Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NEW YORK COMMUNITY BANCORP INC | d250726d8k.htm |
| EX-99.2 - INVESTOR PRESENTATION - NEW YORK COMMUNITY BANCORP INC | d250726dex992.htm |
 Third
Quarter 2011 Investor Presentation
Exhibit 99.1 |
 Forward-looking Statements and Associated Risk
Factors
This presentation, like many written and oral communications presented by New York Community Bancorp,
Inc. and our authorized officers, may contain certain forward-looking statements regarding
our prospective performance and strategies within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend
such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including
this statement for purposes of said safe harbor provisions. Forward-looking
statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words
“anticipate,” “believe,” “estimate,” “expect,”
“intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “will,” “would,” “should,” “could,” “may,” or
similar expressions. Our ability to predict results or the actual effects of our plans or
strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.
There are a number of factors, many of which are beyond our control, that could cause actual
conditions, events, or results to differ significantly from those described in the forward-looking
statements. These factors include, but are not limited to: general economic conditions, either
nationally or in some or all of the areas in which we and our customers conduct our respective
businesses; conditions in the securities markets and real estate markets or the banking industry;
changes in interest rates, which may affect our net income, prepayment penalty income, and other
future cash flows, or the market value of our assets, including our investment securities; changes in
deposit flows and wholesale borrowing facilities; changes in the demand for deposit, loan, and
investment products and other financial services in the markets we serve; changes in our credit ratings
or in our ability to access the capital markets; changes in our customer base or in the
financial or operating performances of our customers’ businesses; changes in real estate values,
which could impact the quality of the assets securing the loans in our portfolio; changes in the
quality or composition of our loan or securities portfolios; changes in competitive pressures among
financial institutions or from non-financial institutions; the 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; our use of derivatives to mitigate our interest rate exposure; our ability to retain key
members of management; our timely development of new lines of business and competitive products or
services in a changing environment, and the acceptance of such products or services by our customers;
any breach in performance by the Community Bank under our loss sharing agreements with the FDIC;
any interruption or breach of security resulting in failures or disruptions in customer account management, general ledger, deposit, loan, or other systems; any interruption in customer
service due to circumstances beyond our control; potential exposure to unknown or contingent
liabilities of companies we have acquired or target for acquisition; the outcome of pending or
threatened litigation, or of other matters before regulatory agencies, whether currently existing or
commencing in the future; changes in our estimates of future reserves based upon the periodic
review thereof under relevant regulatory and accounting requirements; changes in our capital
management policies, including those regarding business combinations, dividends, and share
repurchases, among others; changes in legislation, regulation, policies, or administrative practices,
whether by judicial, governmental, or legislative action, including, but not limited to, the impact of
the Dodd-Frank Wall Street Reform and Consumer Protection Act, and other changes pertaining to
banking, securities, taxation, rent regulation and housing, environmental protection, and
insurance, and the ability to comply with such changes in a timely manner; additional FDIC special
assessments or required assessment prepayments; changes in accounting principles, policies,
practices, or guidelines; environmental conditions that exist or may exist on properties owned by,
leased by, or mortgaged to the Company; operational issues stemming from, and/or capital
spending necessitated by, the potential need to adapt to industry changes in information technology
systems, on which we are highly dependent; the ability to keep pace with, and implement on a
timely basis, technological changes; changes in the monetary and fiscal policies of the U.S.
Government, including policies of the U.S. Department of the Treasury and the Board of Governors of the
Federal Reserve System; war or terrorist activities; and other economic, competitive, governmental,
regulatory, and geopolitical factors affecting our operations, pricing, and services. For a discussion of these and other risks that may cause actual results to differ from expectations,
please refer to our Annual Report on Form 10-K for the year ended December 31, 2010, including
the section entitled “Risk Factors,” and our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2011, on file with the U.S. Securities and Exchange Commission (the “SEC”).
In addition, it should be noted that we routinely evaluate opportunities to expand through acquisition
and frequently conduct due diligence activities in connection with such opportunities. As a result,
acquisition discussions and, in some cases, negotiations, may take place at any time, and acquisitions
involving cash, debt, or equity securities may occur.
Furthermore, the timing and occurrence or non-occurrence of events may be subject to circumstances
beyond our control. Readers are cautioned not to place undue reliance on the forward-looking statements contained
herein, which speak only as of the date of this presentation. Except as required by applicable law
Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
or regulation, we undertake no obligation to update these forward-looking statements to
reflect events or circumstances that occur after the date on which such statements were made.
