PR Newswire | Jan 27, 2021 07:01AM EST

Diluted EPS Of $0.39 And $1.02, On A GAAP Basis; $0.27 And $0.87 On A Non-GAAP Basis

01/27 06:00 CST

New York Community Bancorp, Inc. Reports Fourth Quarter And Full-Year 2020 Diluted EPS Of $0.39 And $1.02, On A GAAP Basis; $0.27 And $0.87 On A Non-GAAP BasisCONTINUED DOUBLE-DIGIT NET INTEREST MARGIN EXPANSION, A 23% INCREASE IN PRE-PROVISION NET REVENUE AND STRONG LOAN ORIGINATIONSBOARD OF DIRECTORS DECLARES A $0.17 DIVIDEND PER COMMON SHARE WESTBURY, N.Y., Jan. 27, 2021

WESTBURY, N.Y., Jan. 27, 2021 /PRNewswire/ --

Fourth Quarter and Full-Year 2020 Summary

? Earnings:

Diluted GAAP EPS of $0.39, up 70% compared to the third quarter of this - year and up 95% compared to the fourth quarter of last year; full-year 2020 GAAP EPS were $1.02, up 32% compared to full-year 2019.

Diluted fourth quarter GAAP EPS includes a $55.3 million tax benefit related to certain provisions of the CARES Act; excluding this benefit, - fourth quarter non-GAAP diluted EPS were $0.27, up 17% compared to the prior quarter and up 35% compared to the year-ago quarter. For the full year, non-GAAP diluted EPS were $0.87, up 13% compared to the prior year. This excludes full year tax benefit of $68.4 million.

Pre-provision net revenue totaled $189.4 million for the fourth quarter, up - 13% relative to the prior quarter and up 42% relative to the year-ago quarter; full year pre-provision net revenue was $650.0 million, up 23% compared to the prior year. ^(1)

Net income available to common shareholders for the fourth quarter was $181.5 million, up 69% compared to the previous quarter and up 95% compared - to the year-ago fourth quarter; non-GAAP net income available to common shareholders for the fourth quarter was $126.1 million, up 17% and 36%, respectively.

- The fourth quarter efficiency ratio improved to 41.36% compared to both the previous and year-ago quarters.

- The fourth quarter provision for credit losses declined 15% to $11.0 million compared to the previous quarter.

? Net Interest Margin/Income:

- The net interest margin increased 18 bp to 2.47% compared to the previous quarter and was up 43 bp compared to the year-ago fourth quarter.

Prepayment income added 17 bp to the NIM during the fourth quarter, up - eight bp compared to the previous quarter. Excluding the impact from prepayments, the NIM on a non-GAAP basis would have been up 10 bp to 2.30% compared to the previous quarter.

Net interest income for the fourth quarter increased 9% to $307.9 million - compared to the third quarter and up 27% compared to the fourth quarter of last year. For 2020, net interest income was $1.1 billion, up 15% compared to 2019.

? Balance Sheet:

- Total loans held for investment increased $989.4 million to $42.9 billion at December 31, 2020, up 2% compared to December 31, 2019.

- Multi-family loans increased $1.1 billion or 3% for the full year and $136.8 million during the fourth quarter.

- Specialty finance loans and leases rose $439.2 million or 17% for the full year and were relatively unchanged compared to the previous quarter.

Total deposits of $32.4 billion increased compared to both the previous - quarter and year-end 2019. CD balances declined while all other deposit categories grew.

? Asset Quality:

At year-end 2020, full-payment loan deferrals declined to $83.6 million - representing 0.2% of total loans compared to $6.1 billion or 14.4% of total loans at June 30, 2020.

Non-performing assets, excluding non-performing taxi medallion-related - assets, were $21.0 million or 0.04% of total assets compared to $22.9 million or 0.04% of total assets during the previous quarter.

The ALLL rose $46.4 million to $194.0 million at year-end 2020 compared to - the previous year end and represents 513.55% of non-performing loans and 0.45% of total loans as of December 31, 2020.

? Capital Position at December 31, 2020:

- Common Equity Tier 1 Capital Ratio was 9.72%.

- Tier 1 Risk-Based Capital Ratio was 10.95%.

- Total Risk-Based Capital Ratio was 12.97%.

- Leverage Capital Ratio was 8.52%.

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.

New York Community Bancorp, Inc. (NYSE: NYCB) (the "Company") today reported net income for the three months ended December 31, 2020 of $189.7 million, up 64% compared to the $115.8 million we reported for the three months ended September 30, 2020 and up 87% compared to the $101.2 million we reported for the three months ended December 31, 2019. Our fourth quarter and full-year 2020 results were impacted by a $55.3 million and a $68.4 million, respectively, income tax benefit related to the CARES Act. Excluding this benefit, net income on a non-GAAP basis for the three months ended December 31, 2020 was $134.4 million up 16% and 33%, respectively. For the twelve months ended December 31, 2020, net income totaled $511.1 million, up 29% compared to the $395.0 million we reported for the twelve months ended December 31, 2019. On a non-GAAP basis, full-year 2020 net income was $442.7 million, up 12% compared to full-year 2019.

Net income available to common shareholders for the fourth quarter of 2020 totaled $181.5 million, up 69% compared to the $107.6 million we reported in the third quarter of 2020 and up 95% compared to the fourth quarter of 2019. Net income available to common shareholders on a non-GAAP basis for the fourth quarter of 2020 was $126.1 million, up 17% and 36%, respectively. For the twelve months ended December 31, 2020, net income available to common shareholders was $478.3 million, up 32% compared to the previous year. On a non-GAAP basis, net income available to common shareholders totaled $409.9 million, up 13% compared to full-year 2019.

On a per share basis, the Company reported diluted EPS of $0.39 for the fourth quarter of 2020, up 70% compared to the $0.23 we reported in the prior quarter and up 95% compared to the year-ago quarter. Diluted EPS on a non-GAAP basis were $0.27, up 17% compared to the prior quarter and up 35% compared to the year-ago quarter. For full-year 2020, diluted EPS were $1.02 up 32% compared to the $0.77 we reported for full-year 2019. Non-GAAP full-year 2020 diluted EPS were $0.87 per share, up 13% compared to full-year 2019.

Commenting on the Company's performance, President and Chief Executive Officer Thomas R. Cangemi stated: "Overall, we are pleased with our performance during 2020. Despite a challenging operating environment due to the COVID-19 pandemic, the Company produced strong operating results characterized by double-digit EPS growth, continued margin expansion, a strong 23% increase in pre-provision net revenue, and strong origination growth. Loan growth was modest, but this was offset by solid prepayment income. Also, despite a small uptick in operating expenses during the fourth quarter, full-year operating expenses were flat, resulting in a lower efficiency ratio.

"Our asset quality metrics continued to improve as non-performing assets declined and, to date, our loan deferral program has proven to be successful, as virtually all loans eligible to come off deferral have returned to payment status.

"Another positive was the continued improvement in the net interest margin during the current quarter. Excluding the impact of prepayment income, the fourth quarter NIM on a non-GAAP basis was 2.30%, up 10 basis points compared to the third quarter and was up 23 basis points to 2.13% for the full year. Since bottoming during the third quarter of 2019, our non-GAAP NIM has risen 42 basis points.

