30, 2024 | September 30, | June 30, 2024 | September 30, | ||||
Fee income | 2 % | -28 % | |||||||
Bank-owned life insurance | 10 | 12 | 11 | -17 % | -9 % | ||||
Net return on mortgage servicing rights | 34 | 19 | 23 | 79 % | 48 % | ||||
Net gain on loan sales and securitizations | 5 | 18 | 28 | -72 % | -82 % | ||||
Net loan administration (loss) income | (8) | (5) | 19 | 60 % | -142 % | ||||
Other income | 30 | 29 | 21 | 3 % | 43 % | ||||
Total non-interest income | -1 % | -29 % |
For the Nine Months Ended | |||||
(dollars in millions) | September 30, | September 30, | % Change | ||
Fee income | -12 % | ||||
Bank-owned life insurance | 32 | 32 | — % | ||
Net losses on securities | — | (1) | NM | ||
Net return on mortgage servicing rights | 74 | 70 | 6 % | ||
Net gain on loan sales and securitizations | 43 | 73 | -41 % | ||
Net loan administration income | 3 | 65 | -95 % | ||
Bargain purchase gain | (121) | 2,142 | NM | ||
Other income | 88 | 46 | 91 % | ||
Total non-interest income | NM | ||||
Impact of Notable Item: | |||||
Bargain purchase gain | 121 | (2,142) | NM | ||
Adjusted noninterest income (non-GAAP) | -15 % |
In third quarter 2024, non-interest income totaled
For the first nine months of 2024, non-interest income totaled
Non-Interest Expense
September 30, 2024 | |||||||||
For the Three Months Ended | compared to: | ||||||||
(dollars in millions) | September 30, | June 30, 2024 | September 30, | June 30, 2024 | September 30, | ||||
Operating expenses: | |||||||||
Compensation and benefits | 1 % | -9 % | |||||||
FDIC insurance | 98 | 91 | 19 | 8 % | 416 % | ||||
Occupancy and equipment | 59 | 52 | 55 | 13 % | 7 % | ||||
General and administrative | 188 | 183 | 165 | 3 % | 14 % | ||||
Total operating expenses | 661 | 638 | 585 | 4 % | 13 % | ||||
Intangible asset amortization | 37 | 33 | 36 | 12 % | 3 % | ||||
Merger-related and restructuring expenses | 18 | 34 | 91 | -47 % | -80 % | ||||
Total non-interest expense | 2 % | 1 % |
For the Nine Months Ended | |||||
(dollars in millions) | September 30, | September 30, | % Change | ||
Operating expenses: | |||||
Compensation and benefits | 13 % | ||||
FDIC insurance | 239 | 56 | 327 % | ||
Occupancy and equipment | 163 | 142 | 15 % | ||
General and administrative | 557 | 440 | 27 % | ||
Total operating expenses | 1,920 | 1,492 | 29 % | ||
Intangible asset amortization | 105 | 90 | 17 % | ||
Merger-related and restructuring expenses | 95 | 267 | -64 % | ||
Total non-interest expense | 15 % |
For the quarter ended September 30, 2024, total non-interest expense was
For the first nine months of 2024, total non-interest expense was
Income Taxes
For the third quarter 2024, the Company reported a benefit for income taxes of
For the first nine months of 2024, the Company reported an income tax benefit of
ASSET QUALITY
September 30, 2024 | |||||||||
As of | compared to: | ||||||||
(dollars in millions) | September 30, | June 30, 2024 | September 30, | June 30, 2024 | September 30, | ||||
Total non-accrual loans held for investment | 29 % | 480 % | |||||||
Total non-accrual loans held for investment and repossessed | 29 % | 467 % | |||||||
NPLs to total loans held for investment | 3.54 % | 2.60 % | 0.52 % | 93 | 302 | ||||
NPAs to total assets | 2.21 % | 1.65 % | 0.40 % | 57 | 181 | ||||
Allowance for credit losses on loans and leases | — % | 104 % | |||||||
Total ACL, including on unfunded commitments | — % | 99 % | |||||||
ACL % of total loans held for investment | 1.78 % | 1.70 % | 0.74 % | 8 bps | 104 bps | ||||
Total ACL % of total loans held for investment | 1.87 % | 1.78 % | 0.79 % | 9 bps | 107 bps | ||||
ACL on loans and leases % of NPLs | 50 % | 65 % | 143 % | -15 % | -92 % | ||||
Total ACL % of NPLs | 53 % | 68 % | 154 % | -15 % | -101 % |
September 30, 2024 | |||||||||
For the Three Months Ended | compared to: | ||||||||
September 30, | June 30, | September 30, | June 30, | September 30, | |||||
Net charge-offs (recoveries) | -31 % | NM | |||||||
Net charge-offs (recoveries) to average loans (1) | 0.31 % | 0.42 % | 0.03 % | -11 bps | 29 bps | ||||
(1) Three months ended presented on a non-annualized basis. |
For the Nine Months Ended | |||||
September 30, | September 30, | Change % | |||
Net charge-offs (recoveries) | NM | ||||
Net charge-offs (recoveries) to average loans (1) | 0.82 % | 0.03 % | 80 bps | ||
(1) Three months ended presented on a non-annualized basis. |
Non-Performing Assets
At September 30, 2024, total non-accrual loans were
Also, during the quarter the Company transferred
Total Allowance for Credit Losses
The total allowance for credit losses was
CAPITAL POSITION
The Company's regulatory capital ratios continue to exceed regulatory minimums to be classified as "Well Capitalized," the highest regulatory classification. The table below depicts the Company's and the Bank's regulatory capital ratios at those respective periods.