New York Community Bancorp, Inc.
Page 2 |
 New
York Community Bancorp ranks among the top 25 bank holding companies in the
United States. Note: Except as otherwise indicated, all industry data
was provided by SNL Financial as of 10/27/11. (a)
SNL Financial
(b)
Bloomberg
Assets
Deposits
Multi-Family Loans Market Capitalization
Total Return on
Investment
With
assets
of
$42.0
billion
at
9/30/11,
we
are
currently
the
21st
largest bank holding company in the nation.
(a)
With
deposits
of
$22.8
billion
at
9/30/11
and
275
branches
in
Metro New York, New Jersey, Ohio, Florida, and Arizona, we
currently rank 23rd among the nation’s largest depositories.
(a)
With
a
portfolio
of
$17.3
billion
at
the
end
of
September,
we
are
a leading producer of multi-family loans in New York City.
(a)
With
a
market
cap
of
$5.2
billion
at
9/30/11,
we
rank
16th
among the nation’s publicly traded banks and thrifts.
(a)
From
11/23/93
through
9/30/11,
we
provided
our
investors
with
a
total
return
on
investment
of
2,513%.
(b)
New York Community Bancorp, Inc.
Page 3 |
 New
York Community Bancorp, Inc. Page 4
Largely reflecting our growth-through-acquisition
strategy, we currently have 275 locations in five states.
Metro New York
157 Branches
Ohio
28 Branches
New Jersey
51 Branches
Florida
25 Branches
Arizona
14 Branches |
 Our
performance for the 12 months ended 3/31/11 ranked first among U.S. thrifts with
assets $2 billion, in SNL’s annual
performance ranking.
(a)
(a)
Source:
SNL
Financial
–
100
Largest
Thrifts,
Ranked
by
Performance
(b)
Composite score, based on six key performance measures: ROAA, ROATCE,
TBV/Share 3-year CAGR, Efficiency Ratio, NPLs/Loans, and NCOs/Average
Loans
(c)
Overall
rank
among
the
29
U.S.
thrifts
with
assets
$2
billion
Rank on Specific Profitability Measures
Total
Assets
(in millions)
Total
Score
(b)
Overall
Rank
(c)
Return on
Average
Assets
Return on
Average
Tangible
Common
Equity
Efficiency
Ratio
NYB
$41,047
126.45
1
1
1
2
AF
17,707
43.13
13
17
8
10
WFSL
13,389
36.32
14
14
NA
1
PBCT
24,962
5.40
19
15
15
22
TFSL
10,885
2.82
22
22
23
14
HCBK
52,429
-51.48
24
23
25
28
New York Community Bancorp, Inc.
Page 5 |
 3rd
Quarter 2011 Performance Highlights |
 Our 3Q
2011 performance reflected solid earnings. (a)
Operating earnings are a non-GAAP financial measure. Please see page 36 for a
reconciliation of our GAAP and operating earnings. (b)
Tangible capital is a non-GAAP financial measure. Please see page 40 for
reconciliations of our GAAP and non-GAAP capital measures. (c)
Please see page 37 for a reconciliation of our GAAP and operating efficiency
ratios. (dollars in thousands, except per share data)
3Q 2011 Performance Highlights
GAAP
OPERATING
(a)
Solid Profitability Measures:
Earnings
$119,750
$117,098
EPS
$0.27
$0.27
Return on average tangible assets
(b)
1.27%
1.25%
Return on average tangible stockholders’
equity
(b)
16.43%
16.08%
Margin Stability:
Net interest margin
3.33%
3.33%
Continued Efficiency:
Efficiency ratio
(c)
41.50%
41.65%
New York Community Bancorp, Inc.
Page 7 |
 New
York Community Bancorp, Inc. Page 8
Our 9/30/11 balance sheet reflects continued
strength.
Performance Highlights:
9/30/10
6/30/11
9/30/11
Loans, net / total assets
70.2%
71.0%
71.1%
Securities / total assets
11.3
14.0
12.3
Deposits / total assets
53.3
53.7
54.2
Core deposits / total deposits
63.1
66.8
66.9
Wholesale borrowings / total assets
30.1
29.5
32.0 |
 New
York Community Bancorp, Inc. Page 9
Our asset quality measures continue to compare
favorably with those of our industry as a whole. (a)
For the purposes of this presentation, non-performing loans exclude covered
loans and are defined as non-accrual loans and loans 90 days or more past due
but still accruing interest.