"The positives weren't limited to our financial performance. Operationally, we also had a very strong year. In 2020, we completed the largest systems conversion in our history, shifted our lenders to a new paperless desktop origination platform, allowing them to process loans without interruption, moved nearly all of our back-office employees to working remotely, and continued to service our customers through our branches and through on-line channels. All of this occurred without disruptions to our customers or our business. Moreover, the fact that this occurred while the country and New York City were still suffering from the impact of the pandemic is a testament to our employees' commitment to the Company. I could not be more proud of how our entire organization came together and rose to the challenge. So a big collective thank you goes out to every one of our 3,000 employees throughout the franchise.

"Lastly, reflecting our earnings growth, capital position, and asset quality metrics, yesterday, our Board of Directors declared a quarterly cash dividend on our common stock of $0.17 per 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 $10.96 as of January 26, 2021, this represents an annualized dividend yield of 6.2%. The dividend is payable on February 16, 2021 to common shareholders of record as of February 6, 2021.

BALANCE SHEET SUMMARY

At December 31, 2020, total assets were $56.3 billion, up $2.7 billion or 5% compared to total assets at December 31, 2019. The year-over-year asset growth was driven by loan growth, primarily due to growth in the multi-family and specialty finance portfolios, and an increase in the balance of cash and cash equivalents, offset by a decline in the securities portfolio. Asset growth during the year was funded largely through an increase in both deposits and wholesale borrowings.

On a linked-quarter basis, total assets increased $1.4 billion or 10% annualized compared to September 30, 2020. Unlike the full-year trends, the sequential growth was driven by growth in the securities portfolio and in the level of cash and cash equivalents, while total loans increased only modestly. Our balance sheet growth during the fourth quarter was also funded by an increase in deposit balances and in the level of wholesale borrowings.

Total loans and leases held for investment increased $989.4 million or 2% to $42.9 billion compared to December 31, 2019. Loan growth was centered on two portfolios, the multi-family portfolio and the specialty finance portfolio, while the commercial real estate ("CRE") portfolio declined. On a linked-quarter basis, total loans and leases held for investment increased $54.4 million or 1% annualized compared to September 30, 2020. This was driven by growth in the multi-family portfolio, a decline in the CRE portfolio, while the specialty finance portfolio was relatively flat.

Total securities consisting primarily of available-for-sale securities declined $39.7 million or 1% to $5.8 billion compared to December 31, 2019. Throughout the first nine months of the year, the Company had refrained from adding to its securities portfolio, however, during the current fourth quarter, the Company added $1.0 billion of securities for liquidity purposes. This led to a $579.6 million or an 11% sequential increase in our available-for-sale securities portfolio.

Similarly, the level of cash balances increased on both a year-over-year and linked-quarter basis. At December 31, 2020, cash and cash equivalents totaled $1.9 billion, up $1.2 billion or 163% compared to December 31, 2019, while they increased $489.3 million or 34% compared to the level at September 30, 2020.

At December 31, 2020, deposits totaled $32.4 billion, up $779.7 million or 2% compared to December 31, 2019 and up $731.9 million or 9% annualized compared to September 30, 2020. The deposit trends throughout 2020 have been favorable as CD balances have decreased, while we have had strong growth in other categories such as savings, non-interest bearing accounts, and interest-bearing checking and money market accounts.

Looking ahead, the Company has approximately $10.0 billion of CDs which are scheduled to mature by year-end 2021 with a weighted average interest rate of 0.79%. Of this amount, approximately $4.0 billion of CDs with a weighted average interest rate of 1.07% are scheduled to mature during the first quarter of 2021.

Total borrowed funds at December 31, 2020 increased $1.5 billion or 10% to $16.1 billion compared to December 31, 2019 and rose $400.2 million or 10% annualized compared to September 30, 2020. The Company has $1.0 billion of FHLB-NY advances maturing over the course of 2021 at an average rate of 2.03%, including $325.0 million with an average rate of 2.36% that are maturing during the first quarter of 2021.

Loans

Total multi-family loans increased $1.1 billion or 3% to $32.3 billion compared to the balance at December 31, 2019. On a sequential basis, total multi-family loans rose $136.8 million or 2% annualized compared to September 30, 2020. Growth during the current fourth quarter was impacted by a higher than normal level of loans refinancing away from us, due to market conditions that favored GSE financing. However, this was offset by higher prepayment income during the quarter.

Our specialty finance portfolio continued to grow, as specialty finance loans and leases increased $439.2 million or 17% to $3.1 billion compared to the level at December 31, 2019. On a sequential basis, specialty finance loans and leases were relatively unchanged.

The CRE portfolio declined $245.4 million or 3% to $6.8 billion at December 31, 2020 and it declined $48.8 million or 3% annualized compared to September 30, 2020.

Additionally, at December 31, 2020, the Company had $117.1 million of loans held for sale, relatively unchanged compared to September 30, 2020. All of these loans are part of the Paycheck Protection Program (the "PPP"). At December 31, 2019, the Company did not have any loans designated as held for sale.

During the current fourth quarter, the average size of our multi-family loans was $6.6 million and the average size of our CRE loans was $6.7 million. Both metrics are relatively unchanged compared to the previous quarter. During the year-ago fourth quarter, the average size of our multi-family loans was $6.4 million and for CRE loans it was $6.6 million.

The weighted average life of the multi-family portfolio for the current fourth quarter was 2.3 years compared to 2.0 years for the third quarter of the year, while for the CRE portfolio it was 2.4 years compared to 2.3 years for the third quarter. During the year-ago fourth quarter, the weighted average life of the multi-family portfolio was 2.0 years and for the CRE portfolio it was 2.3 years.

OriginationsFor the three months ended December 31, 2020, loans and leases originated for investment totaled $3.9 billion, exceeding the third-quarter pipeline by $2.1 billion, and up 30% compared to the volumes originated during the three months ended September 30, 2020. Originations increased 17% compared to the $3.3 billion we originated for the fourth quarter of last year. During full-year 2020, the Company originated $12.9 billion, up 21% compared to the $10.6 billion of originations during full-year 2019.

PipelineThe current pipeline stands at $1.5 billion with 61% representing new money. The current pipeline includes $1.1 billion of multi-family loans, $221 million in specialty finance loans and leases, $124 million in CRE loans, and $89 million in C&I loans.

Asset Quality

Loan Deferral UpdateAs previously disclosed, the majority of our full-payment loan deferrals were eligible to come off their six-month deferral period during October and November 2020. Accordingly, as of December 31, 2020, 99% or $6.0 billion of our loan deferrals have returned to payment status. At December 31, 2020, $83.6 million of full-payment deferrals currently remain on deferral and are eligible to come off of their deferral program in the first two months of this year. Additionally, certain loans, representing 6.0% of the total loan portfolio, have been modified and are currently paying interest only.

Non-Performing AssetsThe Company's asset quality remained solid during the fourth quarter and reflects the underlying strength of our core loan portfolio. Non-performing assets ("NPAs") at December 31, 2020 totaled $46.1 million compared to $54.9 million at September 30, 2020, down 16%. This represents eight bp of total assets compared to 10 bp in the previous quarter. Total non-accrual mortgage loans were $17.9 million compared to $18.4 million at September 30, 2020, down 3%, while other non-accrual loans (consisting primarily of non-accrual taxi medallion-related loans) were $19.9 million compared to $26.9 million in the previous quarter, down 26%. Total repossessed assets were $8.3 million at December 31, 2020, down 13% compared to the previous quarter.

