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| 8-K - FORM 8-K - NEW YORK COMMUNITY BANCORP INC | d8k.htm |
 Fourth Quarter
2010 Investor Presentation
Exhibit 99.1 |
 New
York Community Bancorp, Inc. Page 2
Forward-looking Statements and Associated Risk
Factors
Safe Harbor Provisions of the Private Securities Litigation Reform Act of
1995 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,
including
those
of
AmTrust
Bank
and
Desert
Hills
Bank;
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,
2009,
including
the
section
entitled
“Risk
Factors,”
and
our
Forms
10-Q
for
the
three
months
ended
March
31,
2010,
June
30,
2010,
and
September
30,
2010,
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
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 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 1/26/11. New York Community Bancorp, Inc.
Page 3 |
 New
York Community Bancorp, Inc. Page 4
Largely reflecting our acquisition strategy, we
currently have 276 locations in five states.
Metro New York
157 Branches
Ohio
28 Branches
New Jersey
52 Branches
Florida
25 Branches
Arizona
14 Branches |
 New
York Community Bancorp, Inc. Page 5
We have a meaningful share of deposits in several
of the markets we serve. |
   4th
Quarter 2010 Performance Highlights
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
* |
 New
York Community Bancorp, Inc. Page 7
Our 4Q 2010 performance reflects the merits of our
business model.
(a)
Please see page 38 for a reconciliation of our GAAP and operating earnings.
(b)
Please see page 39 for a reconciliation of our GAAP and operating non-interest
income and our GAAP and operating revenues. (c)
Please see pages 36 and 37 for a reconciliation of our GAAP and operating
efficiency ratios. (dollars in thousands, except per share data)
|
 New
York Community Bancorp, Inc. Page 8
Our balance sheet has been strengthened over the
past year. |
 New
York Community Bancorp, Inc. Page 9
Our asset quality measures continue to compare
favorably with those of our industry as a whole. (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-performing assets exclude covered assets. |
 New
York Community Bancorp, Inc. Page 10
(a)
Please see page 40 for a reconciliation of our GAAP and non-GAAP capital
measures. Our capital strength reflects the growth of our earnings
and our ability to access the capital markets.
Our
dividend
has
been
a
significant
component
of
our
total
return
to
shareholders
since
our
first
year
of
public
life.
In
January
2011,
we
declared
our
28th
consecutive
quarterly
cash
dividend
of
$0.25
per share. |
   A
Consistent Business Model *
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
* |
 New
York Community Bancorp, Inc. Page 12
Our business model has consistently focused on
building value while building the Company.
(a)
Please see page 36 for a reconciliation of our GAAP and operating efficiency
ratios. |
   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 |
 New
York Community Bancorp, Inc. Page 15
Our deposit growth has been largely acquisition-
driven. |
 New
York Community Bancorp, Inc. Page 16
(a)
Originations of loans held for sale totaled $888.5 million in 2009 and $10.8
billion in 2010. Acquisitions have provided much of the funding for
the organic growth of our loan portfolio. |
 New
York Community Bancorp, Inc. Page 17
We have capitalized on opportunities for revenue
growth stemming from our acquisitions. |
 New
York Community Bancorp, Inc. Page 18
Our mortgage banking platform is a leading aggregator of
agency-conforming one-to-four family residential loans.
|
   Multi-Family Loan Production
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
* |
 New
York Community Bancorp, Inc. Page 20
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 21
Our focus on multi-family lending on rent-regulated buildings
has enabled us to distinguish ourselves from our industry peers.
64.0% 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 2010 Housing Supply Report
|
 New
York Community Bancorp, Inc. Page 22
Multi-family loans have grown at a CAGR of 25.8%
since 12/31/99. |
 New
York Community Bancorp, Inc. Page 23
Our commercial real estate loans feature the same
structure as our multi-family loans. |
   Asset
Quality *
*
*
*
*
*
*
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*
*
*
*
*
*
*
*
*
* |
 New
York Community Bancorp, Inc. Page 25
Both historically and currently, we have been
distinguished by our low level of net charge-offs. |
 New
York Community Bancorp, Inc. Page 26
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. |
 New
York Community Bancorp, Inc. Page 27
Historically and currently, few of our non-performing
loans have resulted in charge-offs.
