NEW YORK COMMUNITY BANCORP INC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - NEW YORK COMMUNITY BANCORP INC	d391939d8k.htm

First Quarter 2017

Investor Presentation

Exhibit 99.1

Page 2

Cautionary Statements

Forward-Looking Information

Our Supplemental 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 supplemental to, and are not to be considered in isolation or as a substitute for, measures calculated in

accordance with GAAP.

This presentation may include forward-looking statements by the Company and our authorized officers pertaining to such matters as our goals,

intentions, and expectations regarding revenues, earnings, loan production, asset quality, capital levels, and acquisitions, among other matters;

our estimates of future costs and benefits of the actions we may take; our assessments of probable losses on loans; our assessments of interest

rate and other market risks; and our ability to achieve our financial and other strategic goals.

Forward-looking statements are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,”

“project,” and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time.

Additionally, forward-looking statements speak only as of the date they are made; the Company does not assume any duty, and does not

undertake, to update our forward-looking statements. Furthermore, because forward-looking statements are subject to assumptions and

uncertainties, actual results or future events could differ, possibly materially, from those anticipated in our statements, and our future

performance could differ materially from our historical results.

Our forward-looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either

nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan,

and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or

investment portfolios; changes in competitive pressures among financial institutions or from non-financial institutions; our ability to obtain the

necessary shareholder and regulatory approvals of any acquisitions we may propose, our 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; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are

subject to significant uncertainties and/or are beyond our control.

More information regarding some of these factors is provided in the Risk Factors section of our Form 10-K for the year ended December 31, 2016

and in other SEC reports we file. Our forward-looking statements may also be subject to other risks and uncertainties, including those we may

discuss in this presentation, or in our SEC filings, which are accessible on our website and at the SEC’s website, www.sec.gov.

Page 3

ASSETS

DEPOSITS

MULTI-FAMILY

LOANS

MARKET

CAP

TOTAL

RETURN

INVESTMENT

$48.8 billion

$28.7 billion

$27.1 billion

$6.8 billion

4,237%

With assets of

$48.8 billion at

3/31/17, we are

the 22nd largest

U.S. bank holding

company.

With deposits of

$28.7 billion and

255 branches in

Metro New York,

New Jersey, Ohio,

Florida, and

Arizona at 3/31/17,

we rank 28th

among the nation’s

largest

depositories.

With a portfolio of

$27.1 billion at

the end of March,

we are a leading

producer of multi-

family loans in

New

York

City.

With a market cap

of $6.8 billion

3/31/17, we rank

25th

among the

nation’s publicly

traded banks and

thrifts.

From 11/23/93

through 3/31/17,

we provided our

charter investors

with a total return

on investment of

4,237%.

(a)

We rank among the largest U.S. bank holding

companies.

(a)

Bloomberg

Note: Except as otherwise indicated, all industry data was provided by S&P Global Market Intelligence as of 5/3/17.

OUR

BUSINESS

MODEL

STRATEGIC

LOAN

PRODUCTION

Page 6

$20,714

$23,849

$25,989

$26,961

$27,054

12/31/13

12/31/14

12/31/15

12/31/16

3/31/17

PORTFOLIO

STATISTICS

FOR

THE

3 MONTHS

ENDED

3/31/17

% of non-covered loans held for

investment = 72.5%

Average principal balance = $5.5

million

Weighted

average

life

3.3

years

% of our multi-family loans located

in Metro New York = 77.5%

% of HFI

loan originations = 57.7%

MULTI-FAMILY

LOAN

PORTFOLIO

(in millions)

Originations:

$7,417

$7,584

$9,214

$5,685

$955

Net Charge-Offs

(Recoveries):

$11

$(0)

$(4)

$(0)

We are a leading producer of multi-family loans on non-luxury

buildings in NYC with rent-regulated units.

Page 7

Of the loans in our portfolio that are collateralized by multi-family buildings in the

five boroughs of New York City, 88% are collateralized by buildings with rent-

regulated units featuring below-market rents.

Rent-regulated

buildings

are

likely

retain

their

tenants

–

and,

therefore,

their revenue stream –

in downward credit cycles.