Non-performing taxi medallion-related assets totaled $25.1 million at December 31, 2020, down 22% compared to the previous quarter. Excluding the impact from non-performing taxi medallion-related assets, fourth quarter 2020 NPAs on a non-GAAP basis, would have been $21.0 million or four bp of total assets compared to $22.9 million also four bp of total assets as of third quarter 2020.

Allowance for Loan and Lease LossesAt December 31, 2020, the allowance for loan and lease losses ("ALLL") totaled $194.0 million up $5.7 million compared to September 30, 2020 and up $46.4 million compared to December 31, 2019. At December 31, 2020, the ALLL represented 513.55% of non-performing loans and 0.45% of total loans. Both the annual and quarterly increases reflect the Company's adoption of the Current Expected Credit Losses ("CECL") methodology on January 1, 2020 and also reflect a deterioration in forecasted economic conditions since the beginning of the year, arising from the COVID-19 pandemic, and the resultant estimated decreases in property values.

(in thousands) Unfunded

Loans and Leases Commitments

Allowance for credit losses at $ 147,638 $ 461December 31, 2019

CECL day 1 transition 1,911 12,529adjustment

Adjusted allowance for credit losses 149,549 12,990at January 1, 2020

2020 provision for credit 63,279 (1,051)losses

2020 net charge-offs (18,785) -

Allowance for credit losses at $ 194,043 $ 11,939December 31, 2020

CAPITAL POSITION

The Company's capital position remains strong at both the holding company level and at the Bank level, as all of our regulatory capital ratios continue to exceed regulatory minimums to be classified as "Well Capitalized," the highest regulatory classification.

The table below depicts the Company's and the Bank's regulatory capital ratios at those respective periods.

December 31, September 30, December 31,

2020 2020 2019

REGULATORY CAPITAL RATIOS: ^(1)

New York Community Bancorp, Inc.

Common equity tier 1 ratio 9.72 % 9.68 % 9.91 %

Tier 1 risk-based capital ratio 10.95 10.94 11.22

Total risk-based capital ratio 12.97 13.00 13.27

Leverage capital ratio 8.52 8.42 8.66

New York Community Bank

Common equity tier 1 ratio 12.18 % 12.20 % 12.42 %

Tier 1 risk-based capital ratio 12.18 12.20 12.42

Total risk-based capital ratio 12.62 12.65 12.81

Leverage capital ratio 9.48 9.40 9.59

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%.

EARNINGS SUMMARY FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020

Net Interest Income

Net interest income for the three months ended December 31, 2020 increased $26.0 million or 9% compared to the three months ended September 30, 2020 and increased $65.4 million or 27% compared to the three months ended December 31, 2019. Both the quarter-over-quarter and year-over-year improvement in our net interest income were driven by a substantial decline in interest expense. Interest expense for the three months ended December 31, 2020 declined $18.3 million or 13% on a sequential basis, while on a year-over-year basis, interest expense decreased $90.3 million or 43%. The declines were primarily driven by lower funding costs, driven by lower CD rates.

Prepayment income for the three months ended December 31, 2020 totaled $20.9 million, up significantly compared to the previous quarter and up 17% compared to the year-ago quarter. Excluding the impact from prepayment income, net interest income on a non-GAAP basis would have been $287.1 million, up $16.8 million or 6% on a linked-quarter basis and up $62.4 million or 28% on a year-over-year basis.

For the twelve months ended December 31, 2020, net interest income rose $142.7 million or 15% to $1.1 billion compared to $957.4 million for the twelve months ended December 31, 2019. This improvement was also due to lower interest expense, owing to lower funding costs. Interest expense for the twelve months ended December 31, 2020 declined $239.9 million or 28% to $607.9 million.

For the twelve months ended December 31, 2020, prepayment income totaled $54.4 million, unchanged compared to the prepayment income for the twelve months ended December 31, 2019.

December 31, 2020

For the Three Months Ended compared to

December 31, September 30, December 31, September 30, December 31,

2020 2020 2019 2020 2019

(inthousands)

Totalinterest $ 425,827 $ 418,049 $ 450,683 2% -6%income

Totalinterest 117,910 136,163 208,213 -13% -43%expense

Netinterest $ 307,917 $ 281,886 $ 242,470 9% 27%income

Less:

Totalprepayment 20,867 11,634 17,853 79% 17%income

Non-GAAP Netinterest $ 287,050 $ 270,252 $ 224,617 6% 28%income

For the Twelve Months Ended

December 31, December 31,

2020 2019 % Change

(in thousands)

Total interest income $ 1,707,993 $ 1,805,160 -5%

Total interest expense 607,851 847,760 -28%

Net interest income $ 1,100,142 $ 957,400 15%

Less:

Total prepayment income 54,450 54,188 0%

Non-GAAP Net interest income $ 1,045,692 $ 903,212 16%

Net Interest Margin

Our net interest margin ("NIM") increased by double-digits again during the current fourth quarter. For the three months ended December 31, 2020, the NIM increased 18 bp to 2.47% compared to the NIM for the three months ended September 30, 2020, and it increased 43 bp compared to the three months ended December 31, 2019. The quarter-over-quarter and year-over-year improvements were driven by significantly lower funding costs. The Company's overall cost of funds decreased 18 bp to 1.06% compared to the previous quarter and 88 bp compared to the year-ago quarter.

During the current fourth quarter, our average cost of deposits declined to 0.61%, down 24 bp compared to the third quarter of 2020 and down 115 bp compared to the fourth quarter of 2019. The average cost of CDs, which was the primary driver of the lower deposit costs, was 1.04%, down 48 bp compared to the previous quarter and down 133 bp compared to the year-ago fourth quarter. Likewise, the average cost of borrowings declined five bp to 1.92% compared to the previous quarter and 41 bp compared to the year-ago quarter.

Prepayment income contributed 17 bp to this quarter's NIM, up eight bp compared to the contribution in the previous quarter and three bp compared to the year-ago quarter. Excluding the impact from prepayment income, the fourth quarter NIM, on a non-GAAP basis, would have been 2.30%, up ten bp compared to the prior quarter and up 40 bp compared to the year-ago quarter.

For the twelve months ended December 31, 2020, the NIM was 2.24%, up 22 bp compared to the twelve months ended December 31, 2019. The improvement in the full-year NIM was also due to lower funding costs. Prepayment income contributed 11 bp to the 2020 NIM and 12 bp compared to the 2019 NIM. Excluding the impact from prepayment income, the NIM for full-year 2020, on a non-GAAP basis, would have been 2.13%, up 23 bp compared to a NIM, on a non-GAAP basis of 1.90% in full-year 2019.

Provision for Credit Losses

During the current fourth quarter, the provision for credit losses was $11.0 million compared to $13.0 million in the third quarter of the year and $1.7 million in the fourth quarter of 2019. The fourth quarter provision for credit losses exceeded net charge-offs by $5.3 million. For the three months ended December 31, 2020, net charge-offs were $5.7 million or 0.01% of average loans compared to a net recovery of $901,000 in the prior quarter and net charge-offs of $3.5 million in the year-ago quarter or 0.01% of average loans.

For the twelve months December 31, 2020, the provision for credit losses totaled $62.2 million compared to $7.1 million for the twelve months ended December 31, 2019. Net charge-offs for full-year 2020 were $18.8 million or 0.04% of average loans compared to $19.3 million or 0.05% of average loans during full-year 2019.

