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| 8-K - FORM 8-K - NEW YORK COMMUNITY BANCORP INC | d767587d8k.htm |
 Second Quarter 2014
Investor Presentation
Exhibit 99.1 |
 New York
Community Bancorp, Inc. Page 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, and acquisitions of other banks or thrifts. In addition, 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 2013 Annual Report on Form 10-K and our Quarterly Report on
Form 10-Q for the three months ended March 31, 2014. 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 to 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. Page 3
We are one of the top 25 U.S. bank holding companies.
Note: Except as otherwise indicated, all industry data was provided by SNL
Financial as of 8/1/14. (a)
Bloomberg
Assets
Deposits
Multi-Family
Loans
Market Cap
Total Return
on Investment
$48.6 billion
$27.4 billion
$22.3 billion
$7.1 billion
4,176%
With assets of
$48.6
billion
at
6/30/14, we are
the 20th largest
U.S. bank holding
company.
With deposits of
$27.4
billion
and
over
270
branches
in Metro New
York, New Jersey,
Ohio, Florida, and
Arizona
at 6/30/14,
we currently rank
22nd among the
nation’s largest
depositories.
With a portfolio of
$22.3
billion
at
the
end of June, we
are a leading
producer of multi-
family loans in
New York City.
With a market cap
of
$7.1
billion
at
6/30/14, we rank
20th among the
nation’s publicly
traded banks and
thrifts.
From 11/23/93
through 6/30/14,
we provided our
charter investors
with a total return
on investment of
4,176%.
(a) |
 New York
Community Bancorp, Inc. Page 4
Largely reflecting our growth-through-acquisition strategy, we
have over 270 locations in five states.
Metro New York
126 Community Bank Branches
30 Commercial Bank Branches
Ohio
28 Community Bank Branches
New Jersey
48 Community Bank Branches
Florida
27 Community Bank Branches
Arizona
14 Community Bank Branches |
 2nd Quarter
2014 Performance Highlights
XXXXX
XX |
 New York
Community Bancorp, Inc. Page 6
(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 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 GAAP and cash efficiency
ratios. We generated solid earnings in 2Q 2014.
PERFORMANCE HIGHLIGHTS
2Q 2014
GAAP Earnings
Cash
Earnings
(a)
Strong Profitability Measures:
Earnings
$118,688
$128,571
EPS
$0.27
$0.29
Return
on
average
tangible
assets
(b)
1.06%
1.13%
Return
on
average
tangible
stockholders’
equity
(b)
14.46
15.50
Net interest margin
2.66
2.66
Efficiency ratio
(c)
43.37
41.20 |
 New York
Community Bancorp, Inc. Page 7
Our balance sheet measures reflect stability and strength.
Balance Sheet
Asset Quality
Company Capital
Bank Capital
Ratios to Total Assets
at 6/30/14
At or for the 3 Months Ended
6/30/14
6/30/14
6/30/14
•
Total loans = 71.8%
•
Securities = 16.0%
•
Deposits = 56.3%
•
Wholesale borrowings =
30.7%
•
Non-performing loans
(a)(b)
/
total loans
(a)
= 0.25%
•
Non-performing assets
(c)
/
total assets
(c)
=
0.32%
•
Net charge-offs / average
loans = (0.00)%
(non-
annualized)
•
Stockholders’
equity / total
assets = 11.85%
•
Tangible stockholders’
equity / tangible assets
excluding accumulated
other comprehensive loss,
net of tax = 7.18%
(d)
•
Leverage capital ratio =
8.12%
•
Tier 1 capital ratio =
12.20%
The Community Bank:
•
Leverage capital ratio =
7.66%
•
Tier 1 capital ratio =
11.60%
The Commercial Bank:
•
Leverage capital ratio =
10.59%
•
Tier 1 capital ratio =
14.52%
(a)
Non-performing loans and total loans exclude covered loans.
(b)
Non-performing loans are defined as non-accrual loans and loans 90 days or
more past due but still accruing interest. (c)
Non-performing assets and total assets exclude covered loans and covered
OREO. (d)
Tangible stockholders’
equity and tangible assets are non-GAAP financial measures. Please see page 33
for additional information. |
 A
Successful Business Model
XXXXX
XX |
 New York
Community Bancorp, Inc. Page 9
Our business model has consistently focused on building
value for our investors.