(b)
For the purposes of this presentation, non-performing assets exclude covered
loans and covered OREO. (c)
Non-annualized
At or for the Three Months Ended 9/30/11
Asset Quality:
NYB
SNL U.S. Bank and
Thrift Index
Non-performing loans
(a)
/ total loans
1.44%
3.86%
Non-performing assets
(b)
/ total assets
1.24
2.65
Net charge-offs / average loans
(c)
0.04
0.41 |
 New
York Community Bancorp, Inc. Page 10
(a)
Please see page 39 for a reconciliation of our GAAP and non-GAAP capital
measures. Capital growth has been supported by our earnings.
Our dividend has been a significant component of our total return to shareholders
since our first year of public life.
(dollars in billions)
9/30/10
6/30/11
9/30/11
Y-O-Y
Increase
Tangible equity / tangible assets excluding accumulated other
comprehensive loss, net of tax
(a)
7.66%
8.15%
7.92%
26 bp
Tangible equity / tangible assets
(a)
7.58%
8.03%
7.80%
22 bp
Tangible stockholders’
equity
(a)
$3.0
$3.1
$3.1
3.8%
In
October
2011,
we
declared
our
31st
consecutive
quarterly
cash
dividend
of
$0.25
per
share. |
 A
Successful Business Model |
 New
York Community Bancorp, Inc. Page 12
Our business model has consistently focused on
building value while building the Company.
Growth through
Acquisitions
We completed ten acquisitions from 2000 to 2010, including seven
“traditional”
merger transactions, two FDIC-assisted transactions, and
the purchase of a branch network.
Multi-Family Lending
held
for
investment
at
September
30,
2011.
The
average
multi-family
loan had a principal balance of $4.1 million, and the portfolio had an
expected weighted average life of 3.4 years at that date.
Strong Credit Standards/
Superior Asset Quality
The quality of our assets has long been a Company hallmark. Net
2011
and
0.27%
of
average
loans
in
the
first
nine
months
of
this
year.
Residential Mortgage
Banking
Since acquiring our residential mortgage banking platform in
December 2009 in connection with our AmTrust Bank acquisition, we
have
aggregated
$15.2
billion
of
one-to-four
family
loans
for
sale
and
generated mortgage banking income of $252.0 million.
Efficient Operation
Our efficiency ratio has consistently ranked in the top 1% of all banks
and
thrifts
and
was
41.50%
in
the
third
quarter
of
2011.
charge-offs
represented
0.04%
of
average
loans
in
the
third
quarter
of
Multi-family
loans
represented
$17.3
billion,
or
68.7%,
of
total
loans |
 Growth through Acquisitions |
 New
York Community Bancorp, Inc. Page 14
We have completed 10 acquisitions since 2000.
Note:
The number of branches indicated reflects the number of branches in our current
franchise that stemmed from each transaction. Transaction Type:
Savings Bank
Commercial Bank
Branch
FDIC
1. Nov. 2000
Haven Bancorp
(HAVN)
Assets:
$2.7 billion
Deposits:
$2.1 billion
Branches:
43
2. July 2001
Richmond
County Financial
Corp. (RCBK)
Assets:
$3.7 billion
Deposits:
$2.5 billion
Branches:
24
3. Oct. 2003
Roslyn Bancorp,
Inc. (RSLN)
Assets:
$10.4 billion
Deposits:
$5.9 billion
Branches:
38
4. Dec. 2005
Long Island
Financial Corp.
(LICB)
Assets:
$562 million
Deposits:
$434 million
Branches:
9
5. April 2006
Atlantic Bank of
New York
(ABNY)
Assets:
$2.8 billion
Deposits:
$1.8 billion
Branches:
14
6. April 2007
PennFed
Financial
Services, Inc.
(PFSB)
Assets:
$2.3 billion
Deposits:
$1.6 billion
Branches:
23
7. July 2007
NYC branch
network of Doral
Bank, FSB
(Doral-NYC)
Assets:
$485 million
Deposits:
$370 million
Branches:
11
8. Oct. 2007
Synergy
Financial Group,
Inc. (SYNF)
Assets:
$892 million
Deposits:
$564 million
Branches:
20
9. Dec. 2009
AmTrust Bank
Assets:
$11.0 billion
Deposits:
$8.2 billion
Branches:
64
10. March 2010
Desert Hills Bank
Assets:
$452 million
Deposits:
$375 million
Branches: 3 |
 New
York Community Bancorp, Inc. Page 15
Our deposit growth has been largely acquisition-
driven.