September 30, 2024 | June 30, 2024 | December 31, 2023 | |||
REGULATORY CAPITAL RATIOS: (1) | |||||
New York Community Bancorp, Inc. | |||||
Common equity tier 1 ratio | 10.76 % | 9.54 % | 9.05 % | ||
Tier 1 risk-based capital ratio | 11.42 % | 10.43 % | 9.62 % | ||
Total risk-based capital ratio | 13.92 % | 12.78 % | 11.77 % | ||
Leverage capital ratio | 7.32 % | 7.53 % | 7.75 % | ||
Flagstar Bank, N.A. | |||||
Common equity tier 1 ratio | 11.94 % | 10.84 % | 10.52 % | ||
Tier 1 risk-based capital ratio | 11.94 % | 10.84 % | 10.52 % | ||
Total risk-based capital ratio | 13.19 % | 12.09 % | 11.61 % | ||
Leverage capital ratio | 7.64 % | 7.82 % | 8.48 % |
(1) | The minimum regulatory requirements for classification as a well-capitalized institution are a common equity tier 1 capital ratio of |
About New York Community Bancorp, Inc.
New York Community Bancorp, Inc. is the parent company of Flagstar Bank, N.A., one of the largest regional banks in the country. The Company is headquartered in
Flagstar Bank, N.A. operates over 400 branches, including a significant presence in the Northeast and Midwest and locations in high growth markets in the Southeast and West Coast. In addition, the Bank has approximately 90 private banking teams located in over 10 cities in the metropolitan
Post-Earnings Release Conference Call
The Company will host a conference call on October 25, 2024 at 8:00 a.m. (Eastern Time) to discuss its third quarter 2024 performance. The conference call may be accessed by dialing (888) 596-4144 (for domestic calls) or (646) 968-2525 (for international calls) and providing the following conference ID: 5857240. The live webcast will be available at ir.myNYCB.com under Events.
A replay will be available approximately three hours following completion of the call through 11:59 p.m. on October 29, 2024 and may be accessed by calling (800) 770-2030 (domestic) or (609) 800-9909 (international) and providing the following conference ID: 5857240. In addition, the conference call webcast at ir.myNYCB.com will be archived through 5:00 p.m. on November 22, 2024.
Investor Contact: Salvatore J. DiMartino (516) 683-4286
Media Contact: Steven Bodakowski (248) 312-5872
Cautionary Statements Regarding 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, beliefs, intentions, and expectations regarding (a) revenues, earnings, loan production, asset quality, liquidity position, capital levels, risk analysis, divestitures, acquisitions, and other material transactions, among other matters; (b) the future costs and benefits of the actions we may take; (c) our assessments of credit risk and probable losses on loans and associated allowances and reserves; (d) our assessments of interest rate and other market risks; (e) our ability to execute on our strategic plan, including the sufficiency of our internal resources, procedures and systems; (f) our ability to attract, incentivize, and retain key personnel and the roles of key personnel; (g) our ability to achieve our financial and other strategic goals, including those related to our merger with Flagstar Bancorp, Inc., which was completed on December 1, 2022, our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, and our ability to fully and timely implement the risk management programs institutions greater than
Forward‐looking statements are typically identified by such words as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "should," "confident," 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, among others, the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities, credit and financial 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, including associated allowances and reserves; changes in future allowance for credit losses, including changes required under relevant accounting and regulatory requirements; the ability to pay future dividends; changes in our capital management and balance sheet strategies and our ability to successfully implement such strategies; recent turnover in our Board of Directors and our executive management team; changes in our strategic plan, including changes in our internal resources, procedures and systems, and our ability to successfully implement such plan; changes in competitive pressures among financial institutions or from non‐financial institutions; changes in legislation, regulations, and policies; the imposition of restrictions on our operations by bank regulators; the outcome of pending or threatened litigation, or of investigations or any other matters before regulatory agencies, whether currently existing or commencing in the future; the success of our blockchain and fintech activities, investments and strategic partnerships; the restructuring of our mortgage business; our ability to recognize anticipated expense reductions and enhanced efficiencies with respect to our recently announced strategic workforce reduction; the impact of failures or disruptions in or breaches of the Company's operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; the impact of natural disasters, extreme weather events, military conflict (including the
More information regarding some of these factors is provided in the Risk Factors section of our Annual Report on Form 10‐K/A for the year ended December 31, 2023, Quarterly Report on Forms 10-Q for the quarters ended March 31, 2024 and June 30, 2024 and in other SEC reports we file. Our forward‐looking statements may also be subject to other risks and uncertainties, including those we may discuss in this news release, on our conference call, during investor presentations, or in our SEC filings, which are accessible on our website and at the SEC's website, www.sec.gov.