Multi-Family
Lending
Strong Credit
Standards/
Superior Asset
Quality
Residential
Mortgage
Banking
Efficient
Operation
Growth
through
Acquisitions
We have originated
$53.7 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 $36.3
billion of 1-4
family loans for
sale and
generated
mortgage banking
income of $551.4
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. |
 Multi-Family
Loan Production
XXXXX
XX |
 New York
Community Bancorp, Inc. Page 11
Our focus on multi-family lending on rent-regulated buildings has
enabled us to distinguish ourselves from our industry peers.
60.9% 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 2014 Housing Supply Report
|
 New York
Community Bancorp, Inc. Page 12
We are the leading producer of multi-family loans for
portfolio in New York City.
PORTFOLIO STATISTICS
AT 6/30/2014
% of non-covered loans held for
investment = 69.8%
Average principal balance = $4.8 million
Expected
weighted
average
life
=
2.8
years
% of our multi-family loans located in Metro
New York = 85.3%
MULTI-FAMILY
LOAN PORTFOLIO
MULTI-FAMILY
LOAN ORIGINATIONS
(in millions) |
 New York
Community Bancorp, Inc. Page 13
Our commercial real estate loans feature the same structure
as our multi-family loans.
PORTFOLIO STATISTICS
AT 6/30/2014
% of non-covered loans held for
investment = 23.8%
Average principal balance = $4.9 million
Expected
weighted
average
life
=
3.3
years
% of our CRE loans located in Metro New
York = 93.2%
Our CRE loans are typically collateralized by
office buildings, retail centers, mixed-use
buildings, and multi-tenanted light industrial
properties.
COMMERCIAL REAL ESTATE
LOAN PORTFOLIO
COMMERCIAL REAL ESTATE
LOAN ORIGINATIONS
(in millions) |
 Asset
Quality
XXXXX
XX |
 New York
Community Bancorp, Inc. Page 15
S & L Crisis
We have been distinguished by our low level of net charge-
offs in downward credit cycles.
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-Year Total
NYCB: 54 bp
SNL U.S. Bank and Thrift Index: 428
bp
* Annualized
* |
 New York
Community Bancorp, Inc. Page 16
S & L Crisis
The quality of our loan portfolio continues to exceed that of
our industry.
Great Recession
Current Credit Cycle
NON-PERFORMING LOANS
(a)(b)
/ TOTAL LOANS
(a)
(a)
Non-performing loans and total loans exclude covered 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: 0.71%
SNL U.S. Bank and Thrift Index: 1.99% |
 New York
Community Bancorp, Inc. Page 17
The quality of our assets reflects the nature of our lending niche and our
strong underwriting standards.
Conservative
Underwriting
Active Board
Involvement
Multiple
Appraisals
Risk-Averse Mix of
Non-Covered Loans
Held for Investment
(at 6/30/14)
•
Conservative loan-to-
value ratios
•
Conservative debt
coverage ratios: 120%
for multi-family loans,
and 130% for
commercial real estate
(“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 acquisition,
development, and
construction (“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: 69.8%
•
CRE: 23.8%
•
One-to-Four Family:
2.2%
•
ADC: 1.1%
•
Commercial and
Industrial: 3.0% |
 Residential
Mortgage Banking
XXXXX
XX |
 New York
Community Bancorp, Inc. Page 19
Our revenue mix has been enhanced since the establishment of
our mortgage banking operation in January 2010.
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, 2014, 99.8% of all funded loans were current.
Limited
Repurchase Risk
Of the 11 loans we repurchased in the first half of 2014, six were loans acquired
in merger transactions prior to 2009.
Benefits
Since January 2010, our mortgage banking business has generated mortgage
banking income of $551.4 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.
|
 New York
Community Bancorp, Inc. Page 20
Average 10-Year
Treasury Rate
Return on Average
Tangible Assets
(a)
Prepayment penalty income and mortgage banking income have
contributed to the stability of our ROTA.
Total:
Prepayment Penalty Income
Mortgage Banking Income
2Q 2011
3Q 2011
4Q 2011
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
2Q 2013
3Q 2013
4Q 2013
1Q 2014
2Q 2014
(a)
ROTA is a non-GAAP financial measure. Please see page 34 for additional
information. (dollars in millions) |
 Efficiency
XXXXX
XX |
 New York
Community Bancorp, Inc. Page 22
Our efficiency is driven by several factors.
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.
We acquire our deposits primarily through
earnings-accretive acquisitions rather than
by paying above-market rates.
