StockSelector.com
  Research, Select, & Monitor Sunday, December 16, 2018 10:41:41 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
New York Community Bancorp, In$9.42($.08)(.84%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 New York Community Bancorp, Inc. Reports 4Q 2016 Diluted EPS of $0.23 and 2016 Diluted EPS of $1.01
   Wednesday, January 25, 2017 7:00:01 AM ET

--2016 Highlights

--Strong Earnings and Returns: The Company generated 2016 earnings of $495.4 million, providing a 1.00% return on average assets and an 8.19% return on average stockholders’ equity.

--The 2016 returns on average tangible assets and average tangible stockholders’ equity were 1.06% and 13.75%, respectively.(1)

--Net Interest Margin: The Company’s margin was 2.86% in 4Q 2016, including 20 basis points ("bps") from prepayment income.

--Excluding prepayment income (i.e., on a non-GAAP basis), the margin would have declined five bps sequentially.(2)

--Loan Production: Loan originations totaled $13.8 billion in 2016, including 4Q originations of $3.1 billion.

--Loans originated for investment accounted for $9.2 billion of the 12-month total, including $2.0 billion in 4Q 2016.



--Continued Held-for-Investment ("HFI") Loan Growth: Total non-covered HFI loans rose $1.6 billion year-over-year to $37.4 billion at 12/31/2016.

--HFI multi-family loans rose $972.4 million, or 3.7%, year-over-year to $27.0 billion.

--Absent loan sales during the year of $1.3 billion, the multi-family loan portfolio would have grown 8.8% in the 12 months ended 12/31/2016.

--Exceptional Asset Quality: Non-performing non-covered assets represented $68.1 million, or 0.14%, of total non-covered assets at 12/31/2016.

--Continued Efficiency: The Company’s efficiency ratio was 47.20% in 4Q 2016 and 44.53% for the year. (3)

--Solid Capital: Stockholders’ equity represented 12.52% of total assets at 12/31/2016.

--Tangible stockholders’ equity represented 7.93% of tangible assets at that date. (1)

New York Community Bancorp, Inc. (NYCB ) (the "Company") today reported earnings of $113.7 million, or $0.23 per diluted share, for the three months ended December 31, 2016 and $495.4 million, or $1.01 per diluted share, for the twelve months ended at that date.

______________
 (1)   "Tangible assets" and "tangible stockholders’ equity" are non-GAAP
                          financial measures. Please see the discussion and reconciliations
                          of these non-GAAP measures to the comparable GAAP measures on page
                          13 of this release.
 (2)                      "Adjusted net interest margin" is a non-GAAP financial measure.
                          Please see the reconciliation and discussion of our GAAP and
                          non-GAAP net interest margins beginning on page 7 of this release.
 (3)                      We calculate our efficiency ratio by dividing our operating expenses
                          by the sum of our net interest income and non-interest income.

Commenting on the quarter, President and Chief Executive Officer Joseph R. Ficalora addressed the termination of the merger agreement with Astoria Financial Corporation, noting "It is our continued desire to control the Company’s growth under the SIFI threshold as that threshold is currently, or prospectively, defined by our regulators. A large deal is still the best way for us to become a SIFI, and we remain encouraged by the reality that 97% of the votes cast by our investors were voted in favor of the Astoria deal.

"Accordingly, it still would be fair to expect our transition to SIFI status to occur in conjunction with a transaction of some size. While we expect to invest more of our resources into becoming SIFI-compliant, we will be monitoring any changes in the regulatory landscape that could influence our plans.

"We’ll also be doing more of what we do best with regard to our core business model: producing multi-family loans while maintaining high credit standards and, at the same time, diversifying our loan portfolio and our funding mix.

"With regard to our performance, the most notable feature was, again, our exceptional asset quality. The significant strength of our assets continues to be a Company hallmark, and losses--which were de minimus--were unrelated to our core business lines. The quality of our multi-family and commercial real estate loans was reflected in the absence of any charge-offs over the past four quarters, and our specialty finance portfolio performed flawlessly as well.

"While the growth of our loan portfolio was tempered by sales of participations, we continued to grow our share of our niche lending market, which is something we will continue to do over the course of this year."

Board of Directors Declares $0.17 per Share Dividend Payable on February 22, 2017

"With earnings of $0.23 per diluted share recorded in the fourth quarter, the Board of Directors last night declared a quarterly cash dividend of $0.17 per share. The dividend will be payable on February 22, 2017 to shareholders of record as of February 7, and represents a dividend yield of 4.2% based on last night’s closing price," Mr. Ficalora said.

BALANCE SHEET SUMMARY

The Company recorded total assets of $48.9 billion and $50.3 billion at December 31, 2016 and 2015, respectively. The $1.4 billion reduction was largely due to a $2.4 billion decline in total securities, to $3.8 billion, which was tempered by a $1.3 billion increase in total loans, net, to $39.3 billion.

For the four quarters ended December 31, 2016, the Company’s total consolidated assets averaged $49.0 billion, below the current SIFI threshold of $50.0 billion.

Loans

Covered Loans

Primarily reflecting repayments, covered loans, net, fell $354.3 million year-over-year to $1.7 billion, representing 4.3% of total loans, net, at December 31, 2016.

Accretion on the covered loan portfolio totaled $32.3 million and $33.9 million, respectively, in the current and year-earlier fourth quarters, and $131.3 million and $137.1 million, respectively, in the twelve months ended December 31, 2016 and 2015.

Non-Covered Loans Held for Investment

Non-covered loans held for investment totaled $37.4 billion at the end of this December, reflecting a linked-quarter increase of $22.0 million and a $1.6 billion increase year-over-year. While originations totaled $2.0 billion and $9.2 billion, respectively, in the three and twelve months ended December 31, 2016, loan growth was tempered by prepayments, and by sales of participations totaling $320.1 million and $1.7 billion in the respective periods.

Multi-family loans, commercial real estate ("CRE") loans, and acquisition, development, and construction ("ADC") loans accounted for $246.4 million, $70.3 million, and $3.4 million, respectively, of loans sold in the current fourth quarter, and for $1.3 billion, $338.7 million, and $3.4 million, respectively, of loans that were sold over the course of the year.

Reflecting the loan sales cited above, multi-family loans rose 3.7% year-over-year to $27.0 billion, while CRE loans fell 1.7% during that time to $7.7 billion. Absent the respective sales of such loans over the last four quarters, the balance of multi-family loans would have grown 8.8% year-over-year to $28.3 billion and the CRE loan portfolio would have grown 2.6% to $8.1 billion at year-end.

The following table summarizes the Company’s production of loans held for investment for the three months ended December 31, 2016, September 30, 2016, and December 31, 2015 and for the twelve months ended December 31, 2016 and 2015:

                                                                                                                                                               For the Three Months Ended                                                                                                                                                                                   For the Twelve Months Ended
                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               Dec. 31,                                                 Sept. 30,                                                Dec. 31,                                                                                       Dec. 31,                                                      Dec. 31,
(in thousands)                                                                                                   2016                                                                                           2016                                                                                           2015                                                                                           2016                                                                                                2015
                                                                                         -----------------------------------------------------                                          -----------------------------------------------------                                          -----------------------------------------------------                                          -----------------------------------------------------                                          ---------------------------------------------------------------
Mortgage Loans Originated for Investment:                                                                                                                                                                                                                                                                                                                                                                 
 Multi-family                                                                                                                    $ 1,154,934                                                                                    $ 1,276,358                                                                                    $ 2,778,623                                                                                    $ 5,684,838                                                                                    $            9,214,336
 Commercial real estate                                                                                                              287,754                                                                                        345,543                                                                                        492,883                                                                                      1,180,430                                                                                                 1,842,062
 One-to-four family                                                                                                                   55,857                                                                                        101,365                                                                                         12,863                                                                                        303,877                                                                                                    21,265
 Acquisition, development, and construction                                                                        26,328                                                                      17,855                                                                      13,433                                                                     150,177                                                                                155,312
                                                                                                              -------------------- ---------                                                                 -------------------- ---------                                                                 -------------------- ---------                                                                 -------------------- ---------                                                                 -------------------- --------------------
Total mortgage loans originated for investment                                                                                   $ 1,524,873                                                                                    $ 1,741,121                                                                                    $ 3,297,802                                                                                    $ 7,319,322                                                                                    $           11,232,975
                                                                                                              ==================== =========                                                                 ==================== =========                                                                 ==================== =========                                                                 ==================== =========                                                                 ==================== ====================
Other Loans Originated for Investment:
 Specialty finance                                                                                                               $   358,811                                                                                    $   369,308                                                                                    $   334,525                                                                                    $ 1,266,362                                                                                    $            1,067,672
 Other commercial and industrial                                                                                                     140,910                                                                                        151,279                                                                                         87,001                                                                                        592,250                                                                                                   367,699
 Other                                                                                                                846                                                                         894                                                                       1,008                                                                       3,856                                                                                  4,674
                                                                                                              -------------------- ---------                                                                 -------------------- ---------                                                                 -------------------- ---------                                                                 -------------------- ---------                                                                 -------------------- --------------------
Total other loans originated for investment                                                                                      $   500,567                                                                                    $   521,481                                                                                    $   422,534                                                                                    $ 1,862,468                                                                                    $            1,440,045
                                                                                                              -------------------- ---------                                                                 -------------------- ---------                                                                 -------------------- ---------                                                                 -------------------- ---------                                                                 -------------------- --------------------
Total loans originated for investment                                                                                            $ 2,025,440                                                                                    $ 2,262,602                                                                                    $ 3,720,336                                                                                    $ 9,181,790                                                                                    $           12,673,020
                                                                                                              ==================== =========                                                                 ==================== =========                                                                 ==================== =========                                                                 ==================== =========                                                                 ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

A number of factors contributed to the decline in multi-family and CRE loan originations reflected in the preceding table, starting with a general decline in loan demand from the prior year’s record levels, as the volume of new transactions and refinancing activity waned. The slowdown of the market was exacerbated by the rise in market interest rates that followed the November election.

