Exhibit 99.1
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CONDITION
December 31, 2023 compared to | ||||||||||||||||||||
(dollars in millions) | December 31, 2023 | September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 11,493 | $ | 6,929 | $ | 2,032 | 66 | % | 466 | % | ||||||||||
Securities: | ||||||||||||||||||||
Available-for-sale | 9,145 | 8,723 | 9,060 | 5 | % | 1 | % | |||||||||||||
Equity investments with readily determinable fair values, at fair value | 14 | 13 | 14 | 8 | % | — | % | |||||||||||||
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Total securities | 9,159 | 8,736 | 9,074 | 5 | % | 1 | % | |||||||||||||
Loans held for sale | 1,182 | 1,926 | 1,115 | -39 | % | 6 | % | |||||||||||||
Loans and leases held for investment: | ||||||||||||||||||||
Multi-family | 37,265 | 37,698 | 38,130 | -1 | % | -2 | % | |||||||||||||
Commercial real estate and acquisition, development, and construction | 13,382 | 13,396 | 10,522 | — | % | 27 | % | |||||||||||||
One-to-four family first mortgage | 6,061 | 5,882 | 5,821 | 3 | % | 4 | % | |||||||||||||
Commercial and industrial | 25,254 | 24,423 | 12,276 | 3 | % | 106 | % | |||||||||||||
Other loans | 2,657 | 2,596 | 2,252 | 2 | % | 18 | % | |||||||||||||
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Total loans and leases held for investment | 84,619 | 83,995 | 69,001 | 1 | % | 23 | % | |||||||||||||
Less: Allowance for credit losses on loans and leases | (992 | ) | (619 | ) | (393 | ) | 60 | % | 152 | % | ||||||||||
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Total loans and leases held for investment, net | 83,627 | 83,376 | 68,608 | — | % | 22 | % | |||||||||||||
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Federal Home Loan Bank stock and Federal Reserve Bank stock, at cost | 1,392 | 1,110 | 1,267 | 25 | % | 10 | % | |||||||||||||
Premises and equipment, net | 652 | 638 | 491 | 2 | % | 33 | % | |||||||||||||
Core deposit and other intangibles | 625 | 661 | 287 | -5 | % | 118 | % | |||||||||||||
Goodwill | — | 2,426 | 2,426 | -100 | % | -100 | % | |||||||||||||
Mortgage servicing rights | 1,111 | 1,135 | 1,033 | -2 | % | 8 | % | |||||||||||||
Bank-owned life insurance | 1,580 | 1,576 | 1,561 | — | % | 1 | % | |||||||||||||
Other assets | 3,075 | 2,717 | 2,250 | 13 | % | 37 | % | |||||||||||||
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Total assets | $ | 113,896 | $ | 111,230 | $ | 90,144 | 2 | % | 26 | % | ||||||||||
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Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing checking and money market accounts | $ | 30,700 | $ | 31,087 | $ | 22,511 | -1 | % | 36 | % | ||||||||||
Savings accounts | 8,773 | 9,415 | 11,645 | -7 | % | -25 | % | |||||||||||||
Certificates of deposit | 21,554 | 17,310 | 12,510 | 25 | % | 72 | % | |||||||||||||
Non-interest-bearing accounts | 20,338 | 24,863 | 12,055 | -18 | % | 69 | % | |||||||||||||
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Total deposits | 81,365 | 82,675 | 58,721 | -2 | % | 39 | % | |||||||||||||
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Borrowed funds: | ||||||||||||||||||||
Wholesale borrowings | 20,250 | 13,570 | 20,325 | 49 | % | — | % | |||||||||||||
Junior subordinated debentures | 579 | 578 | 575 | — | % | 1 | % | |||||||||||||
Subordinated notes | 438 | 437 | 432 | — | % | 1 | % | |||||||||||||
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Total borrowed funds | 21,267 | 14,585 | 21,332 | 46 | % | — | % | |||||||||||||
Other liabilities | 2,897 | 2,977 | 1,267 | -3 | % | 129 | % | |||||||||||||
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Total liabilities | 105,529 | 100,237 | 81,320 | 5 | % | 30 | % | |||||||||||||
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Stockholders’ equity: | ||||||||||||||||||||
Preferred stock | 503 | 503 | 503 | — | % | — | % | |||||||||||||
Common stock | 7 | 7 | 7 | — | % | — | % | |||||||||||||
Paid-in capital in excess of par | 8,231 | 8,217 | 8,130 | — | % | 1 | % | |||||||||||||
Retained earnings | 443 | 3,278 | 1,041 | -86 | % | -57 | % | |||||||||||||
Treasury stock, at cost | (218 | ) | (217 | ) | (237 | ) | — | % | -8 | % | ||||||||||
Accumulated other comprehensive loss, net of tax: | ||||||||||||||||||||
Net unrealized loss on securities available for sale, net of tax | (581 | ) | (863 | ) | (626 | ) | -33 | % | -7 | % | ||||||||||
Pension and post-retirement obligations, net of tax | (28 | ) | (42 | ) | (46 | ) | -33 | % | -39 | % | ||||||||||
