PR Newswire | Jul 29, 2020 07:01AM EDT

$0.21 On Double-Digit NIM Improvement, Strong Growth In Net Interest Income, And Higher PPNR

07/29 06:00 CDT

New York Community Bancorp, Inc. Reports Second Quarter 2020 Diluted EPS Of $0.21 On Double-Digit NIM Improvement, Strong Growth In Net Interest Income, And Higher PPNRBOARD OF DIRECTORS DECLARES A $0.17 DIVIDEND PER COMMON SHARE WESTBURY, N.Y., July 29, 2020

WESTBURY, N.Y., July 29, 2020 /PRNewswire/ --

Second Quarter 2020 Summary

?Earnings:

-Diluted EPS of $0.21, up 11% compared to the second quarter of 2019 and up 5% compared to the first quarter of this year.

Net income available to common shareholders for the second quarter was -$97.1 million, up 5% on a sequential basis and up 9% compared to the year-ago quarter.

Pre-provision net revenue for the second quarter of 2020 totaled $157.7 -million, up 16% relative to the prior quarter and up 19% compared to the second quarter of last year. ^(1)

-Second quarter results included a provision for credit losses of $17.6 million, down 15% compared to the previous quarter.

-Return on average assets was 0.78% for the quarter, while return on average common stockholders' equity was 6.31%. ^(2)

-Return on average tangible assets was 0.82% for the quarter, while return on average tangible common stockholders' equity was 10.42%. ^(2)(3)

?Net Interest Margin/Income:

-The net interest margin increased 17 bps to 2.18% compared to the previous quarter and was up 18 bps on a year-over-year basis.

Prepayment income added nine bps to the second quarter NIM, unchanged from the previous quarter and down two bps compared to the year-ago -quarter. Excluding the impact from prepayments, the NIM on a non-GAAP basis was 2.09%, up 17 bps on a sequential basis and up 20 bps on a year-ago basis.

Net interest income for the second quarter increased 9% to $265.9 million -compared to the previous quarter and was up 12% compared to the year-ago quarter.

?Balance Sheet:

Total loans held for investment grew $412 million during the first half -of 2020 to $42.3 billion, up 2% annualized, but were flat on a sequential basis as growth in the multi-family portfolio was offset by declines in the rest of the portfolios.

During the first six months of 2020, multi-family loans increased 3% -annualized to $31.6 billion and increased $325 million or 4% annualized on a sequential basis.

Specialty finance loans and leases totaled $2.9 billion, down modestly -compared to the $3.0 billion in the prior quarter, but are up $301 million or 23% on a year-to-date basis.

-Total deposits of $31.7 billion were relatively unchanged on both a linked-quarter and year-to-date basis.

?Asset Quality:

Non-performing assets totaled $63.2 million or 0.12% of total assets, -compared to $58.8 million or 0.11% of total assets as of March 31, 2020; NPAs included $33.6 million of non-performing taxi medallion assets compared to $30.5 million in the previous quarter.

-The allowance for loan and lease losses increased $12.0 million to $174.3 million at June 30, 2020, compared to the previous quarter.

-The weighted average LTV for NYS rent-regulated multi-family portfolio was 53.51%.

?Capital Position at June 30, 2020:

-Common Equity Tier 1 Capital Ratio was 9.77%.

-Tier 1 Risk-Based Capital Ratio was 11.06%.

-Total Risk-Based Capital Ratio was 13.13%.

-Leverage Capital Ratio was 8.42%.





Pre-provision net revenue is a non-GAAP measure, but we believe it is (1)relevant to understanding the Company's financial results in light of the implementation of CECL and the economic impact of COVID-19.

Return on average assets and on average tangible assets are calculated (2)using net income. Return on average common stockholders' equity and on average tangible common stockholders' equity are calculated using net income available to common shareholders.

"Tangible assets" and "tangible common stockholders' equity" are non-GAAP(3)financial measures. See the discussion and reconciliations of these non-GAAP measures with the comparable GAAP measures on page 11 of this release.

New York Community Bancorp, Inc. (NYSE: NYCB) (the "Company") today reported net income for the three months ended June 30, 2020 of $105.3 million, up 5% compared to the $100.3 million reported for the three months ended March 31, 2020 and up 8% compared to the $97.2 million reported for the three months ended June 30, 2019. For the six months ended June 30, 2020, net income increased 6% to $205.7 million compared to the $194.8 million reported for the six months ended June 30, 2019.

Net income available to common shareholders for the three months ended June 30, 2020, totaled $97.1 million, up 5% compared to the $92.1 million reported for the three months ended March 31, 2020 and up 9% compared to the $89.0 million reported for the three months ended June 30, 2019. On a year-to-date basis, net income available to common shareholders was $189.3 million, up 6% compared to the $178.4 million reported in the first six months of 2019.

On a per share basis, the Company reported diluted earnings per share of $0.21 for the second quarter of 2020, up 5% compared to the previous quarter's diluted earnings per share of $0.20 and up 11% compared to the $0.19 reported in the second quarter of 2019. For the first six months of 2020, the Company reported diluted earnings per share of $0.40, up 5% compared to the $0.38 reported in the first six months of 2019.

Commenting on the Company's performance this quarter, President and Chief Executive Officer Joseph R. Ficalora stated: "Despite the continuing effects of the COVID-19 pandemic and its impact on the national and local economies, our performance during the current quarter was impressive. Our positive momentum continued and resulted in strong EPS and net income growth. This growth was in large part, the result of significant expansion in our net interest margin, which led to solid top-line revenue growth. At the same time, our provision for credit losses declined compared to the previous quarter, as our asset quality metrics remained strong and operating expenses declined, while multi-family loan growth continued.

"The net interest margin expanded 17 basis points to 2.18% during the second quarter. Excluding the impact of prepayment income, the net interest margin was 2.09%, also up 17 basis points. This was driven mostly by a sharp decline in our funding costs as approximately $6 billion in certificates of deposits with rates over 2.00% reached their contractual maturity during the quarter. As a result, our net interest income rose $21.4 million or 9% on a sequential basis, while the cost of deposits dropped 46 basis points compared to the prior quarter.

"While overall loan growth on a sequential basis was relatively unchanged, our core multi-family portfolio grew 4% annualized compared to the previous quarter, which was offset by declines in our other portfolios. Some of the decline was in the specialty finance portfolio, as some larger borrowers used the favorable interest rate environment to access the capital markets and used the proceeds to pay down debt, while some others reduced their inventory levels. That notwithstanding, we ended the quarter with a robust pipeline and expect stronger loan growth in the second half of the year.

"Our asset quality metrics continue to be very strong and continue to rank among the best in the industry. Non-performing assets remained low and net charge-offs declined compared to both the previous quarter and the year earlier quarter, to one basis point of average loans. The amount of loans in payment deferral increased in-line with expectations and remain at a manageable level. We look forward to these loans returning to their normal payment schedules which we expect will occur beginning in October. We continue to closely monitor our entire loan portfolio for any signs of stress.

"Lastly, reflecting our strong capital position, solid asset quality metrics, and earnings growth, yesterday the Board of Directors declared a quarterly cash dividend of $0.17 per common share."

DIVIDEND DECLARATION

The Board of Directors yesterday declared a quarterly cash dividend of $0.17 per share on the Company's common stock. Based on a closing price of $10.24 as of July 28, 2020, this represents an annualized dividend yield of 6.6%. The dividend is payable on August 18, 2020 to common shareholders of record as of August 8, 2020.