The following table provides additional information about the Company’s multi-family and CRE loan portfolios at December 31, 2016, September 30, 2016, and December 31, 2015:

(dollars in thousands)                             December 31,           September 30,                 December 31,
                                                                                             2016                                                         2016                                                                2015
                                                                                      -----------------                                            -----------------                                            -------------------------------
Multi-Family Loan Portfolio:
 Loans outstanding                                                                    $26,961,486                                                  $27,083,291                                                  $25,989,100
 Percent of total held-for-investment loans                                                  72.1 %                                                       72.5 %                                                       72.7 %
 Average principal balance                                                                 $5,454                                                       $5,384                                                       $5,307
 Weighted average life                                                                        2.9  years                                                   2.9  years                                                   2.8  years
                                                                                                                                                                                                                             
Commercial Real Estate Loan Portfolio:
 Loans outstanding                                                                     $7,727,258                                                   $7,767,144                                                   $7,860,162
 Percent of total held-for-investment loans                                                  20.7 %                                                       20.8 %                                                       22.0 %
 Average principal balance                                                                 $5,644                                                       $5,600                                                       $5,376
 Weighted average life                                                                        3.4  years                                                   3.3  years                                                   3.2  years
                                                                                                                                                                                                                             

In addition, the balance of held-for-investment loans reflected the following increases over the three and twelve months ended December 31, 2016:

-- One-to-four family loans rose $49.5 million and $264.2 million, respectively, to $381.1 million, representing 1.0% of non-covered loans held for investment;

-- ADC loans rose $9.1 million and $69.0 million, respectively, to $380.5 million, also representing 1.0% of non-covered held-for-investment loans; and

-- Other loans rose $125.1 million and $446.8 million, respectively, to $1.9 billion, largely reflecting an increase in specialty finance loans and leases, consistent with the Company’s plans to grow this portfolio. Specifically, specialty finance loans and leases represented $1.3 billion of the year-end "other loan" balance, having grown $124.5 million over the course of the quarter and $392.2 million year-over-year. Other commercial and industrial ("C&I") loans totaled $633.2 million at the end of December, reflecting a year-over-year increase of $63.1 million and a far more modest increase over the last three months. Included in C&I loans at year-end were New York City taxi medallion loans of $150.7 million, representing 0.40% of total held-for-investment loans.

Non-Covered Loans Held for Sale

In the twelve months ended December 31, 2016, the Company originated loans held for sale of $4.6 billion, a $33.5 million decrease from the year-earlier amount. Fourth-quarter originations accounted for $1.1 billion of the full-year volume, down $335.9 million from the trailing-quarter volume and up $234.8 million from the year-earlier amount.

Non-covered loans held for sale totaled $409.2 million at the end of this December, a linked-quarter decrease of $292.2 million and a year-over-year increase of $41.9 million. In the three months ended December 31, 2016, the average balance of loans held for sale was $537.8 million, as compared to $617.5 million and $362.2 million, respectively, in the trailing and year-earlier three months. The sequential declines in loans held for sale were primarily driven by the fourth-quarter rise in residential mortgage interest rates.

Pipeline

The Company has approximately $1.5 billion of loans in its current pipeline, including loans held for investment of approximately $1.2 billion.

Asset Quality

The following discussion pertains only to the Company’s portfolio of non-covered loans held for investment (excluding purchased credit-impaired, or "PCI," loans) and non-covered other real estate owned ("OREO").

Non-performing non-covered assets represented $68.1 million, or 0.14%, of total non-covered assets at the end of this December, as compared to $60.9 million, representing 0.13%, at December 31, 2015. While non-covered OREO fell $2.5 million year-over-year to $11.6 million, the benefit was exceeded by the impact of a $9.6 million rise in non-performing non-covered loans to $56.5 million, representing 0.15% of total non-covered loans at December 31, 2016. With the value of New York City taxi medallions declining, $13.3 million of taxi medallion loans transitioned to non-accrual status over the course of the year.

The following table presents the Company’s non-performing non-covered loans and assets at December 31, 2016, September 30, 2016, and December 31, 2015:

(in thousands)                                                      December 31,                                        September 30,                                      December 31,
                                                                                                              2016                                                                   2016                                                                  2015
                                                                                       ----------------------------------------------                         ----------------------------------------------                         ----------------------------------------------
Non-Performing Non-Covered Assets:                                                                                                                                                              
Non-accrual non-covered mortgage loans:
  Multi-family                                                                                                                 $ 13,558                                                               $ 10,769                                                               $ 13,904
  Commercial real estate                                                                                                          9,297                                                                 10,628                                                                 14,920
  One-to-four family                                                                                                              9,679                                                                  9,790                                                                 12,259
  Acquisition, development, and construction                                                                   6,200                                                  --                                                  27
                                                                                                            -------------------- ------                                            -------------------- ------                                            -------------------- ------
Total non-accrual non-covered mortgage loans                                                                                   $ 38,734                                                               $ 31,187                                                               $ 41,110
Other non-accrual non-covered loans (1)                                                                       17,735                                              12,214                                               5,715
                                                                                                            -------------------- ------                                            -------------------- ------                                            -------------------- ------
Total non-performing non-covered loans                                                                                         $ 56,469                                                               $ 43,401                                                               $ 46,825
Non-covered other real estate owned                                                                           11,607                                              12,608                                              14,065
                                                                                                            -------------------- ------                                            -------------------- ------                                            -------------------- ------
Total non-performing non-covered assets                                                                                        $ 68,076                                                               $ 56,009                                                               $ 60,890
                                                                                                            ==================== ======                                            ==================== ======                                            ==================== ======
(1)   Includes $15.2 million, $9.2 million, and $1.9 million,
                         respectively, of non-accrual non-covered taxi medallion loans.

In addition to the rise in non-accrual taxi medallion loans already noted, the sequential rise in non-performing non-covered loans largely reflects the fourth-quarter 2016 transition of a $6.2 million ADC loan to non-accrual status from 30 to 89 days past due.

The following table presents the Company’s asset quality measures at December 31, 2016, September 30, 2016, and December 31, 2015:

                                                                      December 31,                       September 30,                      December 31,
                                                                                             2016                                                  2016                                                  2015
                                                                               ------------------------------                        ------------------------------                        ------------------------------
Non-performing non-covered loans to total                                          0.15 %                             0.12 %                             0.13 %
  non-covered loans
Non-performing non-covered assets to total                                                            0.14                                                  0.12                                                  0.13
  non-covered
assets
Allowance for losses on non-covered loans to non-                                                   277.19                                                352.43                                                310.08
  performing
non-covered loans (1)
Allowance for losses on non-covered loans to total                                                    0.42                                                  0.41                                                  0.41
  non-covered
loans (1)
(1)   Excludes the allowance for losses on PCI loans.
                          

The following table summarizes the Company’s net charge-offs (recoveries) for the three months ended December 31, 2016, September 30, 2016, and December 31, 2015 and for the twelve months ended December 31, 2016 and 2015:

                                                                                                                                                                     For the Three Months Ended                                                                                                                                                                                        For the Twelve Months Ended
                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      Dec. 31,                                                                Sept. 30,                                                               Dec. 31,                                                                                    Dec. 31,                                                                 Dec. 31,
(in thousands)                                                                                          2016                                                                                       2016                                                                                       2015                                                                                        2016                                                                                        2015
                                                                       ----------------------------------------------------------------------                     ----------------------------------------------------------------------                     -----------------------------------------------------------------------                     -----------------------------------------------------------------------                     -----------------------------------------------------------------------
Charge-offs:                                                                                                                                                                                                                                                                                                                                                              
 Multi-family                                                                                                  $    --                                                                                    $    --                                                                                    $     81                                                                                    $     --                                                                                    $     167
 Commercial real estate                                                                                             --                                                                                         --                                                                                          --                                                                                          --                                                                                          273
 One-to-four family                                                                                                 --                                                                                         17                                                                                         299                                                                                         170                                                                                          875
 Acquisition, development, and construction                                                                         --                                                                                         --                                                                                          --                                                                                          --                                                                                           --
 Other (1)                                                                                    2,258                                                   57                                                   885                                                 3,413                                                  1,273  
                                                                                            -------------------- ----- --------------------                                            -------------------- ----- --------------------                                            -------------------- ------ --------------------                                            -------------------- ------ --------------------                                            -------------------- ------- --------------------
Total charge-offs                                                                                              $ 2,258                                                                 $    74                                                                 $  1,265                                                                 $  3,583                                                                 $   2,588  
                                                                                            ==================== ===== ====================                                            ==================== ===== ====================                                            ==================== ====== ====================                                            ==================== ====== ====================                                            ==================== ======= ====================
Recoveries:
 Multi-family                                                                                                  $    --                                                                                    $   (78 )                                                                                  $   (229 )                                                                                  $    (78 )                                                                                  $  (3,952 )
 Commercial real estate                                                                                            (19 )                                                                                      (33 )                                                                                    (1,339 )                                                                                      (799 )                                                                                     (1,664 )
 One-to-four family                                                                                                 (2 )                                                                                       --                                                                                          --                                                                                        (228 )                                                                                        (49 )
 Acquisition, development, and construction                                                                         --                                                                                         --                                                                                          --                                                                                        (167 )                                                                                       (100 )
 Other                                                                                         (648 )                                                                  (375 )                                                                   (856 )                                                                 (1,604 )                                                                  (5,008 )
                                                                                            -------------------- ----- --------------------                                            -------------------- ----- --------------------                                            -------------------- ------ --------------------                                            -------------------- ------ --------------------                                            -------------------- ------- --------------------
Total recoveries                                                                                               $  (669 )                                                                                  $  (486 )                                                                                  $ (2,424 )                                                                                  $ (2,876 )                                                                                  $ (10,773 )
                                                                                            -------------------- ----- --------------------                                            -------------------- ----- --------------------                                            -------------------- ------ --------------------                                            -------------------- ------ --------------------                                            -------------------- ------- --------------------
Net charge-offs (recoveries)                                                                                   $ 1,589                                                                 $  (412 )                                                                                  $ (1,159 )                                                                                  $    707                                                                 $  (8,185 )
                                                                                            -------------------- ----- --------------------                                            -------------------- ----- --------------------                                            -------------------- ------ --------------------                                            -------------------- ------ --------------------                                            -------------------- ------- --------------------
Net charge-offs (recoveries) to average loans (2)                                              0.00 %                                                                 (0.00 )%                                                                 (0.00 )%                                                                  0.00 %                                                                   (0.02 )%
                                                                                            ==================== ===== ====================                                            ==================== ===== ====================                                            ==================== ====== ====================                                            ==================== ====== ====================                                            ==================== ======= ====================
(1)   Includes taxi medallion loans of $2.3 million, $2.5 million, and
                         $33,000, respectively, in the three months ended December 31, 2016
                         and the twelve months ended December 31, 2016 and 2015.
(2)                      The measures for the three months ended December 31, 2016, September
                         30, 2016, and December 31, 2015 are non-annualized.
                          

