EX-99.1 2 d874316dex991.htm EX-99.1

Fourth Quarter 2019 Investor Presentation Exhibit 99.1

Forward-Looking Information This presentation may include forward‐looking statements by the Company and our authorized officers pertaining to such matters as our goals, intentions, and expectations regarding revenues, earnings, loan production, asset quality, capital levels, and acquisitions, among other matters; our estimates of future costs and benefits of the actions we may take; our assessments of probable losses on loans; our assessments of interest rate and other market risks; and our ability to achieve our financial and other strategic goals. Forward‐looking statements are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Additionally, forward‐looking statements speak only as of the date they are made; the Company does not assume any duty, and does not undertake, to update our forward‐looking statements. Furthermore, because forward‐looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in our statements, and our future performance could differ materially from our historical results. Our forward‐looking statements are subject to the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios; changes in competitive pressures among financial institutions or from non‐financial institutions; our ability to obtain the necessary shareholder and regulatory approvals of any acquisitions we may propose, our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may acquire into our operations, and our ability to realize related revenue synergies and cost savings within expected time frames; changes in legislation, regulations, and policies; and a variety of other matters which, by their nature, are subject to significant uncertainties and/or are beyond our control. More information regarding some of these factors is provided in the Risk Factors section of our Form 10‐K for the year ended December 31, 2018 and in other SEC reports we file. Our forward‐looking statements may also be subject to other risks and uncertainties, including those we may discuss in this presentation, or in our SEC filings, which are accessible on our website and at the SEC’s website, www.sec.gov. Our Supplemental Use of Non-GAAP Financial Measures This presentation may contain certain non-GAAP financial measures which management believes to be useful to investors in understanding the Company’s performance and financial condition, and in comparing our performance and financial condition with those of other banks. Such non-GAAP financial measures are supplemental to, and are not to be considered in isolation or as a substitute for, measures calculated in accordance with GAAP. Cautionary Statements

→ We are a leading producer of multi-family loans in New York City. Our niche within this market focuses on non-luxury apartment buildings that are rent-regulated featuring below-market rents. → Our expertise in this particular lending niche arises from: A consistent presence in this market for 50 years over all business cycles Long standing relationships with our borrowers, who come to us for our service and execution capabilities Decades long relationships with the top commercial mortgage brokers in the NYC market → In addition, we originate commercial real estate loans, and to a much lesser extent, acquisition, development, and construction loans. We also originate commercial and industrial loans, including specialty finance loans. → We operate over 230 branches in five states with leading market share in many of the markets we operate in. → We are a conservative lender across all of our loan portfolios. → We maintain an efficient operation. → We complement our organic growth with accretive acquisitions. Overview: Who we are

We rank among the largest U.S. bank holding companies… Total Assets: $53.6 billion, 78% of which are loans. Total Deposits: $31.7 billion Total Loans: $41.7 billion including $31.2 billion of multi-family loans. Total Market Capitalization (a): $5.5 billion Total Return and Dividend Yield: Total ROI is 4,281%, since our IPO. (b) Our current dividend yield is 5.8%. As of 1/28/2020, all other information as of most recent quarter end. Total ROI provided by Bloomberg.

… but without the risk other large banks have. Ratio NYCB At 12/31/19 SNL Bank &Thrift Index (b) At 9/30/19 Peers (b) At 9/30/19 NCOs/Average Loans 0.01 0.39 0.17 Cumulative losses (a) 104 bp 2,344 bp 1,215 bp NPAs/Total Assets 0.14% 0.50% 0.57% NPLs/Total Loans 0.15% 1.01% 0.79% ALLL/NPLs 241.07 179.06 147.31 → Our asset quality metrics compare very favorably to both the SNL Bank & Thrift Index and our regional bank peers. Since our IPO in 1993. SNL B&T and Peer information for 4Q2019 was not available as of the time of this report.