BALANCE SHEET SUMMARY

As of June 30, 2020, total assets were $54.2 billion, up $570 million or 2% annualized compared to total assets at December 31, 2019. The year-to-date increase was driven by loan growth, primarily in the specialty finance portfolio and in the multi-family portfolio, offset by a decline in the commercial real estate ("CRE") loan portfolio, while the securities portfolio declined and cash balances rose. On the liability side, total deposits rose $72 million or 0.5% annualized to $31.7 billion, while borrowings rose $450 million or 6% annualized, to $15.0 billion.

Loans

Total loans and leases held for investment were $42.3 billion at June 30, 2020, up $412.0 million or 2% annualized compared to December 31, 2019. On a sequential basis, total loans and leases held for investment were unchanged as good growth in the multi-family portfolio was offset by declines in other categories.

Total multi-family loans increased $438 million or 3% on an annualized basis to $31.6 billion compared to the balance at December 31, 2019. On a sequential basis, total multi-family loans rose $325 million or 4% annualized.

Total CRE loans declined to $6.9 billion, down $152 million or 4% annualized compared to the level at December 31, 2019, but down $105 million or 6% annualized compared to the level at March 31, 2020.

The specialty finance portfolio increased $301 million or 23% annualized during the first six months of the year, but declined $114 million compared to the previous quarter or 15% annualized. The linked-quarter decrease was primarily due to commercial borrowers reducing inventory and some larger borrowers taking advantage of the low interest rate environment to access the capital markets, using the proceeds to pay down debt.

In addition, the Company had $103.4 million of loans held for sale at June 30, 2020. All of these loans were part of the Paycheck Protection Program (the "PPP") originated during the current second quarter. At both March 31, 2020 and December 31, 2019, the Company did not have any loans held for sale.

The average loan size for multi-family loans during the second quarter of 2020 was $6.5 million and for CRE loans it was $6.7 million, relatively unchanged compared to the average loan size during the prior quarter.

The weighted average life of the multi-family portfolio remained under two years, at 1.9 years and for the CRE portfolio, it was 2.3 years, unchanged compared to the previous quarter.

Originations

For the three months ended June 30, 2020, total loan originations, excluding PPP loan originations, increased 21% on a linked-quarter basis and 10% on a year-over-year basis to $3.3 billion and exceeded the previous quarter's loan pipeline by $1.2 billion. For the six months ended June 30, 2020, loan originations totaled $6.0 billion compared to $5.0 billion for the six months ended June 30, 2019, up 20%.

Pipeline

The current loan pipeline stands at $2.2 billion, of which approximately 60% is new money. The pipeline includes $1.5 billion in multi-family loans, $447 million in specialty finance loans and leases, and $189 million in CRE loans.

Funding

Deposits

Total deposits for the six months ended June 30, 2020 increased $72 million to $31.7 billion compared to December 31, 2019, up 0.5% annualized. On a linked-quarter basis, total deposits declined $243 million or 3% annualized. Continuing the trend from the previous quarter, certificates of deposits ("CDs") declined $2.1 billion to $12.0 billion, primarily due to the drop in market interest rates and the Company's strategy to significantly reduce the rates it pays on CDs.

Much of this decline was offset by growth in other, lower-cost deposit categories. Savings accounts increased $669 million or 14% to $5.6 billion; interest-bearing checking and money market accounts rose $960 million to $11.1 billion, while non-interest bearing accounts grew $228 million to $2.9 billion.

During the current quarter, our deposit costs declined 74 basis points to 1.16% compared to the year-ago quarter and 46 basis points compared to the previous quarter. For the six months ended June 30, 2020, deposit costs declined 46 basis points to 1.39% compared to the six months ended June 30, 2019. We expect to see similar trends throughout the rest of the year. Over the next two quarters, the Company has $10.7 billion of CDs at a weighted average interest rate of 1.73% which are scheduled to mature.

Borrowed Funds

As of June 30, 2020, total borrowed funds increased $450 million or 6% annualized compared to the balance at December 31, 2019 and $75.2 million or 2% annualized compared to March 31, 2020. This was entirely due to an increase in wholesale borrowings, consisting of Federal Home Loan Bank of New York ("FHLB-NY") advances, as the Company took advantage of the low interest rate environment to lock in long-term funding at attractive rates.

The FHLB-NY advances that we added during the current quarter had a blended cost of 55 basis points and a term of 1.8 years. This compares to an overall average cost of borrowings of 2.06% during the current quarter. During the second half of 2020, the Company has $975.0 million of wholesale borrowings set to contractually mature with an average cost of 1.78%.

Liquidity

The Company's liquidity position remained strong during the second quarter of 2020. In addition to the liquidity provided from our deposits, other sources of liquidity available to us stems from our balance of cash and cash equivalents and the unencumbered portion of our securities portfolio. Additional significant sources of liquidity available to the Company include approved lines of credit with various counterparties, including borrowing facilities with the FHLB-NY and with the Federal Reserve Bank of New York (the "FRB-NY").

At June 30, 2020, our available funding with the FHLB-NY was $7.7 billion and with the FRB-NY, it was $1.1 billion. Additionally, the unencumbered portion of the securities portfolio totaled $3.9 billion.

Asset Quality

Non-Performing Assets

The Company's asset quality metrics were relatively stable compared to the previous quarter and remained strong overall. Non-performing assets ("NPAs") at June 30, 2020 were $63.2 million, up $4 million or 7% compared to the level at March 31, 2020. This translates into 12 basis points of total assets versus 11 basis points compared to first-quarter 2020. Total non-accrual mortgage loans were $24.2 million, up $2 million or 10% compared to March 31, 2020. Other non-accrual loans rose $2 million or 8% compared to first-quarter 2020.

Excluding the impact from non-performing and repossessed taxi medallion-related assets, second quarter 2020 NPAs would have been $29.6 million or 0.05% of total assets compared to $28.3 million or 0.05% of total assets for the first-quarter 2020.

Total repossessed assets, which consist primarily of repossessed taxi medallions remained unchanged during the current second quarter. Repossessed assets were $9.5 million and were largely taxi medallion-related.

Allowance for Loan and Lease Losses

At June 30, 2020, the allowance for loan and lease losses ("ALLL") totaled $174.3 million, up $27 million from December 31, 2019 and up $12 million from March 31, 2020. Both the year-to-date and quarter-to-date increases reflect the adoption of the Current Expected Credit Losses ("CECL") methodology on January 1, 2020 and the deteriorating forecasted economic conditions arising from the COVID-19 pandemic. The ALLL represented 324.73% of non-performing loans and 0.41% of total loans at June 30, 2020 compared to 329.22% and 0.38%, respectively, at March 31, 2020, and compared to 241.07% and 0.35%, respectively, at year-end 2019.

The table below summarizes the changes in the ALLL and in the allowance for unfunded commitments from March 31, 2020 to June 30, 2020.

Unfunded

(in thousands) Loans and Leases Commitments

Allowance for credit losses at March 31, 2020 $162,244 $10,700

Q2 2020 Provision for (recovery of) credit losses 15,827 1,747

Q2 2020 net charge-offs (3,784) 0

Allowance for credit losses at June 30, 2020 $174,287 $12,447

At June 30, 2020, the portion of our multi-family loan portfolio subject to New York State rent-regulations totaled $19.0 billion or 60% of the overall multi-family portfolio. The weighted average loan-to-value ratio ("LTV") for this portion of the portfolio was 53.51% compared to 57.01% for the entire multi-family portfolio. Both LTVs were relatively unchanged compared to the previous quarter and compared to year-end 2019.