Together with our conservative underwriting standards, our focus on multi-family

lending in

this niche market has resulted in our record of superior asset quality.

Over the course of our public life, losses on multi-family loans have amounted to a

mere $145.5 million, representing 0.20% of the $73.1 billion of multi-family loans

we have originated since 1993.

Multi-family loans are less costly to produce and service than other types of loans,

and

therefore contribute to our superior efficiency.

The way we lend in this market niche has distinguished our

performance from that of other multi-family lenders.

Page 8

$7,366

$7,637

$7,860

$7,727

$7,536

12/31/13

12/31/14

12/31/15

12/31/16

3/31/17

COMMERCIAL

REAL

ESTATE

LOAN

PORTFOLIO

(in millions)

Originations:

$2,168

$1,661

$1,842

$1,180

$250

Net Charge-Offs

(Recoveries):

$(1)

$(0)

Commercial real estate lending has been a logical

extension of our emphasis on multi-family loans.

PORTFOLIO

STATISTICS

FOR

THE

3 MONTHS

ENDED

3/31/17

% of non-covered loans held for

investment = 20.2%

Average principal balance = $5.6

million

Weighted average life = 3.1 years

% of our CRE loans located in Metro

New York = 89.9%

% of HFI

loan originations = 15.1%

Page 9

$172

$635

$895

$1,286

$1,318

12/31/13

12/31/14

12/31/15

12/31/16

3/31/17

SPECIALTY

FINANCE

LOAN

AND

LEASE

PORTFOLIO

(in millions)

The launch of our specialty finance business provided

us with another lending niche of high quality.

LOAN

TYPES

Syndicated asset-based (ABLs) and dealer floor-

plan (DFPLs) loans

Equipment loan and lease financing (EF)

CLIENT

CHARACTERISTICS

Large corporate obligors

Investment grade or near-investment grade

ratings

Mostly publicly traded

Participants in stable, nationwide industries

PRICING

Floating rates tied to LIBOR (ABLs and DFPLs)

Fixed rates at a spread over treasuries (EF)

RISK-AVERSE

CREDIT

& UNDERWRITING

STANDARDS

We require a perfected first-security interest in

or outright ownership of the underlying collateral

Loans are structured as senior debt or as non-

cancellable leases

Transactions are re-underwritten in-house

Underlying documentation reviewed by counsel

Originations:

$258

$848

$1,068

$1,266

$269

Net charge-Offs:

ASSET

QUALITY

Page 11

2.91%

4.00%

4.05%

3.41%

2.35%

1.46%

2.48%

2.10%

2.83%

1.51%

12/31/89

12/31/90

12/31/91

12/31/92

12/31/93

(a)

Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired (“PCI”) loans.

(b)

Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest.

Our record of asset quality in downward credit cycles has

consistently distinguished us from our industry peers.

S & L CRISIS

GREAT

RECESSION

CURRENT

CREDIT

CYCLE

1.11%

2.71%

4.17%

3.56%

0.11%

0.51%

2.47%

2.63%

12/31/07

12/31/08

12/31/09

12/31/10

2.60%

2.22%

1.66%

1.26%

1.07%

0.76%

1.28%

0.96%

0.35%

0.23%

0.13%

0.15%

0.16%

12/31/11

12/31/12

12/31/13

12/31/14

12/31/15

12/31/16

3/31/17

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%

Average NPLs/Total Loans

NYCB: 0.47%

SNL U.S. Bank and Thrift Index: 1.48%

NON-PERFORMING

LOANS

(a)(b)

/ TOTAL

LOANS

(a)

SNL U.S. Bank

and Thrift Index

NYCB

Page 12

S & L CRISIS

0.68%

1.63%

2.83%

2.89%

0.00%

0.03%

0.13%

0.21%

2007

2008

2009

2010

Few of our non-performing loans have resulted in

actual losses.