- Financial Statements and Highlights Follow -
NEW YORK COMMUNITY BANCORP, INC. | |||||||||
CONSOLIDATED STATEMENTS OF CONDITION | |||||||||
September 30, 2024 | |||||||||
compared to | |||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | December 31, 2023 | June 30, | December 31, | ||||
Assets | |||||||||
Cash and cash equivalents | $ 23,080 | $ 18,990 | $ 11,475 | 22 % | 101 % | ||||
Securities: | |||||||||
Available-for-sale | 10,511 | 10,535 | 9,145 | — % | 15 % | ||||
Equity investments with readily determinable fair values, at fair value | 14 | 14 | 14 | — % | — % | ||||
Total securities net of allowance for credit losses | 10,525 | 10,549 | 9,159 | — % | 15 % | ||||
Loans held for sale | 1,851 | 7,845 | 1,182 | -76 % | 57 % | ||||
Loans and leases held for investment: | |||||||||
Multi-family | 35,140 | 36,011 | 37,265 | -2 % | -6 % | ||||
Commercial real estate and acquisition, development, and construction | 12,482 | 13,178 | 13,382 | -5 % | -7 % | ||||
One-to-four family first mortgage | 5,247 | 5,790 | 6,061 | -9 % | -13 % | ||||
Commercial and industrial | 16,474 | 17,819 | 25,254 | -8 % | -35 % | ||||
Other loans | 1,773 | 1,754 | 2,657 | 1 % | -33 % | ||||
Total loans and leases held for investment | 71,116 | 74,552 | 84,619 | -5 % | -16 % | ||||
Less: Allowance for credit losses on loans and leases | (1,264) | (1,268) | (992) | — % | 27 % | ||||
Total loans and leases held for investment, net | 69,852 | 73,284 | 83,627 | -5 % | -16 % | ||||
Federal Home Loan Bank stock and Federal Reserve Bank stock, at cost | 1,364 | 1,565 | 1,392 | -13 % | -2 % | ||||
Premises and equipment, net | 649 | 691 | 652 | -6 % | — % | ||||
Core deposit and other intangibles | 519 | 557 | 625 | -7 % | -17 % | ||||
Mortgage servicing rights | — | 1,122 | 1,111 | NM | NM | ||||
Bank-owned life insurance | 1,595 | 1,586 | 1,580 | 1 % | 1 % | ||||
Other assets | 3,212 | 2,866 | 3,254 | 12 % | -1 % | ||||
Assets held for sale | 1,720 | — | — | NM | NM | ||||
Total assets | $ 114,367 | $ 119,055 | $ 114,057 | -4 % | — % | ||||
Liabilities and Stockholders' Equity | |||||||||
Deposits: | |||||||||
Interest-bearing checking and money market accounts | $ 21,680 | $ 21,740 | $ 30,700 | — % | -29 % | ||||
Savings accounts | 13,510 | 10,638 | 8,773 | 27 % | 54 % | ||||
Certificates of deposit | 29,251 | 28,780 | 21,554 | 2 % | 36 % | ||||
Non-interest-bearing accounts | 18,572 | 17,874 | 20,499 | 4 % | -9 % | ||||
Total deposits | 83,013 | 79,032 | 81,526 | 5 % | 2 % | ||||
Borrowed funds: | |||||||||
Wholesale borrowings | 19,310 | 27,871 | 20,250 | -31 % | -5 % | ||||
Junior subordinated debentures | 581 | 580 | 579 | — % | — % | ||||
Subordinated notes | 442 | 441 | 438 | — % | 1 % | ||||
Total borrowed funds | 20,333 | 28,892 | 21,267 | -30 % | -4 % | ||||
Other liabilities | 1,978 | 2,476 | 2,897 | -20 % | -32 % | ||||
Liabilities associated with assets held for sale | 471 | — | — | NM | NM | ||||
Total liabilities | 105,795 | 110,400 | 105,690 | -4 % | — % | ||||
Mezzanine equity: | |||||||||
Preferred stock - Series B | 1 | 258 | — | NM | NM | ||||
Stockholders' equity: | |||||||||
Preferred stock - Series A and D | 503 | 503 | 503 | — % | — % | ||||
Common stock | 4 | 4 | 2 | — % | 100 % | ||||
Paid-in capital in excess of par | 9,266 | 8,997 | 8,236 | 3 % | 13 % | ||||
Retained earnings | (562) | (270) | 443 | 108 % | -227 % | ||||
Treasury stock, at cost | (219) | (223) | (218) | -2 % | — % | ||||
Accumulated other comprehensive loss, net of tax: | |||||||||
Net unrealized loss on securities available for sale, net of tax | (468) | (674) | (581) | -31 % | -19 % | ||||
Pension and post-retirement obligations, net of tax | (27) | (28) | (28) | -4 % | -4 % | ||||
Net unrealized gain (loss) on cash flow hedges, net of tax | 74 | 88 | 10 | -16 % | 640 % | ||||
Total accumulated other comprehensive loss, net of tax | (421) | (614) | (599) | -31 % | -30 % | ||||
Total stockholders' equity | 8,571 | 8,397 | 8,367 | 2 % | 2 % | ||||
Total liabilities, Mezzanine and Stockholders' Equity | $ 114,367 | $ 119,055 | $ 114,057 | -4 % | — % |
NEW YORK COMMUNITY BANCORP, INC. | |||||||||
CONSOLIDATED STATEMENTS OF (LOSS) INCOME | |||||||||
September 30, 2024 | |||||||||
For the Three Months Ended | compared to | ||||||||
September 30, | June 30, 2024 | September 30, | June 30, 2024 | September 30, | |||||
(dollars in millions, except per share data) | |||||||||
Interest Income: | |||||||||
Loans and leases | $ 1,061 | $ 1,167 | $ 1,251 | -9 % | -15 % | ||||
Securities and money market investments | 473 | 381 | 261 | 24 % | 81 % | ||||
Total interest income | 1,534 | 1,548 | 1,512 | -1 % | 1 % | ||||
Interest Expense: | |||||||||
Interest-bearing checking and money market accounts | 218 | 214 | 268 | 2 % | -19 % | ||||
Savings accounts | 110 | 64 | 43 | 72 % | 156 % | ||||
Certificates of deposit | 372 | 337 | 180 | 10 % | 107 % | ||||
Borrowed funds | 324 | 376 | 139 | -14 % | 133 % | ||||
Total interest expense | 1,024 | 991 | 630 | 3 % | 63 % | ||||
Net interest income | 510 | 557 | 882 | -8 % | -42 % | ||||
Provision for credit losses | 242 | 390 | 62 | -38 % | 290 % | ||||
Net interest income after provision for credit losses | 268 | 167 | 820 | 60 % | -67 % | ||||
Non-Interest Income: | |||||||||
Fee income | 42 | 41 | 58 | 2 % | -28 % | ||||
Bank-owned life insurance | 10 | 12 | 11 | -17 % | -9 % | ||||
Net return on mortgage servicing rights | 34 | 19 | 23 | 79 % | 48 % | ||||
Net gain on loan sales and securitizations | 5 | 18 | 28 | -72 % | -82 % | ||||