CAPITAL POSITION

The Company's capital position was strong during the current second quarter at both the Bank level and at the holding company level. They also compare positively to our peers and the industry as a whole, especially in light of the relatively low loss content in our loan portfolio. Additionally, all of the Company's regulatory capital ratios continue to exceed the minimum regulatory requirements to be classified as "Well Capitalized".

At the holding company level, our common equity tier 1 capital ratio at June 30, 2020 was 9.77%; our tier 1 risk-based capital ratio was 11.06%; our total risk-based capital ratio was 13.13%; and our leverage capital ratio was 8.42%.

EARNINGS SUMMARY FOR THE SIX MONTHS ENDED JUNE 30, 2020

Net Interest Income

Net interest income for the three months ended June 30, 2020 totaled $265.9 million, up 9% or $21.4 million compared to the three months ended March 31, 2020 and up 12% or $28 million compared to the three months ended June 30, 2019. Both the quarter-over-quarter and year-over-year improvements in net interest income were driven by lower interest expense, resulting from lower funding costs. Excluding the impact from prepayment income, net interest income on a non-GAAP basis, would have been $254.5 million, up 9% and 13%, on a linked-quarter and year-over-year basis.

June 30, 2020

For the Three Months Ended compared to

June 30, Mar 31, June 30, Mar 31, June 30,

2020 2020 2019 2020 2019

(in thousands, except pershare data)

Total interest income $423,075 $441,042 $ 453,752 -4% -7%

Total interest expense 157,203 196,575 216,062 -20% -27%

Net interest income $265,872 $244,467 $ 237,690 9% 12%

Less:

Total prepayment income 11,412 10,537 12,622 8% -10%

Net interest income excluding prepayment $254,460 $233,930 $ 225,068 9% 13% income

For the six months ended June 30, 2020, net interest income totaled $510.3 million, up $31 million or 7% compared to net interest income for the six months ended June 30, 2019. As with the three month improvement, the six month improvement was due to lower interest expense from a lower cost of funds. Excluding the impact from prepayment income, net interest income on a non-GAAP basis, would have been $488.4 million, up 7% compared to the first half of 2019.

For the Six Months Ended

June 30, June 30,

2020 2019 % Change

(in thousands, except per share data)

Total interest income $ 864,117 $ 899,926 -4%

Total interest expense 353,778 420,911 -16%

Net interest income $ 510,339 $ 479,015 7%

Less:

Total prepayment income 21,949 22,190 -1%

Net interest income excluding $ 488,390 $ 456,825 7% prepayment income

Net Interest Margin

The Company's net interest margin ("NIM") for the three months ended June 30, 2020 was 2.18%, up 17 basis points compared to the previous quarter and up 18 basis points compared to the year-ago second quarter. These double-digit increases were the result of significantly lower funding costs. Our cost of funds declined to 1.46% during the current second quarter, down 36 basis points on a linked-quarter basis and down 60 basis points on a year-over-year basis. The improvement in our cost of funds was led by a decline in our average cost of deposits, which dropped 46 basis points and 74 basis points, respectively, to 1.16% and by a decrease in our borrowing costs to 2.06% compared to 2.21% in the prior quarter and 2.41% in the year-earlier quarter.

Prepayment income contributed nine basis points to the NIM during the current second quarter, unchanged compared to the contribution in the previous quarter and down two basis points compared to the year-ago quarter.

Excluding the impact from prepayment income, the second quarter 2020 NIM, on a non-GAAP basis would have been 2.09%, up 17 basis points sequentially and up 20 basis points on a year-over-year basis.

For the six months ended June 30, 2020, our NIM was 2.10%, up eight basis points compared to the six months ended June 30, 2019. Prepayment income contributed 10 basis points during both six-month periods to the NIM. Excluding the impact from prepayment income, the six month NIM on a non-GAAP basis would have been 2.00% compared to 1.92%, up eight basis points.

Provision for Credit Losses

During the second quarter of 2020, the provision for credit losses was $17.6 million compared to $20.6 million during the previous quarter and compared to $1.8 million during the year-ago quarter. The June 30, 2020 provision for credit losses exceeded net charge-offs by $13.8 million.

Net charge-offs during the second quarter of 2020 were $3.8 million or 0.01% of average loans compared to $10.2 million during the first quarter of 2020 or 0.02% of average loans and $7.4 million, also 0.02% of average loans compared to the second quarter of 2019.

On a year-to-date basis, the provision for credit losses totaled $38.2 million compared to a provision for credit losses of $622,000 for the first half of 2019.

The provision for credit losses exceeded net charge-offs by $24.2 million during the first six months of 2020.

Net charge-offs for the six months ended June 30, 2020 totaled $14.0 million or 0.03% of average loans compared to $9.3 million or 0.02% of average loans for the six months ended June 30, 2019.

Pre-Provision Net Revenue ("PPNR")(1)

The tables below detail the Company's PPNR for the periods noted.

For the three months ended June 30, 2020, PPNR totaled $157.7 million, up $21.8 million or 16% compared to the three months ended March 31, 2020 and up $25.4 million or 19% compared to the three months ended June 30, 2019.

June 30, 2020

For the Three Months Ended compared to

June 30, Mar 31, June 30, Mar 31, June 30,

2020 2020 2019 2020 2019

(in thousands, except pershare data)

Net interest income $265,872 $244,467 $ 237,690 9% 12%

Non-interest income 15,380 16,899 17,597 -9% -13%

Total revenues $281,252 $261,366 $ 255,287 8% 10%

Total non-interest expense 123,593 125,522 123,052 -2% 0%

Pre-provision net revenue 157,659 135,844 132,235 16% 19% (PPNR)

Provision for credit losses 17,574 20,601 1,844 -15% 853%

Income before taxes $140,085 $115,243 $ 130,391 22% 7%

Income tax expense 34,738 14,915 33,145 133% 5%

Net Income $105,347 $100,328 $ 97,246 5% 8%

Preferred stock dividends 8,207 8,207 8,207 0% 0%

Net income available to $ 97,140 $ 92,121 $ 89,039 5% 9% common stockholders

For the six months ended June 30, 2020, PPNR totaled $293.5 million, up $33.9 million or 13% compared to the six months ended June 30, 2019.

For the Six Months Ended

June 30, June 30,

2020 2019 % Change

(in thousands, except per share data)

Net interest income $ 510,339 $ 479,015 7%

Non-interest income 32,279 42,382 -24%

Total revenues $ 542,618 $ 521,397 4%

Total non-interest expense 249,114 261,819 -5%

Pre-provision net revenue (PPNR) 293,504 259,578 13%

Provision for credit losses 38,176 622 NM

Income before taxes $ 255,328 $ 258,956 -1%

Income tax expense 49,653 64,133 -23%

Net Income $ 205,675 $ 194,823 6%

Preferred stock dividends 16,414 16,414 0%

Net income available to common stockholders $ 189,261 $ 178,409 6%

Non-Interest Income

For the three months ended June 30, 2020, total non-interest income was $15.4 million, down 9% and 13%, respectively, from the prior quarter and year-ago results of $16.9 million and $17.6 million, respectively. Results during the current second quarter were negatively impacted by lower fee income due to the waiver of certain retail banking fees in order to support our depositors during the COVID-19 pandemic, which was partially offset by higher BOLI income.

For the six months ended June 30, 2020, total non-interest income declined 24% to $32.3 million compared to $42.4 million for the six months ended June 30, 2019. As previously mentioned, results were impacted by the waiver of certain retail banking fees. Additionally, the first-half 2019 results included $7.5 million of net gains on securities compared to $1.4 million for the first-half of 2020.