(a)
Non-performing loans exclude covered loans. |
 New
York Community Bancorp, Inc. Page 28
The quality of our assets reflects the nature of our multi-family
lending niche and our strong underwriting standards. |
  New York
Community Bancorp, Inc. Page 29
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: $4.3 billion
Covered Assets
12/31/10
1-4 Family
$3,880.2
Other Loans
$417.7
Percent of total assets: 10.4%
OREO
$62.4 |
   Efficiency
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
* |
 New
York Community Bancorp, Inc. Page 31
Our operating efficiency ratio was 35.88%
in 2010, well below the
SNL Bank and Thrift Index efficiency ratio of 58.93%.
(a)
Please see page 37 for a reconciliation of our GAAP and operating efficiency
ratios. |
 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.
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. One-to-four family loans are originated in our branches on a
pass-through basis, and sold shortly after closing,
servicing-released. Products and services are typically developed by
third-party providers and the sale of these products generates additional
revenues. 43 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.
We acquire our deposits primarily through earnings-accretive acquisitions rather
than by paying above-market rates. |
   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 in a span of 10 years, our charter shareholders
have 2,700 shares of NYB stock for each 100 shares originally
purchased. |
 New
York Community Bancorp, Inc. Page 35
1/28/2011
For More Information |
 New
York Community Bancorp, Inc. Page 36
For the Three Months Ended December 31,
2010
2009
(dollars in thousands)
GAAP
Operating
GAAP
Operating
Total non-interest income and net interest income
$408,250
$408,250
$392,567
$392,567
Adjustments:
Gain on sales of securities
--
(22,438)
--
--
Gain on debt repurchase
--
--
--
(4,337)
Loss on other-than-temporary impairment of securities
--
--
--
43,530
Gain on business acquisition
--
--
--
(139,607)
Gain on termination of servicing hedge
--
--
--
(3,078)
Adjusted total non-interest income and net interest income
$408,250
$385,812
$392,567
$289,075
Operating expenses
$140,632
$140,632
$108,098
$108,098
Adjustments:
FDIC special assessment
--
--
--
--
Acquisition-related costs
--
(6,317)
--
(5,185)
Adjusted operating expenses
$140,632
$134,315
$108,098
$102,913
Efficiency ratio
34.45%
34.81%
27.54%
35.60%
Reconciliation of GAAP and Operating Efficiency
Ratios
The following table presents reconciliations of the Company’s GAAP and
operating efficiency ratios for the three months ended December 31, 2010 and
2009. |
 New
York Community Bancorp, Inc. Page 37
Reconciliation 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, 2005, 2006,
2007, 2008, 2009, and 2010.
For the Years Ended December 31,
2010
2009
2008
2007
2006
2005
(dollars in thousands)
GAAP
Operating
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
$693,068
$693,068
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
$693,068
$693,068
Operating expenses
$546,246
$546,246
$384,003
$384,003
$320,818
$320,818
$299,575
$299,575
$256,362
$256,362
$236,621
$236,621
Adjustments:
FDIC special assessment
--
--
--
(14,753)
--
--
--
--
--
--
--
--
Acquisition-related costs
--
(11,545)
--
(5,185)
--
--
--
--
--
--
--
--
Merger-related charge
--
--
--
--
--
--
--
(2,245)
--
(5,744)
--
(36,588)
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
$236,621
$200,033
Efficiency ratio
35.99%
35.88%
36.13%
36.16%
46.43%
38.89%
41.17%
41.18%
39.41%
37.59%
34.14%
28.86% |
 New
York Community Bancorp, Inc. Page 38
The following table presents reconciliations of the Company’s GAAP and
operating earnings for the three and twelve months ended December 31, 2010
and 2009. Reconciliation of GAAP and Operating Earnings
For the Three Months Ended