The following table presents the Company’s non-covered loans 30 to 89 days past due at December 31, 2016, September 30, 2016, and December 31, 2015:

(in thousands)                                                      December 31,                                        September 30,                                             December 31,
                                                                                           2016                                                                   2016                                                                         2015
                                                                    ----------------------------------------------                         ----------------------------------------------                         ------------------------------------------------------------
Non-Covered Loans 30 to 89 Days Past Due:                                                                                                                                    
   Multi-family                                                                                             $     28                                                               $  2,948                                                               $                4,818
   Commercial real estate                                                                                         --                                                                     --                                                                                  178
   One-to-four family                                                                                          2,844                                                                  1,495                                                                                1,117
   Acquisition, development, and construction                                                                     --                                                                  6,200                                                                                   --
   Other                                                                                    7,511                                              15,929                                                               492
                                                                                         -------------------- ------                                            -------------------- ------                                            -------------------- --------------------
Total non-covered loans 30 to 89 days past due                                                              $ 10,383                                                               $ 26,572                                                               $                6,605
                                                                                         ==================== ======                                            ==================== ======                                            ==================== ====================
                                                                                                                                                                                                                                                             

At the end of December 2016, the balance of other non-covered loans 30 to 89 days past due included taxi medallion loans of $6.8 million; there were no 30 to 89 day past-due taxi medallion loans at the prior year-end.

Securities

Largely reflecting securities calls that primarily occurred in the first quarter, securities fell $2.4 billion year-over-year to $3.8 billion, representing 7.8% of total assets at December 31, 2016. While the balance of securities rose sequentially, the increase was modest, as a $60.9 million rise in securities held to maturity was largely offset by a $56.9 million reduction in securities available for sale.

Funding Sources

Deposits rose $461.1 million year-over-year to $28.9 billion, representing 59.0% of total assets at December 31, 2016. While the balance of savings accounts declined $2.3 billion year-over-year to $5.3 billion, the impact was exceeded by the combination of a $2.3 billion increase in certificates of deposit ("CDs") to $7.6 billion, a $326.1 million rise in NOW and money market accounts to $13.4 billion, and a $131.6 million rise in non-interest-bearing accounts to $2.6 billion.

On a linked-quarter basis, deposits fell $251.7 million, as savings and non-interest-bearing accounts respectively dropped $212.2 million and $293.3 million, and as CDs and NOW and money market accounts rose $193.4 million and $60.4 million, respectively.

Borrowed funds fell $2.1 billion year-over-year, to $13.7 billion, including a $328.4 million decrease in the three months ended December 31, 2016. Wholesale borrowings accounted for the bulk of these reductions, and represented $13.3 billion, or 27.2%, of total assets at that date.

Stockholders’ Equity

Stockholders’ equity rose $189.3 million year-over-year to $6.1 billion, representing 12.52% of total assets and a book value per share of $12.57 at December 31, 2016. At the prior year-end, stockholders’ equity totaled $5.9 billion, representing 11.79% of total assets and a book value per share of $12.24.

Excluding goodwill of $2.4 billion and core deposit intangibles ("CDI") of $208,000 from the respective balances of stockholders’ equity and total assets, tangible stockholders’ equity rose $191.7 million year-over-year to $3.7 billion, representing 7.93% of tangible assets and a tangible book value per share of $7.57 at December 31, 2016. At the prior year-end, and excluding goodwill of $2.4 billion and CDI of $2.6 million from stockholders’ equity and total assets, tangible stockholders’ equity totaled $3.5 billion, representing 7.30% of tangible assets and a tangible book value per share of $7.21.(1)

In addition, the regulatory capital ratios for the Company and its subsidiary banks continued to exceed the regulatory requirements for "well capitalized" classification, as indicated in the table located on the last page of this release.

EARNINGS SUMMARY FOR THE THREE MONTHS ENDED DECEMBER 31, 2016

The Company generated earnings of $113.7 million, or $0.23 per diluted share, in the current fourth quarter and $125.3 million, or $0.26 per diluted share, in the trailing three months. In the fourth quarter of 2015, the Company recorded a loss of $404.8 million or $0.87 per diluted share. The loss was recorded in connection with the repositioning of $10.4 billion of wholesale borrowings over the course of that quarter, which resulted in a pre-tax debt repositioning charge of $915.0 million, equivalent to $546.8 million, or $1.17 per diluted share, after-tax. In accordance with Accounting Standards Codification ("ASC") No. 470-50, $773.8 million of the pre-tax charge was recorded as interest expense and the remaining $141.2 million was recorded as non-interest expense.

Included in the Company’s results in the three months ended December 31, 2016, September 30, 2016, and December 31, 2015 were merger-related expenses of $6.0 million, $2.4 million, and $3.7 million, respectively.

Net Interest Income

The Company recorded net interest income of $315.5 million and $318.4 million, respectively, in the three months ended December 31, 2016 and September 30, 2016, in contrast to a net interest loss of $449.2 million in the three months ended December 31, 2015.

Linked-Quarter Comparison

The following factors contributed to the linked-quarter decline in net interest income:

-- Interest income declined modestly in the current fourth quarter, to $415.3 million, as a $5.7 million decrease in the interest income generated by securities and money market investments was largely tempered by a $5.0 million increase in the interest income generated by loans.

-- Interest income from loans rose sequentially to $372.9 million, primarily reflecting a $4.8 million increase in prepayment income to $18.2 million in the last three months of the year. In addition, the average balance of loans rose $329.2 million sequentially to $39.7 billion, while the average yield on such assets rose two basis points to 3.76%. Prepayment income contributed 18 basis points to the average yield on loans in the current fourth quarter, four more than it contributed to the trailing-quarter yield.

-- Interest income from securities and money market investments fell to $42.5 million, as the prepayment income from securities fell $5.1 million to $3.8 million in the fourth quarter of 2016. In addition, while the average balance of securities and money market investments rose $80.0 million sequentially to $4.5 billion, the benefit was exceeded by the impact of a 58-basis point drop in the average yield to 3.75%. Prepayment income contributed 34 basis points to the average yield on securities and money market investments in the current fourth quarter, a linked-quarter decrease of 46 basis points.

-- As a result, the average balance of interest-earning assets rose $409.1 million sequentially to $44.2 billion while the average yield on such assets fell four basis points to 3.76%.

-- Interest expense rose $2.2 million sequentially to $99.8 million, as a $1.3 million increase in the interest expense on interest-bearing deposits combined with a more modest increase in the interest expense on borrowed funds.

-- Specifically, the interest expense on interest-bearing deposits rose to $45.1 million as the benefit of a $167.0 million decline in the average balance, to $26.1 billion, was tempered by the impact of a three-basis point rise in the average cost to 0.69%. The interest expense on borrowed funds, meanwhile, rose to $54.7 million as a $185.7 million increase in the average balance to $14.0 billion combined with a one-basis point rise in the average cost to 1.56%.

-- As a result, the average balance of interest-bearing liabilities rose a modest $18.7 million sequentially to $40.1 billion and the average cost of funds rose two basis points to 0.99% in the fourth quarter of 2016.

Year-Over-Year Comparison

The net interest loss recorded in the year-ago fourth quarter was attributable to the debt repositioning charge incurred in connection with the prepayment of $10.4 billion of wholesale borrowings. The charge contributed $773.8 million to the interest expense on borrowed funds in last year’s fourth quarter and increased the average cost of such funds to 22.35%. Given the significant impact of the debt repositioning charge on the Company’s fourth quarter 2015 interest expense and net interest income, the following discussion is limited to a comparison of the interest income recorded in the current and year-earlier fourth quarters, and to a comparison of the interest expense from interest-bearing deposits recorded during these periods.

-- Interest income fell $9.2 million year-over-year as the benefit of an $11.8 million increase in the interest income produced by loans was exceeded by the impact of a $21.0 million decline in the interest income produced by securities and money market investments.

-- The rise in interest income from loans was largely due to the growth of the average balance, which rose $2.4 billion year-over-year. In addition, prepayment income contributed $883,000 more to the interest income from loans in the current fourth quarter and one basis point less to the average yield. Notwithstanding the level of average loan growth recorded, the average yield on loans fell 12 basis points from the year-earlier level in the three months ended December 31, 2016.

-- The decline in interest income from securities and money market investments was primarily due to a $2.4 billion decline in the average balance and, to a lesser extent, a $4.7 million decline in the contribution of prepayment income from securities. The impact of these factors was somewhat offset by a seven-basis point rise in the average yield on such assets, despite a 15-basis point decline in the contribution of prepayment income year-over-year.