A Strong Capital Position Ratio NYCB At 12/31/19 SNL Bank &Thrift Index (a) At 9/30/19 Peers At 12/31/19 Total Risk-Based Capital 13.27% 13.91% 13.04% Tier 1 Risk-Based Capital 11.22 12.45 11.20 Common Equity Tier 1 9.91 11.81 10.17 Tier 1 Leverage 8.66 10.13 9.23 SNL B&T information for 4Q2019 was not available as of the time of this report.

Total HFI Loans: $41.9 bn Loans at 12/31/19 Loans – Our mix has not changed significantly since our IPO Majority of portfolio focused on low-risk multi-family loans on non-luxury, rent-regulated buildings Market leader in this asset class having developed strong expertise and industry relationships over the last five decades Consistent lending strategy that has not changed significantly since our IPO Average yield on loan portfolio: 3.87% Low risk credit culture and business strategy has resulted in superior asset quality through past cycles Since 1993 losses have aggregated 16 bp on MF and 10 bp on CRE * Primarily a fixed rate portfolio but weighted average life of less than 3 years Highlights: * Of aggregate originations

Multi-Family Portfolio Statistics at or for the 3 Months Ended 12/31/19 74.4% of total loans (60.0% of originations) 77.9% of loans are in Metro New York Average principal balance = $6.4million Weighted average life = 2.0 years Weighted average LTV: 56.86% Weighed average LTV on rent-regulated: 53.17% Multi-Family Loan Portfolio (in millions) Originations: $7,584 $9,214 $5,685 $5,378 $6,622 $5,982 Net Charge-Offs (Recoveries): $0 $(4) $0 $0 $0 $1 Leading Multi-Family, Rent-Regulated Lender in New York Metro Region. Multi-family loans have been our primary lending focus for the past five decades

Best-in-Class Credit Underwriting Conservative Underwriting Conservative loan-to-value ratios Conservative debt service coverage ratios: 120% for multi-family loans and 130% for CRE loans Multi-family and CRE loans are based on the lower of economic or market value Active Board Involvement The Mortgage Committee and the Credit Committee approve all mortgage loans >$50 million and all “other C&I” loans >$5 million; the Credit Committee also approves all specialty finance loans >$15 million A member of the Mortgage or Credit Committee participates in inspections on multi-family loans in excess of $7.5 million, and CRE and ADC loans in excess of $4.0 million All loans of $20 million or more originated by the Community Bank Multiple Appraisals All properties are appraised by independent appraisers All independent appraisals are reviewed by in-house appraisal officers A second independent appraisal review is performed on loans that are large and complex

→ $18.7 billion or 60% of the MF portfolio is subject to NYS rent regulations; WALTV (1) on this portion of the MF portfolio is 53.17%, 369 basis points below the overall MF portfolio. Our Multi-Family Portfolio is Well Insulated Against Recent Changes in the Rent Regulation Laws → We lend on current, in-place cash flows and not on future or projected cash flows. → We have $12.9 billion of loans with rent-regulated units greater than 50% of total units.

Commercial Real Estate Loan Portfolio (in millions) Originations: $1,661 $1,842 $1,180 $1,039 $967 $1,226 Net Charge-Offs (Recoveries): $1 $(1) $(1) $0 $3 $0 Commercial real estate is a logical extension of our multi-family niche. CRE Portfolio Statistics at or for the 3 Months Ended 12/31/19 16.9% of total loans (9.9% of originations) 85.7% of loans in Metro New York Average principal balance: $6.6 million Weighted average life: 2.3 years