SNL U.S. Bank

and Thrift Index

NYCB

GREAT

RECESSION

CURRENT

CREDIT

CYCLE

NET

CHARGE-OFFS

AVERAGE

LOANS

0.54%

1.28%

1.50%

1.17%

0.91%

0.00%

0.04%

0.07%

0.06%

1989

1990

1991

1992

1993

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

6.25-Year Total

NYCB: 53 bp

SNL U.S. Bank and Thrift Index: 532 bp

1.77%

1.24%

0.76%

0.53%

0.46%

0.47%

0.35%

0.13%

0.05%

0.01%

2011

2012

2013

2014

2015

2016

1Q 2017

(0.02)%

0.00%

* Non-annualized

0.09%

Page 13

CONSERVATIVE

UNDERWRITING

Conservative loan-to-value ratios

Conservative debt service 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.

ACTIVE

BOARD

INVOLVEMENT

The

Mortgage Committee and the Credit Committee approve all mortgage loans >$50

million and all “other C&I” loans >$5 million; the Credit Committee also approves all

specialty finance loans >$15 million.

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 loans of $20 million or more originated by the Community Bank and all loans of $10

million or more

originated by the Commercial Bank are reported to the Board.

MULTIPLE

APPRAISALS

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.

RISK-AVERSE

MIX

NON-COVERED

LOANS

HELD

FOR

INVESTMENT

(AT 3/31/17)

Multi-family: 72.5%

CRE: 20.2%

One-to-Four Family: 1.1%

ADC: 1.0%

Commercial & Industrial: 5.1%

The quality of our assets reflects the nature of our

lending niche and our strong underwriting standards.

EFFICIENCY

Page 15

Efficiency has been another Company hallmark.

HISTORICAL

DRIVERS

OUR

EFFICIENCY

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; their

sales are a complementary source of

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.

EFFICIENCY

RATIO

(a)

We calculate our efficiency ratio by dividing our operating expenses by the sum of our net interest income and our non-interest income.

SNL U.S. Bank

and Thrift Index

NYCB

60.35%

50.99%

1Q 2017

Page 16

36%

51%

2010

1Q 2017

NYCB

EFFICIENCY

RATIO

PRIOR

AND

SINCE

DODD-FRANK

SIFI COMPLIANCE

Key infrastructure investments to date include:

—

Enhanced ERM and corporate governance frameworks

—

Bottom-up capital planning and stress testing

capabilities

—

Substantial expansion of regulatory compliance staff

Depending on when we cross the SIFI threshold, the

cost of SIFI compliance may reflect:

—

Further investment in our IT infrastructure and

personnel

—

Preparations for CCAR reporting in 2018 or 2019

—

Development of a living will for 2018 or 2019

Following the enactment of the Dodd-Frank Act, we began allocating significant resources

towards SIFI preparedness.

The degree to which we have already leveraged the cost of SIFI compliance is reflected in

the ~ 1,500-basis point increase in our efficiency ratio since the enactment of Dodd-Frank.

Our efficiency ratio has increased significantly since

the enactment of Dodd-Frank.

PREPARING

SIFI STATUS

FOR

RESIDENTIAL

MORTGAGE

BANKING

Page 18

FEATURES

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.

Approximately

900 approved clients include community banks,

credit unions, mortgage companies, and mortgage brokers.

100% of loans funded are full documentation, prime credit loans.

At 3/31/2017, loans serviced for GSEs totaled $21.2 billion.

CREDIT

QUALITY

As of 3/31/2017, 99.7% of all funded loans were current.

LIMITED

REPURCHASE

RISK

Of the $49.3 billion of 1-4 family loans sold to GSEs since 2010

–

when

launched

our

mortgage

banking

business

–

only

loans

totaling

$8.3 million (0.017%) have been repurchased.

We are a nationwide producer of 1-4 family loans.

GROWTH

THROUGH

ACQUISITIONS

Page 20

Transaction Type:

Savings Bank

Commercial Bank

Branch

FDIC

Deposit

We have a long history of earnings-accretive

transactions.

The number of branches indicated for our transactions is the number of branches in our current franchise that stemmed from each.

1. Nov. 2000

Haven Bancorp

(HAVN)

Assets:

$2.7 billion

Deposits:

$2.1 billion

Branches: 25

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:

6. April 2007

PennFed Financial

Services, Inc.