-- The interest expense generated by interest-bearing deposits rose $5.9 million year-over-year, as the average balance of such funds rose $196.8 million and the average cost of such funds rose nine basis points. While the average balance of savings accounts fell $2.3 billion year-over-year, contributing to a 15-basis point decline in the average cost of such deposits, the average balance of CDs rose $2.1 billion, contributing to a seven-basis point rise in the average cost of such funds. In addition, average NOW and money market accounts rose $312.1 million in the current fourth quarter, accompanied by a 12-basis point rise in the average cost.

Net Interest Margin

The direction of the Company’s net interest margin mirrored that of its net interest income in the fourth quarter of 2016. Primarily reflecting the higher cost of interest-bearing deposits, the margin dropped five basis points linked-quarter to 2.86% in the last three months of the year.

In the fourth quarter of 2015, the Company’s margin was significantly impacted by the aforementioned debt repositioning charge, rendering a comparison with the current fourth quarter’s margin meaningless. Accordingly, the following table summarizes the contribution of prepayment income from loans and securities to the Company’s interest income and net interest margin in the three months ended December 31, 2016 and September 30, 2016, and in the twelve months ended December 31, 2016:

                                                                                                                                           For the Three Months Ended                                                                                                         For the Twelve Months Ended
                                                                               -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------
                                                                                                      Dec. 31,                                                Sept. 30,                                                                  Dec. 31,
(in thousands)                                                                                                             2016                                                                                                             2016                                                                                          2016
                                                                                                    --------------------------------------------------                                                               --------------------------------------------------                                           ----------------------------------------------------
Total interest income                                                                                                  $ 415,348                                                                                                        $ 416,096                                                                                    $ 1,674,869
                                                                                                                                                                                                                                                                                                                                                  
Prepayment income:
   From loans                                                                                                          $  18,243                                                                                                        $  13,422                                                                                    $    60,891
   From securities                                                                                      3,814                                                                      8,947                                                   33,509  
                                                                                                    -------------------- ------- --------------------                                                                -------------------- ------- --------------------                                            -------------------- --------- --------------------
Total prepayment income                                                                                                $  22,057                                                                                     $  22,369                                                                 $    94,400  
                                                                                                    ==================== ======= ====================                                                                ==================== ======= ====================                                            ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                  
Net interest margin (including the contribution                                                                             2.86 %                                                                                                           2.91 %                                                                                         2.93 %
of
prepayment income)
Less:
Contribution of prepayment income to net interest margin:
   From loans                                                                                                                 17  bps                                                                                                          12  bps                                                                                        14  bps
   From securities                                                                                          3                                                                          8                                                        8  
                                                                                                    -------------------- ------- --------------------                                                                -------------------- ------- --------------------                                            -------------------- --------- --------------------
Total contribution of prepayment income to net                                                             20  bps                                                                                       20  bps                                                                     22  bps
interest margin
                                                                                                    ==================== ======= ====================                                                                ==================== ======= ====================                                            ==================== ========= ====================
Adjusted net interest margin (i.e., excluding                                                                               2.66 %                                                                                                           2.71 %                                                                                         2.71 %
the
contribution of prepayment income) (1)
(1)   "Adjusted net interest margin" is a non-GAAP financial measure as
                         more fully discussed below.

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

-- Adjusted net interest margin gives investors a better understanding of the effect of prepayment income on our net interest margin. Prepayment income in any given period depends on the volume of loans that refinance or prepay, or securities that prepay, during that period. Such activity is largely dependent on such external factors as current market conditions, including real estate values, and the perceived or actual direction of market interest rates.

-- Adjusted net interest margin is among the measures considered by current and prospective investors, both independent of, and in comparison with, the Company’s peers.

Adjusted net interest margin should not be considered in isolation or as a substitute for net interest margin, which is calculated in accordance with GAAP. Moreover, the manner in which we calculate this non-GAAP measure may differ from that of other companies reporting a non-GAAP measure with a similar name.

Provisions for (Recoveries of) Loan Losses

Provision for (Recovery of) Losses on Non-Covered Loans

Reflecting management’s assessment of the adequacy of the allowance for non-covered loan losses, the Company recorded provisions for non-covered loan losses of $5.2 million and $1.2 million in the three months ended December 31, 2016 and September 30, 2016, respectively. In comparison, the Company recovered $80,000 from the allowance for non-covered loan losses in the fourth quarter of 2015.

Recovery of 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 $1.7 million, $1.3 million, and $6.2 million from the allowance for covered loan losses in the three months ended December 31, 2016, September 30, 2016, and December 31, 2015, respectively.

The recoveries recorded in the respective quarters were largely offset by FDIC indemnification expense of $1.3 million, $1.0 million, and $5.0 million recorded in "Non-interest income" in the respective periods.

Non-Interest Income

In the fourth quarter of 2016, non-interest income fell $8.2 million and $26.7 million, respectively, to $32.4 million from the levels recorded in the trailing and year-earlier three months. The linked-quarter decline was primarily due to a $9.7 million decrease in mortgage banking income to $3.3 million and a $2.8 million decrease in the gain on sales of loans to $688,000. These linked-quarter reductions were only partly offset by a $2.7 million rise in net securities gains to $2.9 million, a $1.5 million rise in other non-interest income to $10.8 million, and a $778,000 increase in BOLI income to $7.8 million.

The larger year-over-year decline in non-interest income also stemmed from a combination of factors, including a $3.7 million decrease in the gain on sales of loans; a $9.0 million decline in mortgage banking income; and an $18.3 million decline in other non-interest income. Included in other non-interest income in the year-earlier fourth quarter was a $13.3 million gain on the sale of a bank-owned property. These year-over-year reductions were only somewhat offset by a $3.7 million drop in FDIC indemnification expense to $1.3 million and an $861,000 increase in BOLI income.

The following table summarizes our mortgage banking income for the three months ended December 31, 2016, September 30, 2016, and December 31, 2015 and the twelve months ended December 31, 2016 and 2015:

                                                                                                                                        For the Three Months Ended                                                                                                                                                                           For the Twelve Months Ended
                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Dec. 31,                                                                 Sept. 30,                                                      Dec. 31,                                                                          Dec. 31,                                                             Dec. 31,
(in thousands)                                                                      2016                                                                                        2016                                                                              2015                                                                              2016                                                                                    2015
                                                   -----------------------------------------------------------------------                     -----------------------------------------------------------------------                     --------------------------------------------------                     ------------------------------------------------------------------------                     ---------------------------------------------------------------
Mortgage Banking Income:                                                                                                                                                                                                                                                                                         
Income from originations                                                                   $  6,901                                                                                    $ 10,884                                                                                    $  5,917                                                               $  41,592                                                                                    $               39,516
Servicing (loss) income                                                   (3,640 )                                                                  2,041                                                                    6,348                                              (14,311 )                                                                               14,597
                                                                        -------------------- ------ --------------------                                            -------------------- ------                                                                 -------------------- ------                                            -------------------- ------- --------------------                                            -------------------- --------------------
Total mortgage banking income                                                              $  3,261                                                                 $ 12,925                                                                                    $ 12,265                                                               $  27,281                                                                 $               54,113
                                                                        ==================== ====== ====================                                            ==================== ======                                                                 ==================== ======                                            ==================== ======= ====================                                            ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                          

The impact of the fourth-quarter rise in market interest rates on the Company’s mortgage banking income is apparent in the preceding table. As rates rose, demand for residential mortgage loans weakened, resulting in a $4.0 million drop in income from originations from the trailing-quarter amount. At the same time, the rise in market interest rates adversely impacted the effectiveness of the Company’s hedging, which resulted in its recording a $3.6 million servicing loss.

Non-Interest Expense

Non-interest expense rose $8.9 million sequentially to $170.6 million in the three months ended December 31, 2016. In the year-earlier fourth quarter, the Company recorded non-interest expense of $309.8 million, which included $141.2 million of the aforementioned debt repositioning charge. In addition, merger-related expenses represented $6.0 million, $2.4 million, and $3.7 million of non-interest expense in the three months ended December 31, 2016, September 30, 2016, and December 31, 2015, respectively.

The bulk of the Company’s non-interest expense consists of operating expenses, which totaled $164.2 million in the current fourth quarter, as compared to $158.7 million and $163.7 million, respectively, in the trailing and year-earlier three months. The linked-quarter increase was largely driven by a rise in the cost of medical benefits. As a result, compensation and benefits expense rose $4.1 million sequentially to $90.2 million, while occupancy and equipment expense rose a modest amount to $24.7 million, and general and administrative ("G&A") expense rose $1.0 million to $49.3 million. The latter increase was primarily due to a rise in advertising expenses, together with certain legal and professional fees.

The year-over-year rise in operating expenses was modest when compared to the linked-quarter increase, as a $1.1 million decline in G&A expense combined with a lesser decline in occupancy and equipment expense to reduce the impact of a $2.0 million increase in compensation and benefits expense.

Income Tax Expense

Income tax expense fell $12.0 million sequentially to $60.0 million in the three months ended December 31, 2016. In addition to a $23.6 million decline in pre-tax income to $173.8 million, the reduction reflects a decrease in the effective tax rate to 34.55% from 36.52% in the trailing three months. The decline in the effective tax rate reflects the deductibility of certain merger-related expenses following the termination of the merger agreement with Astoria.

In the fourth quarter of 2015, the Company recorded an income tax benefit of $288.8 million as a result of having recorded a pre-tax loss of $693.6 million in connection with the aforementioned debt repositioning.

About New York Community Bancorp, Inc.

One of the largest U.S. bank holding companies, with assets of $48.9 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 $28.9 billion and 255 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, January 25, 2017, at 8:30 a.m. (Eastern Standard Time) to discuss its fourth 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 January 29, 2017 and may be accessed by calling (877) 660-6853 (domestic) or (201) 612-7415 (international) and providing the following conference ID: 13651844. In addition, the conference call will be webcast at ir.myNYCB.com, and archived through 5:00 p.m. on February 22, 2017.