(in millions)
$1,076
$12,168
$12,694
Total Deposits:
14
152
166
Total Branches:
$22,753
$13,236
217
$22,316
276
$10,360
139
$5,472
120
$3,268
86
275
CDs
NOW, MMAs, and Savings
Demand deposits
$21,809
276
$40
$171
$1,223
$1,874
$455
$2,609
$2,408
$4,362
$5,247
$5,945
$6,913
$9,054
$7,835
$7,529
$5,278
$720
$6,015
$906
$1,195
$1,348
$4,975
$5,554
$1,768
$1,852
$2,737
DEPOSITS
$11,494
$12,122
$12,487
$388
$658
12/31/99
12/31/00
12/31/01
12/31/03
12/31/05
12/31/06
12/31/07
12/31/09
12/31/10
9/30/11
Total deposits: 29.6%
Core deposits: 35.5%
Demand deposits: 43.3%
w/ HAVN
w/ RCBK
w/ RSLN
w/ LICB
w/ ABNY
w/ PFSB,
Doral,
&
SYNF
w/
AmTrust
w/ Desert
Hills
CAGRs |
 New
York Community Bancorp, Inc. Page 16
(a)
Includes originations of loans held for sale of $888.5 million in 2009, $10.8
billion in 2010, and $4.4 billion in the first nine months of 2011. Acquisitions
have provided much of the funding for the organic growth of our loan
portfolio. (in millions)
$1,611
$17,029
$19,653
Total Loans:
$677
$6,332
$4,971
Total Originations:
(a)
$29,212
$15,193
$20,363
$4,853
$28,393
$4,280
After
HAVN
$10,499
$4,330
$5,405
$1,150
After
RCBK
After
RSLN
After
LICB
After
ABNY
After
PFSB,
Doral, &
SYNF
After
AmTrust
After
Desert Hills
$3,636
$616
Held-For-Investment Loans
Multi-family
CRE
All Other Held-for-Investment Loans
Loans Held for Sale
Covered Loan Portfolio
$30,010
$11,060
New York Community Bancorp, Inc.
Page 16
LOANS OUTSTANDING
CAGRs
Multi-family loans: 24.2%
Total loans: 28.3%
$5,016
$4,298
$3,873
$1,207
$1,005
$1,654
$1,467
$1,290
$4,987
$5,438
$6,573
$2,010
$2,482
$1,287
$2,888
$3,114
$3,826
$1,445
$1,686
$566
$1,584
$324
$1,366
$96
$167
$1,348
$1,946
$3,255
$7,368
$12,854
$14,529
$14,055
$16,736
$16,802
$17,269
12/31/99
12/31/00
12/31/01
12/31/03
12/31/05
12/31/06
12/31/07
12/31/09
12/31/10
9/30/11 |
 Multi-Family Loan Production |
 For
more than 40 years, we have been a leading producer of multi-family loans on
apartment buildings in New York City, most of which feature below-market
rents. New York Community Bancorp, Inc.
Page 18 |
 Our
focus on multi-family lending on rent-regulated buildings has enabled us
to distinguish ourselves from our industry peers. 64.2% of the rental housing
units in New York City are subject to rent regulation and therefore
feature
below-market
rents.
(a)
Rent-regulated buildings are more likely to retain their tenants and therefore
their revenue stream in a downward credit cycle.
Our focus on multi-family lending in this niche market has contributed to our
record of asset quality.
Multi-family loans are less costly to produce and service than other types of
loans, and therefore contribute to our superior efficiency.
(a)
Source: New York City Rent Guidelines Board 2011 Housing Supply Report
New York Community Bancorp, Inc.
Page 19 |
 New
York Community Bancorp, Inc. Page 20
(in millions)
At 9/30/11, multi-family loans represented 68.7% of
total held-for-investment loans.