The majority of charge-offs during both years were related to taxi medallion-related loans.

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

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

For the three months ended December 31, 2020, PPNR totaled $189.4 million, up $22.2 million or 13% compared to the three months ended September 30, 2020 and up $55.5 million or 42% compared to the three months ended December 31, 2019.

December 31, 2020

For the Three Months Ended compared to

December 31, September 30, December 31, September 30, December 31,

2020 2020 2019 2020 2019

(inthousands)

Net interest $ 307,917 $ 281,886 $ 242,470 9% 27%income

Non-interest 15,033 13,768 17,462 9% -14%income

Total $ 322,950 $ 295,654 $ 259,932 9% 24%revenues

Totalnon-interest 133,568 128,508 126,097 4% 6%expense

Pre-provisionnet revenue 189,382 167,146 133,835 13% 42%(PPNR)

Provision for 11,036 13,016 1,702 -15% 548%credit losses

Income before $ 178,346 $ 154,130 $ 132,133 16% 35%taxes

Income tax(benefit) (11,318) 38,360 30,959 NM NMexpense

Net Income $ 189,664 $ 115,770 $ 101,174 64% 87%

Preferredstock 8,207 8,207 8,207 0% 0%dividends

Net incomeavailable to $ 181,457 $ 107,563 $ 92,967 69% 95%commonshareholders

For the twelve months ended December 31, 2020, PPNR totaled $650.0 million, up $119.6 million or 23% compared to the twelve months ended December 31, 2019.

For the Twelve Months Ended

December 31, December 31,

2020 2019 % Change

(in thousands)

Net interest income $ 1,100,142 $ 957,400 15%

Non-interest income 61,080 84,230 -27%

Total revenues $ 1,161,222 $ 1,041,630 11%

Total non-interest expense 511,190 511,218 0%

Pre-provision net revenue 650,032 530,412 23%(PPNR)

Provision for credit 62,228 7,105 776%losses

Income before taxes $ 587,804 $ 523,307 12%

Income tax (benefit) 76,695 128,264 -40%expense

Net Income $ 511,109 $ 395,043 29%

Preferred stock dividends 32,828 32,828 0%

Net income available to $ 478,281 $ 362,215 32%common shareholders

Non-Interest Income

For the three months ended December 31, 2020, total non-interest income was $15.0 million compared to $13.8 million in the third quarter of 2020 and $17.5 million in the year-ago fourth quarter, up 9% and down 14%, respectively. Compared to the previous quarter, fourth quarter 2020 reflects an improvement in fee income, driven by a continued rebound in retail banking fees and a higher level of other income.

For the twelve months ended December 31, 2020, total non-interest income declined 27% to $61.1 million compared to $84.2 million for the twelve months ended December 31, 2019. The decline is primarily due to lower retail banking fee income, as the Company waived certain fees for its customers as a result of the COVID-19 pandemic. Additionally, the full-year 2019 amount includes net gains on securities of $7.7 million compared to $1.3 million during full-year 2020. Also, during 2019, the Company recorded a $7.9 million gain on sale of a branch property in Florida, compared to no such gain in 2020. This was partially offset by an increase in BOLI income.

Non-Interest Expense

For the three months ended December 31, 2020, non-interest expenses totaled $133.6 million, up $5.1 million or 4% compared to the prior quarter and up $7.5 million or 6% compared to the year-ago quarter. The majority of the increase was in the general and administrative category and was due to the following factors: an increase in our FDIC deposit insurance assessment driven by a downgrade in our internal loan ratings and the write down of the value of taxi medallions that we hold as repossessed assets.

For the twelve months ended December 31, 2020, total non-interest expenses were $511.2 million, unchanged compared to the amount reported for the twelve months ended December 31, 2019. Included in the full-year 2020 amount is a $4.4 million lease termination benefit, while the full-year 2019 amount included certain items related to severance and branch rationalization totaling $10.4 million.

The efficiency ratio for the current fourth quarter was 41.36%, down compared to 43.47% in the previous quarter and to the 48.51% in the prior year's fourth quarter. For the twelve months ended December 31, 2020, the efficiency ratio was 44.02% compared to 49.08% for the twelve months ended December 31, 2019.

Income Taxes

During the current fourth quarter, the Company recorded an income tax benefit of $11.3 million compared to income tax expense of $38.4 million during the third quarter of the year and $31.0 million during the fourth quarter of 2019. The current fourth quarter amount includes a tax benefit of $55.3 million. This benefit reflects all remaining income tax impacts arising from the CARES Act. We do not anticipate any remaining tax impacts due to the CARES Act after the current quarter. The effective tax rate for the quarter was (6.35)%. Excluding the impact of the CARES Act benefit, the effective tax rate on a non-GAAP basis was 24.67% compared to 24.89% in the previous quarter and compared to 23.43% in the year-ago quarter.

For the twelve months ended December 31, 2020, income tax expense totaled $76.7 million compared to $128.3 million for the twelve months ended December 31, 2019. In addition to the tax benefit recorded during the current quarter, the year-to-date income tax expense includes a $13.1 million tax benefit recorded in the first quarter of 2020, related to the Company's tax loss carryback as provided by certain tax provisions for corporations under the CARES Act. Excluding the impact of these tax benefits, the effective tax rate in 2020 on a non-GAAP basis was 24.69% compared to 24.51% in 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 December 31, 2020, the Company reported assets of $56.3 billion, loans of $42.9 billion, deposits of $32.4 billion, and stockholders' equity of $6.8 billion.

Reflecting our growth through a series of acquisitions, the Company operates 236 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 CallThe Company will host a conference call on Wednesday, January 27, 2021, at 8:30 a.m. (Eastern Time) to discuss its fourth 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 January 31, 2021 and may be accessed by calling (877) 660-6853 (domestic) or (201) 612-7415 (international) and providing the following conference ID: 13714381. In addition, the conference call will be webcast at ir.myNYCB.com, and archived through 5:00 p.m. on February 24, 2021.

Cautionary Statements Regarding Forward-Looking InformationThis 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 potential imposition of future shelter in place orders or additional restrictions on 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 obligation, the remedial actions and stimulus measures adopted by federal, state, and local governments; 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.

Investor/Media Contact: Salvatore J. DiMartino

(516) 683-4286

- Financial Statements and Highlights Follow

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF CONDITION

December 31, December 31,

2020 2019

(unaudited)

(in thousands, except share data)

Assets

Cash and cash equivalents $ 1,947,931 $ 741,870

Securities:

Available-for-sale 5,813,333 5,853,057

Equity investments with readily

determinable fair values, at fair value 31,576 32,830

Total securities 5,844,909 5,885,887

Loans held for sale 117,136 -

Mortgage loans held for investment:

Multi-family 32,261,123 31,182,079

Commercial real estate 6,839,075 7,084,499

One-to-four family 236,267 380,684

Acquisition, development, and construction 89,721 200,464

Total mortgage loans held for investment 39,426,186 38,847,726

Other loans and leases held for investment:

Specialty Finance 3,056,463 2,617,304

Commercial and industrial 394,404 420,993

Other loans 6,545 8,132

Total other loans and leases held for investment 3,457,412 3,046,429

Total loans and leases held for investment 42,883,598 41,894,155

Less: Allowance for loan and lease losses (194,043) (147,638)