Cautionary Statements Regarding Forward-Looking Information

This earnings release and the associated conference call may include forward-looking statements by the Company and our authorized officers pertaining to such matters as our goals, intentions, and expectations regarding revenues, earnings, loan production, asset quality, capital levels, and acquisitions, among other matters; our estimates of future costs and benefits of the actions we may take; our assessments of probable losses on loans; our assessments of interest rate and other market risks; and our ability to achieve our financial and other strategic goals.

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

Our forward-looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; our ability to obtain the necessary shareholder and regulatory approvals of any acquisitions we may propose; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may acquire into our operations, and our ability to realize related revenue synergies and cost savings within expected time frames; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are subject to significant uncertainties and/or are beyond our control.

More information regarding some of these factors is provided in the Risk Factors section of our Form 10-K for the year ended December 31, 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.

- Financial Statements and Highlights Follow -

 
                                                                                                         NEW YORK COMMUNITY BANCORP, INC.
                                                                                                       CONSOLIDATED STATEMENTS OF CONDITION
                                                                                                                                    
                                                                                                                   December 31,                                                                                   December 31,
                                                                                                                       2016                                                                                           2015
                                                                                               -----------------------------------------------------                                          -----------------------------------------------------
(in thousands, except share data)                                                                                   (unaudited)
Assets
Cash and cash equivalents                                                                                         $    557,850                                                                                   $    537,674
Securities:
   Available-for-sale                                                                                                  104,281                                                                                        204,255
   Held-to-maturity                                                                               3,712,776                                                5,969,390  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total securities                                                                                                     3,817,057                                                                                      6,173,645
Loans held for sale                                                                                                    409,152                                                                                        367,221
Non-covered mortgage loans held for investment:
   Multi-family                                                                                                     26,961,486                                                                                     25,989,100
   Commercial real estate                                                                                            7,727,258                                                                                      7,860,162
   One-to-four family                                                                                                  381,081                                                                                        116,841
   Acquisition, development, and construction                                                       380,522                                                  311,479  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total non-covered mortgage loans held for investment                                                                35,450,347                                                                                     34,277,582
Other non-covered loans:
   Commercial and industrial                                                                                         1,908,308                                                                                      1,453,039
   Other loans                                                                                       24,067                                                   32,583  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total non-covered other loans held for investment                                                 1,932,375                                                1,485,622  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total non-covered loans held for investment                                                                         37,382,722                                                                                     35,763,204
Less: Allowance for losses on non-covered loans                                                    (158,290 )                                                                  (147,124 )
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Non-covered loans held for investment, net                                                                          37,224,432                                                                                     35,616,080
Covered loans                                                                                                        1,698,133                                                                                      2,060,089
Less: Allowance for losses on covered loans                                                         (23,701 )                                                                   (31,395 )
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Covered loans, net                                                                                1,674,432                                                2,028,694  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total loans, net                                                                                                    39,308,016                                                                                     38,011,995
Federal Home Loan Bank stock, at cost                                                                                  590,934                                                                                        663,971
Premises and equipment, net                                                                                            373,675                                                                                        322,307
FDIC loss share receivable                                                                                             243,686                                                                                        314,915
Goodwill                                                                                                             2,436,131                                                                                      2,436,131
Core deposit intangibles, net                                                                                              208                                                                                          2,599
Other assets (includes $16,990 and $25,817, respectively, of other                                1,598,998                                                1,854,559  
real estate owned
covered by loss sharing agreements)
 
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total assets                                                                                                      $ 48,926,555                                                                $ 50,317,796  
                                                                                               ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                               
Liabilities and Stockholders’ Equity
Deposits:
   NOW and money market accounts                                                                                  $ 13,395,080                                                                                   $ 13,069,019
   Savings accounts                                                                                                  5,280,374                                                                                      7,541,566
   Certificates of deposit                                                                                           7,577,170                                                                                      5,312,487
   Non-interest-bearing accounts                                                                  2,635,279                                                2,503,686  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total deposits                                                                                   28,887,903                                               28,426,758  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Borrowed funds:
   Wholesale borrowings                                                                                             13,314,500                                                                                     15,389,800
   Junior subordinated debentures                                                                   358,879                                                  358,605  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total borrowed funds                                                                                                13,673,379                                                                                     15,748,405
Other liabilities                                                                                   241,282                                                  207,937  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total liabilities                                                                                42,802,564                                               44,383,100  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Stockholders’ equity:
   Preferred stock at par $0.01 (5,000,000 shares authorized; none                                                          --                                                                                             --
   issued)
                                                                                                      4,871                                                                                          4,850
   Common stock at par $0.01 (900,000,000 shares authorized;
   487,067,889 and 484,968,024
    shares issued; and 487,056,676
   and 484,943,308 shares outstanding, respectively)
   Paid-in capital in excess of par                                                                                  6,047,558                                                                                      6,023,882
   Retained earnings (accumulated deficit)                                                                             128,435                                                                                        (36,568 )
   Treasury stock, at cost (11,213 and 24,716 shares, respectively)                                                       (160 )                                                                                         (447 )
   Accumulated other comprehensive loss, net of tax:
      Net unrealized (loss) gain on securities available for sale, net of                                                 (753 )                                                                                        3,031
      tax
                                                                                                     (5,241 )                                                                                       (5,318 )
      Net unrealized loss on the non-credit portion of
      other-than-temporary impairment losses,
       net of tax
      Pension and post-retirement obligations, net of tax                                           (50,719 )                                                                   (54,734 )
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
   Total accumulated other comprehensive loss, net of tax                                           (56,713 )                                                                   (57,021 )
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total stockholders’ equity                                             6,123,991                                                5,934,696  
                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------
Total liabilities and stockholders’ equity                                             $ 48,926,555                                                                $ 50,317,796  
                                                                                               ==================== ========== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                               
                                                                                                                                                                                                                                     NEW YORK COMMUNITY BANCORP, INC.
                                                                                                                                                                                                                                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                                                                                     (in thousands, except per share data)
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                          For the Three Months Ended                                                                                                                                                                                                                 For the Twelve Months Ended
                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      Dec. 31,                                                                  Sept. 30,                                                                 Dec. 31,                                                                                       Dec. 31,                                                                   Dec. 31,
                                                                                                        2016                                                                                         2016                                                                                         2015                                                                                           2016                                                                                          2015
                                                                      ------------------------------------------------------------------------                     ------------------------------------------------------------------------                     -------------------------------------------------------------------------                     --------------------------------------------------------------------------                     -------------------------------------------------------------------------
Interest Income:                                                                                                                                                                                                                                                                                                                                                                  
   Mortgage and other loans                                                                                   $ 372,883                                                                                    $ 367,932                                                                                    $  361,043                                                                                    $ 1,472,020                                                                                    $ 1,441,462
   Securities and money market investments                                                    42,465                                                 48,164                                                  63,458                                                                     202,849                                                  250,122  
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- --------                                                                 -------------------- --------- --------------------                                            -------------------- --------- --------------------
Total interest income                                                                        415,348                                                416,096                                                 424,501                                                                   1,674,869                                                1,691,584  
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- --------                                                                 -------------------- --------- --------------------                                            -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Interest Expense:
   NOW and money market accounts                                                                                 16,395                                                                                       15,866                                                                                        11,918                                                                                         62,166                                                                                         46,467
   Savings accounts                                                                                               6,981                                                                                        7,439                                                                                        12,779                                                                                         31,982                                                                                         50,776
   Certificates of deposit                                                                                       21,746                                                                                       20,501                                                                                        14,522                                                                                         76,875                                                                                         62,906
   Borrowed funds                                                                                                54,706                                                                                       53,867                                                                                        60,728                                                                                        216,464                                                                                        349,604
   Borrowed funds (debt repositioning charge)                                                     --                                                     --                                                 773,756                                                       --                                                  773,756  
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
Total interest expense                                                                        99,828                                                 97,673                                                 873,703                                                  387,487                                                1,283,509  
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
      Net interest income (loss)                                                                                315,520                                                                                      318,423                                                                                      (449,202 )                                                                                    1,287,382                                                                                        408,075
Provision for (recovery of) losses on non-                                                                        5,175                                                                                        1,234                                                                                           (80 )                                                                                       11,874                                                                                         (3,334 )
covered loans
Recovery of losses on covered loans                                                           (1,659 )                                                                  (1,289 )                                                                   (6,237 )                                                                    (7,694 )                                                                   (11,670 )
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
                                                                                             312,004                                                318,478                                                (442,885 )                                                                 1,283,202                                                  423,079  
      Net interest income (loss) after provision
      for (recovery of)
      loan losses
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Non-Interest Income:
   Mortgage banking income                                                                                        3,261                                                                                       12,925                                                                                        12,265                                                                                         27,281                                                                                         54,113
   Fee income                                                                                                     8,185                                                                                        8,640                                                                                         8,121                                                                                         32,665                                                                                         34,058
   Bank-owned life insurance                                                                                      7,807                                                                                        7,029                                                                                         6,946                                                                                         31,015                                                                                         27,541
   Net gain on sales of loans                                                                                       688                                                                                        3,465                                                                                         4,417                                                                                         15,806                                                                                         26,133
   Net gain on sales of securities                                                                                2,934                                                                                          237                                                                                         3,111                                                                                          3,347                                                                                          4,054
   FDIC indemnification expense                                                                                  (1,327 )                                                                                     (1,031 )                                                                                      (4,989 )                                                                                       (6,155 )                                                                                       (9,336 )
   Other income                                                                               10,826                                                  9,330                                                  29,170                                                   41,613                                                   74,200  
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
Total non-interest income                                                                     32,374                                                 40,595                                                  59,041                                                  145,572                                                  210,763  
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Non-Interest Expense:
   Operating expenses:
      Compensation and benefits                                                                                  90,206                                                                                       86,079                                                                                        88,171                                                                                        351,436                                                                                        342,624
      Occupancy and equipment                                                                                    24,706                                                                                       24,347                                                                                        25,219                                                                                         98,543                                                                                        102,435
      General and administrative                                                              49,290                                                 48,285                                                  50,345                                                  188,130                                                  170,541  
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
Total operating expenses                                                                                        164,202                                                                                      158,711                                                                                       163,735                                                                                        638,109                                                                                        615,600
   Amortization of core deposit intangibles                                                                         397                                                                                          542                                                                                         1,135                                                                                          2,391                                                                                          5,344
   Debt repositioning charge                                                                                         --                                                                                           --                                                                                       141,209                                                                                             --                                                                                        141,209
   Merger-related expenses                                                                     6,003                                                  2,432                                                   3,702                                                   11,146                                                    3,702  
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
Total non-interest expense                                                                   170,602                                                161,685                                                 309,781                                                  651,646                                                  765,855  
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
Income (loss) before income taxes                                                                               173,776                                                                                      197,388                                                                                      (693,625 )                                                                                      777,128                                                                                       (132,013 )
Income tax expense (benefit)                                                                  60,043                                                 72,089                                                (288,818 )                                                                   281,727                                                  (84,857 )
                                                                                           -------------------- ------- --------------------                                            -------------------- ------- --------------------                                            -------------------- -------- --------------------                                            -------------------- --------- --------------------                                            -------------------- --------- --------------------
   Net Income (Loss)                                                                                          $ 113,733                                                                 $ 125,299                                                                 $ (404,807 )                                                                                  $   495,401                                                                 $   (47,156 )
                                                                                           ==================== ======= ====================                                            ==================== ======= ====================                                            ==================== ======== ====================                                            ==================== ========= ====================                                            ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
   Basic earnings (loss) per share                                                                                $0.23                                                                     $0.26                                                                     $(0.87 )                                                                                        $1.01                                                                      $(0.11 )
                                                                                           =================================================                                            =================================================                                            ==================================================                                            ===================================================                                            ===================================================
   Diluted earnings (loss) per share                                                                              $0.23                                                                     $0.26                                                                     $(0.87 )                                                                                        $1.01                                                                      $(0.11 )
                                                                                           =================================================                                            =================================================                                            ==================================================                                            ===================================================                                            ===================================================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 
                NEW YORK COMMUNITY BANCORP, INC.
 RECONCILIATIONS OF CERTAIN GAAP AND NON-GAAP FINANCIAL MEASURES
                           (unaudited)
 