Net unrealized gain on cash flow hedges, net of tax | 10 | 110 | 52 | -91 | % | -81 | % | |||||||||||||
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Total accumulated other comprehensive loss, net of tax | (599 | ) | (795 | ) | (620 | ) | -25 | % | -3 | % | ||||||||||
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Total stockholders’ equity | 8,367 | 10,993 | 8,824 | -24 | % | -5 | % | |||||||||||||
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Total liabilities and stockholders’ equity | $ | 113,896 | $ | 111,230 | $ | 90,144 | 2 | % | 26 | % | ||||||||||
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1
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
For the Three Months Ended | December 31, 2023 compared to | |||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||||||||
(dollars in millions, except per share data) | ||||||||||||||||||||
Interest Income: | ||||||||||||||||||||
Loans and leases | $ | 1,230 | $ | 1,251 | $ | 589 | -2 | % | 109 | % | ||||||||||
Securities and money market investments | 217 | 261 | 92 | -17 | % | 136 | % | |||||||||||||
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Total interest income | 1,447 | 1,512 | 681 | -4 | % | 112 | % | |||||||||||||
Interest Expense: | ||||||||||||||||||||
Interest-bearing checking and money market accounts | 286 | 268 | 122 | 7 | % | 134 | % | |||||||||||||
Savings accounts | 47 | 43 | 27 | 9 | % | 74 | % | |||||||||||||
Certificates of deposit | 210 | 180 | 51 | 17 | % | 312 | % | |||||||||||||
Borrowed funds | 164 | 139 | 102 | 18 | % | 61 | % | |||||||||||||
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Total interest expense | 707 | 630 | 302 | 12 | % | 134 | % | |||||||||||||
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Net interest income | 740 | 882 | 379 | -16 | % | 95 | % | |||||||||||||
Provision for credit losses | 552 | 62 | 124 | 790 | % | 345 | % | |||||||||||||
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Net interest income after provision for credit losses | 188 | 820 | 255 | -77 | % | -26 | % | |||||||||||||
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Non-Interest Income: | ||||||||||||||||||||
Fee income | 39 | 58 | 10 | -33 | % | 290 | % | |||||||||||||
Bank-owned life insurance | 11 | 11 | 8 | — | % | 38 | % | |||||||||||||
Net losses on securities | — | — | — | NM | NM | |||||||||||||||
Net return on mortgage servicing rights | 33 | 23 | 6 | 43 | % | 450 | % | |||||||||||||
Net gain on loan sales and securitizations | 16 | 28 | 5 | -43 | % | 220 | % | |||||||||||||
Net loan administration income | 17 | 19 | 3 | -11 | % | 467 | % | |||||||||||||
Bargain purchase gain | (11 | ) | — | 159 | NM | -107 | % | |||||||||||||
Other income | 22 | 21 | 7 | 5 | % | 214 | % | |||||||||||||
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Total non-interest income | 127 | 160 | 198 | -21 | % | -36 | % | |||||||||||||
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Non-Interest Expense: | ||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Compensation and benefits | 295 | 346 | 116 | -15 | % | 154 | % | |||||||||||||
Other | 312 | 239 | 88 | 31 | % | 255 | % | |||||||||||||
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Total operating expenses | 607 | 585 | 204 | 4 | % | 198 | % | |||||||||||||
Intangible asset amortization | 36 | 36 | 5 | — | % | 620 | % | |||||||||||||
Merger-related and restructuring expenses | 63 | 91 | 60 | -31 | % | 5 | % | |||||||||||||
Goodwill impairment | 2,426 | — | — | |||||||||||||||||
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Total non-interest expense | 3,132 | 712 | 269 | 340 | % | 1064 | % | |||||||||||||
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(Loss) income before income taxes | (2,817 | ) | 268 | 184 | -1151 | % | -1631 | % | ||||||||||||
Income tax (benefit) expense | (112 | ) | 61 | 12 | -284 | % | -1033 | % | ||||||||||||
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Net (loss) income | (2,705 | ) | 207 | 172 | -1407 | % | -1673 | % | ||||||||||||
Preferred stock dividends | 8 | 8 | 8 | — | % | — | % | |||||||||||||
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Net (loss) income available to common stockholders | $ | (2,713 | ) | $ | 199 | $ | 164 | -1463 | % | -1754 | % | |||||||||
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Basic (loss) earnings per common share | $ | (3.76 | ) | $ | 0.27 | $ | 0.30 | -1493 | % | -1353 | % | |||||||||