(PFSB)

Assets:

$2.3 billion

Deposits:

$1.6 billion

Branches:

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:

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

1Q 2017

PERFORMANCE

HIGHLIGHTS

Page 22

(dollars in thousands, except per share data)

1Q 2017

Strong Profitability Measures:

Earnings

$103,957

Earnings per common share

$0.21

Return on average assets

0.85%

Return on average common stockholders’ equity

6.76

Return

average

tangible

assets

(a)

0.90

Return

average

tangible

stockholders’

equity

(a)

11.20

Net interest margin

2.71

Efficiency ratio

50.99

Income Statement Highlights

(a)

ROTA and ROTCE are non-GAAP financial measures. Please see page 30 for a discussion and reconciliation of these measures to our ROA and ROCE.

Page 23

COMPANY

CAPITAL

3/31/17

Common stockholders’ equity / total

assets

12.58%

Common equity tier 1 capital ratio

10.79

Tier 1 risk-based capital ratio

12.23

Total risk-based capital ratio

13.71

Leverage capital ratio

9.24

BANK

CAPITAL

3/31/17

The Community Bank:

Common equity tier 1 capital ratio

12.65%

Leverage capital ratio

9.55

The Commercial Bank:

Common equity tier 1 capital ratio

14.90%

Leverage capital ratio

10.82

BALANCE

SHEET

3/31/17

Loans, net / total assets

79.8%

Securities / total assets

7.6

Deposits / total assets

58.8

Wholesale borrowings / total assets

26.3

ASSET

QUALITY

At or

for the Three Months Ended 3/31/17

Non-performing loans

(a)

/ total loans

(a)

0.16%

Non-performing assets

(b)

/ total assets

(b)

0.15

Net charge-offs / average loans (non-

annualized)

0.01

Balance Sheet Highlights

(a)

Non-performing loans and total loans exclude covered loans and non-covered PCI loans.

(b)

Non-performing assets and total assets exclude covered loans, covered OREO, and non-covered PCI loans.

Page 24

TOTAL

HFI LOANS: $38.9 BN

AVERAGE

YIELD

LOANS: 3.67%

TOTAL

DEPOSITS: $28.7 BN

AVERAGE

COST

INTEREST-BEARING

DEPOSITS: 0.75%

LOANS

3/31/17

DEPOSITS

3/31/17

Loans and Deposits

Multi-

Family

70%

CRE

19%

ADC

C&I

(Non-

covered)

Covered

Loans

Other

1-4 Family

NOW and

MMA

45%

Savings

19%

CDs

26%

Non-

Interest-

Bearing

10%

Page 25

Reflecting the benefit of our recent preferred stock offering, our leverage

and risk-based capital ratios exceed those of our regional peers.

RATIO

NYCB

(a)

REGIONAL

PEERS

(b)(c)

(MEDIAN)

Tier 1 Risk-Based

Capital

12.23%

11.20%

Total Risk-Based Capital

13.71

12.95

Tier 1 Leverage

9.24

9.17

Common Equity Tier 1

10.79

10.86

(a)

At 3/31/2017.

(b)

As peer measures were not available at 3/31/2017, the peer measures presented are as of 12/31/2016.

(c)

Regional peers include BKU, BOKF, CBSH, CMA, EWBC, FHN, FRC, HBAN, KEY, MTB, PBCT, SBNY, SIVB, SNV, WBS, and ZION.

Page 26

STRATEGIC

ASSET

MANAGEMENT

Total Assets

at 9/30/14:

$48.7 Billion

Reduced securities by $3.8 billion through a combination of

repayments, sales, and calls

Sold loans of $4.5 billion:

$2.8 billion of multi-family loans (largely through participations)

$1.1

billion

CRE

loans

(largely

through

participations)

$631.3 million of 1–4 family loans

$3.4 million of ADC loans

Other

net

reductions

$13.0

billion

(including

loan

satisfactions

and refinancings)

Total Assets

at 3/31/17:

$48.8 Billion

Originated $17.7 billion of multi-family loans

Originated $3.7 billion of CRE loans

Result:

A $145,000

increase in total assets from 9/30/14

–

3/31/17.