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
EFFICIENCY
RATIO |
 Growth
Through Acquisitions
XXXXX
XX |
 New York
Community Bancorp, Inc. Page 24
Since our first acquisition, we have grown from $1.9 billion
in assets to $48.6 billion.
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
Deposit |
 New York
Community Bancorp, Inc. Page 25
Our deposit growth has been largely acquisition-driven.
(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
$27,352
Total Branches:
86
120
139
152
166
217
276
276
275
273
273
CDs
NOW, MMAs, and Savings
Demand deposits |
 New York
Community Bancorp, Inc. Page 26
(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, and
$1.4 billion in 1H 2014.
Acquisitions have provided much of the funding for the
organic growth of our loan portfolio.
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
$34,892
Total Originations:
(a)
$616
$1,150
$4,330
$6,332
$4,971
$4,853
$4,280
$15,193
$19,894
$17,403
$7,069
After Aurora
Held-for-Investment Loans
Multi-family
CRE
All other HFI loans
Loans held for sale
Covered loan portfolio
(in millions) |
 Total
Return on Investment
XXXXX
XX |
 Our quarterly
cash dividends are a significant component of our commitment to building value for our
investors. CAGR since IPO:
27.7%
(a)
Bloomberg
TOTAL RETURN ON INVESTMENT
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. SNL U.S. Bank and Thrift Index
NYCB
(a) |
 Appendix
XXXXX
XX |
 New York
Community Bancorp, Inc. Page 30
Reconciliations of GAAP and Non-GAAP Financial Measures
Cash earnings is a non-GAAP financial measure. The following table presents a
reconciliation of the Company’s GAAP and cash earnings for the three
months ended June 30, 2014.
(in thousands, except per share data)
For the
Three Months Ended
June 30, 2014
GAAP Earnings
$118,688
Additional contributions to tangible stockholders’
equity:
Amortization and appreciation of shares held in stock-related benefit plans
7,278
Associated tax effects
523
Amortization of core deposit intangibles
2,082
Total additional contributions to tangible stockholders’
equity
9,883
Cash earnings
$128,571
Diluted GAAP Earnings per Share
$0.27
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
$0.29 |
 New York
Community Bancorp, Inc. Page 31
Cash earnings is a non-GAAP financial measure. The following table presents a
reconciliation of the Company’s GAAP and cash earnings measures for the
three months ended June 30, 2014. Reconciliations of GAAP and Non-GAAP Financial
Measures (in thousands)
For the
Three Months Ended
June 30,
2014
Average stockholders’
equity
$ 5,767,564
Less: Average goodwill and core deposit intangibles
(2,449,260)
Average tangible stockholders’
equity
$ 3,318,304
Average assets
$47,897,289
Less: Average goodwill and core deposit intangibles
(2,449,260)
Average tangible assets
$45,448,029
Net income
$118,688
Add back: Amortization of core deposit intangibles, net of tax
1,249
Adjusted net income
$119,937
Cash earnings
$128,571
Return on average assets
0.99%
Cash return on average assets
1.07
Return on average tangible assets
1.06
Cash return on average tangible assets
1.13
Return on average stockholders’
equity
8.23
Cash return on average stockholders’
equity
8.92
Return on average tangible stockholders’
equity
14.46
Cash return on average tangible stockholders’
equity
15.50 |
 New York
Community Bancorp, Inc. Page 32
Reconciliations of GAAP and Cash Efficiency Ratios
The following table presents a reconciliation of the Company’s GAAP and cash
efficiency ratios for the three months ended June 30, 2014. For the
Three Months Ended
June 30, 2014
(dollars in thousands)
GAAP
Cash
Total net interest income and non-interest income
$336,085
$336,085
Operating expenses
$145,754
$145,754
Adjustments:
Amortization and appreciation of shares held in stock-related
benefit plans
--
(7,278)
Adjusted operating expenses
$145,754