Total loans and leases, net 42,806,691 41,746,517

Federal Home Loan Bank stock, at cost 714,005 647,562

Premises and equipment, net 287,447 312,626

Operating lease right-of-use assets 266,864 286,194

Goodwill 2,426,379 2,426,379

Other assets 2,011,894 1,593,786

Total assets $ 56,306,120 $ 53,640,821

Liabilities and Shareholders' Equity

Deposits:

Interest-bearing checking and money market $ 12,610,073 $ 10,230,144accounts

Savings accounts 6,415,608 4,780,007

Certificates of deposit 10,330,680 14,214,858

Non-interest-bearing accounts 3,080,452 2,432,123

Total deposits 32,436,813 31,657,132

Borrowed funds:

Wholesale borrowings 15,427,661 13,902,661

Junior subordinated debentures 360,259 359,866

Subordinated notes 295,624 295,066

Total borrowed funds 16,083,544 14,557,593

Operating lease liabilities 266,846 285,991

Other liabilities 677,273 428,411

Total liabilities 49,464,476 46,929,127

Shareholders' equity:

Preferred stock at par $0.01 (5,000,000 sharesauthorized):

Series A (515,000 shares issued and outstanding) 502,840 502,840

Common stock at par $0.01 (900,000,000 sharesauthorized; 490,439,070 and 490,439,070

shares issued; and 463,901,808 and 467,346,781 4,904 4,904shares outstanding, respectively)

Paid-in capital in excess of par 6,122,690 6,115,487

Retained earnings 494,229 342,023

Treasury stock, at cost (26,537,262 and (257,541) (220,717)23,092,289 shares, respectively)

Accumulated other comprehensive loss, net of tax:

Net unrealized gain on securities available for 66,880 25,440sale, net of tax

Pension and post-retirement obligations, net of (59,345) (59,136)tax

Net unrealized (loss) gain on cash flow hedges, (33,013) 853net of tax

Total accumulated other comprehensive loss, net (25,478) (32,843)of tax

Total shareholders' equity 6,841,644 6,711,694

Total liabilities and shareholders' equity $ 56,306,120 $ 53,640,821

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

For the Three Months Ended For the Twelve Months Ended

December 31, September 30, December 31, December 31, December 31,

2020 2020 2019 2020 2019

(in thousands,except per sharedata)

Interest Income:

Loans and leases $ 388,082 $ 380,337 $ 393,660 $ 1,542,215 $ 1,553,004

Securities andmoney market 37,745 37,712 57,023 165,778 252,156investments

Total interest 425,827 418,049 450,683 1,707,993 1,805,160income

InterestExpense:

Interest-bearingchecking and 8,988 9,328 33,951 56,939 174,347money marketaccounts

Savings 6,915 7,593 9,435 31,650 35,705accounts

Certificates of 28,143 44,481 84,874 217,413 320,234deposit

Borrowed funds 73,864 74,761 79,953 301,849 317,474

Total interest 117,910 136,163 208,213 607,851 847,760expense

Net interest 307,917 281,886 242,470 1,100,142 957,400income

Provision for 11,036 13,016 1,702 62,228 7,105credit losses

Net interestincome after 296,881 268,870 240,768 1,037,914 950,295provision forcredit losses

Non-InterestIncome:

Fee income 6,045 5,240 7,002 22,026 29,297

Bank-owned life 7,292 7,566 8,118 31,750 28,363insurance

Net gains(losses) on 128 (284) (30) 1,265 7,725securities

Other income 1,568 1,246 2,372 6,039 18,845

Totalnon-interest 15,033 13,768 17,462 61,080 84,230income

Non-InterestExpense:

Operatingexpenses:

Compensation and 72,576 73,182 72,525 300,914 301,697benefits

Occupancy and 22,876 23,960 22,575 85,887 89,174equipment

General and 38,116 31,366 30,997 124,389 120,347administrative

Totalnon-interest 133,568 128,508 126,097 511,190 511,218expense

Income before 178,346 154,130 132,133 587,804 523,307income taxes

Income tax(benefit) (11,318) 38,360 30,959 76,695 128,264expense

Net Income 189,664 115,770 101,174 511,109 395,043

Preferred stock 8,207 8,207 8,207 32,828 32,828dividends

Net incomeavailable to $ 181,457 $ 107,563 $ 92,967 $ 478,281 $ 362,215commonshareholders

Basic earningsper common share $ 0.39 $ 0.23 $ 0.20 $ 1.02 $ 0.77^

Diluted earnings $ 0.39 $ 0.23 $ 0.20 $ 1.02 $ 0.77per 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 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' 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' 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 Twelve Months Ended

December 31, September 30, December 31, December 31, December 31,

(dollars in 2020 2020 2019 2020 2019thousands)

TotalShareholders' $ 6,841,644 $ 6,734,730 $ 6,711,694 $ 6,841,644 $ 6,711,694Equity

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 $ 3,912,425 $ 3,805,511 $ 3,782,475 $ 3,912,425 $ 3,782,475shareholders'equity

Total Assets $ 56,306,120 $ 54,931,755 $ 53,640,821 $ 56,306,120 $ 53,640,821

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

Tangible $ 53,879,741 $ 52,505,376 $ 51,214,442 $ 53,879,741 $ 51,214,442assets

AverageCommon $ 6,258,720 $ 6,219,783 $ 6,187,536 $ 6,205,286 $ 6,161,146Shareholders'Equity

Less: Average (2,426,379) (2,426,379) (2,426,379) (2,426,379) (2,428,703)goodwill

Averagetangiblecommon $ 3,832,341 $ 3,793,404 $ 3,761,157 $ 3,778,907 $ 3,732,443shareholders'equity

Average $ 54,959,914 $ 54,269,399 $ 52,477,691 $ 54,109,037 $ 52,109,095Assets

Less: Average (2,426,379) (2,426,379) (2,426,379) (2,426,379) (2,428,703)goodwill

Averagetangible $ 52,533,535 $ 51,843,020 $ 50,051,312 $ 51,682,658 $ 49,680,392assets

Net IncomeAvailable to $ 181,457 $ 107,563 $ 92,967 $ 478,281 $ 362,215CommonShareholders

GAAPMEASURES:

Return onaverage 1.38 % 0.85 % 0.77 % 0.94 % 0.76 %assets (1)

Return onaveragecommon 11.60 6.92 6.01 7.71 5.88shareholders'equity (2)

Book valueper common $ 13.66 $ 13.43 $ 13.29 $ 13.66 $ 13.29share

Commonshareholders' 11.26 11.34 11.57 11.26 11.57equity tototal assets

NON-GAAPMEASURES:

Return onaverage 1.44 % 0.89 % 0.81 % 0.99 % 0.80 %tangibleassets (1)

Return onaveragetangible 18.94 11.34 9.89 12.66 9.70commonshareholders'equity (2)

Tangible bookvalue per $ 8.43 $ 8.20 $ 8.09 $ 8.43 $ 8.09common share

Tangiblecommonshareholders' 7.26 7.25 7.39 7.26 7.39equity 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 period.(2) 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

December 31, 2020 September 30, 2020 December 31, 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 $ 42,436,104 $ 388,082 3.66 % $ 42,302,113 $ 380,337 3.60 % $ 40,670,220 $ 393,660 3.87 %loans and leases, net

Securities 5,847,981 37,082 2.54 5,747,423 37,398 2.60 6,409,279 54,434 3.39

Interest-earning cash 1,682,947 663 0.16 1,224,114 314 0.10 611,176 2,589 1.68and cash equivalents