Non-Interest Expense

The Company's non-interest expenses continued to trend lower. Total non-interest expense for the three months ended June 30, 2020 was $123.6 million, down 2% compared to $125.5 million in the previous quarter, and relatively unchanged compared to the $123.1 million reported in the year-ago quarter. Non-interest expense during the first quarter of 2020 included a $4.4 million benefit related to a lease termination.

The efficiency ratio during the second quarter of 2020 improved to 43.94% compared to 49.70% during the first quarter of 2020 (which excludes the lease termination benefit) and compared to 48.20% for the second quarter of 2019.

For the six months ended June 30, 2020, total non-interest expenses were $249.1 million, down $12.7 million or 5% compared to the first six months of 2019. Included in the results for the first six months of 2020 was a $4.4 million lease termination benefit. Included in the results for the first six months of 2019 was certain items related to severance costs and branch rationalization totaling $9.0 million.

Income Taxes

Income tax expense for the three months ended June 30, 2020 totaled $34.7 million, up $19.8 million or 133% compared to the three months ended March 31, 2020 and up $1.6 million or 5% compared to the three months ended June 30, 2019. The first quarter 2020 income tax expense included a $13.1 million tax benefit related to the Company's tax loss carryback as provided by certain tax provisions for corporations included in the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), as enacted on March 27, 2020. The effective tax rate for the current second quarter was 24.80% compared to an effective tax rate of 12.94% for the previous quarter and an effective tax rate of 25.42% in the year-ago second quarter.

For the six months ended June 30, 2020, income tax expense totaled $49.7 million, down $14.5 million or 23% compared to income tax expense recorded during the first six months of 2019. The year-to-date 2020 income tax expense includes the previously mentioned tax loss carryback-related tax benefit as provided under the CARES Act. The effective tax rate for the first half of 2020 was 19.45% compared to an effective tax rate of 24.77% for the first half of 2019.

About New York Community Bancorp, Inc.

Based in Westbury, NY, New York Community Bancorp, Inc. is a leading producer of multi-family loans on non-luxury, rent-regulated apartment buildings in New York City, and the parent of New York Community Bank. At June 30, 2020, the Company reported assets of $54.2 billion, loans of $42.4 billion, deposits of $31.7 billion, and stockholders' equity of $6.7 billion.

Reflecting our growth through a series of acquisitions, the Company operates 237 branches through eight local divisions, each with a history of service and strength: Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, Roosevelt Savings Bank, and Atlantic Bank in New York; Garden State Community Bank in New Jersey; Ohio Savings Bank in Ohio; and AmTrust Bank in Florida and Arizona.

Post-Earnings Release Conference Call

The Company will host a conference call on Wednesday, July 29, 2020, at 8:30 a.m. (Eastern Time) to discuss its second quarter 2020 performance. The conference call may be accessed by dialing (877) 407-8293 (for domestic calls) or (201) 689-8349 (for international calls) and asking for "New York Community Bancorp" or "NYCB." A replay will be available approximately three hours following completion of the call through 11:59 p.m. on August 2, 2020 and may be accessed by calling (877) 660-6853 (domestic) or (201) 612-7415 (international) and providing the following conference ID: 13705600. In addition, the conference call will be webcast at ir.myNYCB.com, and archived through 5:00 p.m. on August 26, 2020.

Cautionary Statements Regarding Forward-Looking Information

This earnings release and the associated conference call 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," "should," 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: the effect of the COVID-19 pandemic, including the length of time that the pandemic continues, the ability of state and local governments to successfully implement the lifting of restrictions on movement and the potential imposition of further restrictions on movement and travel in the future, the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligations, the remedial actions and stimulus measures adopted by federal, state, and local governments, and the inability of employees to work due to illness, quarantine, or government mandates; 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; the impact of recently adopted accounting pronouncements; 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, 2019 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 news release, on our conference call, during investor presentations, or in our SEC filings, which are accessible on our website and at the SEC's website, www.sec.gov.

- Financial Statements and Highlights Follow

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF CONDITION

June 30, December 31,

2020 2019

(unaudited)

(in thousands, except share data)

Assets

Cash and cash equivalents $ 1,404,527 $ 741,870

Securities:

Available-for-sale 5,168,182 5,853,057

Equity investments with readily determinable 33,518 32,830fair values, at fair value

Total securities 5,201,700 5,885,887

Loans held for sale 103,362 -

Mortgage loans held for investment:

Multi-family 31,620,152 31,182,079

Commercial real estate 6,932,776 7,084,499

One-to-four family 321,045 380,684

Acquisition, development, and construction 126,305 200,464

Total mortgage loans held for investment 39,000,278 38,847,726

Other loans and leases held for investment:

Specialty Finance 2,918,296 2,617,304

Commercial and industrial 380,862 420,993

Other loans 6,751 8,132

Total other loans and leases held for 3,305,909 3,046,429investment

Total loans and leases held for investment 42,306,187 41,894,155

Less: Allowance for loan and lease losses (174,287) (147,638)

Total loans and leases, net 42,235,262 41,746,517

Federal Home Loan Bank stock, at cost 668,698 647,562

Premises and equipment, net 297,180 312,626

Operating lease right-of-use assets 278,276 286,194

Goodwill 2,426,379 2,426,379

Other assets 1,698,394 1,593,786

Total assets $ 54,210,416 $ 53,640,821

Liabilities and Stockholders' Equity

Deposits:

Interest-bearing checking and money market $ 11,141,163 $ 10,230,144accounts

Savings accounts 5,624,999 4,780,007

Certificates of deposit 12,042,254 14,214,858

Non-interest-bearing accounts 2,921,165 2,432,123

Total deposits 31,729,581 31,657,132

Borrowed funds:

Wholesale borrowings 14,352,661 13,902,661

Junior subordinated debentures 360,058 359,866

Subordinated notes 295,345 295,066

Total borrowed funds 15,008,064 14,557,593

Operating lease liabilities 278,272 285,991

Other liabilities 501,486 428,411

Total liabilities 47,517,403 46,929,127

Stockholders' equity:

Preferred stock at par $0.01 (5,000,000 sharesauthorized): Series A (515,000 shares issued and 502,840 502,840outstanding)

Common stock at par $0.01 (900,000,000 sharesauthorized; 490,439,070 and 490,439,070 shares 4,904 4,904issued; and 463,933,831 and 467,346,781 sharesoutstanding, respectively)

Paid-in capital in excess of par 6,109,597 6,115,487

Retained earnings 362,724 342,023

Treasury stock, at cost (26,505,239 and (257,232) (220,717)23,092,289 shares, respectively)

Accumulated other comprehensive loss, net oftax:

Net unrealized gain on securities available for 66,548 25,440sale, net of tax

Pension and post-retirement obligations, net of (56,470) (59,136)tax

Net unrealized (loss) gain on cash flow hedges, (39,898) 853net of tax

Total accumulated other comprehensive loss, net (29,820) (32,843)of tax

Total stockholders' equity 6,693,013 6,711,694

Total liabilities and stockholders' equity $ 54,210,416 $ 53,640,821

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

For the Three Months Ended For the Six Months Ended

June 30, March 31, June 30, June 30, June 30,

2020 2020 2019 2020 2019

(in thousands,except per sharedata)

Interest Income:

Loans and leases $ 381,884 $ 391,911 $ 387,634 $ 773,796 $ 767,424

Securities andmoney market 41,191 49,131 66,118 90,321 132,502investments

Total interest 423,075 441,042 453,752 864,117 899,926income

InterestExpense:

Interest-bearingchecking and 10,059 28,564 47,772 38,623 97,931money marketaccounts