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

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

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

The following table presents reconciliations of our stockholders’ equity and tangible stockholders’ equity, our total assets and tangible assets, and the related GAAP and non-GAAP profitability and capital measures at or for the three months ended December 31, 2016, September 30, 2016, and December 31, 2015 and the twelve months ended December 31, 2016 and 2015:

                                                                                                                                                                                                                                                                                                                                                            At or for the                                                                                                                                                                                  At or for the
                                                                                                                                                                                                                                                                                                                                                                                               Three Months Ended                                                                                                                                                                                                                   Twelve Months Ended
                                                                                                                                                                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                       --------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                     Dec. 31,                                                 Sept. 30,                                                Dec. 31,                                                                              Dec. 31,                                        Dec. 31,
(dollars in thousands)                                                                                                                                                                                                                                                                                                       2016                                                                                           2016                                                                                           2015                                                                                  2016                                                                                  2015
                                                                                                                                                                                                                                                                               -----------------------------------------------------                                          -----------------------------------------------------                                          -----------------------------------------------------                                          -----------------------------------                                          -----------------------------------------------------
Total Stockholders’ Equity                                                                                                                                                                                                                                                                                                  $  6,123,991                                                                                   $  6,090,512                                                                                   $  5,934,696                                                                                   $  6,123,991                                                                 $  5,934,696
Less: Goodwill                                                                                                                                                                                                                                                                                                    (2,436,131 )                                                                                   (2,436,131 )                                                                                   (2,436,131 )                                                                                   (2,436,131 )                                                                 (2,436,131 )
                                                                                                                                                                                                                                                                                              (208 )                                                                      (605 )                                                                    (2,599 )                                                                      (208 )                                                  (2,599 )
       Core deposit intangibles ("CDI")
                                                                                                                                                                                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --                                           -------------------- ---------- --------------------
Tangible stockholders’ equity                                                                                                                                                                                                                                                                                                  $  3,687,652                                                                                   $  3,653,776                                                                                   $  3,495,966                                                                                   $  3,687,652                                                                 $  3,495,966
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Total Assets                                                                                                                                                                                                                                                                                                  $ 48,926,555                                                                                   $ 49,462,620                                                                                   $ 50,317,796                                                                                   $ 48,926,555                                                                 $ 50,317,796
Less: Goodwill                                                                                                                                                                                                                                                                                                    (2,436,131 )                                                                                   (2,436,131 )                                                                                   (2,436,131 )                                                                                   (2,436,131 )                                                                 (2,436,131 )
                                                                                                                                                                                                                                                                                              (208 )                                                                      (605 )                                                                    (2,599 )                                                                      (208 )                                                  (2,599 )
       CDI
                                                                                                                                                                                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --                                           -------------------- ---------- --------------------
Tangible assets                                                                                                                                                                                                                                                                                                  $ 46,490,216                                                                                   $ 47,025,884                                                                                   $ 47,879,066                                                                                   $ 46,490,216                                                                 $ 47,879,066
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Average Stockholders’ Equity                                                                                                                                                                                                                                                                                                  $  6,123,550                                                                                   $  6,081,003                                                                                   $  5,819,461                                                                                   $  6,052,051                                                                 $  5,813,636
Less: Average goodwill and CDI                                                                                                                                                                                                                                                                                 (2,436,559 )                                                                (2,437,092 )                                                                (2,439,433 )                                                                (2,437,433 )                                              (2,441,406 )
                                                                                                                                                                                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --                                           -------------------- ---------- --------------------
Average tangible stockholders’ equity                                                                                                                                                                                                                                                                                                  $  3,686,991                                                                                   $  3,643,911                                                                                   $  3,380,028                                                                                   $  3,614,618                                                                 $  3,372,230
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Average Assets                                                                                                                                                                                                                                                                                                  $ 49,388,513                                                                                   $ 49,159,171                                                                                   $ 49,403,650                                                                                   $ 49,299,601                                                                 $ 48,870,205
Less: Average goodwill and CDI                                                                                                                                                                                                                                                                                 (2,436,559 )                                                                (2,437,092 )                                                                (2,439,433 )                                                                (2,437,433 )                                              (2,441,406 )
                                                                                                                                                                                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --                                           -------------------- ---------- --------------------
Average tangible assets                                                                                                                                                                                                                                                                                                  $ 46,951,954                                                                                   $ 46,722,079                                                                                   $ 46,964,217                                                                                   $ 46,862,168                                                                 $ 46,428,799
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Net Income (Loss) (1)                                                                                                                                                                                                                                                                                                  $    113,733                                                                                   $    125,299                                                                                   $   (404,807 )                                                                                 $    495,401                                                                 $    (47,156 )
Add back: Amortization of CDI,                                                                                                                                                                                                                                                                                        238                                                      325                                                      681                                                    1,435                                                     3,206
                 net of tax
                                                                                                                                                                                                                                                                               -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ----------                                              -------------------- ----------
Adjusted net income (loss) (2)                                                                                                                                                                                                                                                                                                  $    113,971                                                                                   $    125,624                                                                                   $   (404,126 )                                                                                 $    496,836                                                                 $    (43,950 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
GAAP MEASURES:
Return on average assets (3)                                                                                                                                                                                                                                                                                                          0.92 %                                                                                         1.02 %                                                                                        (3.28 )%                                                                                        1.00 %                                                                      (0.10 )%
Return on average stockholders’ equity (3)                                                                                                                                                                                                                                                                                                          7.43                                                                                           8.24                                                                                         (27.82 )                                                                                         8.19                                                                        (0.81 )
Book value per share                                                                                                                                                                                                                                                                                                        $12.57                                                                                         $12.50                                                                                         $12.24                                                                                         $12.57                                                                       $12.24
Stockholders’ equity to total assets                                                                                                                                                                                                                                                                                                         12.52 %                                                                                        12.31 %                                                                                        11.79 %                                                                                        12.52                                                                        11.79 %
Non-GAAP MEASURES:
Return on average tangible assets (3)                                                                                                                                                                                                                                                                                                          0.97 %                                                                                         1.08 %                                                                                        (3.44 )%                                                                                        1.06 %                                                                      (0.09 )%
Return on average tangible stockholders’ equity (3)                                                                                                                                                                                                                                                                                                         12.36                                                                                          13.79                                                                                         (47.83 )                                                                                        13.75                                                                        (1.30 )
Tangible book value per share                                                                                                                                                                                                                                                                                                         $7.57                                                                                          $7.50                                                                                          $7.21                                                                                          $7.57                                                                        $7.21
Tangible stockholders’ equity to tangible assets                                                                                                                                                                                                                                                                                                          7.93 %                                                                                         7.77 %                                                                                         7.30 %                                                                                         7.93 %                                                                       7.30 %
(1)   To calculate our returns on average assets and average stockholders’
                         equity for a period, we divide the net income generated during that
                         period by the average assets and the average stockholders’ equity
                         recorded during that time.
(2)                      To calculate our returns on average tangible assets and average
                         tangible stockholders’ equity for a period, we adjust the net
                         income generated during that period by adding back the
                         amortization of CDI, net of tax, and then divide that adjusted net
                         income by the average tangible assets and the average tangible
                         stockholders’ equity recorded during that time.
(3)                      The measures for the three and 12 months ended December 31, 2015
                         reflect the impact of the $546.8 million after-tax debt
                         repositioning charge.
                          