Multi-Family Loan Portfolio
Portfolio statistics at 9/30/11:
Terms:
Prepayment penalties:
$14,055
$15,726
$16,736
$16,802
$17,269
12/31/07
12/31/08
12/31/09
12/31/10
9/30/11
•
% of loans held for investment = 68.7%
•
Average principal balance = $4.1 million
•
Average loan-to-value ratio at origination = 54.8%
•
Expected weighted average life = 3.4 years
•
3Q 2011 originations = $1.0 billion
•
% of total loans originated for portfolio in 3Q 2011 = 53.9%
•
Range from 5 points to 1 point in years 1-5, and again
in years 6-10 when Option 2 (fixed rate) is taken
•
Recorded as interest income
•
Years 1-5: Fixed rate tied to the FHLB-NY 5-year fixed
advance rate plus a spread
•
Years 6-10:
•
Option 1 –
Annually adjustable rate at a spread
above prime; or
•
Option 2 –
Fixed rate at a spread above the fixed
advance rate of the FHLB-NY plus 1 point of the
then-outstanding loan balance;
•
Both –
floor equal to the fixed rate in years 1-5
New York Community Bancorp, Inc.
Page 20 |
 (in millions)
Our commercial real estate loans feature the same
structure as our multi-family loans.
•
% of loans held for investment = 26.2%
•
Average principal balance = $3.7 million
•
Average loan-to-value ratio at origination = 53.1%
•
Expected weighted average life = 3.7 years
•
3Q 2011 originations = $715.7 million
•
% of total loans originated for portfolio in 3Q 2011 =
37.5%
Portfolio statistics at 9/30/11:
•
Years 1-5: Fixed rate tied to the FHLB-NY 5-year fixed
advance rate plus a spread
•
Years 6-10:
•
Option 1 –
Annually adjustable rate at a spread
above prime; or
•
Option 2 –
Fixed rate at a spread above the fixed
advance rate of the FHLB-NY plus 1 point of the
then-outstanding loan balance;
•
Both –
floor equal to the fixed rate in years 1-5
Terms:
•
Range from 5 points to 1 point in years 1-5, and again
in years 6-10 when Option 2 (fixed rate) is taken
•
Recorded as interest income
Prepayment penalties:
Commercial Real Estate Loan Portfolio
$3,826
$4,551
$4,987
$5,438
$6,573
12/31/07
12/31/08
12/31/09
12/31/10
9/30/11
New York Community Bancorp, Inc.
Page 21 |
 Asset
Quality |
 Current Credit Cycle
Last Credit Cycle
Both historically and currently, we have been
distinguished by our low level of net charge-offs.
4-Year Total
NYB: 17 bp
SNL U.S. Bank and Thrift Index: 486 bp
4.75-Year Total
NYB: 64 bp
SNL U.S. Bank and Thrift Index: 928 bp
(a)
Non-annualized
Net Charge-Offs / Average Loans
1.28%
1.50%
1.17%
0.91%
0.68%
1.63%
2.85%
2.89%
1.23%
(a)
0.00%
0.04%
0.07%
0.06%
0.00%
0.03%
0.13%
0.21%
0.27%
(a)
1990
1991
1992
1993
2007
2008
2009
2010
9 Mos. 2011
NYB
SNL U.S. Bank and Thrift Index
New York Community Bancorp, Inc.
Page 23 |
 Last
Credit Cycle The quality of our loan portfolio continues to exceed
that of our industry, as it has in the past.
(a)
Non-performing loans are defined as non-accrual loans and loans 90 days or
more past due but still accruing interest. (b)
Non-performing loans exclude covered loans.
Current Credit Cycle
Non-Performing Loans
(a)
/ Total Loans
4.00%
4.05%
3.41%
2.35%
1.45%
2.71%
4.84%
4.41%
3.86%
2.48%
2.10%
2.83%
1.51%
0.11%
0.51%
2.04%
(b)
2.23%
(b)
1.44%
(b)
12/31/90
12/31/91
12/31/92
12/31/93
12/31/07
12/31/08
12/31/09
12/31/10
9/30/11
NYB
SNL U.S. Bank and Thrift Index
New York Community Bancorp, Inc.
Page 24 |
 Historically and currently, few of our non-performing
loans have resulted in charge-offs.
(a)
Non-performing loans are defined as non-accrual loans and loans 90 days or
more past due but still accruing interest. (b)
Non-performing loans exclude covered loans.
(c)
Non-annualized
At or for the 12 Months Ended December 31,
At or for the
3 Months Ended
Last Credit Cycle
Current Credit Cycle
1990
1991
1992
1993
2007
2008
2009
2010
9/30/11
NPLs
(a)
/ Total Loans
2.48%
2.10%
2.83%
1.51%
0.11%
0.51%
2.04%
(b)
2.23%
(b)
1.44%
(b)
NCOs / Average Loans
0.00%
0.04%
0.07%
0.06%
0.00%
0.03%
0.13%
0.21%
0.04%
(c)
Difference
248 bp
206 bp
276 bp
145 bp
11 bp
48 bp
191 bp
140 bp
202 bp
New York Community Bancorp, Inc.