Savings 8,208 8,934 8,861 17,142 16,944accounts

Certificates of 65,233 79,555 80,651 144,789 148,426deposit

Borrowed funds 73,703 79,522 78,778 153,224 157,610

Total interest 157,203 196,575 216,062 353,778 420,911expense

Net interest 265,872 244,467 237,690 510,339 479,015income

Provision for 17,574 20,601 1,844 38,176 622credit losses

Net interestincome after 248,298 223,866 235,846 472,163 478,393provision forcredit losses

Non-InterestIncome:

Fee income 3,723 7,018 7,487 10,741 14,715

Bank-owned life 9,503 7,389 6,479 16,892 13,454insurance

Net gains on 887 534 493 1,421 7,480securities

Other income 1,267 1,958 3,138 3,225 6,733

Totalnon-interest 15,380 16,899 17,597 32,279 42,382income

Non-InterestExpense:

Operatingexpenses:

Compensation and 75,705 79,451 72,573 155,156 154,013benefits

Occupancy and 21,177 17,875 21,889 39,051 44,851equipment

General and 26,711 28,196 28,590 54,907 62,955administrative

Totalnon-interest 123,593 125,522 123,052 249,114 261,819expense

Income before 140,085 115,243 130,391 255,328 258,956income taxes

Income tax 34,738 14,915 33,145 49,653 64,133expense

Net Income 105,347 100,328 97,246 205,675 194,823

Preferred stock 8,207 8,207 8,207 16,414 16,414dividends

Net incomeavailable to $ 97,140 $ 92,121 $ 89,039 $ 189,261 $ 178,409commonshareholders

Basic earningsper common share $ 0.21 $ 0.20 $ 0.19 $ 0.40 $ 0.38^

Diluted earnings $ 0.21 $ 0.20 $ 0.19 $ 0.40 $ 0.38per common share

NEW YORK COMMUNITY BANCORP, INC.RECONCILIATIONS OF CERTAIN GAAP AND NON-GAAP FINANCIAL MEASURES(unaudited)

While stockholders' equity, total assets, and book value per share are financial measures that are recorded in accordance with U.S. generally accepted accounting principles ("GAAP"), tangible stockholders' equity, tangible assets, and tangible book value per share are not. Nevertheless, it is management's belief that these non-GAAP measures should be disclosed in our earnings releases and other investor communications for the following reasons:

Tangible stockholders' equity is an important indication of the Company's 1.ability to grow organically and through business combinations, as well as its ability to pay dividends and to engage in various capital management strategies.

Returns on average tangible assets and average tangible stockholders' 2.equity are among the profitability measures considered by current and prospective investors, both independent of, and in comparison with, the Company's peers.

Tangible book value per share and the ratio of tangible stockholders' 3.equity to tangible assets are among the capital measures considered by current and prospective investors, both independent of, and in comparison with, its peers.

Tangible stockholders' equity, tangible assets, and the related non-GAAP profitability and capital measures should not be considered in isolation or as a substitute for stockholders' equity, total 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 of our common stockholders' equity and tangible common stockholders' equity, our total assets and tangible assets, and the related GAAP and non-GAAP profitability and capital measures at or for the periods indicated:

At or for the At or for the

Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30, June 30,

(dollars in 2020 2020 2019 2020 2019thousands)

TotalStockholders' $ 6,693,013 $ 6,637,385 $ 6,674,678 $ 6,693,013 $ 6,674,678Equity

Less: (2,426,379) (2,426,379) (2,426,379) (2,426,379) (2,426,379)Goodwill

Preferred (502,840) (502,840) (502,840) (502,840) (502,840)stock

Tangiblecommon $ 3,763,794 $ 3,708,166 $ 3,745,459 $ 3,763,794 $ 3,745,459stockholders'equity

Total Assets $ 54,210,416 $ 54,261,093 $ 52,776,253 $ 54,210,416 $ 52,776,253

Less: (2,426,379) (2,426,379) (2,426,379) (2,426,379) (2,426,379)Goodwill

Tangible $ 51,784,037 $ 51,834,714 $ 50,349,874 $ 51,784,037 $ 50,349,874assets

AverageCommon $ 6,153,861 $ 6,188,032 $ 6,149,275 $ 6,170,947 $ 6,126,982Stockholders'Equity

Less: Average (2,426,379) (2,426,379) (2,426,379) (2,426,379) (2,431,066)goodwill

Averagetangiblecommon $ 3,727,482 $ 3,761,653 $ 3,722,896 $ 3,744,568 $ 3,695,916stockholders'equity

Average $ 53,787,221 $ 53,408,504 $ 52,072,326 $ 53,597,862 $ 51,846,198Assets

Less: Average (2,426,379) (2,426,379) (2,426,379) (2,426,379) (2,431,066)goodwill

Averagetangible $ 51,360,842 $ 50,982,125 $ 49,645,947 $ 51,171,483 $ 49,415,132assets

Net IncomeAvailable to $ 97,140 $ 92,121 $ 89,039 $ 189,261 $ 178,409CommonShareholders

GAAPMEASURES:

Return onaverage 0.78 % 0.75 % 0.75 % 0.77 % 0.75 %assets (1)

Return onaveragecommon 6.31 5.95 5.79 6.13 5.82stockholders'equity (2)

Book valueper common $ 13.34 $ 13.15 $ 13.21 $ 13.34 $ 13.21share

Commonstockholders' 11.42 11.31 11.69 11.42 11.69equity tototal assets

NON-GAAPMEASURES:

Return onaverage 0.82 % 0.79 % 0.78 % 0.80 % 0.79 %tangibleassets (1)

Return onaveragetangible 10.42 9.80 9.57 10.11 9.65commonstockholders'equity (2)

Tangible bookvalue per $ 8.11 $ 7.95 $ 8.01 $ 8.11 $ 8.01common share

Tangiblecommonstockholders' 7.27 7.15 7.44 7.27 7.44equity totangibleassets



To calculate return on average assets for a period, we divide net income (1)generated during that period by average assets recorded during that period. To calculate return on average tangible assets for a period, we divide net income by average tangible assets recorded during that period.

To calculate return on average common stockholders' equity for a period, we divide net income available to common shareholders generated during that period by average common stockholders' equity recorded during that (2)period. To calculate return on average tangible common stockholders' equity for a period, we divide net income available to common shareholders generated during that period by average tangible common stockholders' equity recorded during that period.

NEW YORK COMMUNITY BANCORP, INC.

NET INTEREST INCOME ANALYSIS

LINKED-QUARTER AND YEAR-OVER-YEAR COMPARISONS

(unaudited)

For the Three Months Ended

June 30, 2020 March 31, 2020 June 30, 2019

Average Interest Average Average Interest Average Average Interest Average Balance Yield/Cost Balance Yield/Cost Balance Yield/Cost

(dollars in thousands)

Assets:

Interest-earningassets:

Mortgage and other $41,852,839 $ 381,884 3.65 % $ 41,511,176 $ 391,911 3.78 % $ 40,208,256 $ 387,634 3.86 %loans and leases, net

Securities 5,920,536 40,973 2.77 6,347,320 47,276 2.98 6,320,252 60,340 3.82

Interest-earning cash 856,238 218 0.10 662,899 1,855 1.13 967,364 5,778 2.40and cash equivalents

Total interest-earning 48,629,613 423,075 3.48 48,521,395 441,042 3.64 47,495,872 453,752 3.82assets

Non-interest-earning 5,157,608 4,887,109 4,576,454assets

Total assets $ 53,787,221 $ 53,408,504 $ 52,072,326

Liabilities andStockholders' Equity:

Interest-bearingdeposits:

Interest-bearingchecking and money $10,540,243 $ 10,059 0.38 % $ 10,070,100 $ 28,564 1.14 % $ 10,811,077 $ 47,772 1.77 %market accounts