Specialty Finance Loan and Lease Portfolio (in millions) Originations: $848 $1,068 $1,266 $1,784 $1,917 $2,800 Net charge-Offs: $0 $0 $0 $0 $0 $0 Our specialty finance business is another high-quality lending niche. Loan Types Syndicated asset-based (ABLs) and dealer floor-plan (DFPLs) loans Equipment loan and lease financing (EF) Client Characteristics Large corporate obligors; mostly publicly traded Investment grade or near-investment grade ratings Participants in stable, nationwide industries Pricing Floating rates tied to LIBOR (ABLs and DFPLs) Fixed rates at a spread over treasuries (EF) Risk-averse Credit & Underwriting Standards We require a perfected first-security interest in or outright ownership of the underlying collateral Loans are structured as senior debt or as non-cancellable leases Transactions are re-underwritten in-house Underlying documentation reviewed by counsel CAGR (2014-4Q19) 34.0% Six industry veterans with nearly 150 years of combined experience The team has been working together for over 25 years, mostly at larger regional banks in the Northeast Extensive experience in senior secured lending, transaction structuring, credit, capital markets, and risk mgmt. Excellent track record on credit losses over the past 25 years of originations

Non-Performing Loans(a)(b) / Total Loans(a) Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired (“PCI”) loans. Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest. Our non-performing loans at 12/31/16 ,12/31/17, and 12/31/18 exclude taxi medallion-related loans. SNL B&T data for 4Q2019 was not available as of the date of this report. Average NPLs/Total Loans NYCB: 0.59% SNL U.S. Bank and Thrift Index (c):1.67% SNL U.S. Bank and Thrift Index NYCB Our asset quality in any credit cycle has consistently been better than our industry peers…

… and very few of our non-performing loans have resulted in actual losses. Net Charge-Offs / Average Loans Cumulative Total NYCB: 104 bp SNL U.S. Bank and Thrift Index(c): 2,344 bp The calculation of our net charge-offs to average loans for 2017 excludes charge-offs of $59.6 million on taxi medallion-related loans. The calculation of our net charge-offs to average loans for 2018 excluded charge-offs of $12.8 million on taxi medallion-related loans. SNL B&T data for 4Q2019 was not available as of the date of this report. SNL U.S. Bank and Thrift Index NYCB

Consistent Profitability over Various Business Cycles due to Low Credit Costs and Highly Efficient Business Model. Source: S&P Global Market Intelligence. The 2015 amount reflects the $546.8 million after-tax impact of the debt repositioning charge recorded as interest expense and non-interest expense, combined. SNL B&T data for 4Q2019 was not available as of the time of this report. SNL U.S. Bank and Thrift Index (b) NYCB Return on Average Assets Since IPO

Efficiency Ratio Peer Group (a) NYCB Highly Efficient Operator with Effective Business Model. Low Cost, Efficient Business Model Multi-family and CRE lending are both broker-driven, with the borrower paying fees to the mortgage brokerage firm Products and services are typically developed by third-party providers; their sales are a complementary source of revenues

Total Deposits: $31.7 bn Deposits at 12/31/19 Deposit Composition Deposits generated through retail and commercial channels Presence in several large markets – Metro New York, New Jersey, Ohio, Florida, and Arizona Steadily growing deposit base Average cost of interest-bearing deposits is 1.76% Average deposits per branch of $146 million* Highlights: * Does not include 21 In-Store Branches.

Lever # 1 - Loan Growth Total loans grew $1.7 billion or 4% year-to-date. Lever # 2 - Significant Repricing Opportunities There are $15.6 billion of loans with an average coupon of 3.43% contractually maturing or reaching their option re-pricing date over the next 3 years. We have $14.2 billion of CDs maturing over the next four quarters with WAR of 2.25%. Actively managing deposit costs lower and proactively reducing higher cost deposit relationships. We also have approximately $3.7 billion of wholesale borrowings at an average rate of 2.11% maturing over the next four quarters. Lever # 3 - Further Improvements In Operating Expenses Continue to focus on expense containment. Focusing on what we can control – Three levers for future earnings growth Growth Levers Loans repricing higher; funding repricing lower Reinvestment of cash Contained operating expenses Results Higher NIM Lower efficiency ratio Higher operating leverage