Since 4Q 2014, we have been managing our assets

below the current SIFI threshold.

Page 27

244%

213%

209%

245%

168%

260%

393%

450%

461%

609%

615%

717%

2,059%

2,754%

3,843%

2,670%

3,069%

4,265%

4,319%

4,682%

4,784%

4,237%

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

12/31/15

12/31/16

3/31/17

Our commitment to building value for our investors is reflected

in our total return over the course of our public life.

TOTAL

RETURN

INVESTMENT

(a)

Bloomberg

CAGR since IPO:

24.1%

result

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)

Page 28

5/4/17

VISIT

OUR

WEBSITE

ir.myNYCB.com

E-MAIL

REQUESTS

ir@myNYCB.com

CALL

INVESTOR

RELATIONS

(516) 683-4420

WRITE

Investor Relations

New York Community Bancorp, Inc.

615 Merrick Avenue

Westbury, NY 11590

For More Information

APPENDIX

Page 30

While

average

stockholders’

equity,

average

assets,

return

average

assets,

and

return

average

stockholders’

equity

are

financial

measures

that

are

recorded

accordance

with

U.S.

generally accepted accounting principles ("GAAP"), average tangible stockholders’ equity, average tangible assets, return on average tangible assets, and return on average tangible

stockholders’ equity are not. Nevertheless, it is management’s belief that these non-GAAP measures should be disclosed in our SEC filings, earnings releases, and other investor

communications, for the following reasons:

Average tangible stockholders’ equity is an important indication of the Company’s ability to grow organically and through business combinations, as well as our ability to pay dividends

and to engage in various capital management strategies.

Returns on average tangible assets and average tangible stockholders’ equity are among the profitability measures considered by current and prospective investors, both independent

of, and in comparison with, our peers.

We calculate average tangible stockholders’ equity by subtracting from average stockholders’ equity the sum of our average goodwill and core deposit intangibles (“CDI”), and calculate

average tangible assets by subtracting the same sum from our average assets.

Average tangible stockholders’ equity, average tangible assets, and the related non-GAAP profitability measures should not be considered in isolation or as a substitute for average

stockholders’ equity, average assets, or any other profitability or capital measure calculated in accordance with GAAP. Moreover, the manner in which we calculate these non-GAAP

measures may differ from that of other companies reporting non-GAAP measures with similar names.

The

following

table

presents

reconciliations

our

average

common

stockholders’

equity

and

average

tangible

common

stockholders’

equity,

our

average

assets

and

average

tangible

assets, and the related GAAP and non-GAAP profitability measures for the three months ended March 31, 2017:

(dollars in thousands)

For the

Three Months Ended

March 31, 2017

Average common stockholders’ equity

$ 6,151,286

Less: Average goodwill and core deposit intangibles

(2,436,286)

Average tangible common stockholders’ equity

$ 3,715,000

Average assets

$48,736,309

Less: Average goodwill and core deposit intangibles

(2,436,286)

Average tangible assets

$46,300,023

Net

income

available

common

shareholders

(1)

$103,957

Add back: Amortization of core deposit intangibles, net of tax

Adjusted

net

income

available

common

shareholders

(2)

$104,049

GAAP:

Return on average assets

0.85%

Return on average common stockholders’ equity

6.76

Non-GAAP:

Return on average tangible assets

0.90

Return on average tangible common stockholders’ equity

11.20

(1)

To calculate our returns on average assets and average common stockholders’ equity for a period, we divide the net income available to common shareholders generated during that period by the average assets

and the average common stockholders’ equity recorded during that time.

(2)

calculate

our

returns

average

tangible

assets

and

average

tangible

common

stockholders’

equity

for

period,

adjust

the

net

income

available

common

shareholders

generated

during

that

period

adding

back

the

amortization

CDI,

net

tax,

and

then

divide

that

adjusted

net

income

the

average

tangible

assets

and

the

average

tangible

common

stockholders’

equity

recorded

during

that

time.

Reconciliations of GAAP and Non-GAAP Measures

Attached files

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