Net loan administration (loss) income | (8) | (5) | 19 | 60 % | -142 % | ||||
Bargain purchase gain | — | — | — | NM | NM | ||||
Other income | 30 | 29 | 21 | 3 % | 43 % | ||||
Total non-interest income | 113 | 114 | 160 | -1 % | -29 % | ||||
Non-Interest Expense: | |||||||||
Operating expenses: | |||||||||
Compensation and benefits | 316 | 312 | 346 | 1 % | -9 % | ||||
FDIC insurance | 98 | 91 | 19 | 8 % | 416 % | ||||
Occupancy and equipment | 59 | 52 | 55 | 13 % | 7 % | ||||
General and administrative | 188 | 183 | 165 | 3 % | 14 % | ||||
Total operating expenses | 661 | 638 | 585 | 4 % | 13 % | ||||
Intangible asset amortization | 37 | 33 | 36 | 12 % | 3 % | ||||
Merger-related and restructuring expenses | 18 | 34 | 91 | -47 % | -80 % | ||||
Total non-interest expense | 716 | 705 | 712 | 2 % | 1 % | ||||
(Loss) income before income taxes | (335) | (424) | 268 | -21 % | -225 % | ||||
Income tax (benefit) expense | (55) | (101) | 61 | -46 % | NM | ||||
Net (loss) income | (280) | (323) | 207 | -13 % | -235 % | ||||
Preferred stock dividends | 9 | 10 | 8 | -10 % | 13 % | ||||
Net (loss) income attributable to common stockholders | $ (289) | $ (333) | $ 199 | -13 % | -245 % | ||||
Basic (loss) earnings per common share | $ (0.79) | $ (1.14) | $ 0.82 | NM | NM | ||||
Diluted (loss) earnings per common share | $ (0.79) | $ (1.14) | $ 0.81 | NM | NM | ||||
Dividends per common share | $ 0.01 | $ 0.01 | $ 0.17 | — % | -94 % |
NEW YORK COMMUNITY BANCORP, INC. | |||||||
CONSOLIDATED STATEMENTS OF (LOSS) INCOME | |||||||
For the Nine Months Ended | Change | ||||||
September 30, | September 30, | Amount | Percent | ||||
(dollars in millions, except per share data) | |||||||
Interest Income: | |||||||
Loans and leases | $ 3,421 | $ 3,279 | 142 | 4 % | |||
Securities and money market investments | 1,174 | 765 | 409 | 53 % | |||
Total interest income | 4,595 | 4,044 | 551 | 14 % | |||
Interest Expense: | |||||||
Interest-bearing checking and money market accounts | 664 | 657 | 7 | 1 % | |||
Savings accounts | 221 | 122 | 99 | 81 % | |||
Certificates of deposit | 1,000 | 436 | 564 | 129 % | |||
Borrowed funds | 1,019 | 492 | 527 | 107 % | |||
Total interest expense | 2,904 | 1,707 | 1,197 | 70 % | |||
Net interest income | 1,691 | 2,337 | (646) | -28 % | |||
Provision for credit losses | 947 | 281 | 666 | 237 % | |||
Net interest income after provision for credit losses | 744 | 2,056 | (1,312) | -64 % | |||
Non-Interest Income: | |||||||
Fee income | 117 | 133 | (16) | -12 % | |||
Bank-owned life insurance | 32 | 32 | — | — % | |||
Net losses on securities | — | (1) | 1 | -100 % | |||
Net return on mortgage servicing rights | 74 | 70 | 4 | 6 % | |||
Net gain on loan sales and securitizations | 43 | 73 | (30) | -41 % | |||
Net loan administration income | 3 | 65 | (62) | -95 % | |||
Bargain purchase gain | (121) | 2,142 | (2,263) | -106 % | |||
Other income | 88 | 46 | 42 | 91 % | |||
Total non-interest income | 236 | 2,560 | (2,324) | -91 % | |||
Non-Interest Expense: | |||||||
Operating expenses: | |||||||
Compensation and benefits | 961 | 854 | 107 | 13 % | |||
FDIC insurance | 239 | 56 | 183 | 327 % | |||
Occupancy and equipment | 163 | 142 | 21 | 15 % | |||
General and administrative | 557 | 440 | 117 | 27 % | |||
Total operating expenses | 1,920 | 1,492 | 428 | 29 % | |||
Intangible asset amortization | 105 | 90 | 15 | 17 % | |||
Merger-related and restructuring expenses | 95 | 267 | (172) | -64 % | |||
Total non-interest expense | 2,120 | 1,849 | 271 | 15 % | |||
(Loss) income before income taxes | (1,140) | 2,767 | (3,907) | -141 % | |||
Income tax (benefit) expense | (210) | 141 | (351) | -249 % | |||
Net (loss) income | (930) | 2,626 | (3,556) | -135 % | |||
Preferred stock dividends | 27 | 25 | 2 | 8 % | |||
Net (loss) income attributable to common stockholders | $ (957) | $ 2,601 | (3,558) | -137 % | |||
Basic (loss) earnings per common share | $ (3.16) | $ 10.86 | NM | NM | |||
Diluted (loss) earnings per common share | $ (3.16) | $ 10.84 | NM | NM | |||
Dividends per common share | $ 0.03 | $ 0.51 | — | -94 % |
RECONCILIATIONS OF CERTAIN GAAP AND NON-GAAP FINANCIAL MEASURES
(dollars in millions)
While stockholders' equity, total assets, and book value per share are financial measures that are recorded in accordance with
- Tangible common stockholders' equity is an important indication of the Company's ability to grow organically and through business combinations, as well as its ability to pay dividends and to engage in various capital management strategies.
- Returns on average tangible assets and average tangible common stockholders' equity are among the profitability measures considered by current and prospective investors, both independent of, and in comparison with, the Company's peers.
- Tangible book value per share and the ratio of tangible common stockholders' equity to tangible assets are among the capital measures considered by current and prospective investors, both independent of, and in comparison with, its peers.
Tangible common stockholders' equity, tangible assets, and the related non-GAAP profitability and capital measures should not be considered in isolation or as a substitute for stockholders' equity, total assets, or any other profitability or capital measure calculated in accordance with GAAP. Moreover, the manner in which we calculate these non-GAAP measures may differ from that of other companies reporting non-GAAP measures with similar names.
