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| 8-K - FORM 8-K - NEW YORK COMMUNITY BANCORP INC | d14988d8k.htm |
 Second
Quarter 2015 Investor Presentation
Exhibit 99.1 |
 New York Community Bancorp, Inc. 2Q 2015 2 Cautionary Statements Forward-Looking Statements and Associated Risk Factors Certain statements in this presentation, like those made in our other written and oral communications, are “forward-looking
statements” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
generally pertain to management’s goals, intentions, and expectations regarding such matters as revenues, earnings, funding, loan production, asset quality, capital, regulations, and acquisitions of other banks or thrifts. Such
forward- looking
statements may also address the estimated costs and benefits of our actions; our assessments of interest rates and other market factors that may influence our performance; and our ability to achieve our financial and other strategic goals.
It is important to note that forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which may change over time. Accordingly, our actual results and events could differ materially from those anticipated in our forward-looking statements,
and our future performance could differ materially from our historical
results. You
will find more detailed information regarding these factors in our filings with the U.S. Securities and Exchange Commission, including in the “Risk Factors” section of our 2014 Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the three months
ended March 31, 2015. In addition, it should be noted that our
forward-looking statements speak only as of the date of this presentation. We do not undertake to update our forward-looking statements to reflect the impact of events or circumstances that may arise after the date on which such statements are made. Our Use of Non-GAAP Financial Measures This presentation may contain certain non-GAAP financial measures which management believes to be useful to investors in
understanding the Company’s performance and financial condition, and in comparing
our performance and financial condition with those of other banks.
Such non-GAAP financial measures are not to be considered in isolation or as a substitute for measures calculated in accordance with GAAP. Reconciliations of our GAAP and non-GAAP financial measures are included in the Appendix and may also be
found in our earnings releases and under “Strategies and
Results” at ir.myNYCB.com. |
 New York Community Bancorp, Inc. 3 2Q 2015 Note: Except as otherwise indicated, all industry data was provided by SNL Financial as of 7/31/15.
(a) Bloomberg Assets Deposits Multi-Family Loans Market Cap Total Return on Investment $48.6 billion $28.6 billion $23.8 billion $8.2 billion 5,132% With assets of $48.6 billion at
6/30/15, we are
the 22nd largest
U.S. bank holding
company. With deposits of $28.6 billion and
over 270 branches in Metro New York, New Jersey, Ohio, Florida, and Arizona, we currently rank 23rd among the nation’s largest depositories. With a portfolio of $23.8 billion at the
end of June, we
are a leading
producer of multi-
family loans in
New York City. With a market cap of $8.2
billion at
6/30/15, we rank
21st among the nation’s publicly traded banks and thrifts. From 11/23/93 through 6/30/15, we provided our charter investors with a total return on investment of 5,132%.
(a)
We are one of the top 25 U.S. bank holding companies.
|
 2Q 2015 Performance Highlights * * * * * * * * * * * * * * * * * * * *************************************** |
 New York Community Bancorp, Inc. 5 2Q 2015 (dollars in thousands, except per share data) (a) Cash earnings is a non-GAAP financial measure. Please see page 30 for a reconciliation of our GAAP and non-GAAP cash
earnings. (b)
ROTA and ROTE are non-GAAP financial measures. Please see page 31 for additional
information. (c)
Please see page 32 for a reconciliation of our efficiency and cash efficiency
ratios. We generated solid earnings in 2Q 2015.
PERFORMANCE HIGHLIGHTS
2Q 2015 GAAP Earnings Cash Earnings (a) Strong Profitability Measures: Earnings $123,704 $133,189 EPS $0.28 $0.30 Return on average tangible assets (b) 1.09% 1.16% Return on average tangible stockholders’ equity (b) 14.79 15.82 Net interest margin 2.64 2.64 Efficiency ratio (c) 43.40 41.25 |
 New York Community Bancorp, Inc. 6 2Q 2015 (a) Non-performing loans and total loans exclude covered loans. (b) Non-performing assets and total assets exclude covered loans and covered OREO.