$138,476
Efficiency ratio
43.37%
41.20% |
 New York
Community Bancorp, Inc. Page 33
(dollars in thousands)
June 30,
2014
Total stockholders’
equity
$ 5,761,018
Less: Goodwill
(2,436,131)
Core deposit intangibles
(11,835)
Tangible stockholders’
equity
$ 3,313,052
Total assets
$48,604,772
Less: Goodwill
(2,436,131)
Core deposit intangibles
(11,835)
Tangible assets
$46,156,806
Stockholders’
equity to total assets
11.85%
Tangible stockholders’
equity to tangible assets
7.18%
Tangible stockholders’
equity
$3,313,052
Accumulated other comprehensive loss, net of tax
32,584
Adjusted tangible stockholders’
equity
$3,345,636
Tangible assets
$46,156,806
Accumulated other comprehensive loss, net of tax
32,584
Adjusted tangible assets
$46,189,390
Adjusted tangible stockholders’
equity to adjusted tangible assets
7.24%
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, 2014. Reconciliations of GAAP and Non-GAAP Financial
Measures |
 New York
Community Bancorp, Inc. Page 34
For the Three Months Ended
(dollars in thousands)
March 31,
2014
June 30,
2014
March 31,
2013
June 30,
2013
September 30,
2013
December 31,
2013
March 31,
2012
June 30,
2012
September 30,
2012
December 31,
2012
June 30,
2011
September 30,
2011
December 31,
2011
Average Assets
$46,872,770
$47,897,289
$43,243,259
$43,860,167
$44,343,284
$46,107,450
$41,775,013
$41,916,854
$43,205,076
$43,087,846
$40,853,788
$41,261,984
$41,683,129
Less: Average goodwill and core deposit intangibles
(2,451,571)
(2,449,260)
(2,466,622)
(2,462,265)
(2,458,145)
(2,454,191)
(2,486,018)
(2,480,921)
(2,476,056)
(2,471,204)
(2,503,966)
(2,497,076)
(2,491,327)
Average tangible assets
$44,421,199
$45,448,029
$40,776,637
$41,397,902
$41,885,139
$43,653,259
$39,288,995
$39,435,933
$40,729,020
$40,616,642
$38,349,822
$38,764,908
$39,191,802
Average Stockholders’
Equity
$ 5,732,105
$ 5,732,105
$ 5,630,877
$ 5,607,616
$ 5,599,495
$ 5,643,882
$ 5,528,296
$ 5,565,581
$ 5,557,693
$ 5,498,040
$ 5,458,017
$ 5,501,226
$ 5,535,114
Less:
Average
goodwill
and
core
deposit
intangibles
(2,451,571)
(2,449,260)
(2,466,622)
(2,462,265)
(2,458,145)
(2,454,191)
(2,486,018)
(2,480,921)
(2,476,056)
(2,471,204)
(2,503,966)
(2,497,076)
(2,491,327)
Average
tangible
stockholders’
equity
$ 3,280,534
$ 3,318,304
$ 3,164,255
$ 3,145,351
$ 3,141,350
$ 3,189,691
$ 3,042,278
$ 3,084,660
$ 3,081,637
$ 3,026,836
$ 2,954,051
$ 3,004,150
$ 3,043,787
Net Income
$115,254
$118,688
$118,675
$122,517
$114,200
$120,155
$118,253
$131,212
$128,798
$122,843
$119,459
$119,750
$117,652
Add back: Amortization of core deposit intangibles,
net of tax
1,394
1,249
2,653
2,509
2,470
1,839
3,095
2,952
2,913
2,826
4,286
3,653
3,269
Adjusted net income
$116,648
$119,937
$121,328
$125,026
$116,670
$121,994
$121,348
$134,164
$131,711
$125,669
$123,745
$123,403
$120,921
Return on average assets
0.98%
0.99%
1.10%
1.12%
1.03%
1.04%
1.13%
1.25%
1.19%
1.14%
1.17%
1.16%
1.13%
Return on average tangible assets
1.05
1.06
1.19
1.21
1.11
1.12
1.24
1.36
1.29
1.24
1.29
1.27
1.23
Return
on
average
stockholders’
equity
8.04
8.23
8.43
8.74
8.16
8.52
8.56
9.43
9.27
8.94
8.75
8.71
8.50
Return
on
average
tangible
stockholders’
equity
14.22
14.46
15.34
15.90
14.86
15.30
15.95
17.40
17.10
16.61
16.76
16.43
15.89
Average
tangible
assets
and
average
tangible
stockholders’
equity
are
non-GAAP
financial
measures.
The
following
table
presents
reconciliations
of
these non-GAAP measures with the related GAAP measures for the three months
ended March 31, and June 30, 2014; March 31, June 30, September 30, and
December 31, 2013; March 31, June 30, September 30, and December 31, 2012; and June 30, September 30, and December 31, 2011.
Reconciliations of GAAP and Non-GAAP Financial Measures |
 New York
Community Bancorp, Inc. Page 35
8/6/14
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New York Community Bancorp, Inc.
615 Merrick Avenue
Westbury, NY 11590 |