December 31,
For the Twelve Months Ended
December 31,
(in thousands, except per share data)
2010
2009
2010
2009
GAAP Earnings
$149,832
$ 154,936
$541,017
$ 398,646
Adjustments to GAAP earnings:
Gain on sales of securities
(22,438)
--
(22,438)
--
Gain on debt repurchases/exchange
--
(4,337)
(2,441)
(10,054)
Acquisition-related costs
6,317
7,530
11,545
7,530
Gain on business acquisitions
--
(139,607)
(2,883)
(139,607)
Loss on OTTI of securities
--
43,530
--
96,533
FDIC special assessment
--
--
--
14,753
Gain on termination of servicing hedge
--
(3,078)
--
(3,078)
Resolution of tax audits
--
--
--
(14,337)
Income tax effect
6,422
38,741
5,570
14,264
Operating earnings
$140,133
$ 97,715
$530,370
$ 364,650
Diluted GAAP Earnings per Share
$ 0.34
$ 0.41
$ 1.24
$ 1.13
Adjustments to diluted GAAP earnings per share:
Gain on sales of securities
(0.03)
--
(0.03)
--
Gain on debt repurchases/exchange
--
(0.01)
(0.01)
(0.02)
Acquisition-related costs
0.01
0.01
0.02
0.01
Gain on business acquisitions
--
(0.22)
(0.01)
(0.24)
Loss on OTTI of securities
--
0.07
--
0.16
FDIC special assessment
--
--
--
0.03
Gain on termination of servicing hedge
--
--
--
--
Resolution of tax audits
--
--
--
(0.04)
Diluted operating earnings per share
$ 0.32
$ 0.26
$ 1.21
$ 1.03 |
 New
York Community Bancorp, Inc. Page 39
The following table presents reconciliations of the Company’s GAAP and
operating non-interest income and its GAAP and operating revenues for the
three and twelve months ended December 31, 2010 and 2009.
Reconciliation of GAAP and Operating Non-Interest
Income and GAAP and Operating Revenues
For the Three Months Ended December 31,
For the Twelve Months Ended December 31,
2010
2009
2010
2009
(in thousands)
GAAP
Operating
GAAP
Operating
GAAP
Operating
GAAP
Operating
Non-interest income
$103,260
$103,260
$138,102
$ 138,102
$ 337,923
$ 337,923
$ 157,639
$ 157,639
Exclude:
Gain on sales of securities
--
(22,438)
--
--
--
(22,438)
--
--
Gain on debt repurchases/exchange
--
--
--
(4,337)
--
(2,441)
--
(10,054)
Gain on business acquisitions
--
--
--
(139,607)
--
(2,883)
--
(139,607)
Gain on termination of servicing hedge
--
--
--
(3,078)
--
--
--
(3,078)
Add back:
Loss on OTTI of securities
--
--
--
43,530
--
--
--
96,533
Adjusted non-interest income
$103,260
$ 80,822
$138,102
$ 34,610
$ 337,923
$ 310,161
$ 157,639
$ 101,433
Net interest income
$304,990
$304,990
$254,465
$ 254,465
$1,179,963
$1,179,963
$ 905,325
$ 905,325
Revenues
$408,250
$385,812
$392,567
$ 289,075
$1,517,886
$1,490,124
$1,062,964
$1,006,758 |
 New
York Community Bancorp, Inc. Page 40
Reconciliation of GAAP and Non-GAAP Capital
Measures
December 31,
December 31,
(dollars in thousands)
2010
2009
Total stockholders’
equity
$ 5,526,220
$ 5,366,902
Less: Goodwill
(2,436,159)
(2,436,401)
Core deposit intangibles
(77,734)
(105,764)
Tangible stockholders’
equity
$ 3,012,327
$ 2,824,737
Total assets
$41,190,689
$42,153,869
Less: Goodwill
(2,436,159)
(2,436,401)
Core deposit intangibles
(77,734)
(105,764)
Tangible assets
$38,676,796
$39,611,704
Stockholders’
equity to total assets
13.42%
12.73%
Tangible stockholders’
equity to tangible assets
7.79%
7.13%
Tangible stockholders’
equity
$3,012,327
$2,824,737
Accumulated other comprehensive loss, net of tax
45,695
49,903
Adjusted tangible stockholders’
equity
$3,058,022
$2,874,640
Tangible assets
$38,676,796
$39,611,704
Accumulated other comprehensive loss, net of tax
45,695
49,903
Adjusted tangible assets
$38,722,491
$39,661,607
Adjusted tangible stockholders’
equity to adjusted
tangible assets
7.90%
7.25%
The
following
table
presents
reconciliations
of
the
Company’s
stockholders’
equity,
tangible
stockholders’
equity,
and
adjusted
tangible
stockholders’
equity;
total
assets,
tangible
assets,
and
adjusted
tangible
assets;
and
the
related
capital
measures
at
December
31,
2010
and
2009. |