(c) Tangible stockholders’ equity and tangible assets are non-GAAP financial measures. Please see page 33 for additional
information. Company Capital
6/30/15 Stockholders’ equity / total assets 11.95% Tangible stockholders’ equity / tangible assets excluding accumulated other comprehensive loss, net of tax 7.41% (c) Common equity tier 1 capital ratio 10.82% Leverage capital ratio 7.68% Bank Capital 6/30/15 The Community Bank: Common equity tier 1 capital ratio 11.41% Leverage capital ratio 7.92% The Commercial Bank: Common equity tier 1 capital ratio 12.77% Leverage capital ratio 9.34% Balance Sheet 6/30/15 Total loans / total assets 74.0% Securities / total assets 14.0% Deposits / total assets 58.8% Wholesale borrowings / total assets 28.1% Asset Quality At or for the Three Months Ended 6/30/15 Non-performing loans (a) / total loans (a) 0.18% Non-performing assets (b) / total assets (b) 0.18% Net charge-offs / average loans (non- annualized) 0.00% Our balance sheet measures reflect stability and strength. |
 New York Community Bancorp, Inc. 7 2Q 2015 From 9/30/14 to 6/30/15, we managed our assets below the current SIFI threshold while
maintaining our high-volume production of multi-family and CRE
loans. Strategic Asset
Management Total Assets 9/30/14 $48.7 Billion • Reduced securities by $687.8 million through a combination of repayments, sales, and calls • Sold loans of $1.6 billion: - $970.1 million of multi-family loans (largely through participations) - $139.7 million of commercial real estate (“CRE”) loans (including through participations) - $522.2 million of 1–4 family loans Total Assets 6/30/15 $48.6 Billion • Originated $6.1 billion of multi-family loans • Originated $1.5 billion of CRE loans Results: A $31.2 million reduction in total assets from 9/30/14 – 6/30/15 without sacrificing our solid standing in our primary lending niche. |
 A Successful Business Model * * * * * * * * * * * * * * * * * * * *************************************** |
 New York Community Bancorp, Inc. 9 2Q 2015 Multi-Family Lending Strong Credit Standards/ Superior Asset Quality Residential Mortgage Banking Efficient Operation Growth through Acquisitions We have originated $61.5 billion of multi-family loans over the course of our public life. Net charge-offs have averaged a mere 0.04% since 1993. Since January 2010, our residential mortgage banking operation has originated $40.9 billion of 1-4 family loans for sale and generated mortgage banking income of $618.8 million. Our efficiency ratio has consistently ranked in the top 3% of all banks and thrifts. Our assets have grown from $1.9 billion to $48.6 billion since our first acquisition in November 2000. Our business model has consistently focused on building value for our investors. |
 Multi-Family
Loan Production
***************************************
* * * * * * * * * * * * * * * * * * * |
 New York Community Bancorp, Inc. 11 2Q 2015 61.1% 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 downward credit cycles. 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 2015 Housing Supply Report
Our focus on multi-family lending on rent-regulated buildings has
enabled us to distinguish ourselves from our industry
peers. |
 New York Community Bancorp, Inc. 12 2Q 2015 PORTFOLIO STATISTICS AT 6/30/2015 MULTI-FAMILY LOAN PORTFOLIO (in millions) We are a leading producer of multi-family loans for portfolio in New York City. % of non-covered loans held for investment = 70.7% Average principal balance = $4.9 million Weighted average life = 2.7 years % of our multi-family loans located in Metro New York = 83.8% |
 New York Community Bancorp, Inc. 13 2Q 2015 PORTFOLIO STATISTICS AT 6/30/2015 % of non-covered loans held for investment = 24.0% Average principal balance = $5.4 million Weighted average life = 3.1 years % of our CRE loans located in Metro New York = 92.0% Our CRE loans are typically collateralized by office buildings, retail centers, mixed-use buildings, and multi-tenanted light industrial properties. (in millions) COMMERCIAL REAL ESTATE LOAN PORTFOLIO Our commercial real estate loans feature the same structure as our multi-family loans. |
 Asset Quality * * * * * * * * * * * * * * * * * * * *************************************** |
 New York Community Bancorp, Inc. 15 2Q 2015 S & L Crisis NET CHARGE-OFFS / AVERAGE LOANS 5-Year Total NYCB: 17 bp SNL U.S. Bank and Thrift Index: 540 bp 4-Year Total NYCB: 37 bp SNL U.S. Bank and Thrift Index: 803 bp SNL U.S. Bank and Thrift Index NYCB Great Recession Current Credit Cycle 4.5-Year Total NYCB: 54 bp SNL U.S. Bank and Thrift Index: 457 bp We have been distinguished by our low level of net charge- offs in downward credit cycles. * Annualized 1.77% 1.24% 0.76% 0.43% 0.37% 0.35% 0.13% 0.05% 0.01% 0.00% 2011 2012 2013 2014 1H 2015 * |
 New York Community Bancorp, Inc. 16 2Q 2015 S & L Crisis Great Recession Current Credit Cycle NON-PERFORMING LOANS (a)(b) / TOTAL LOANS (a) (a) Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired loans.