Savings accounts $5,336,234 8,208 0.62 4,833,600 8,934 0.74 4,729,517 8,861 0.75

Certificates of deposit 13,134,732 65,233 2.00 14,120,484 79,555 2.27 13,509,392 80,651 2.39

Total interest-bearing 29,011,209 83,500 1.16 29,024,184 117,053 1.62 29,049,986 137,284 1.90deposits

Borrowed funds 14,402,886 73,703 2.06 14,439,309 79,522 2.21 13,111,692 78,778 2.41

Total interest-bearing 43,414,095 157,203 1.46 43,463,493 196,575 1.82 42,161,678 216,062 2.06liabilities

Non-interest-bearing 3,040,046 2,569,331 2,698,578deposits

Other liabilities 676,379 684,808 559,955

Total liabilities 47,130,520 46,717,632 45,420,211

Stockholders' equity 6,656,701 6,690,872 6,652,115

Total liabilities and $ 53,787,221 $ 53,408,504 $ 52,072,326stockholders' equity

Net interest income/ $ 265,872 2.02 % $ 244,467 1.82 % $ 237,690 1.76 %interest rate spread

Net interest margin 2.18 % 2.01 % 2.00 %

Ratio ofinterest-earning assets 1.12 x 1.12 x 1.13 xto interest-bearingliabilities

NEW YORK COMMUNITY BANCORP, INC.

NET INTEREST INCOME ANALYSIS

YEAR-OVER-YEAR COMPARISON

(unaudited)

For the Six Months Ended June 30,

2020 2019

Average Interest Average Average Interest Average Balance Yield/Cost Balance Yield/Cost

(dollars inthousands)

Assets:

Interest-earningassets:

Mortgage and other $ 41,682,007 $ 773,796 3.71 % $ 40,050,340 $ 767,424 3.84 %loans, net

Securities 6,133,928 88,249 2.88 6,292,248 121,377 3.86

Interest-earningcash and cash 759,569 2,072 0.55 929,983 11,125 2.41equivalents

Totalinterest-earning 48,575,504 864,117 3.56 47,272,571 899,926 3.81assets

Non-interest-earning 5,022,358 4,573,627assets

Total assets $ 53,597,862 $ 51,846,198

Liabilities andStockholders'Equity:

Interest-bearingdeposits:

Interest-bearingchecking and money $ 10,305,172 $ 38,623 0.75 % $ 11,143,104 $ 97,931 1.77 %market accounts

Savings accounts 5,084,917 17,142 0.68 4,699,835 16,944 0.73

Certificates of 13,627,608 144,789 2.14 12,907,179 148,426 2.32deposit

Totalinterest-bearing 29,017,697 200,554 1.39 28,750,118 263,301 1.85deposits

Borrowed funds 14,421,097 153,224 2.14 13,300,726 157,610 2.39

Totalinterest-bearing 43,438,794 353,778 1.64 42,050,844 420,911 2.02liabilities

Non-interest-bearing 2,804,688 2,588,610deposits

Other liabilities 680,593 576,922

Total liabilities 46,924,075 45,216,376

Stockholders' equity 6,673,787 6,629,822

Total liabilitiesand stockholders' $ 53,597,862 $ 51,846,198equity

Net interest income/ $ 510,339 1.92 % $ 479,015 1.79 %interest rate spread

Net interest margin 2.10 % 2.02 %

Ratio ofinterest-earningassets to 1.12 x 1.12 xinterest-bearingliabilities

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(unaudited)

For the Three Months Ended For the Six Months Ended

June 30, March 31, June 30, June 30, June 30,

(dollars inthousandsexcept share 2020 2020 2019 2020 2019and per sharedata)

PROFITABILITYMEASURES:

Net income $ 105,347 $ 100,328 $ 97,246 $ 205,675 $ 194,823

Net incomeavailable to 97,140 92,121 89,039 189,261 178,409commonshareholders

Basicearnings per 0.21 0.20 0.19 0.40 0.38common share^

Dilutedearnings per 0.21 0.20 0.19 0.40 0.38common share

Return onaverage 0.78 % 0.75 % 0.75 % 0.77 % 0.75assets

Return onaverage 0.82 0.79 0.78 0.80 0.79tangibleassets ^(1)

Return onaveragecommon 6.31 5.95 5.79 6.13 5.82stockholders'equity

Return onaveragetangible 10.42 9.80 9.57 10.11 9.65commonstockholders'equity ^(1)

Efficiency 43.94 48.03 48.20 45.91 50.21ratio ^(2)

Operatingexpenses to 0.92 0.94 0.95 0.93 1.01averageassets

Interest rate 2.02 1.82 1.76 1.92 1.79spread

Net interest 2.18 2.01 2.00 2.10 2.02margin

Effective tax 24.80 12.94 25.42 19.45 24.77rate

Shares usedfor basic 461,933,533 464,993,970 465,351,586 463,463,751 465,422,251common EPScomputation

Shares usedfor diluted 462,489,493 465,412,644 465,641,437 463,951,068 465,567,978common EPScomputation

Common sharesoutstandingat the 463,933,831 466,360,703 467,358,939 463,933,831 467,358,939respectiveperiod-ends

(1) See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 11 of this release.

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

June 30, March 31, June 30,

2020 2020 2019

CAPITAL MEASURES:

Book value per common share $ 13.34 $ 13.15 $ 13.21

Tangible book value per common share ^(1) 8.11 7.95 8.01

Common stockholders' equity to total assets 11.42 % 11.31 % 11.69 %

Tangible common stockholders' equity to tangible assets ^(1) 7.27 7.15 7.44

(1) See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 11 of this release.

June 30, March 31, June 30,

2020 2020 2019

REGULATORY CAPITAL RATIOS: ^(1)

New York Community Bancorp, Inc.

Common equity tier 1 ratio 9.77 % 9.81 % 10.02 %

Tier 1 risk-based capital ratio 11.06 11.10 11.36

Total risk-based capital ratio 13.13 13.16 13.46

Leverage capital ratio 8.42 8.47 8.64

New York Community Bank

Common equity tier 1 ratio 12.37 % 12.38 % 12.63 %

Tier 1 risk-based capital ratio 12.37 12.38 12.63

Total risk-based capital ratio 12.80 12.79 13.03

Leverage capital ratio 9.42 9.45 9.60

The minimum regulatory requirements for classification as a(1) 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%.

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION June 30, 2020

compared to

June 30, March 31, June 30, March 31, June 30,

2020 2020 2019 2020 2019

(unaudited) (unaudited) (unaudited)

(in thousands,except share data)

Assets

Cash and cash $ 1,404,527 $ 1,334,206 $ 1,228,295 5% 14%equivalents

Securities:

Available-for-sale 5,168,182 5,455,245 5,738,146 -5% -10%

Equityinvestments withreadily determinable 33,518 32,616 32,585 3% 3%fair values, at fairvalue

Total securities 5,201,700 5,487,861 5,770,731 -5% -10%

Loans held for sale 103,362 - - N / A N / A

Mortgage loans heldfor investment:

Multi-family 31,620,152 31,295,504 30,486,301 1% 4%

Commercial real 6,932,776 7,037,363 6,901,345 -1% 0%estate

One-to-four family 321,045 352,613 417,923 -9% -23%

Acquisition,development, and 126,305 130,547 266,305 -3% -53%construction

Total mortgage loans 39,000,278 38,816,027 38,071,874 0% 2%held for investment

Other loans andleases held forinvestment:

Specialty Finance 2,918,296 3,032,307 2,339,516 -4% 25%

Commercial and 380,862 433,883 456,946 -12% -17%industrial

Other loans 6,751 9,542 8,365 -29% -19%

Total other loansand leases held for 3,305,909 3,475,732 2,804,827 -5% 18%investment

Total loans andleases held for 42,306,187 42,291,759 40,876,701 0% 3%investment

Less: Allowance forloan and lease (174,287) (162,244) (151,112) 7% 15%losses

Total loans and 42,235,262 42,129,515 40,725,589 0% 4%leases, net

Federal Home Loan 668,698 663,870 582,348 1% 15%Bank stock, at cost

Premises and 297,180 306,657 327,788 -3% -9%equipment, net

Operating lease 278,276 281,873 308,412 -1% -10%right-of-use assets

Goodwill 2,426,379 2,426,379 2,426,379 0% 0%

Other assets 1,698,394 1,630,732 1,406,711 4% 21%

Total assets $ 54,210,416 $ 54,261,093 $ 52,776,253 0% 3%

Liabilities andStockholders' Equity

Deposits:

Interest-bearingchecking and money $ 11,141,163 $ 10,181,252 $ 10,770,360 9% 3%market accounts

Savings accounts 5,624,999 4,955,670 4,800,023 14% 17%

Certificates of 12,042,254 14,142,212 14,286,286 -15% -16%deposit

Non-interest-bearing 2,921,165 2,693,632 2,475,857 8% 18%accounts

Total deposits 31,729,581 31,972,766 32,332,526 -1% -2%

Borrowed funds:

Wholesale borrowings 14,352,661 14,277,661 12,427,661 1% 15%

Junior subordinated 360,058 359,961 359,683 0% 0%debentures

Subordinated notes 295,345 295,205 294,794 0% 0%

Total borrowed funds 15,008,064 14,932,827 13,082,138 1% 15%

Operating lease 278,272 281,853 308,073 -1% -10%liabilities

Other liabilities 501,486 436,262 378,838 15% 32%

Total liabilities 47,517,403 47,623,708 46,101,575 0% 3%

Stockholders'equity:

Preferred stock atpar $0.01 (5,000,000shares authorized): 502,840 502,840 502,840 0% 0%Series A (515,000shares issued andoutstanding)

Common stock at par$0.01 (900,000,000shares authorized;490,439,070;490,439,070; and490,439,070 shares 4,904 4,904 4,904 0% 0%issued; and463,933,831;466,360,703; and467,358,939 sharesoutstanding,respectively)

Paid-in capital in 6,109,597 6,101,540 6,099,474 0% 0%excess of par

Retained earnings 362,724 344,344 316,921 5% 14%

Treasury stock, atcost (26,505,239;24,078,367 and (257,232) (235,678) (220,546) 9% 17%23,080,131 shares,respectively)

Accumulated othercomprehensive loss,net of tax:

Net unrealized gainon securities 66,548 12,740 38,519 422% 73%available for sale,net of tax

Pension andpost-retirement (56,470) (57,803) (67,434) -2% -16%obligations, net oftax

Net unrealized(loss) gain on cash (39,898) (35,502) - 12% N / Aflow hedges, net oftax

Total accumulatedother comprehensive (29,820) (80,565) (28,915) -63% 3%loss, net of tax

Total stockholders' 6,693,013 6,637,385 6,674,678 1% 0%equity

Total liabilitiesand stockholders' $ 54,210,416 $ 54,261,093 $ 52,776,253 0% 3%equity

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)



(unaudited)

June 30, 2020

For the Three Months Ended compared to

June 30, March 31, June 30, March 31, June 30,

2020 2020 2019 2020 2019

(in thousands,except per sharedata)

Interest Income:

Mortgage and other $ 381,884 $ 391,911 $ 387,634 -3% -1%loans and leases

Securities andmoney market 41,191 49,131 66,118 -16% -38%investments

Total interest 423,075 441,042 453,752 -4% -7%income

Interest Expense:

Interest-bearingchecking and money 10,059 28,564 47,772 -65% -79%market accounts

Savings accounts 8,208 8,934 8,861 -8% -7%

Certificates of 65,233 79,555 80,651 -18% -19%deposit

Borrowed funds 73,703 79,522 78,778 -7% -6%

Total interest 157,203 196,575 216,062 -20% -27%expense

Net interest 265,872 244,467 237,690 9% 12%income

Provision for 17,574 20,601 1,844 -15% 853%credit losses

Net interestincome after 248,298 223,866 235,846 11% 5%provision forcredit losses

Non-InterestIncome:

Fee income 3,723 7,018 7,487 -47% -50%

Bank-owned life 9,503 7,389 6,479 29% 47%insurance

Net gain on 887 534 493 66% 80%securities

Other income 1,267 1,958 3,138 -35% -60%

Total non-interest 15,380 16,899 17,597 -9% -13%income

Non-InterestExpense:

Operatingexpenses:

Compensation and 75,705 79,451 72,573 -5% 4%benefits

Occupancy and 21,177 17,875 21,889 18% -3%equipment

General and 26,711 28,196 28,590 -5% -7%administrative

Total non-interest 123,593 125,522 123,052 -2% 0%expense

Income before 140,085 115,243 130,391 22% 7%income taxes

Income tax 34,738 14,915 33,145 133% 5%expense

Net Income 105,347 100,328 97,246 5% 8%

Preferred stock 8,207 8,207 8,207 0% 0%dividends

Net incomeavailable to $ 97,140 $ 92,121 $ 89,039 5% 9%commonshareholders

Basic earnings per $ 0.21 $ 0.20 $ 0.19 5% 11%common share^

Diluted earnings $ 0.21 $ 0.20 $ 0.19 5% 11%per common share

Dividends per $ 0.17 $ 0.17 $ 0.17 0% 0%common share

NEW YORK COMMUNITY BANCORP, INC.SUPPLEMENTAL FINANCIAL INFORMATION (continued)

The following tables summarize the contribution of loan and securities prepayment income on the Company's interest income and net interest margin for the periods indicated.

For the Three Months Ended Jun. 30, 2020 compared to

June 30, March 31, June 30, March 31, June 30,

2020 2020 2019 2020 2019

(dollars inthousands)

TotalInterest $ 423,075 $441,042 $453,752 -4% -7%Income

PrepaymentIncome:

Loans $11,098 $10,189 $11,842 9% -6%

314 348 780 -10% -60%Securities

Totalprepayment $11,412 $10,537 $12,622 8% -10%income

GAAP NetInterest 2.18% 2.01% 2.00% 17 bp 18 bpMargin

Less:

Prepayment 9 bp 9 bp 10 bp 0 bp -1 bpincome fromloans

Prepayment - - 1 0 bp -1 bpincome fromsecurities

Totalprepaymentincomecontribution 9 bp 9 bp 11 bp 0 bp -2 bpto netinterestmargin

Adjusted NetInterest 2.09% 1.92% 1.89% 17 bp 20 bpMargin(non-GAAP)

For the Six Months Ended

June 30, June 30,

2020 2019 Change (%)

(dollars inthousands)

TotalInterest $864,117 $899,926 -4%Income

PrepaymentIncome:

Loans $21,287 $21,183 0%

662 1,007 -34%Securities

Totalprepayment $21,949 $22,190 -1%income

GAAP NetInterest 2.10% 2.02% 8 bpMargin

Less:

Prepayment 9 bp 9 bp 0 bpincome fromloans

Prepayment 1 1 0 bpincome fromsecurities

Totalprepaymentincomecontribution 10 bp 10 bp 0 bpto netinterestmargin

Adjusted NetInterest 2.00% 1.92% 8 bpMargin(non-GAAP)

While our net interest margin, including the contribution of prepayment income is recorded in accordance with GAAP, adjusted net interest margin, which excludes the contribution of prepayment income is not. Nevertheless, management uses this non-GAAP measure in its analysis of our performance, and believes that this non-GAAP measure should be disclosed in our earnings releases and other investor communications for the following reasons:

Adjusted net interest margin gives investors a better understanding of the effect of prepayment income and other items on our net interest margin. Prepayment income in any given period depends on the volume of loans that 1.refinance or prepay, or securities that prepay, during that period. Such activity is largely dependent on external factors such as current market conditions, including real estate values, and the perceived or actual direction of market interest rates.