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Diluted (loss) earnings per common share | $ | (3.76 | ) | $ | 0.27 | $ | 0.30 | -1493 | % | -1353 | % | |||||||||
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Dividends per common share | $ | 0.05 | $ | 0.17 | $ | 0.17 | -71 | % | -71 | % | ||||||||||
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2
NEW YORK COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
For the Twelve Months Ended | Change | |||||||||||||||
December 31, 2023 | December 31, 2022 | Amount | Percent | |||||||||||||
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Interest Income: | ||||||||||||||||
Loans and leases | $ | 4,509 | $ | 1,848 | 2,661 | 144 | % | |||||||||
Securities and money market investments | 982 | 244 | 738 | 302 | % | |||||||||||
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Total interest income | 5,491 | 2,092 | 3,399 | 162 | % | |||||||||||
Interest Expense: | ||||||||||||||||
Interest-bearing checking and money market accounts | 943 | 226 | 717 | 317 | % | |||||||||||
Savings accounts | 169 | 60 | 109 | 182 | % | |||||||||||
Certificates of deposit | 646 | 97 | 549 | 566 | % | |||||||||||
Borrowed funds | 656 | 313 | 343 | 110 | % | |||||||||||
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Total interest expense | 2,414 | 696 | 1,718 | 247 | % | |||||||||||
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Net interest income | 3,077 | 1,396 | 1,681 | 120 | % | |||||||||||
Provision for credit losses | 833 | 133 | 700 | 526 | % | |||||||||||
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Net interest income after provision for credit losses | 2,244 | 1,263 | 981 | 78 | % | |||||||||||
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Non-Interest Income: | ||||||||||||||||
Fee income | 172 | 27 | 145 | 537 | % | |||||||||||
Bank-owned life insurance | 43 | 32 | 11 | 34 | % | |||||||||||
Net losses on securities | (1 | ) | (2 | ) | 1 | -50 | % | |||||||||
Net return on mortgage servicing rights | 103 | 6 | 97 | 1617 | % | |||||||||||
Net gain on loan sales and securitizations | 89 | 5 | 84 | 1680 | % | |||||||||||
Net loan administration income | 82 | 3 | 79 | 2633 | % | |||||||||||
Bargain purchase gain | 2,131 | 159 | 1,972 | 1240 | % | |||||||||||
Other income | 68 | 17 | 51 | 300 | % | |||||||||||
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Total non-interest income | 2,687 | 247 | 2,440 | 988 | % | |||||||||||
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Non-Interest Expense: | ||||||||||||||||
Operating expenses: | ||||||||||||||||
Compensation and benefits | 1,149 | 354 | 795 | 225 | % | |||||||||||
Other | 950 | 250 | 700 | 280 | % | |||||||||||
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Total operating expenses | 2,099 | 604 | 1,495 | 248 | % | |||||||||||
Intangible asset amortization | 126 | 5 | 121 | 2420 | % | |||||||||||
Merger-related and restructuring expenses | 330 | 75 | 255 | 340 | % | |||||||||||
Goodwill impairment | 2,426 | — | 2,426 | N/M | ||||||||||||
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Total non-interest expense | 4,981 | 684 | 4,297 | 628 | % | |||||||||||
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(Loss) income before income taxes | (50 | ) | 826 | (876 | ) | -106 | % | |||||||||
Income tax expense | 29 | 176 | (147 | ) | -84 | % | ||||||||||
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Net (loss) income | (79 | ) | 650 | (729 | ) | -112 | % | |||||||||
Preferred stock dividends | 33 | 33 | — | — | % | |||||||||||
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Net (loss) income available to common stockholders | $ | (112 | ) | $ | 617 | (729 | ) | -118 | % | |||||||
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Basic (loss) earnings per common share | $ | (0.16 | ) | $ | 1.26 | $ | (1.41 | ) | -111 | % | ||||||
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Diluted (loss) earnings per common share | $ | (0.16 | ) | $ | 1.26 | $ | (1.43 | ) | -113 | % | ||||||
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Dividends per common share | $ | 0.56 | $ | 0.68 | $ | (0.12 | ) | -18 | % | |||||||
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3
CAPITAL POSITION
The Company’s regulatory capital ratios continue to exceed regulatory minimums to be classified as “Well Capitalized,” the highest regulatory classification. The table below depicts the Company’s and the Bank’s regulatory capital ratios at those respective periods.