(b) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest.
Average NPLs/Total Loans
NYCB: 2.08% SNL U.S. Bank and Thrift Index: 3.34% Average NPLs/Total Loans NYCB: 1.43% SNL U.S. Bank and Thrift Index: 2.89% SNL U.S. Bank and Thrift Index NYCB Average NPLs/Total Loans NYCB: 0.60% SNL U.S. Bank and Thrift Index: 1.71% The quality of our loan portfolio continues to exceed that of our industry. 2.60% 2.22% 1.66% 1.26% 0.80% 1.28% 0.96% 0.35% 0.23% 0.18% 12/31/11 12/31/12 12/31/13 12/31/14 6/30/15 |
 New York Community Bancorp, Inc. 17 2Q 2015 Conservative Underwriting Active Board Involvement Multiple Appraisals Risk-Averse Mix of Non-Covered Loans Held for Investment (at 6/30/15) • Conservative loan-to- value ratios • Conservative debt coverage ratios: 120% for multi-family loans, and 130% for CRE loans • Multi-family and CRE loans are based on the lower of economic or market value. • All loans originated for portfolio are reviewed 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 $7.5 million, and CRE and ADC loans in excess of $4.0 million. • All properties are appraised by independent appraisers. • All independent appraisals are reviewed by in-house appraisal officers. • A second independent appraisal review is performed on loans that are large and complex. • Multi-family: 70.7% • CRE: 24.0% • One-to-Four Family: 0.3% • ADC: 0.8% • Commercial and Industrial: 4.0% The quality of our assets reflects the nature of our lending niche and our strong underwriting standards. |
 Residential Mortgage Banking * * * * * * * * * * * * * * * * * * * *************************************** |
 New York Community Bancorp, Inc. 19 2Q 2015 Features Loans can be originated/purchased in all 50 states and the District of Columbia.
Loan production is driven by our proprietary real time, web-accessible mortgage
banking technology platform,
which securely controls the lending process while
mitigating business and regulatory risks.
Our 900 approved clients include community banks, credit unions, mortgage
companies, and mortgage brokers.
100% of loans funded are full documentation, prime credit loans.
Credit Quality As of June 30, 2015, 99.8% of all funded loans were current. Limited Repurchase Risk Of the six loans that were repurchased in 1H 2015, four were subsequently resolved, and two were placed back into portfolio. Benefits Since January 2010, our mortgage banking business has originated 1-4 family loans
of $40.9 billion and generated mortgage banking income of $618.8 million.
Our proprietary mortgage banking platform has enabled us to expand our revenues,
market share, and product line.
Over time, mortgage banking income has supported the stability of our return on
average tangible assets, even in times of interest rate
volatility. Our revenue mix has been enhanced since the establishment
of our mortgage banking operation in January 2010.
|
 New York Community Bancorp, Inc. 20 2Q 2015 Average 10-Year Treasury Rate Return on Average Tangible Assets (a) Total: Prepayment Penalty Income Mortgage Banking Income 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 (a) ROTA is a non-GAAP financial measure. Please see page 34 for additional information.
(dollars in millions) Prepayment penalty income and mortgage banking income have contributed to the stability of our ROTA. |
 Efficiency * * * * * * * * * * * * * * * * * * * *************************************** |
 New York Community Bancorp, Inc. 22 2Q 2015 Multi-family and CRE lending are both broker- driven, with the borrower paying fees to the mortgage brokerage firm. Products and services are typically developed by third-party providers and the sale of these products generates additional revenues. Franchise expansion has largely stemmed from mergers and acquisitions; we rarely engage in de novo branch development. Most of our deposits have been acquired through earnings-accretive acquisitions. 38 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. SNL U.S. Bank and Thrift Index NYCB Our efficiency is driven by several factors. EFFICIENCY RATIO 67.12% 66.59% 65.93% 65.41% 66.27% 40.03% 40.75% 42.71% 43.16% 44.20% 2011 2012 2013 2014 1H 2015 |
 Growth Through
Acquisitions * * * * * * * * * * * * * * * * * * * *************************************** |
 New York Community Bancorp, Inc. 24 2Q 2015 Note: The number of branches indicated reflects the number of branches in our current franchise that stemmed from each transaction.