Adjusted net interest margin is among the measures considered by current 2.and prospective investors, both independent of, and in comparison with, our peers.

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

LOANS ORIGINATED FOR INVESTMENT

(unaudited)

June 30, 2020

For the Three Months Ended compared to

June 30, March 31, June 30, March 31, June 30,

2020 2020 2019 2020 2019

(in thousands)

Mortgage LoansOriginated forInvestment:

Multi-family $2,413,257 $1,417,219 $1,800,659 70% 34%

Commercial real 89,975 191,651 382,915 -53% -77%estate

One-to-four 18,090 27,196 1,554 -33% NMfamily residential

Acquisition,development, and 535 4,908 9,242 -89% -94%construction

Total mortgage loansoriginated for 2,521,857 1,640,974 2,194,370 54% 15%investment

Other LoansOriginated forInvestment:

Specialty 700,010 957,393 677,345 -27% 3%Finance

Other commercial 57,177 122,386 104,178 -53% -45%and industrial

Other 826 925 1,230 -11% -33%

Total other loansoriginated for 758,013 1,080,704 782,753 -30% -3%investment

Total LoansOriginated for $3,279,870 $2,721,678 $2,977,123 21% 10%Investment

For the Six Months Ended

June 30, June 30,

2020 2019 Change (%)

(in thousands)

Mortgage LoansOriginated forInvestment:

Multi-family $3,830,476 $2,810,010 36%

Commercial real 281,626 590,124 -52%estate

One-to-four 45,286 4,763 851%family residential

Acquisition,development, and 5,443 21,266 -74%construction

Total mortgage loansoriginated for 4,162,831 3,426,163 22%investment

Other LoansOriginated forInvestment:

Specialty 1,657,403 1,362,956 22%Finance

Other commercial 179,563 209,125 -14%and industrial

Other 1,751 2,150 -19%

Total other loansoriginated for 1,838,717 1,574,231 17%investment

Total LoansOriginated for $6,001,548 $5,000,394 20%Investment

The following table provides certain information about the Company's multi-family and CRE loan portfolios at the respective dates:

June 30, 2020

At or For the Three Months Ended compared to

June 30, March 31, June 30, March 31, June 30,

2020 2020 2019 2020 2019

(dollars inthousands)

Multi-Family LoanPortfolio:

Loans 31,620,152 $31,295,504 $30,486,301 1% 4%outstanding

Percent oftotal 74.7% 74.0% 74.6% 74 bp 14 bpheld-for-investmentloans

Average $6,479 $6,408 $6,192 1% 5%principal balance

Weightedaverage life (in 1.9 1.9 2.1 0% -10%years)

Commercial RealEstate LoanPortfolio:

Loans 6,932,776 $7,037,363 $6,901,345 -1% 0%outstanding

Percent oftotal 16.4% 16.6% 16.9% -21 bp -51 bpheld-for-investmentloans

Average $6,677 $6,645 $6,193 0% 8%principal balance

Weightedaverage life (in 2.3 2.3 2.4 0% -4%years)

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

ASSET QUALITY SUMMARY

(unaudited)

The following table presents the Company's non-performing loans and assets atthe respective dates:

June 30, 2020

compared to

June 30, March 31, June 30, March 31, June 30,

(in thousands) 2020 2020 2019 2020 2019

Non-Performing Assets:

Non-accrual mortgage loans:

Multi-family $6,316 $4,242 $3,906 49% 62%

Commercial real estate 16,183 16,101 2,993 1% 441%

One-to-four family residential 1,716 1,721 1,143 0% 50%

Acquisition, development, and construction - - - NM NM

Total non-accrual mortgage loans 24,215 22,064 8,042 10% 201%

Other non-accrual loans (1) 29,456 27,218 43,372 8% -32%

Total non-performing loans 53,671 49,282 51,414 9% 4%

Repossessed assets (2) 9,526 9,526 11,691 0% -19%

Total non-performing assets $63,197 $58,808 $63,105 7% 0%

Includes $26.0 million, $22.9 million and $32.9 million of non-accrual taxi(1) medallion-related loans at June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

Includes $7.6 million, $7.6 million and $9.7 million of repossessed taxi(2) medallions at June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

The following table presents the Company's asset quality measures at the respective dates:

June 30, March 31, June 30,

2020 2020 2019

Non-performing loans to total loans 0.13 % 0.12 % 0.13 %

Non-performing assets to total assets 0.12 0.11 0.12

Allowance for losses on loans to non-performing loans 324.73 329.22 293.91

Allowance for losses on loans to total loans 0.41 0.38 0.37

NEW YORK COMMUNITY BANCORP, INC. SUPPLEMENTAL FINANCIAL INFORMATION (continued)

The following table presents the Company's loans 30 to 89 days past due at the respective dates:

June 30, 2020

compared to

June 30, March 31, June 30, March 31, June 30,

2020 2020 2019 2020 2019

(in thousands)

Loans 30 to 89 DaysPast Due:

Multi-family $ 383 $ 2,679 $ 1,312 -86% -71%

Commercial 326 97 - 236% NMreal estate

One-to-four 1,361 - 1,869 NM -27%family residential

Acquisition,development, and - - - NM NMconstruction

Other (1) 65 52 1,108 25% -94%

Total loans 30 to $ 2,135 $ 2,828 $ 4,289 -25% -50%89 days past due

(1) Includes $0, $0 and $204,000 of taxi medallion loans at June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

The following table summarizes the Company's net charge-offs (recoveries) for the respective periods:

For the Three Months Ended For the Six Months Ended

June 30, March 31, June 30, June 30, June 30,

2020 2020 2019 2020 2019

(dollars inthousands)

Charge-offs:

$ - $ - $ - $ - $ -Multi-family

Commercial - - - - -real estate

One-to-four - - - - -familyresidential

Acquisition,development, - - - - -andconstruction

Other 3,938 10,385 7,751 14,323 9,830(1)

Total 3,938 10,385 7,751 14,323 9,830charge-offs

Recoveries:

$ - $ - $ - $ - $ -Multi-family

Commercial - - - - -real estate

One-to-four - - - - -familyresidential

Acquisition,development, (49) (11) (15) (60) (22)andconstruction

Other (105) (178) (368) (283) (478)(1)

Total (154) (189) (383) (343) (500)recoveries

Net $ 3,784 $ 10,196 $ 7,368 $ 13,980 $ 9,330charge-offs

Netcharge-offs 0.01% 0.02% 0.02% 0.03% 0.02%to averageloans (2)

Includes taxi medallion loans of $3.0 million, $6.7 million, and $2.0(1) million, respectively, for the three months ended June 30, 2020, March 31, 2020, and June 30, 2019 and $9.8 million and $4.0 million, respectively, for the six months ended June 30, 2020 and 2019.

(2) Three and six months ended presented on a non-annualized basis.

Investor/Media Contact: Salvatore J. DiMartino(516) 683-4286

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SOURCE New York Community Bancorp, Inc.