Page 25 |
 The
quality of our assets reflects the nature of our multi-family lending niche
and our strong underwriting standards. CONSERVATIVE UNDERWRITING
•
Conservative loan-to-value ratios
•
Conservative debt coverage ratio: 120%, except
for commercial real estate (“CRE”) loans: 130%
•
Multi-family and CRE loans are based on the
lower of economic or market value.
ACTIVE BOARD INVOLVEMENT
•
All loans originated for portfolio are approved by
the Mortgage or Credit Committee (a majority of
the Board of Directors).
•
A member of the Mortgage or Credit Committee
participates in inspections on multi-family loans in
excess of $4.0 million, and CRE and acquisition,
development, and construction (“ADC”) loans in
excess of $2.5 million.
MULTIPLE APPRAISALS
•
All properties are appraised by independent
appraisers.
•
All independent appraisals are reviewed by in-
house appraisal officers.
RISK-AVERSE MIX OF
LOANS HELD FOR INVESTMENT
•
Multi-family: 68.7%
•
CRE: 26.2%
•
Commercial and Industrial: 2.4%
•
ADC: 1.9%
•
One-to-Four
Family: 0.6%
New York Community Bancorp, Inc.
Page 26 |
 All
the loans acquired in the AmTrust and Desert Hills transactions are covered by
FDIC loss sharing agreements, thus mitigating credit risk. (in millions)
Total covered assets: $4.0 billion
1-4 Family
$3,503.7
Other Loans
$369.6
Percent of total assets: 9.4%
OREO
$84.1
Total covered assets: $4.5 billion
1-4 Family
$4,012.9
Other Loans
$450.5
Percent of total assets: 10.8%
OREO
$52.3
Covered Assets
9/30/10
Covered Assets
9/30/11
New York Community Bancorp, Inc.
Page 27 |
 Residential Mortgage Banking |
 Our
residential mortgage banking platform is a leading aggregator of
agency-conforming one-to-four family loans. (in millions)
Funded 1-4 Family
Loan Production
$1,482.7
$1,139.2
$1,786.4
1Q 2011
2Q 2011
3Q 2011
•
New 1-4 family loan registrations in 3Q 2011 = $4.3 billion
•
% sold to GSEs = 98%
•
Average FICO = 771
•
Average loan-to-value ratio = 67.0%
•
Rank among U.S. residential loan aggregators = #13 (est.)
•
YTD mortgage banking income from originations = $56.0 million
Statistics at or for 9/30/11:
•
Loan production is driven by our proprietary real time, web-
accessible mortgage banking technology platform.
•
Our proprietary business process securely controls the lending
process, while mitigating business and regulatory risks.
•
As a result, our clients cost-effectively compete with the nation’s
largest mortgage lenders.
•
1,000 approved clients include community banks, credit unions,
mortgage companies, and mortgage brokers.
•
The vast majority of loans funded are agency-eligible 1-4 family
loans.
•
100% of loans funded are full documentation, prime credit loans.
•
Loans can be originated/purchased in all 50 states.
Features:
New York Community Bancorp, Inc.
Page 29 |
 Efficiency |
 New
York Community Bancorp, Inc. Page 31
Our operating efficiency ratio was 41.65%
in 3Q 2011, well below
the SNL U.S. Bank and Thrift Index efficiency ratio of 62.04%.
(a)
Please see pages 37 and 38 for a reconciliation of our GAAP and operating
efficiency ratios. NYB Rank
Among Public
Banks and Thrifts
#5
#7
#9
#16
#15
#8
NYB
(a)
SNL U.S. Bank and Thrift Index
EFFICIENCY RATIO
59.25%
60.65%
62.56%
56.91%
59.21%
62.04%
37.59%
41.18%
38.89%
36.16%
35.88%
41.65% |
 New
York Community Bancorp, Inc. Page 32
Our efficiency is driven by several factors.
Franchise expansion has largely stemmed from mergers and acquisitions; we generally
do not engage in de novo branch development.
Products and services are typically developed by third-party providers and the
sale of these products generates additional revenues.
We acquire our deposits primarily through earnings-accretive acquisitions rather
than by paying above-market rates.