The following table presents reconciliations of our common stockholders' equity and tangible common stockholders' equity, our total assets and tangible assets, and the related GAAP and non-GAAP profitability and capital measures at or for the periods indicated:
At or for the | At or for the | ||||||||
Three Months Ended September 30, | For the Nine Months Ended | ||||||||
(dollars in millions) | September 30, | June 30, | September 30, | September 30, | September 30, | ||||
Total Stockholders' Equity | $ 8,571 | $ 8,397 | $ 10,993 | $ 8,571 | $ 10,993 | ||||
Less: Goodwill and other intangible assets | (519) | (557) | (3,087) | (519) | (3,087) | ||||
Less: Preferred stock | (503) | (503) | (503) | (503) | (503) | ||||
Tangible common stockholders' equity | $ 7,549 | $ 7,337 | $ 7,403 | $ 7,549 | $ 7,403 | ||||
Total Assets | $ 114,367 | $ 119,055 | $ 111,230 | $ 114,367 | $ 111,230 | ||||
Less: Goodwill and other intangible assets | (519) | (557) | (3,087) | (519) | (3,087) | ||||
Tangible Assets | $ 113,848 | $ 118,498 | $ 108,143 | $ 113,848 | $ 108,143 | ||||
Average common stockholders' equity | $ 8,122 | $ 7,984 | $ 10,692 | $ 8,003 | $ 9,925 | ||||
Less: Average goodwill and other intangible assets | (544) | (578) | (3,111) | $ (578) | $ (3,011) | ||||
Average tangible common stockholders' equity | $ 7,578 | $ 7,406 | $ 7,581 | $ 7,425 | $ 6,914 | ||||
Average Assets | $ 118,396 | $ 118,353 | $ 114,274 | $ 117,495 | $ 110,095 | ||||
Less: Average goodwill and other intangible assets | (544) | (578) | (3,111) | (578) | (3,011) | ||||
Average tangible assets | $ 117,852 | $ 117,775 | $ 111,163 | $ 116,917 | $ 107,084 | ||||
GAAP MEASURES: | |||||||||
(Loss) return on average assets (1) | (0.94) % | (1.09) % | 0.72 % | (1.06) % | 3.18 % | ||||
(Loss) return on average common stockholders' equity (2) | (14.19) % | (16.69) % | 7.42 % | (15.94) % | 34.94 % | ||||
Book value per common share | $ 19.43 | $ 22.47 | $ 43.56 | $ 19.43 | $ 43.56 | ||||
Common stockholders' equity to total assets | 7.05 % | 6.63 % | 9.43 % | 7.05 % | 9.43 % | ||||
NON-GAAP MEASURES: | |||||||||
(Loss) return on average tangible assets (1) | (0.82) % | (1.01) % | 0.99 % | (0.82) % | 0.85 % | ||||
(Loss) return on average tangible common | (13.27) % | (16.62) % | 14.01 % | (13.32) % | 12.67 % | ||||
Tangible book value per common share | $ 18.18 | $ 20.89 | $ 30.74 | $ 18.18 | $ 30.74 | ||||
Tangible common stockholders' equity to tangible | 6.63 % | 6.19 % | 6.85 % | 6.63 % | 6.85 % |
(1) | To calculate return on average assets for a period, we divide net income, or non-GAAP net income, generated during that period by average assets recorded during that period. To calculate return on average tangible assets for a period, we divide net income by average tangible assets recorded during that period. |
(2) | To calculate return on average common stockholders' equity for a period, we divide net income attributable to common stockholders, or non-GAAP net income attributable to common stockholders, generated during that period by average common stockholders' equity recorded during that period. To calculate return on average tangible common stockholders' equity for a period, we divide net income attributable to common stockholders generated during that period by average tangible common stockholders' equity recorded during that period. |
While diluted earnings per common share, net income, net income attributable to common stockholders, and total non-interest income are financial measures that are recorded in accordance with GAAP, financial measures that adjust these GAAP measures to exclude merger and restructuring expenses, the bargain purchase gains related to our merger with Flagstar and the Signature transaction, and certain items related to the sale of the mortgage warehouse business are not. Nevertheless, it is management's belief that these non-GAAP measures should be disclosed in our earnings release and other investor communications because they are not considered part of recurring operations and are included because the Company believes they may provide useful supplemental information for evaluating the underlying performance trends of the Company.
For the Three Months Ended | For the Nine Months Ended | ||||||||
(dollars in millions, except per share data) | September 30, | June 30, | September 30, | September 30, | September 30, | ||||
Net (loss) income - GAAP | $ (280) | $ (323) | $ 207 | $ (930) | $ 2,626 | ||||
Merger-related and restructuring expenses, net of tax (1) | 13 | 25 | 67 | 70 | 198 | ||||
Certain items related to sale on mortgage warehouse business | 24 | — | — | 24 | — | ||||
Bargain purchase gain | — | — | — | 121 | (2,142) | ||||
Net (loss) income, as adjusted - non-GAAP | $ (243) | $ (298) | $ 274 | $ (715) | $ 682 | ||||
Preferred stock dividends | 9 | 10 | 8 | 27 | 25 | ||||
Net (loss) income attributable to common stockholders, as adjusted - | $ (252) | $ (308) | $ 266 | $ (742) | $ 657 | ||||
Diluted (loss) earnings per common share - GAAP | $ (0.79) | $ (1.14) | $ 0.81 | $ (3.16) | $ 10.84 | ||||
Diluted (loss) earnings per common share, as adjusted - non-GAAP | $ (0.69) | $ (1.05) | $ 1.09 | $ (2.45) | $ 2.73 |
