Key Takeaways New York Community Bancorp (NYCB) shares fell Thursday after the troubled regional bank's path to profitability was muddied by disappointing second-quarter earnings results. "Our second-quarter performance reflects the ongoing actions management is taking during this transitional year as we reposition the bank for long-term success," Chief Executive Officer (CEO) Joseph Otting said in a statement. "During the quarter, we expanded our comprehensive review of the loan portfolio beyond the top 35 ...

Financial Data and Key Metrics Changes - The net loss to shareholders for the quarter was $333 million, primarily driven by a provision for loan losses of $390 million, which included $350 million in charge-offs and approximately $40 million in reserve build [32] - The net interest margin ended the quarter at 1.98%, experiencing margin pressure from interest reversals associated with non-accruals, which had a negative impact of about 7 to 8 basis points [32][34] - The allowance for loan loss increased to 1.7% of the total portfolio, with the credit loss reserve rising to 1.78%, up from about 1.5% [31] Business Line Data and Key Metrics Changes - The company has made significant progress in addressing credit risk management, having reviewed approximately 75% of its commercial real estate (CRE) portfolio, which includes 80% of the multi-family portfolio [11][24] - The office portfolio review is at 82%, with only about $500 million remaining under review, resulting in significant charge-offs this quarter [12] - The company reported a $3.2 billion increase in customer deposits in the retail space and a $500 million growth in the private banking sector [13] Market Data and Key Metrics Changes - The company has seen a reduction in its CRE exposure, with a long-term goal to decrease it from roughly $45 billion to between $30 billion and $33 billion [24] - The multi-family loans that have hit their reprice dates have shown strong payoffs, with 69% repricing to an average of 8.19%, up from 3.85% [30] Company Strategy and Development Direction - The company aims to simplify its business model and strengthen its balance sheet through strategic sales, which are expected to add about 130 basis points to its CET ratio [22][23] - There is a focus on expanding the commercial and industrial (C&I) business, with a goal to grow C&I assets from around $20 billion to $30 billion to $35 billion over the next three to five years [25] - The company is actively hiring experienced personnel to enhance its C&I and private banking initiatives, viewing these as key growth engines [7][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that over 70% of the commercial real estate portfolio continues to perform as agreed, despite recognizing future risks associated with interest payments [43] - The company anticipates continued charge-offs but expects them to decrease in the third and fourth quarters as the review of the remaining portfolio progresses [69] - Management highlighted the importance of maintaining strong relationships with borrowers to mitigate risks and enhance future performance [110] Other Important Information - The company has closed on the sale of its mortgage warehouse loans to JPMorgan Chase, receiving $5.9 billion in liquidity, which is seen as a significant milestone [22] - The company is evaluating an additional $2 billion to $5 billion in non-core activities for potential sales by the end of the year [40][87] Q&A Session Summary Question: What is the appetite among GSEs for refinancing? - Management noted that there has been a pickup in refinancing activity with agencies, which could trigger more loans being refinanced out of the bank [18] Question: What is the outlook for the company's earnings forecast? - The reduction in earnings forecast for 2026 is attributed to the sale of the mortgage warehouse and servicing, with expectations of redeploying capital into lending [39][40] Question: How is the company managing its non-accrual loans? - Management indicated that over 60% of non-accrual loans are still performing, and they are focused on reducing these through sales and appraisals [57][106] Question: What is the current cost of deposit growth? - The company is not significantly increasing costs in the private client and commercial space, with most growth coming from typical pricing in the retail space [95] Question: What is the strategy for reducing non-accrual loans? - The company is actively studying pools of loans for potential sales and has added experienced personnel to lead these efforts [106]

The reported revenue compares to the Zacks Consensus Estimate of $701.39 million, representing a surprise of -4.33%. The company delivered an EPS surprise of -176.32%, with the consensus EPS estimate being -$0.38. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Net Interest Margin: 2% compared to the 2.2% average estimate based on se ...

This quarterly report represents an earnings surprise of -176.32%. A quarter ago, it was expected that this bank holding company would post a loss of $0.39 per share when it actually produced a loss of $0.75, delivering a surprise of -92.31%. New York Community Bancorp, which belongs to the Zacks Financial - Savings and Loan industry, posted revenues of $671 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.33%. This compares to year-ago revenues of $1.2 billion. The company ...

102 Duffy Avenue, Hicksville, NY 11801 ● Phone: (516) 683-4420 ● flagstar.com Hicksville, N.Y., July 25, 2024 – New York Community Bancorp, Inc. (NYSE: NYCB) ("the Company") today reported its results for the second quarter of 2024. The Company reported a net loss of $323 million for second quarter 2024 and a net loss available to common stockholders of $333 million or $1.14 per diluted share. As adjusted for merger-related expenses, the Company reported a net loss of $298 million for second quarter 2024 an ...

Portfolio Management. Tom Lyons, SVP, Director of Finance Business Risk & Controls: Tom brings 30 years of experience in finance, risk, IT, operations, compliance, and audit disciplines across industries. In this role, Tom will lead the Bank's Finance Risk Management function, including data, operational, and financial exposures. Most recently, Tom served as U.S. Bank's SVP of Operations' Financial and Data Risks. Tom also held Finance Chief Risk Officer and Senior Risk Officer roles at U.S. Bank, having le ...

Our forward‐looking statements are subject to, among others, the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities, credit and financial markets; changes in interest rates; the inability of the Bank and JPMC to execute the definitive documentation contemplated by the commitment letter or satisfy customary closing conditions; changes in deposit flows, and in the demand for deposit, loan, and investment products and ...

About New York Community Bancorp, Inc. The conference call will be simultaneously webcast at ir.myNYCB.com and archived through 5:00 p.m. on August 22, 2024. Conference ID: 5857240 Dial-in for Live Call: Domestic (888) 596-4144 International(646) 968-2525 Dial-in for Replay: Availability July 25 (11:00 a.m.) – July 29 (11:59 p.m.) Domestic (800) 770-2030 International(609) 800-9909 New York Community Bancorp, Inc. has market-leading positions in several national businesses, including multi-family lending, m ...

Shares of New York Community Bank (NYCB 0.99%) dropped 68.6% in the first six months of the year, according to data provided by S&P Global Market Intelligence. The bank slashed its dividend in response to a host of issues, and macroeconomic conditions are fueling investor skepticism about its prospects. NYCB had a rough first quarter. The company acquired Flagstar Bank and Signature Bank in 2023 with the goal of opportunistically expanding options and extending into commercial lending. Those moves presented ...

At the Effective Time, every three shares of the Company's common stock issued and outstanding or held by the Company in treasury were combined into one issued share of common stock. Additionally, the number of authorized shares of the Company's common stock was decreased from 2,000,000,000 to 666,666,666, without any change in the par value per share. No fractional shares will be issued in connection with the reverse stock split. Common shareholders who would otherwise be entitled to receive fractional sha ...