42 of our branches are located in-store, where rental space is less costly, enabling us to
supplement the service provided by our traditional branches more efficiently. Multi-family and
commercial real estate lending are both broker-driven, with the borrower paying fees to the
mortgage brokerage firm, rather than the bank. |
 Total
Return on Investment |
 New
York Community Bancorp, Inc. Page 34
We are committed to building value for our
investors.
(a)
Bloomberg
As a result of nine stock splits between 1994 and 2004, our charter shareholders
have 2,700 shares of NYB stock for each 100 shares originally
purchased. SNL U.S. Bank and Thrift Index
NYB
(a)
244%
614%
444%
213%
209%
245%
140%
717%
2,479%
2,885%
2,059%
2,754%
3,843%
2,513%
11/23/93
12/31/99
12/31/06
12/31/07
12/31/08
12/31/09
12/31/10
9/30/11
CAGR since IPO:
28.8%
TOTAL RETURN ON INVESTMENT |
 New
York Community Bancorp, Inc. Page 35
11/2/2011
For More Information
Log onto our web site:
ir.myNYCB.com
E-mail requests to:
ir@myNYCB.com
Call Investor Relations at:
Write to:
Investor Relations
New York Community Bancorp, Inc.
615 Merrick Avenue
Westbury, NY 11590
(516) 683-4420 |
 New
York Community Bancorp, Inc. Page 36
Reconciliation of GAAP and Operating Earnings
Operating earnings are non-GAAP financial measures. The following table
presents a reconciliation of the Company’s GAAP and operating earnings for
the three months ended September 30, 2011.
(in thousands, except per share data)
For the Three Months Ended
September 30,
2011
GAAP Earnings
$119,750
Adjustments to GAAP earnings:
Gain on sales of securities
(6,734)
Severance charges
2,300
Income tax effect
1,782
Operating earnings
$117,098
Diluted GAAP Earnings per Share
$ 0.27
Adjustments to diluted GAAP earnings per share:
Gain on sales of securities
(0.01)
Severance charges
0.01
Operating earnings per share
$ 0.27 |
 New
York Community Bancorp, Inc. Page 37
Reconciliation of GAAP and Operating Efficiency
Ratios
The following table presents a reconciliation of the Company’s GAAP and
operating efficiency ratios for the three months ended September 30, 2011. For
the Three Months Ended September 30, 2011
(dollars in thousands)
GAAP
Operating
Total non-interest income and net interest income
$353,036
$353,036
Adjustments:
Gain on sales of securities
--
(6,734)
Adjusted total non-interest income and net interest income
$353,036
$346,302
Operating expenses
$146,527
$146,527
Adjustments:
Severance charges
--
(2,300)
Adjusted operating expenses
$146,527
$144,227
Efficiency ratio
41.50%
41.65% |
 New
York Community Bancorp, Inc. Page 38
Reconciliations of GAAP and Operating Efficiency
Ratios
The following table presents reconciliations of the Company’s GAAP and
operating efficiency ratios for the years ended December 31, 2006, 2007,
2008, 2009, and 2010.
For the Years Ended December 31,
2010
2009
2008
2007
2006
(dollars in thousands)
GAAP
Operating
GAAP
Operating
GAAP
Operating
GAAP
Operating
GAAP
Operating
Total net interest income and non-interest income
$1,517,886
$1,517,886
$1,062,964
$1,062,964
$691,024
$691,024
$727,622
$727,622
$650,556
$650,556
Adjustments:
Gain on debt repurchases/exchange
--
(2,441)
--
(10,054)
--
--
--
--
--
--
Gain on business acquisitions
--
(2,883)
--
(139,607)
--
--
--
--
--
--
Gain on termination of servicing hedge
--
--
--
(3,078)
--
--
--
--
--
--
Visa-related gain
--
--
--
--
--
(1,647)
--
--
--
--
Net gain on sales of securities
--
(22,438)
--
--
--
--
--
(1,888)
--
--
Loss on mark-to-market of interest rate swaps
--
--
--
--
--
--
--
--
--
6,071
(Gain) loss on debt redemption
--
--
--
--
--
(16,962)
--
1,848
--
1,859
Loss on other-than-temporary impairment of
securities
--
--
--
96,533
--
104,317
--
56,958
--
--