(1) | Certain merger-related items are not taxable or deductible. |
While net income is a financial measure that is calculated in accordance with GAAP, PPNR and PPNR excluding merger-related and restructuring expenses, bargain purchase gain and certain items related to the sale of the mortgage warehouse business are non-GAAP financial measures. Nevertheless, it is management's belief that these non-GAAP measures should be disclosed in our earnings releases and other investor communications because management believes these measures are relevant to understanding the performance of the Company attributable to elements other than the provision for credit losses and the ability of the Company to generate earnings sufficient to cover estimated credit losses. These measures also provide a meaningful basis for comparison to other financial institutions since it is commonly employed and is a measure frequently cited by investors and analysts. The following table reconciles the non-GAAP financial measures of PPNR and PPNR, excluding merger-related and restructuring expenses, bargain purchase gain and certain items related to the sale of the mortgage warehouse business, to the comparable GAAP financial measures of net income for the stated periods:
September 30, 2024 | |||||||||
For the Three Months Ended | compared to (%): | ||||||||
September 30, | June 30, | September 30, | June 30, | September 30, | |||||
(dollars in millions) | |||||||||
Net interest income | $ 510 | $ 557 | $ 882 | -8 % | -42 % | ||||
Non-interest income | 113 | 114 | 160 | -1 % | -29 % | ||||
Total revenues | $ 623 | $ 671 | $ 1,042 | -7 % | -40 % | ||||
Total non-interest expense | 716 | 705 | 712 | 2 % | 1 % | ||||
Pre - provision net revenue (non-GAAP) | $ (93) | $ (34) | $ 330 | 174 % | NM | ||||
Merger-related and restructuring expenses | 18 | 34 | 91 | -47 % | -80 % | ||||
Certain items related to sale on mortgage warehouse business | 32 | — | — | NM | NM | ||||
Pre - provision net revenue excluding merger-related and restructuring | $ (43) | $ — | $ 421 | NM | -110 % | ||||
Provision for credit losses | (242) | (390) | (62) | -38 % | 290 % | ||||
Merger-related and restructuring expenses | (18) | (34) | (91) | -47 % | -80 % | ||||
Certain items related to sale on mortgage warehouse business | (32) | — | — | NM | NM | ||||
(Loss) income before taxes | $ (335) | $ (424) | $ 268 | -21 % | NM | ||||
Income tax (benefit) expense | (55) | (101) | 61 | -46 % | NM | ||||
Net (Loss) Income (GAAP) | $ (280) | $ (323) | $ 207 | -13 % | NM |
For the Nine Months Ended | Change | ||||||
September 30, | September 30, | Amount | Percent | ||||
(dollars in millions) | |||||||
Net interest income | $ 1,691 | $ 2,337 | $ (646) | -28 % | |||
Non-interest income | 236 | 2,560 | $ (2,324) | -91 % | |||
Total revenues | $ 1,927 | $ 4,897 | $ (2,970) | -61 % | |||
Total non-interest expense | 2,120 | 1,849 | $ 271 | 15 % | |||
Pre - provision net revenue (non-GAAP) | $ (193) | $ 3,048 | $ (3,241) | NM | |||
Bargain purchase gain | 121 | (2,142) | $ 2,263 | NM | |||
Merger-related and restructuring expenses | 95 | 267 | $ (172) | -64 % | |||
Certain items related to sale on mortgage warehouse business | 32 | — | $ 32 | NM | |||
Pre - provision net revenue excluding merger-related and restructuring | $ 55 | $ 1,173 | $ (1,118) | -95 % | |||
Provision for credit losses | (947) | (281) | $ (666) | 237 % | |||
Bargain purchase gain | (121) | 2,142 | $ (2,263) | NM | |||
Merger-related and restructuring expenses | (95) | (267) | $ 172 | -64 % | |||
Certain items related to sale on mortgage warehouse business | (32) | — | $ (32) | NM | |||
(Loss) income before taxes | $ (1,140) | $ 2,767 | $ (3,907) | NM | |||
Income tax (benefit) expense | (210) | 141 | $ (351) | NM | |||
Net (Loss) Income (GAAP) | $ (930) | $ 2,626 | $ (3,556) | NM |
NEW YORK COMMUNITY BANCORP, INC. | |||||||||||
NET INTEREST INCOME ANALYSIS | |||||||||||
LINKED-QUARTER AND YEAR-OVER-YEAR COMPARISONS | |||||||||||
(dollars in millions) | |||||||||||
For the Three Months Ended | |||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||
(dollars in millions) | Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | ||
Assets: | |||||||||||
Interest-earning assets: | |||||||||||
Mortgage and other loans, net | $ 76,553 | $ 1,061 | 5.53 % | $ 83,235 | $ 1,167 | 5.62 % | $ 85,691 | $ 1,251 | 5.82 % | ||
Securities | 12,862 | 153 | 4.85 | 12,094 | 139 | 4.68 | 10,317 | 111 | 4.30 | ||
Reverse repurchase agreements | — | — | — | — | — | — | 299 | 5 | 6.11 | ||
Interest-earning cash and cash equivalents | 23,561 | 320 | 5.40 | 17,883 | 242 | 5.44 | 10,788 | 145 | 5.31 | ||
Total interest-earning assets | 112,976 | $ 1,534 | 5.42 | 113,212 | $ 1,548 | 5.48 | 107,095 | $ 1,512 | 5.62 | ||
Non-interest-earning assets | 5,420 | 5,141 | 7,179 | ||||||||
Total assets | $ 118,396 | $ 118,353 | $ 114,274 | ||||||||
Liabilities and Stockholders' Equity: | |||||||||||
Interest-bearing deposits: | |||||||||||
Interest-bearing checking and money market accounts | $ 22,207 | $ 218 | 3.90 % | $ 23,000 | $ 214 | 3.73 % | $ 31,321 | $ 268 | 3.40 % | ||