                                                                                                                                                                                                                                     NEW YORK COMMUNITY BANCORP, INC.
                                                                                                                                                                                                                                     NET INTEREST INCOME ANALYSIS
                                                                                                                                                                                                                                     LINKED-QUARTER AND YEAR-OVER-YEAR COMPARISONS
                                                                                                                                                                                                                                     (unaudited)
                                                                           
                                                                                                                                                                                                                                                                                                                                                       For the Three Months Ended
                                                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                               December 31, 2016                                                                                                                                                             September 30, 2016                                                                                                                                                                        December 31, 2015 (1)
                                                                                                                  ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                 Average                                                                                                                                  Average                                                                                                                                                                 Average
                                                                                                                               Average                                                                                                                                       Yield/                                                                 Average                                                                                                                                       Yield/                                                                 Average                                                                                                                                                   Yield/
(dollars in thousands)                                                                                                         Balance                                                                Interest                                                                Cost                                                                  Balance                                                                Interest                                                                Cost                                                                  Balance                                                                           Interest                                                                 Cost
                                                                                                                  --------------------------------                                          -----------------------------                                          --------------------------                                          --------------------------------                                          -----------------------------                                          --------------------------                                          --------------------------------                                          ---------------------------------------------------                     ------------------------------------------------
Assets:
  Interest-earning assets:
    Mortgage and other loans, net                                                                                                    $ 39,666,550                                                              $ 372,883                                           3.76 %                                                                                 $ 39,337,380                                                              $ 367,932                                           3.74 %                                                                                 $ 37,240,361                                                              $  361,043                                            3.88                      %
    Securities and money market investments                                                                          4,515,294                                              42,465                                           3.75                                                4,435,332                                              48,164                                           4.33                                                6,871,407                                               63,458                         3.68    
                                                                                                                  -------------------- ----------                                           -------------------- -------                                           ---- --------------------                                           -------------------- ----------                                           -------------------- -------                                           ---- --------------------                                           -------------------- ----------                                           -------------------- -------- --------------------                      ----- -------------------- --------------------
  Total interest-earning assets                                                                                                        44,181,844                                                                415,348                                           3.76                                                                                     43,772,712                                                                416,096                                           3.80                                                                                     44,111,768                                                                 424,501                                            3.85
  Non-interest-earning assets                                                                                        5,206,669                                                                                                                                                                                         5,386,459                                                                                                                                                                                         5,291,882
                                                                                                                  -------------------- ----------                                                                                                                                                                                      -------------------- ----------                                                                                                                                                                                      -------------------- ----------
  Total assets                                                                                                                       $ 49,388,513                                                                                                                                                                                                         $ 49,159,171                                                                                                                                                                                                         $ 49,403,650
                                                                                                                  ==================== ==========                                                                                                                                                                                      ==================== ==========                                                                                                                                                                                      ==================== ==========
Liabilities and Stockholders’ Equity:
  Interest-bearing deposits:
    NOW and money market accounts                                                                                                    $ 13,242,362                                                              $  16,395                                           0.49 %                                                                                 $ 13,356,174                                                              $  15,866                                           0.47 %                                                                                 $ 12,930,306                                                              $   11,918                                            0.37                      %
    Savings accounts                                                                                                                    5,327,346                                                                  6,981                                           0.52                                                                                      5,629,135                                                                  7,439                                           0.53                                                                                      7,579,895                                                                  12,779                                            0.67
    Certificates of deposit                                                                                          7,493,925                                              21,746                                           1.15                                                7,245,325                                              20,501                                           1.13                                                5,356,629                                               14,522                         1.08    
                                                                                                                  -------------------- ----------                                           -------------------- -------                                           ---- --------------------                                           -------------------- ----------                                           -------------------- -------                                           ---- --------------------                                           -------------------- ----------                                           -------------------- -------- --------------------                      ----- -------------------- --------------------
  Total interest-bearing deposits                                                                                                      26,063,633                                                                 45,122                                           0.69                                                                                     26,230,634                                                                 43,806                                           0.66                                                                                     25,866,830                                                                  39,219                                            0.60
  Borrowed funds                                                                                                    13,988,313                                              54,706                                           1.56                                               13,802,662                                              53,867                                           1.55                                               14,813,371                                              834,484                        22.35    
                                                                                                                  -------------------- ----------                                           -------------------- -------                                           ---- --------------------                                           -------------------- ----------                                           -------------------- -------                                           ---- --------------------                                           -------------------- ----------                                           -------------------- -------- --------------------                      ----- -------------------- --------------------
  Total interest-bearing liabilities                                                                                                   40,051,946                                                                 99,828                                           0.99                                                                                     40,033,296                                                                 97,673                                           0.97                                                                                     40,680,201                                                                 873,703                                            8.52
  Non-interest-bearing deposits                                                                                                         2,990,053                                                                                                                                                                                                            2,832,569                                                                                                                                                                                                            2,740,355
  Other liabilities                                                                                                    222,964                                                                                                                                                                                           212,303                                                                                                                                                                                           163,633
                                                                                                                  -------------------- ----------                                                                                                                                                                                      -------------------- ----------                                                                                                                                                                                      -------------------- ----------
  Total liabilities                                                                                                                    43,264,963                                                                                                                                                                                                           43,078,168                                                                                                                                                                                                           43,584,189
  Stockholders’ equity                                                                    6,123,550                                                                                                                                                                                         6,081,003                                                                                                                                                                                         5,819,461
                                                                                                                  -------------------- ----------                                                                                                                                                                                      -------------------- ----------                                                                                                                                                                                      -------------------- ----------
  Total liabilities and stockholders’ equity                                                              $ 49,388,513                                                                                                                                                                                                         $ 49,159,171                                                                                                                                                                                                         $ 49,403,650
                                                                                                                  ==================== ==========                                                                                                                                                                                      ==================== ==========                                                                                                                                                                                      ==================== ==========
  Net interest income(loss)/interest rate spread                                                                                                                                                               $ 315,520                                           2.77 %                                                                                                                                                           $ 318,423                                           2.83 %                                                                                                                                                           $ (449,202 )                                         (4.67 )                    %(2)
                                                                                                                                                                                            ==================== =======                                           ==== ====================                                                                                                                     ==================== =======                                           ==== ====================                                                                                                                     ==================== ======== ====================                      ===== ==================== ====================
  Net interest margin                                                                                                                                                                                                                                              2.86 %                                                                                                                                                                                                               2.91 %                                                                                                                                                                                                                (4.01 )                    %(2)
                                                                                                                                                                                                                                                                   ==== ====================                                                                                                                                                                                            ==== ====================                                                                                                                                                                                             ===== ==================== ====================
                                                                                                                                                                                                                                                                   1.10 x                                                                                                                                                                                                               1.09 x                                                                                                                                                                                                                 1.08   x
  Ratio of interest-earning assets to interest-
    bearing
  liabilities
                                                                                                                                                                                                                                                                   ==== ====================                                                                                                                                                                                            ==== ====================                                                                                                                                                                                             ===== ==================== ====================
(1)   In the three months ended December 31, 2015, the following line
                         items reflect the impact of the $773.8 million debt repositioning
                         charge: interest expense on and cost of borrowed funds; interest
                         expense on and cost of total interest-bearing liabilities; net
                         interest income; net interest rate spread; and net interest margin.
(2)                      In the three months ended December 31, 2015, the Company’s net
                         interest rate spread and net interest margin were reduced by 754 and
                         696 basis points, respectively, due to the impact of the
                         fourth-quarter 2015 debt repositioning charge.
                          
                                                                                                                                                                                                                                     NEW YORK COMMUNITY BANCORP, INC.
                                                                                                                                                                                                                                     NET INTEREST INCOME ANALYSIS
                                                                                                                                                                                                                                     YEAR-OVER-YEAR COMPARISON
                                                                                                                                                                                                                                     (unaudited)
                                                                                         