Balance sheet repositioning charge
--
--
--
--
--
39,647
--
--
--
--
Gain on sale of bank-owned property/branches
--
--
--
--
--
--
--
(64,879)
--
--
Adjusted total net interest income and
non-interest
income
$1,517,886
$1,490,124
$1,062,964
$1,006,758
$691,024
$816,379
$727,622
$719,661
$650,556
$658,486
Operating expenses
$546,246
$546,246
$384,003
$384,003
$320,818
$320,818
$299,575
$299,575
$256,362
$256,362
Adjustments:
FDIC special assessment
--
--
--
(14,753)
--
--
--
--
--
--
Acquisition-related costs
--
(11,545)
--
(5,185)
--
--
--
--
--
--
Merger-related charge
--
--
--
--
--
--
--
(2,245)
--
(5,744)
VISA litigation charge
--
--
--
--
--
(3,365)
--
(1,000)
--
--
Retirement charge
--
--
--
--
--
--
--
--
--
(3,072)
Adjusted operating expenses
$546,246
$534,701
$384,003
$364,065
$320,818
$317,453
$299,575
$296,330
$256,362
$247,546
Efficiency ratio
35.99%
35.88%
36.13%
36.16%
46.43%
38.89%
41.17%
41.18%
39.41%
37.59% |
 New
York Community Bancorp, Inc. Page 39
Reconciliations of GAAP and Non-GAAP Capital
Measures
September 30,
June 30,
September 30,
(dollars in thousands)
2011
2011
2010
Total stockholders’
equity
$ 5,573,571
$ 5,560,103
$ 5,490,466
Less: Goodwill
(2,436,131)
(2,436,131)
(2,436,325)
Core deposit intangibles
(57,116)
(63,205)
(85,407)
Tangible stockholders’
equity
$ 3,080,324
$ 3,060,767
$ 2,968,734
Total assets
$41,969,028
$40,602,625
$41,701,607
Less: Goodwill
(2,436,131)
(2,436,131)
(2,436,325)
Core deposit intangibles
(57,116)
(63,205)
(85,407)
Tangible assets
$39,475,781
$38,103,289
$39,179,875
Stockholders’
equity to total assets
13.28%
13.69%
13.17%
Tangible stockholders’
equity to tangible assets
7.80%
8.03%
7.58%
Tangible stockholders’
equity
$3,080,324
$3,060,767
$ 2,968,734
Accumulated other comprehensive loss, net of tax
51,775
50,402
35,611
Adjusted tangible stockholders’
equity
$3,132,099
$3,111,169
$3,004,345
Tangible assets
$39,475,781
$38,103,289
$39,179,875
Accumulated other comprehensive loss, net of tax
51,775
50,402
35,611
Adjusted tangible assets
$39,527,556
$38,153,691
$39,215,486
Adjusted
tangible
stockholders’
equity
to
adjusted
tangible
assets
7.92%
8.15%
7.66%
Tangible
and
adjusted
tangible
stockholders’
equity
and
tangible
and
adjusted
tangible
assets
are
non-GAAP
capital
measures.
The
following
table
presents reconciliations of our GAAP and non-GAAP capital measures at September
30, 2011, June 30, 2011, and September 30, 2010. |
 New
York Community Bancorp, Inc. Page 40
Reconciliation of GAAP and Non-GAAP Capital
Measures
(dollars in thousands)
For the Three Months Ended
September 30, 2011
Average
Stockholders’
Equity
$ 5,501,226
Less: Average goodwill and core deposit intangibles
(2,497,076)
Average
tangible
stockholders’
equity
$ 3,004,150
Average Assets
$41,261,984
Less: Average goodwill and core deposit intangibles
(2,497,076)
Average tangible assets
$38,764,908
Net Income
$119,750
Add back: Amortization of core deposit intangibles, net of tax
3,653
Adjusted net income
$123,403
Operating Income
$117,098
Add back: Amortization of core deposit intangibles, net of tax
3,653
Adjusted operating income
$120,751
Return on average assets
1.16%
Operating return on average assets
1.14
Return on average tangible assets
1.27
Operating return on average tangible assets
1.25
Return
on
average
stockholders’
equity
8.71
Operating
return
on
average
stockholders’
equity
8.51
Return
on
average
tangible
stockholders’
equity
16.43
Operating
return
on
average
tangible
stockholders’
equity
16.08
Average
tangible
stockholders’
equity
and
average
tangible
assets
are
non-GAAP
financial
measures.
The
following
table
presents
reconciliations
of
these non-GAAP measures with our GAAP measures for the three months ended
September 30, 2011. |