1. Nov. 2000
Haven Bancorp (HAVN) Assets: $2.7 billion Deposits: $2.1 billion Branches: 39
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: 13 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: 16 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
11. June 2012
Aurora Bank FSB Assets: None Deposits: $2.2 billion Branches: 0
Payment Received: $24.0 million Transaction Type: Savings Bank Commercial Bank Branch FDIC Deposit Since our first acquisition, we have grown from $1.9 billion in assets to $48.6 billion. |
 New York Community Bancorp, Inc. 25 2Q 2015 (in millions) DEPOSITS w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY w/ PFSB, Doral, & SYNF w/ AmTrust w/ Desert Hills w/ Aurora Total Deposits: $3,268 $5,472 $10,360 $12,168 $12,764 $13,311 $22,418 $21,890 $24,878 $25,661 $28,329 $28,597 Total Branches: 86 120 139 152 166 217 276 276 275 273 272 272 CDs NOW, MMAs, and Savings Demand deposits From 2000 to 2012, our deposit growth was largely acquisition-driven. |
 New York Community Bancorp, Inc. 26 2Q 2015 (a) Includes originations of loans held for sale of $888.5 million in 2009, $10.8 billion in 2010, $7.2 billion in 2011, $10.9 billion in 2012, $6.2
billion in 2013, $3.1 billion in 2014, and $2.9 billion in 1H 2015.
LOANS OUTSTANDING
After HAVN After RCBK After RSLN After LICB After ABNY After PFSB, Doral, & SYNF After AmTrust After Desert Hills Total Loans Outstanding: $3,636 $5,405 $10,499 $17,029 $19,653 $20,363 $28,393 $29,212 $31,773 $32,934 $35,833 $36,180 Total Originations: (a) $616 $1,150 $4,330 $6,332 $4,971 $4,853 $4,280 $15,193 $19,894 $17,403 $14,204 $9,053 After Aurora Held-for-Investment Loans Multi-family CRE All other HFI loans Loans held for sale Covered loan portfolio (in millions) From 2000 to 2012, acquisitions provided much of the funding for the organic growth of our loan portfolio. |
 Total Return on Investment * * * * * * * * * * * * * * * * * * * *************************************** |
 New York Community Bancorp, Inc. 28 2Q 2015 CAGR since IPO: 27.2% (a) Bloomberg TOTAL RETURN ON INVESTMENT SNL U.S. Bank and Thrift Index NYCB (a) Our quarterly cash dividends are a significant component of our commitment to building value for our investors. 5,132%
As a result of nine stock splits between 1994 and 2004, our charter shareholders have
2,700 shares of NYCB stock for each 100 shares originally purchased.
244% 213% 209% 245% 168% 260% 393% 450% 476% 717% 2,059% 2,754% 3,843% 2,670% 3,069% 4,265% 4,319% 11/23/93 12/31/99 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 6/30/15 |
 Appendix * * * * * * * * * * * * * * * * * * * *************************************** |
 New York Community Bancorp, Inc. 30 2Q 2015 Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and non-GAAP cash
earnings for the three months ended June 30, 2015.
Reconciliations of GAAP Earnings and Non-GAAP Cash
Earnings (in thousands, except per share data) For the Three Months Ended June 30, 2015 GAAP Earnings $123,704 Additional contributions to tangible stockholders’ equity: Amortization and appreciation of shares held in stock-related benefit plans
7,462 Associated tax effects 678 Amortization of core deposit intangibles 1,345 Total additional contributions to tangible stockholders’ equity 9,485 Cash earnings $133,189 Diluted GAAP Earnings per Share $0.28 Add back: Amortization and appreciation of shares held in stock-related benefit plans
0.02 Associated tax effects -- Amortization of core deposit intangibles -- Total additions 0.02 Diluted cash earnings per share $0.30 |
 New York Community Bancorp, Inc. 31 2Q 2015 Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and non-GAAP cash
profitability measures for the three months ended June 30,
2015. (in thousands)