                                                                                                                                                                                                                                                                                                         For the Twelve Months Ended December 31,
                                                                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                          2016                                                                                                                                                                      2015 (1)
                                                                                                                                -----------------------------------------------------------------------------------------------------------------------------------------------                                                   -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                               Average                                                                                                                                         Average
                                                                                                                                             Average                                                                                                                    Yield/                                                                 Average                                                                                                                                              Yield/
(dollars in thousands)                                                                                                                       Balance                                                                 Interest                                            Cost                                                                  Balance                                                                 Interest                                                                      Cost
                                                                                                                                --------------------------------                                          -------------------------------                     --------------------------                                          --------------------------------                                          -------------------------------                                          -------------------------------------
Assets:
  Interest-earning assets:
    Mortgage and other loans, net                                                                                                                  $ 39,076,298                                                              $ 1,472,020                      3.77 %                                                                                 $ 36,343,407                                                              $ 1,441,462                                           3.97 %
    Securities and money market investments                                                                                        4,934,058                                               202,849                      4.11                                                7,278,562                                               250,122                                           3.44  
                                                                                                                                -------------------- ----------                                           -------------------- ---------                      ---- --------------------                                           -------------------- ----------                                           -------------------- ---------                                           ---- --------------------------------
  Total interest-earning assets                                                                                                                      44,010,356                                                                1,674,869                      3.81                                                                                     43,621,969                                                                1,691,584                                           3.88
  Non-interest-earning assets                                                                                                      5,289,245                                                                                                                                                                      5,248,236
                                                                                                                                -------------------- ----------                                                                                                                                                                   -------------------- ----------
  Total assets                                                                                                                                     $ 49,299,601                                                                                                                                                                                      $ 48,870,205
                                                                                                                                ==================== ==========                                                                                                                                                                   ==================== ==========
Liabilities and Stockholders’ Equity:
  Interest-bearing deposits:
    NOW and money market accounts                                                                                                                  $ 13,322,346                                                              $    62,166                      0.47 %                                                                                 $ 12,674,236                                                              $    46,467                                           0.37 %
    Savings accounts                                                                                                                                  5,915,020                                                                   31,982                      0.54                                                                                      7,546,417                                                                   50,776                                           0.67
    Certificates of deposit                                                                                                        6,899,706                                                76,875                      1.11                                                5,698,437                                                62,906                                           1.10  
                                                                                                                                -------------------- ----------                                           -------------------- ---------                      ---- --------------------                                           -------------------- ----------                                           -------------------- ---------                                           ---- --------------------------------
  Total interest-bearing deposits                                                                                                                    26,137,072                                                                  171,023                      0.65                                                                                     25,919,090                                                                  160,149                                           0.62
  Borrowed funds                                                                                                                  14,059,543                                               216,464                      1.54                                               14,275,818                                             1,123,360                                           7.87  
                                                                                                                                -------------------- ----------                                           -------------------- ---------                      ---- --------------------                                           -------------------- ----------                                           -------------------- ---------                                           ---- --------------------------------
  Total interest-bearing liabilities                                                                                                                 40,196,615                                                                  387,487                      0.96                                                                                     40,194,908                                                                1,283,509                                           3.19
  Non-interest-bearing deposits                                                                                                                       2,860,532                                                                                                                                                                                         2,660,220
  Other liabilities                                                                                                                  190,403                                                                                                                                                                        201,441
                                                                                                                                -------------------- ----------                                                                                                                                                                   -------------------- ----------
  Total liabilities                                                                                                                                  43,247,550                                                                                                                                                                                        43,056,569
  Stockholders’ equity                                                                                  6,052,051                                                                                                                                                                      5,813,636
                                                                                                                                -------------------- ----------                                                                                                                                                                   -------------------- ----------
  Total liabilities and stockholders’ equity                                                                            $ 49,299,601                                                                                                                                                                                      $ 48,870,205
                                                                                                                                ==================== ==========                                                                                                                                                                   ==================== ==========
  Net interest income/interest rate spread                                                                                                                                                                                   $ 1,287,382                      2.85 %                                                                                                                                                           $   408,075                                           0.69 %(2)        
                                                                                                                                                                                                          ==================== =========                      ==== ====================                                                                                                                     ==================== =========                                           ==== ========== ====================
  Net interest margin                                                                                                                                                                                                                                         2.93 %                                                                                                                                                                                                                 0.94 %(2)        
                                                                                                                                                                                                                                                              ==== ====================                                                                                                                                                                                              ==== ========== ====================
                                                                                                                                                                                                                                                              1.09 x                                                                                                                                                                                                                 1.09 x
  Ratio of interest-earning assets to interest-bearing liabilities
                                                                                                                                                                                                                                                              ==== ====================                                                                                                                                                                                              ==== ==============================
(1)   For the twelve months ended December 31, 2015, the following line
                         items reflect the impact of the $773.8 million debt repositioning
                         charge recorded in the fourth quarter of that year: interest expense
                         on and cost of borrowed funds; interest expense on and cost of total
                         interest-bearing liabilities; net interest income; net interest rate
                         spread; and net interest margin.
(2)                      In the twelve months ended December 31, 2015, the Company’s net
                         interest rate spread and net interest margin were reduced by 192 and
                         177 basis points, respectively, due to the impact of the
                         fourth-quarter 2015 debt repositioning charge.
                          
                                                                                                                                                                                                                             NEW YORK COMMUNITY BANCORP, INC.
                                                                                                                                                                                                                             CONSOLIDATED FINANCIAL HIGHLIGHTS
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                             For the Three Months Ended                                                                                                                                                                           For the Twelve Months Ended
                                                                                                                         --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------
                                                                                                                                       Dec. 31,                                Sept. 30,                                Dec. 31,                                                                       Dec. 31,                                  Dec. 31,
(dollars in thousands except share and per share data)                                                                                   2016                                                                          2016                                                                         2015 (1)                                                                         2016                                                                          2015 (1)
                                                                                                                         ---------------------------------                                             ----------------------------------                                             ---------------------------------                                              ----------------------------------                                             ----------------------------------
PROFITABILITY MEASURES:
Net income (loss)                                                                                                                                $113,733                                                                      $125,299                                                                      $(404,807 )                                                                     $495,401                                                                       $(47,156 )
Basic earnings (loss) per share                                                                                                   0.23                                                       0.26                                                       (0.87 )                                                      1.01                                                       (0.11 )
Diluted earnings (loss) per share                                                                                                                    0.23                                                                          0.26                                                                          (0.87 )                                                                         1.01                                                                          (0.11 )
Return on average assets                                                                                                                             0.92 %                                                                        1.02 %                                                                        (3.28 )%                                                                        1.00 %                                                                        (0.10 )%
Return on average tangible assets (2)                                                                                                                0.97                                                                          1.08                                                                          (3.44 )                                                                         1.06                                                                          (0.09 )
Return on average stockholders’ equity                                                                                    7.43                                                                          8.24                                                                         (27.82 )                                                                         8.19                                                                          (0.81 )
Return on average tangible stockholders’ equity (2)                                                                      12.36                                                                         13.79                                                                         (47.83 )                                                                        13.75                                                                          (1.30 )
Efficiency ratio (3)                                                                                                                                47.20                                                                         44.21                                                                         (41.97 )                                                                        44.53                                                                          99.48
Operating expenses to average assets                                                                                                                 1.33                                                                          1.29                                                                           1.33                                                                           1.29                                                                           1.26
Net interest rate spread                                                                                                                             2.77                                                                          2.83                                                                          (4.67 )                                                                         2.85                                                                           0.69
Net interest margin                                                                                                                                  2.86                                                                          2.91                                                                          (4.01 )                                                                         2.93                                                                           0.94
Effective tax rate                                                                                                                                  34.55                                                                         36.52                                                                          41.64                                                                          36.25                                                                          64.28
Shares used for basic EPS computation                                                                                                         485,337,734                                                                   485,352,998                                                                    468,289,624                                                                    485,150,173                                                                    448,982,223
Shares used for diluted EPS computation                                                                                                       485,337,734                                                                   485,352,998                                                                    468,289,624                                                                    485,150,173                                                                    448,982,223
Shares outstanding at the respective period-ends                                                                                              487,056,676                                                                   487,066,151                                                                    484,943,308                                                                    487,056,676                                                                    484,943,308
(1)   With the exception of the ratio of operating expenses to average
                         assets, the measures recorded in the three and twelve months ended
                         December 31, 2015 reflect the impact of a fourth-quarter 2015 debt
                         repositioning charge of $915.0 million, which was equivalent to
                         $546.8 million after-tax. In accordance with Accounting Standards
                         Codification No. 470-50, $773.8 million of the pre-tax charge was
                         recorded as interest expense and $141.2 million was recorded as
                         non-interest expense.
(2)                      Please see the reconciliations of these non-GAAP measures with the
                         comparable GAAP measures on page 13 of this release.
(3)                      We calculate our efficiency ratio by dividing our operating expenses
                         by the sum of our net interest income and non-interest income.
                                                                                                                     
                                                                                                                            Dec. 31,                                               Sept. 30,                                              Dec. 31,
                                                                                                                              2016                                                   2016                                                   2015
                                                                                                                          ---------                                             -----------                                             ---------
CAPITAL MEASURES:
Book value per share                                                                                                       $ 12.57                                                $ 12.50                                                $ 12.24
Tangible book value per share (1)                                                                                             7.57                                                   7.50                                                   7.21
Stockholders’ equity to total assets                                                              12.52 %                                                12.31 %                                                11.79 %
Tangible stockholders’ equity to tangible assets (1)                                               7.93                                                   7.77                                                   7.30
(1)   Please see the reconciliations of these non-GAAP measures with the
                         comparable GAAP measures on page 13 of this release.
                          
                                        Dec. 31,       Sept. 30,      Dec. 31,
                                                                                2016                                                 2016                                                 2015
                                                                             ---------                                            ---------                                            ---------
REGULATORY CAPITAL RATIOS: (1)
New York Community Bancorp, Inc.
   Common equity tier 1 ratio                                                10.70 %                                              10.25 %                                               9.95 %
   Tier 1 risk-based capital ratio                                           10.70                                                10.25                                                10.19
   Total risk-based capital ratio                                            12.21                                                11.72                                                11.43
   Leverage capital ratio                                                     8.00                                                 7.95                                                 7.77
New York Community Bank
   Common equity tier 1 ratio                                                11.26 %                                              10.83 %                                              10.47 %
   Tier 1 risk-based capital ratio                                           11.26                                                10.83                                                10.47
   Total risk-based capital ratio                                            11.74                                                11.31                                                10.98
   Leverage capital ratio                                                     8.45                                                 8.43                                                 8.05
New York Commercial Bank
   Common equity tier 1 ratio                                                13.98 %                                              13.31 %                                              13.43 %
   Tier 1 risk-based capital ratio                                           13.98                                                13.31                                                13.43
   Total risk-based capital ratio                                            14.98                                                14.19                                                13.98
   Leverage capital ratio                                                    10.53                                                10.26                                                10.01
(1)   The minimum regulatory requirements for classification as a
                         well-capitalized institution are a common equity tier 1 capital
                         ratio of 6.50%; a tier 1 risk-based capital ratio of 8.00%; a total
                         risk-based capital ratio of 10.00%; and a leverage capital ratio of
                         5.00%.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170125005216r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170125005216/en/

SOURCE: New York Community Bancorp, Inc.

New York Community Bancorp, Inc. 
Investors: 
Ilene A. Angarola, 516-683-4420 
or 
Media: 
Kelly Maude Leung, 516-683-4032


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2018 StockSelector.com. All rights reserved.