Total interest-earning 49,967,032 425,827 3.41 49,273,650 418,049 3.39 47,690,675 450,683 3.78assets

Non-interest-earning 4,992,882 4,995,749 4,787,016assets

Total assets $ 54,959,914 $ 54,269,399 $ 52,477,691

Liabilities andStockholders' Equity:

Interest-bearingdeposits:

Interest-bearingchecking and moneymarket accounts $ 12,004,197 $ 8,988 0.30 % $ 11,231,509 $ 9,328 0.33 % $ 9,857,399 $ 33,951 1.37 %

Savings accounts 6,145,526 6,915 0.45 5,755,035 7,593 0.52 4,800,951 9,435 0.78

Certificates of deposit 10,765,843 28,143 1.04 11,654,094 44,481 1.52 14,200,266 84,874 2.37

Total interest-bearing 28,915,566 44,046 0.61 28,640,638 61,402 0.85 28,858,616 128,260 1.76deposits

Borrowed funds 15,342,541 73,864 1.92 15,138,875 74,761 1.97 13,645,755 79,953 2.33

Total interest-bearing 44,258,107 117,910 1.06 43,779,513 136,163 1.24 42,504,371 208,213 1.94liabilities

Non-interest-bearing 3,221,558 2,992,018 2,683,164deposits

Other liabilities 718,689 775,245 599,780

Total liabilities 48,198,354 47,546,776 45,787,315

Stockholders' equity 6,761,560 6,722,623 6,690,376

Total liabilities and $ 54,959,914 $ 54,269,399 $ 52,477,691shareholders' equity

Net interest income/ $ 307,917 2.35 % $ 281,886 2.15 % $ 242,470 1.84 %interest rate spread

Net interest margin 2.47 % 2.29 % 2.04 %

Ratio ofinterest-earning assetsto interest-bearing 1.13 x 1.13 x 1.12 xliabilities

NEW YORK COMMUNITY BANCORP, INC.

NET INTEREST INCOME ANALYSIS

YEAR-OVER-YEAR COMPARISON

(unaudited)

For the Twelve Months Ended December 31,

2020 2019

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

(dollars inthousands)

Assets:

Interest-earningassets:

Mortgage and other $ 42,027,435 $ 1,542,215 3.67 % $ 40,384,573 $ 1,553,004 3.85 %loans, net

Securities 5,964,896 162,729 2.73 6,329,898 235,596 3.72

Interest-earningcash and cash 1,108,446 3,049 0.28 744,204 16,560 2.23equivalents

Totalinterest-earning 49,100,777 1,707,993 3.48 47,458,675 1,805,160 3.80assets

Non-interest-earning 5,008,260 4,650,420assets

Total assets $ 54,109,037 $ 52,109,095

Liabilities andShareholders'Equity:

Interest-bearingdeposits:

Interest-bearingchecking and moneymarket accounts $ 10,965,099 $ 56,939 0.52 % $ 10,597,285 $ 174,347 1.65 %

Savings accounts 5,519,963 31,650 0.57 4,737,423 35,705 0.75

Certificates of 12,412,183 217,413 1.75 13,532,036 320,234 2.37deposit

Totalinterest-bearing 28,897,245 306,002 1.06 28,866,744 530,286 1.84deposits

Borrowed funds 14,833,142 301,849 2.03 13,393,837 317,474 2.37

Totalinterest-bearing 43,730,387 607,851 1.39 42,260,581 847,760 2.01liabilities

Non-interest-bearing 2,956,563 2,588,040deposits

Other liabilities 713,961 596,488

Total liabilities 47,400,911 45,445,109

Shareholders' equity 6,708,126 6,663,986

Total liabilitiesand shareholders' $ 54,109,037 $ 52,109,095equity

Net interest income/ $ 1,100,142 2.09 % $ 957,400 1.79 %interest rate spread

Net interest margin 2.24 % 2.02 %

Ratio ofinterest-earningassets tointerest-bearingliabilities 1.12 x 1.12 x

NEW YORK COMMUNITY BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(unaudited)

For the Three Months Ended For the Twelve Months Ended

December 31, September 30, December 31, December 31, December 31,

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

PROFITABILITYMEASURES:

Net income $ 189,664 $ 115,770 $ 101,174 $ 511,109 $ 395,043

Net incomeavailable to 181,457 107,563 92,967 478,281 362,215commonshareholders

Basicearnings per 0.39 0.23 0.20 1.02 0.77common share^

Dilutedearnings per 0.39 0.23 0.20 1.02 0.77common share

Return onaverage 1.38 % 0.85 % 0.77 % 0.94 % 0.76 %assets

Return onaverage 1.44 0.89 0.81 0.99 0.80tangibleassets ^(1)

Return onaveragecommon 11.60 6.92 6.01 7.71 5.88shareholders'equity

Return onaveragetangiblecommonshareholders'

equity ^(1) 18.94 11.34 9.89 12.66 9.70

Efficiency 41.36 43.47 48.51 44.02 49.08ratio ^(2)

Operatingexpenses to 0.97 0.95 0.96 0.94 0.98averageassets

Interest rate 2.35 2.15 1.84 2.09 1.79spread

Net interest 2.47 2.29 2.04 2.24 2.02margin

Effective tax (6.35) 24.89 23.43 13.05 24.51rate

Shares usedfor basic 461,731,565 461,780,959 465,319,591 462,605,341 465,380,010common EPScomputation

Shares usedfor diluted 462,592,213 462,645,814 465,738,265 463,281,402 465,663,332common EPScomputation

Common sharesoutstandingat therespective

period-ends 463,901,808 463,904,084 467,346,781 463,901,808 467,346,781

(1) See the reconciliations of these non-GAAP measures with the comparable GAAP measures on page 12 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.

December 31, September 30, December 31,

2020 2020 2019

CAPITAL MEASURES:

Book value per common $ 13.66 $ 13.43 $ 13.29share

Tangible book value 8.43 8.20 8.09per common share ^(1)

Common shareholders' 11.26 % 11.34 % 11.57 %equity to total assets

Tangible commonshareholders' equity 7.26 7.25 7.39to tangible assets ^(1)

(1) See the reconciliations of these non-GAAP measures with the comparable GAAPmeasures on page 12 of this release.

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION December 31, 2020

compared to

December 31, September 30, December 31, September 30, December 31,

2020 2020 2019 2020 2019

(unaudited) (unaudited) (unaudited)

(in thousands,except share data)

Assets

Cash and cash $ 1,947,931 $ 1,458,641 $ 741,870 34% 163%equivalents

Securities:

Available-for-sale 5,813,333 5,233,744 5,853,057 11% -1%

Equityinvestments withreadily

determinablefair values, at fair 31,576 31,448 32,830 0% -4%value

Total securities 5,844,909 5,265,192 5,885,887 11% -1%

Loans held for sale 117,136 117,272 - 0% NM

Mortgage loans heldfor investment:

Multi-family 32,261,123 32,124,324 31,182,079 0% 3%

Commercial real 6,839,075 6,887,918 7,084,499 -1% -3%estate

One-to-four family 236,267 274,387 380,684 -14% -38%

Acquisition,development, and 89,721 85,902 200,464 4% -55%construction

Total mortgage loans 39,426,186 39,372,531 38,847,726 0% 1%held for investment

Other loans andleases held forinvestment:

Specialty Finance 3,056,463 3,055,896 2,617,304 0% 17%

Commercial and 394,404 394,305 420,993 0% -6%industrial

Other loans 6,545 6,487 8,132 1% -20%

Total other loansand leases held for 3,457,412 3,456,688 3,046,429 0% 13%investment

Total loans andleases held for 42,883,598 42,829,219 41,894,155 0% 2%investment

Less: Allowance forloan and lease (194,043) (188,307) (147,638) 3% 31%losses

Total loans and 42,806,691 42,758,184 41,746,517 0% 3%leases, net

Federal Home Loan 714,005 697,483 647,562 2% 10%Bank stock, at cost

Premises and 287,447 289,788 312,626 -1% -8%equipment, net

Operating lease 266,864 271,515 286,194 -2% -7%right-of-use assets

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

Other assets 2,011,894 1,764,573 1,593,786 14% 26%

Total assets $ 56,306,120 $ 54,931,755 $ 53,640,821 3% 5%

Liabilities andShareholders' Equity

Deposits:

Interest-bearingchecking and money $ 12,610,073 $ 11,693,982 $ 10,230,144 8% 23%market accounts

Savings accounts 6,415,608 5,964,981 4,780,007 8% 34%

Certificates of 10,330,680 10,990,080 14,214,858 -6% -27%deposit

Non-interest-bearing 3,080,452 3,055,898 2,432,123 1% 27%accounts

Total deposits 32,436,813 31,704,941 31,657,132 2% 2%

Borrowed funds:

Wholesale borrowings 15,427,661 15,027,661 13,902,661 3% 11%

Junior subordinated 360,259 360,157 359,866 0% 0%debentures

Subordinated notes 295,624 295,485 295,066 0% 0%

Total borrowed funds 16,083,544 15,683,303 14,557,593 3% 10%

Operating lease 266,846 271,499 285,991 -2% -7%liabilities

Other liabilities 677,273 537,282 428,411 26% 58%

Total liabilities 49,464,476 48,197,025 46,929,127 3% 5%

Shareholders'equity:

Preferred stock atpar $0.01 (5,000,000shares authorized):

Series A (515,000shares issued and 502,840 502,840 502,840 0% 0%outstanding)

Common stock at par$0.01 (900,000,000shares authorized;490,439,070;490,439,070;

and 490,439,070shares issued; and463,901,808; 4,904 4,904 4,904 0% 0%463,904,084; and467,346,781

shares outstanding,respectively)

Paid-in capital in 6,122,690 6,117,902 6,115,487 0% 0%excess of par

Retained earnings 494,229 391,528 342,023 26% 45%

Treasury stock, atcost (26,537,262;26,534,986 and (257,541) (257,521) (220,717) 0% 17%23,092,289 shares,respectively)

Accumulated othercomprehensive loss,net of tax:

Net unrealized gainon securities 66,880 67,755 25,440 -1% 163%available for sale,net of tax

Pension andpost-retirement (59,345) (55,137) (59,136) 8% 0%obligations, net oftax

Net unrealized(loss) gain on cash (33,013) (37,541) 853 -12% NMflow hedges, net oftax

Total accumulatedother comprehensive (25,478) (24,923) (32,843) 2% -22%loss, net of tax

Total shareholders' 6,841,644 6,734,730 6,711,694 2% 2%equity

Total liabilitiesand shareholders' $ 56,306,120 $ 54,931,755 $ 53,640,821 3% 5%equity

NEW YORK COMMUNITY BANCORP, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (continued)

(unaudited)

December 31, 2020

For the Three Months Ended compared to

December 31, September 30, December 31, September 30, December 31,

2020 2020 2019 2020 2019

(in thousands,except per sharedata)

Interest Income:

Loans and leases $ 388,082 $ 380,337 $ 393,660 2% -1%

Securities andmoney market 37,745 37,712 57,023 0% -34%investments

Total interest 425,827 418,049 450,683 2% -6%income

InterestExpense:

Interest-bearingchecking and 8,988 9,328 33,951 -4% -74%money marketaccounts

Savings 6,915 7,593 9,435 -9% -27%accounts

Certificates of 28,143 44,481 84,874 -37% -67%deposit

Borrowed funds 73,864 74,761 79,953 -1% -8%

Total interest 117,910 136,163 208,213 -13% -43%expense

Net interest 307,917 281,886 242,470 9% 27%income

Provision for 11,036 13,016 1,702 -15% 548%credit losses

Net interestincome after 296,881 268,870 240,768 10% 23%provision forcredit losses

Non-InterestIncome:

Fee income 6,045 5,240 7,002 15% -14%

Bank-owned life 7,292 7,566 8,118 -4% -10%insurance

Net (losses)gains on 128 (284) (30) -145% -527%securities

Other income 1,568 1,246 2,372 26% -34%

Totalnon-interest 15,033 13,768 17,462 9% -14%income

Non-InterestExpense:

Operatingexpenses:

Compensation and 72,576 73,182 72,525 -1% 0%benefits

Occupancy and 22,876 23,960 22,575 -5% 1%equipment

General and 38,116 31,366 30,997 22% 23%administrative

Totalnon-interest 133,568 128,508 126,097 4% 6%expense

Income before 178,346 154,130 132,133 16% 35%income taxes

Income tax(benefit) (11,318) 38,360 30,959 -130% -137%expense

Net Income 189,664 115,770 101,174 64% 87%

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

Net incomeavailable to $ 181,457 $ 107,563 $ 92,967 69% 95%commonshareholders

Basic earningsper common share $ 0.39 $ 0.23 $ 0.20 70% 95%^

Diluted earnings $ 0.39 $ 0.23 $ 0.20 70% 95%per common share

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

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

While net income, net income available to common shareholders and diluted earnings per common shares are financial measures that are recorded in accordance with U.S. generally accepted accounting principles ("GAAP"), related measures that result from reducing the impact of the CARES Act tax benefit are not. Nevertheless, it is management's belief that these non-GAAP measures better reflect management's view of the Company's operating results and should be disclosed in our earnings releases and other investor communications to provide additional useful information that allows readers to evaluate the ongoing performance of the Company.

The table below reflects the impact of the CARES Act tax benefit on our financial results for the periods indicated:

For the Three For the Twelve

Months Ended Months Ended

December 31, December 31,

2020 2020

Net income- GAAP $ 189,664 $ 511,109

Income tax benefit related to the CARES (55,311) (68,411)Act

Net income- non-GAAP 134,353 442,698

Preferred stock dividends 8,207 32,828

Net income available to common $ 126,146 $ 409,870shareholders- non-GAAP

Diluted earnings per common share- GAAP $ 0.39 $ 1.02

Diluted earnings per common share- $ 0.27 $ 0.87non-GAAP

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 December 31, 2020 compared to

December 31, September 30, December 31, September 30, December 31,

2020 2020 2019 2020 2019

(dollars inthousands)

TotalInterest $425,827 $418,049 $450,683 2% -6%Income

PrepaymentIncome:

Loans $19,530 $11,279 $15,422 73% 27%

1,337 355 2,431 277% -45%Securities

Totalprepayment $20,867 $11,634 $17,853 79% 17%income

GAAP NetInterest 2.47% 2.29% 2.04% 18 bp 43 bpMargin

Less:

Prepayment 16 bp 9 bp 12 bp 7 bp 4 bpincome fromloans

Prepayment 1 - 2 1 bp -1 bpincome fromsecurities

Totalprepaymentincomecontribution

to netinterest 17 bp 9 bp 14 bp 8 bp 3 bpmargin

Adjusted NetInterest 2.30% 2.20% 1.90% 10 bp 40 bpMargin(non-GAAP)

For the Twelve Months Ended

December 31, December 31,

2020 2019 Change (%)

(dollars inthousands)

TotalInterest $1,707,993 $1,805,160 -5%Income

PrepaymentIncome:

Loans $52,096 $48,884 7%

2,354 5,304 -56%Securities

Totalprepayment $54,450 $54,188 0%income

GAAP NetInterest 2.24% 2.02% 22 bpMargin

Less:

Prepayment 11 bp 11 bp 0 bpincome fromloans

Prepayment - 1 -1 bpincome fromsecurities

Totalprepaymentincomecontribution

to netinterest 11 bp 12 bp -1 bpmargin

Adjusted NetInterest 2.13% 1.90% 23 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 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 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)

December 31, 2020

For the Three Months Ended compared to

December 31, September 30, December 31, September 30, December 31,

2020 2020 2019 2020 2019

(inthousands)

MortgageLoansOriginatedforInvestment:

$2,776,301 $2,104,809 $1,991,636 32% 39%Multi-family

Commercial 507,031 169,536 326,834 199% 55%real estate

One-to-four 12,972 - 77,321 NM -83%familyresidential

Acquisition,development, 10,347 19,309 33,173 -46% -69%andconstruction

Totalmortgageloans 3,306,651 2,293,654 2,428,964 44% 36%originatedforinvestment

Other LoansOriginatedforInvestment:

Specialty 447,086 589,970 799,163 -24% -44%Finance

Othercommercial 120,449 93,023 88,672 29% 36%andindustrial

Other 1,402 845 707 66% 98%

Total otherloansoriginated 568,937 683,838 888,542 -17% -36%forinvestment

Total LoansOriginated $3,875,588 $2,977,492 $3,317,506 30% 17%forInvestment

For the Twelve Months Ended

December 31, December 31,

2020 2019 Change (%)

(inthousands)

MortgageLoansOriginatedforInvestment:

$8,711,586 $5,981,700 46%Multi-family

Commercial 958,193 1,226,272 -22%real estate

One-to-four 58,258 102,829 -43%familyresidential

Acquisition,development, 35,099 91,400 -62%andconstruction

Totalmortgageloans 9,763,136 7,402,201 32%originatedforinvestment

Other LoansOriginatedforInvestment:

Specialty 2,694,459 2,799,962 -4%Finance

Othercommercial 393,035 391,702 0%andindustrial

Other 3,998 4,200 -5%

Total otherloansoriginated 3,091,492 3,195,864 -3%forinvestment

Total LoansOriginated $12,854,628 $10,598,065 21%forInvestment

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

December 31, 2020

At or For the Three Months Ended compared to

December 31, September 30, December 31, September 30, December 31,

2020 2020 2019 2020 2019

(in thousands)

Multi-Family LoanPortfolio:

Loans $32,261,123 $32,124,324 $31,182,079 0% 3%outstanding

Percent oftotal 75.2% 75.0% 74.4% 22 bp 83 bpheld-for-investmentloans

Average $6,554 $6,569 $6,381 0% 3%principal balance

Weightedaverage life (in 2.3 2.0 2.0 15% 15%years)

Commercial RealEstate LoanPortfolio:

Loans $6,839,075 $6,887,918 $7,084,499 -1% -3%outstanding

Percent oftotal 15.9% 16.1% 16.9% -13 bp -95 bpheld-for-investmentloans

Average $6,716 $6,653 $6,564 1% 2%principal balance

Weightedaverage life (in 2.4 2.3 2.3 4% 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:

December 31, 2020

compared to

December 31, September 30, December 31, September 30, December 31,

(in thousands) 2020 2020 2019 2020 2019

Non-PerformingAssets:

Non-accrualmortgageloans:

$ 4,068 $ 4,068 $ 5,407 0% -25%Multi-family

Commercial 12,142 12,673 14,830 -4% -18%real estate

One-to-four 1,696 1,706 1,730 -1% -2%familyresidential

Acquisition,development, - - - NM NMandconstruction

Totalnon-accrual 17,906 18,447 21,967 -3% -18%mortgage loans

Othernon-accrual 19,879 26,904 39,276 -26% -49%loans (1)

Totalnon-performing 37,785 45,351 61,243 -17% -38%loans

Repossessed 8,318 9,526 12,268 -13% -32%assets (2)

Totalnon-performing $ 46,103 $ 54,877 $ 73,511 -16% -37%assets

(1) Includes $18.6 million, $24.4 million and $30.4 million of non-accrual taximedallion-related loans at December 31, 2020, September 30, 2020 and December31, 2019, respectively.

(2) Includes $6.5 million, $7.6 million and $10.3 million of repossessed taximedallions at December 31, 2020, September 30, 2020 and December 31,2019, respectively.

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

December 31, September 30, December 31,

2020 2020 2019

Non-performingloans to total 0.09% 0.11% 0.15%loans

Non-performingassets to 0.08 0.10 0.14total assets

Allowance forlosses onloans to 513.55 415.22 241.07non-performingloans

Allowance forlosses on 0.45 0.44 0.35loans to totalloans

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

December 31, 2020

compared to

December 31, September 30, December 31, September 30, December 31,

2020 2020 2019 2020 2019

(in thousands)

Loans 30 to 89Days Past Due:

$ 4,091 $ 378 $ 1,131 982% 262%Multi-family

Commercial 9,989 2,617 2,545 282% 292%real estate

One-to-fourfamily 1,575 2,078 - -24% NMresidential

Acquisition,development, and - - - NM NMconstruction

Other (1) 3 56 44 -95% -93%

Total loans 30to 89 days past $ 15,658 $ 5,129 $ 3,720 205% 321%due

(1) Does not include any taxi medallion loans at the respective dates.

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

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

For the Three Months Ended For the Twelve Months Ended

December 31, September 30, December 31, December 31, December 31,

2020 2020 2019 2020 2019

(in thousands)

Charge-offs:

$ - $ - $ 222 $ - $ 659Multi-family

Commercial 1,870 - - 1,870 -real estate

One-to-four - 2 5 2 954familyresidential

Acquisition,development, - - - - -andconstruction

Other (1) 4,908 1,075 3,684 20,306 18,694

Total $ 6,778 $ 1,077 $ 3,911 $ 22,178 $ 20,307charge-offs

Recoveries:

$ - $ (755) $ - $ (755) $ -Multi-family

Commercial (354) - - (354) -real estate

One-to-four - - - - -familyresidential

Acquisition,development, (1) (2) (18) (63) (61)andconstruction

Other (1) (717) (1,221) (397) (2,221) (959)

Total (1,072) (1,978) (415) (3,393) (1,020)recoveries

Net $ 5,706 $ (901) $ 3,496 $ 18,785 $ 19,287charge-offs

Netcharge-offs to 0.01% 0.00% 0.01% 0.04% 0.05%average loans(2)

(1) Includes taxi medallion loans of $3.3 million, $(1.2) million, and $3.4million, respectively, for the three months ended December 31, 2020, September30, 2020, and December 31, 2019 and $11.9 million and $10.2 million,respectively, for the twelve months ended December 31, 2020 and 2019.

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

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SOURCE New York Community Bancorp, Inc.