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||
REGULATORY CAPITAL RATIOS: (1) | ||||||||||||
New York Community Bancorp, Inc. | ||||||||||||
Common equity tier 1 ratio | 9.07 | % | 9.59 | % | 9.06 | % | ||||||
Tier 1 risk-based capital ratio | 9.64 | % | 10.17 | % | 9.78 | % | ||||||
Total risk-based capital ratio | 11.79 | % | 11.97 | % | 11.66 | % | ||||||
Leverage capital ratio | 7.75 | % | 7.92 | % | 9.70 | % | ||||||
Flagstar Bank, N.A. | ||||||||||||
Common equity tier 1 ratio | 10.54 | % | 11.10 | % | 10.96 | % | ||||||
Tier 1 risk-based capital ratio | 10.54 | % | 11.10 | % | 10.96 | % | ||||||
Total risk-based capital ratio | 11.64 | % | 11.77 | % | 11.43 | % | ||||||
Leverage capital ratio | 8.48 | % | 8.64 | % | 10.87 | % |
(1) | The minimum regulatory requirements for classification as a well-capitalized institution are a common equity tier 1 capital ratio of 6.5%; a tier one risk-based capital ratio of 8.00%; a total risk-based capital ratio of 10.00%; and a leverage capital ratio of 5.00%. |
While diluted earnings per common share, net income, net income available to common stockholders, and total non-interest income are financial measures that are recorded in accordance with GAAP, financial measures that adjust these GAAP measures to exclude expenses and the bargain purchase gains related to our merger with Flagstar and the Signature transaction, and initial provision for credit losses are not. Nevertheless, it is management’s belief that these non-GAAP measures should be disclosed in our earnings release and other investor communications because they are not considered part of recurring operations and are included because the Company believes they may provide useful supplemental information for evaluating the underlying performance trends of the Company.
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||
(dollars in millions, except per share data) | December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||
Net (loss) income - GAAP | $ | (2,704 | ) | $ | 207 | $ | 172 | $ | (79 | ) | $ | 650 | ||||||||
Merger-related and restructuring expenses, net of tax (1) | 46 | 67 | 48 | 245 | 59 | |||||||||||||||
Goodwill impairment | 2,426 | — | — | 2,426 | — | |||||||||||||||
FDIC special assessment, net of tax | 36 | — | — | 36 | — | |||||||||||||||
Bargain purchase gain | 11 | — | (159 | ) | (2,131 | ) | (159 | ) | ||||||||||||
Initial provision for credit losses, net of tax | — | — | 86 | 97 | 86 | |||||||||||||||
Provision for bond related credit losses, net of tax | — | — | — | 15 | — | |||||||||||||||
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Net (loss) income, as adjusted - non-GAAP | $ | (185 | ) | $ | 274 | $ | 147 | $ | 609 | $ | 636 | |||||||||
Preferred stock dividends | 8 | 8 | 8 | 33 | 33 | |||||||||||||||
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Net (loss) income available to common stockholders, as adjusted - non-GAAP | $ | (193 | ) | $ | 266 | $ | 139 | $ | 576 | $ | 603 | |||||||||
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Diluted (loss) earnings per common share - GAAP | $ | (3.76 | ) | $ | 0.27 | $ | 0.30 | $ | (0.16 | ) | $ | 1.26 | ||||||||
Diluted (loss) earnings per common share, as adjusted - non-GAAP | $ | (0.27 | ) | $ | 0.36 | $ | 0.25 | $ | 0.80 | $ | 1.23 |
(1) | Certain merger-related items are not taxable or deductible. |
4