Savings accounts | 12,281 | 110 | 3.57 | 9,173 | 64 | 2.82 | 9,628 | 43 | 1.76 | ||
Certificates of deposit | 29,159 | 372 | 5.07 | 27,434 | 337 | 4.95 | 17,545 | 180 | 4.06 | ||
Total interest-bearing deposits | 63,647 | 700 | 4.37 | 59,607 | 615 | 4.15 | 58,494 | 491 | 3.33 | ||
Borrowed funds | 24,456 | 324 | 5.28 | 28,612 | 376 | 5.28 | 15,596 | 139 | 3.53 | ||
Total interest-bearing liabilities | 88,103 | $ 1,024 | 4.62 | 88,219 | $ 991 | 4.52 | 74,090 | $ 630 | 3.37 | ||
Non-interest-bearing deposits | 18,631 | 18,632 | 25,703 | ||||||||
Other liabilities | 2,858 | 2,521 | 3,286 | ||||||||
Total liabilities | 109,593 | 109,372 | 103,079 | ||||||||
Stockholders' and mezzanine equity | 8,803 | 8,981 | 11,195 | ||||||||
Total liabilities and stockholders' equity | $ 118,396 | $ 118,353 | $ 114,274 | ||||||||
Net interest income/interest rate spread | $ 510 | 0.80 % | $ 557 | 0.97 % | $ 882 | 2.25 % | |||||
Net interest margin | 1.79 % | 1.98 % | 3.27 % | ||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.28 x | 1.28 x | 1.45 x |
For the Nine Months Ended | |||||||
September 30, 2024 | September 30, 2023 | ||||||
(dollars in millions) | Average | Interest | Average | Average | Interest | Average | |
Assets: | |||||||
Interest-earning assets: | |||||||
Mortgage and other loans, net | $ 81,286 | $ 3,421 | 5.62 % | $ 80,569 | $ 3,279 | 5.43 % | |
Securities | 12,180 | 415 | 4.59 | 10,314 | 318 | 4.11 | |
Reverse repurchase agreements | — | — | — | 503 | 21 | 5.74 | |
Interest-earning cash and cash equivalents | 18,615 | 758 | 5.44 | 11,127 | 426 | 5.11 | |
Total interest-earning assets | 112,081 | $ 4,594 | 5.47 | 102,513 | $ 4,044 | 5.27 | |
Non-interest-earning assets | 5,414 | 7,582 | |||||
Total assets | $ 117,495 | $ 110,095 | |||||
Liabilities and Stockholders' Equity: | |||||||
Interest-bearing deposits: | |||||||
Interest-bearing checking and money market accounts | $ 23,872 | $ 664 | 3.71 % | $ 28,385 | $ 657 | 3.09 % | |
Savings accounts | 9,960 | 221 | 2.97 | 10,240 | 122 | 1.60 | |
Certificates of deposit | 27,109 | 1,000 | 4.93 | 16,627 | 436 | 3.50 | |
Total interest-bearing deposits | 60,941 | 1,885 | 4.13 | 55,252 | 1,215 | 2.94 | |
Borrowed funds | 26,259 | 1,019 | 5.31 | 18,683 | 492 | 3.52 | |
Total interest-bearing liabilities | 87,200 | $ 2,904 | 4.45 | 73,935 | $ 1,707 | 3.09 | |
Non-interest-bearing deposits | 18,872 | 21,214 | |||||
Other liabilities | 2,648 | 4,518 | |||||
Total liabilities | 108,720 | 99,667 | |||||
Stockholders' and mezzanine equity | 8,775 | 10,428 | |||||
Total liabilities and stockholders' equity | $ 117,495 | $ 110,095 | |||||
Net interest income/interest rate spread | $ 1,691 | 1.02 % | $ 2,337 | 2.18 % | |||
Net interest margin | 2.01 % | 3.05 % | |||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.29 x | 1.39 x |
NEW YORK COMMUNITY BANCORP, INC. | ||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||
(dollars in millions) | ||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||
(dollars in millions, except share and per share data) | September 30, | June 30, | September 30, | September 30, | September 30, | |||
PROFITABILITY MEASURES: | ||||||||
Net (loss) income | $ (280) | $ (323) | $ 207 | $ (930) | $ 2,626 | |||
Net (loss) income attributable to common stockholders | (289) | (333) | 199 | (957) | 2,601 | |||
Basic (loss) earnings per common share | (0.79) | (1.14) | 0.82 | (3.16) | 10.86 | |||
Diluted (loss) earnings per common share | (0.79) | (1.14) | 0.81 | (3.16) | 10.84 | |||
(Loss) return on average assets | (0.94) % | (1.09) % | 0.72 % | (1.06) % | 3.18 % | |||
(Loss) return on average tangible assets (1) | (0.82) | (1.01) | 0.99 | (0.82) | 0.85 | |||
(Loss) return on average common stockholders' equity | (14.19) | (16.69) | 7.42 | (15.94) | 34.94 | |||
(Loss) return on average tangible common stockholders' equity (1) | (13.27) | (16.62) | 14.01 | (13.32) | 12.67 | |||
Efficiency ratio (2) | 105.96 | 95.05 | 56.15 | 93.75 | 54.16 | |||
Operating expenses to average assets | 2.23 | 2.16 | 2.05 | 0.54 | 1.81 | |||
Interest rate spread | 0.80 | 0.97 | 2.25 | 1.02 | 2.18 | |||
Net interest margin | 1.79 | 1.98 | 3.27 | 2.01 | 3.05 | |||
Effective tax rate | 16.34 | 23.69 | 22.68 | 18.40 | 5.09 | |||
Shares used for basic common EPS computation | 366,637,882 | 293,122,116 | 240,828,836 | 302,382,890 | 236,894,841 | |||
Shares used for diluted common EPS computation | 366,637,882 | 293,122,116 | 241,637,630 | 302,382,890 | 237,479,350 | |||
Common shares outstanding at the respective period-ends | 415,257,967 | 351,304,364 | 240,825,252 | 351,304,364 | 240,825,252 |
(1) | See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 15 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, excluding the bargain purchase gain. |
September 30, | June 30, | December 31, | |||
CAPITAL MEASURES: | |||||
Book value per common share | $ 19.43 | $ 22.47 | $ 32.66 | ||
Tangible book value per common share - as reported (1) | 18.18 | 20.89 | 30.08 | ||
Common stockholders' equity to total assets | 7.05 % | 6.63 % | 6.90 % | ||
Tangible common stockholders' equity to tangible assets (1) | 6.63 | 6.19 | 6.38 |