For the Three Months Ended June 30, 2015 Average stockholders’ equity $ 5,809,787 Less: Average goodwill and core deposit intangibles (2,442,007) Average tangible stockholders’ equity $ 3,367,780 Average assets $48,329,195 Less: Average goodwill and core deposit intangibles (2,442,007) Average tangible assets $45,887,188 Net income $123,704 Add back: Amortization of core deposit intangibles, net of tax 807 Adjusted net income $124,511 Cash earnings $133,189 Return on average assets 1.02% Cash return on average assets 1.10 Return on average tangible assets 1.09 Cash return on average tangible assets 1.16 Return on average stockholders’ equity 8.52 Cash return on average stockholders’ equity 9.17 Return on average tangible stockholders’ equity 14.79 Cash return on average tangible stockholders’ equity 15.82 Reconciliations of GAAP Earnings and Non-GAAP Cash Earnings |
 New York Community Bancorp, Inc. 32 2Q 2015 The following table presents a reconciliation of the Company’s efficiency and cash efficiency ratios for the three months ended June 30, 2015. Reconciliations of Efficiency and Cash Efficiency Ratios For the Three Months Ended June 30, 2015 (dollars in thousands) GAAP Cash Total net interest income and non-interest income $346,998 $346,998 Operating expenses $150,585 $150,585 Adjustments: Amortization and appreciation of shares held in stock-related benefit plans -- (7,462) Adjusted operating expenses $150,585 $143,123 Efficiency ratio 43.40% 41.25% |
 New York Community Bancorp, Inc. 33 2Q 2015 (dollars in thousands) June 30, 2015 Total stockholders’ equity $ 5,814,623 Less: Goodwill (2,436,131) Core deposit intangibles (5,014) Tangible stockholders’ equity $ 3,373,478 Total assets $48,648,532 Less: Goodwill (2,436,131) Core deposit intangibles (5,014) Tangible assets $46,207,387 Stockholders’ equity to total assets 11.95% Tangible stockholders’ equity to tangible assets 7.30% Tangible stockholders’ equity $3,373,478 Accumulated other comprehensive loss, net of tax 53,610 Adjusted tangible stockholders’ equity $3,427,088 Tangible assets $46,207,387 Accumulated other comprehensive loss, net of tax 53,610 Adjusted tangible assets $46,260,997 Adjusted tangible stockholders’ equity to adjusted tangible assets 7.41% Tangible and adjusted tangible stockholders’ equity and tangible and adjusted tangible assets are non-GAAP financial measures. The
following table presents reconciliations of these non-GAAP measures
with the related GAAP measures at June 30, 2015. Reconciliations of
GAAP and Non-GAAP Financial Measures |
 New York Community Bancorp, Inc. 34 2Q 2015 For the Three Months Ended (dollars in thousands) June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013 December 31, 2012 September 30, 2012 June 30, 2012 Average Assets $48,329,195 $48,769,552 $48,870,512 $48,484,853 $47,897,289 $46,872,770 $46,107,450 $44,343,284 $43,860,167 $43,243,259 $43,087,846 $43,205,076 $41,916,854 Less: Average goodwill and core deposit intangibles (2,442,007) (2,443,528) (2,445,262) (2,447,277) (2,449,260) (2,451,571) (2,454,191) (2,458,145) (2,462,265) (2,466,622) (2,471,204) (2,476,056) (2,480,921) Average tangible assets $45,887,188 $46,326,024 $46,425,250 $46,037,576 $45,448,029 $44,421,199 $43,653,259 $41,885,139 $41,397,902 $40,776,637 $40,616,642 $40,729,020 $39,435,933 Net Income $123,704 $119,259 $131,197 $120,258 $118,688 $115,254 $120,155 $114,200 $122,517 $118,675 $122,843 $128,798 $131,212 Add back: Amortization of core deposit intangibles, net of tax 807 950 1,124 1,211 1,249 1,394 1,839 2,470 2,509 2,653 2,826 2,913 2,952 Adjusted net income $124,511 $120,209 $132,321 $121,469 $119,937 $116,648 $121,994 $116,670 $125,026 $121,328 $125,669 $131,711 $134,164 Return on average assets 1.02% 0.98% 1.07% 0.99% 0.99% 0.98% 1.04% 1.03% 1.12% 1.10% 1.14% 1.19% 1.25% Return on average tangible assets 1.09 1.04 1.14 1.06 1.06 1.05 1.12 1.11 1.21 1.19 1.24 1.29 1.36 Average tangible assets is a non-GAAP financial measure. The following table presents a reconciliation of this non-GAAP measure with the
related GAAP measure for the three months ended June 30, and March 31,
2015; December 31, September 30, June 30, and March 31, 2014; December 31,
September 30, June 30, and March 31, 2013; and December 31, September 30, and June 30,
2012. Reconciliations of GAAP and Non-GAAP Financial
Measures |
 New York Community Bancorp, Inc. 35 2Q 2015 8/3/15 Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: Investor Relations New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 For More Information |