(1) | See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 15 of this release. |
CONSOLIDATED FINANCIAL HIGHLIGHTS
ASSET QUALITY SUMMARY
The following table presents the Company's asset quality measures at the respective dates:
September 30, 2024 | |||||||||
compared to | |||||||||
(dollars in millions) | September 30, | June 30, | December 31, | June 30, | December 31, | ||||
Non-accrual loans held for investment: | |||||||||
Multi-family | $ 1,504 | $ 794 | $ 138 | 89 % | 990 % | ||||
Commercial real estate | 692 | 753 | 128 | -8 % | 441 % | ||||
One-to-four family first mortgage | 39 | 106 | 95 | -63 % | -59 % | ||||
Acquisition, development, and construction | 21 | 18 | 2 | 17 % | 950 % | ||||
Commercial and industrial | 235 | 247 | 43 | -5 % | 447 % | ||||
Other non-accrual loans | 23 | 24 | 22 | -4 % | 5 % | ||||
Total non-accrual loans held for investment | 2,514 | 1,942 | 428 | 29 % | 487 % | ||||
Repossessed assets | 15 | 17 | 14 | -12 % | 7 % | ||||
Total non-accrual held for investment loans and repossessed assets | $ 2,529 | $ 1,959 | $ 442 | 29 % | 472 % | ||||
Non-accrual loans held for sale: | |||||||||
Commercial real estate | $ 112 | $ 15 | $ 163 | 647 % | -31 % | ||||
One-to-four family first mortgage | 64 | — | — | NM | NM | ||||
Acquisition, development, and construction | 13 | — | 1 | NM | NM | ||||
Total non-accrual mortgage loans held for sale | $ 189 | $ 15 | $ 164 | 1160 % | 15 % |
The following table presents the Company's asset quality measures at the respective dates:
September 30, | June 30, | December 31, | |||
Non-accrual held for investment loans to total loans held for investment | 3.54 % | 2.60 % | 0.51 % | ||
Non-accrual held for investment loans and repossessed assets to total assets | 2.21 | 1.65 | 0.39 | ||
Allowance for credit losses on loans to non-accrual loans held for investment | 50.28 | 65.31 | 231.51 | ||
Allowance for credit losses on loans to total loans held for investment | 1.78 | 1.70 | 1.17 |
SUPPLEMENTAL FINANCIAL INFORMATION
The following table presents the Company's loans 30 to 89 days past due at the respective dates:
September 30, 2024 | |||||||||
compared to | |||||||||
(dollars in millions) | September 30, | June 30, | December 31, | June 30, | December 31, | ||||
Loans 30 to 89 Days Past Due: | |||||||||
Multi-family | $ 124 | $ 893 | $ 121 | -86 % | 2 % | ||||
Commercial real estate | 43 | 125 | 28 | -66 % | 54 % | ||||
One-to-four family first mortgage | 21 | 22 | 40 | -5 % | -48 % | ||||
Acquisition, development, and construction | 16 | 54 | 2 | -70 % | 700 % | ||||
Commercial and industrial | 47 | 100 | 37 | -53 % | 27 % | ||||
Other loans | 10 | 10 | 22 | — % | -55 % | ||||
Total loans 30 to 89 days past due | $ 261 | $ 1,204 | $ 250 | -78 % | 4 % |
The following table summarizes the Company's net charge-offs (recoveries) for the respective periods:
For the Three Months Ended | For the Nine Months Ended | ||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||
(dollars in millions) | |||||||||
Charge-offs: | |||||||||
Multi-family | $ 101 | $ 76 | $ 2 | $ 188 | $ 2 | ||||
Commercial real estate | 110 | 237 | 14 | 411 | 14 | ||||
One-to-four family residential | 7 | 1 | — | 8 | 3 | ||||
Acquisition, development and construction | 4 | — | — | 4 | — | ||||
Commercial and industrial | 33 | 35 | 6 | 79 | 6 | ||||
Other | 5 | 5 | 4 | 15 | 9 | ||||
Total charge-offs | $ 260 | $ 354 | $ 26 | $ 705 | $ 34 | ||||
Recoveries: | |||||||||
Multi-family | $ (3) | $ — | $ — | $ (4) | $ — | ||||
Commercial real estate | (6) | — | — | (6) | — | ||||
One-to-four family residential | (5) | — | — | (5) | — | ||||
Commercial and industrial | (4) | (4) | (1) | (15) | (8) | ||||
Other | (2) | (1) | (1) | (5) | (3) | ||||
Total recoveries | $ (20) | $ (5) | $ (2) | $ (35) | $ (11) | ||||
Net charge-offs (recoveries) | $ 240 | $ 349 | $ 24 | $ 670 | $ 23 | ||||
Net charge-offs (recoveries) to average loans (1) | 0.31 % | 0.42 % | 0.03 % | 0.82 % | 0.03 % |
(1) | Three months ended presented on a non-annualized basis. |
NEW YORK COMMUNITY BANCORP, INC. | |||||
SUPPLEMENTAL FINANCIAL INFORMATION | |||||
LOANS SERVICED AND SUBSERVICED | |||||
September 30, 2024 | June 30, 2024 | ||||
(dollars in millions) | Unpaid | Number of | Unpaid | Number of | |
Subserviced for others (2) | $ 265,343 | 912,835 | $ 269,924 | 945,888 | |
Serviced for others (3) | 79,020 | 310,684 | 77,484 | 305,113 | |
Serviced for own loan portfolio (4) | 8,658 | 51,772 | 8,435 | 51,899 | |
Total loans serviced | $ 353,021 | 1,275,291 | $ 355,843 | 1,302,900 |
(1) | UPB, net of write downs, does not include premiums or discounts. |
(2) | Loans subserviced for a fee for non-Company owned loans or MSRs. Includes temporary short-term subservicing performed as a result of sales of servicing-released MSRs. |
(3) | Loans for which the Company owns the MSR. |
(4) | Includes LHFI (residential first mortgage, home equity and other consumer), LHFS (residential first mortgage), loans with government guarantees (residential first mortgage), and repossessed assets. |
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SOURCE New York Community Bancorp, Inc.
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