CAGR 1993-2009: 25.7% CAGR 2009-4Q 2019: 2.4% Dodd-Frank Enacted Lever # 1 – Back in growth mode Asset growth prior to and since Dodd-Frank was enacted

Lever # 2 - Re-pricing Opportunities → Over the next 3 years, approximately $15.6 billion of MF and CRE loans with an average coupon of 3.43%, are reaching their contractual maturity date or their option re-pricing date. If the borrower does not refinance or pay us off before the contractual maturity or option re-pricing date, they will have 2 options: Convert to variable rate loan at Prime plus 275-300 bps Convert to fixed rate loan indexed to 5 year FHLB plus 275-300 bps, and a 1.00% fee to exercise this option → Approximately $3.7 billion of wholesale borrowings at an average rate of 2.11% maturing over the next four quarters. → Approximately $14.2 billion of CDs maturing over the next four quarters at an average rate of 2.25%.

Lever # 2 - Portfolio coupons may have bottomed Coupon Rate at 12/31/2019 Multi Family: 3.72% CRE: 3.95%

NYCB Efficiency Ratio Prior to and Since Dodd-Frank Our efficiency ratio has increased significantly since the enactment of Dodd-Frank. We expect that the efficiency ratio will improve through operating leverage. Lever # 3 – Lower operating expenses

Our Business Model Growth through Acquisitions

Transaction Type: Savings Bank Commercial Bank Branch FDIC Deposit A history of accretive transactions which have added to our franchise value. 1 . Nov. 2000 Haven Bancorp (HAVN) Assets: $2.7 billion Deposits: $2.1 billion 3 . Oct. 2003 Roslyn Bancorp, Inc. (RSLN) Assets: $10.4 billion Deposits: $5.9 billion 4. Dec. 2005 Long Island Financial Corp. (LICB) Assets: $562 million Deposits: $434 million 2 . July 2001 Richmond County Financial Corp. (RCBK) Assets: $3.7 billion Deposits: $2.5 billion 5. April 2006 Atlantic Bank of New York (ABNY) Assets: $2.8 billion Deposits: $1.8 billion 6. April 2007 PennFed Financial Services, Inc. (PFSB) Assets: $2.3 billion Deposits: $1.6 billion 7. July 2007 NYC branch network of Doral Bank, FSB (Doral-NYC) Assets: $485 million Deposits: $370 million 8. Oct. 2007 Synergy Financial Group, Inc. (SYNF) Assets: $892 million Deposits: $564 million 9. Dec. 2009 AmTrust Bank Assets: $11.0 billion Deposits: $8.2 billion 10. March 2010 Desert Hills Bank Assets: $452 million Deposits: $375 million 11. June 2012 Aurora Bank FSB Assets: None Deposits: $2.2 billion Branches: 0 Payment Received: $24.0 million

Our business model is designed to deliver long-term shareholder value. Total Return on Investment Bloomberg CAGR since IPO: 21.3% → As a result of nine stock splits between 1994 and 2004, our charter shareholders have 2,700 shares of NYCB stock for each 100 shares originally purchased. Peer Group NYCB (a)

Key Investment Highlights Largest New York Metro Headquartered Regional Bank by Assets(a) Leading Producer of Multi-Family Loans in New York City with an Expertise on the Non-Luxury / Rent-Regulated Segment Proven Track Record of Superior Asset Quality Consistent Profitability over Various Business Cycles due to Low Credit Cost and Highly Efficient Business Model Strong Capital Position Disciplined and Proven Management Team 1 4 5 3 2 6 (a) U.S. regional banks excludes foreign banks, U.S. banks with assets greater than $250 billion, custodial banks, credit card banks and broker dealers. Ranking based on regulatory financial data as of June 30, 2019. New York City metro market is the New York-Newark-Jersey City MSA.

Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: Investor Relations New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 For More Information

Appendix

Securities and Funding Composition Funds at 12/31/19 1.94% cost of funds Significant capacity given eligibility of multi-family loans Total Funding: $47.0 bn Entire portfolio is available for sale Consists primarily of GSE-related securities Overall yield is 3.39% 34% is variable rate Securities at 12/31/19 Total Securities: $5.9 bn

Experienced Management Team Joseph R. Ficalora Robert Wann Thomas R. Cangemi John J. Pinto John Adams President & Chief Executive Officer Senior Executive Vice President & Chief Operating Officer Senior Executive Vice President & Chief Financial Officer Executive Vice President & Chief Accounting Officer Executive Vice President & Chief Lending Officer 50+ years of experience with NYCB; 53 years of banking experience Under Mr. Ficalora’s leadership, the Company has evolved from a mutual savings bank with seven branches in Queens and Nassau Counties to a publicly traded multi-bank holding company with over 250 branch offices serving consumers and businesses throughout Metro New York, New Jersey, Florida, Ohio, and Arizona Chairman of the American Bankers Council of the American Bankers Association Former Vice Chairman of the Federal Home Loan Bank of NY 37 years of experience with NYCB; 37 years of banking experience Mr. Wann joined the Company in 1982 Named Comptroller in 1989 Appointed Chief Financial Officer in 1991 Mr. Wann has been Chief Operating Officer since October 31, 2003 18 years of experience with NYCB; 28 years of banking experience Mr. Cangemi has been Senior Executive Vice President and Chief Financial Officer of New York Community Bancorp, Inc. since April 5, 2005. Joined the Company on July 31, 2001 as Executive Vice President and Director of the Capital Markets Group, and was named Senior Executive Vice President on October 31, 2003 Previously, member of the SEC Professional Practices Group of KPMG servicing financial institutions 18 years of experience with NYCB; 26 years of banking experience Mr. Pinto has been Executive Vice President and Chief Accounting Officer of the Company since April 5, 2005. Mr. Pinto joined the Company on July 31, 2001 in connection with the Richmond County merger, and served as Senior Vice President, and more recently First Senior Vice President, in the Capital Markets Group From 1993 to 1997, was a member the financial services group at Ernst & Young providing auditing and consulting services to financial institutions in the Northeast 20 years of experience with NYCB; 36 years of banking experience Mr. Adams was appointed Executive Vice President and Chief Lending Officer of the Company on January 1, 2020 Previously served as Executive Vice President and Chief Credit Officer Joined the Company in 2000 in conjunction with its acquisition of Haven Bancorp, Inc..

While average stockholders’ equity, average assets, return on average assets, and return on average stockholders’ equity are financial measures that are recorded in accordance with U.S. generally accepted accounting principles ("GAAP"), average tangible stockholders’ equity, average tangible assets, return on average tangible assets, and return on average tangible stockholders’ equity are not. Nevertheless, it is management’s belief that these non-GAAP measures should be disclosed in our SEC filings, earnings releases, and other investor communications, for the following reasons: Average tangible stockholders’ equity is an important indication of the Company’s ability to grow organically and through business combinations, as well as our ability to pay dividends and to engage in various capital management strategies. Returns on average tangible assets and average tangible stockholders’ equity are among the profitability measures considered by current and prospective investors, both independent of, and in comparison with, our peers. We calculate average tangible stockholders’ equity by subtracting from average stockholders’ equity the sum of our average goodwill and calculate average tangible assets by subtracting the same sum from our average assets. Average tangible stockholders’ equity, average tangible assets, and the related non-GAAP profitability measures should not be considered in isolation or as a substitute for average stockholders’ equity, average assets, or any other profitability or capital measure calculated in accordance with GAAP. Moreover, the manner in which we calculate these non-GAAP measures may differ from that of other companies reporting non-GAAP measures with similar names. The following table presents reconciliations of our average common stockholders’ equity and average tangible common stockholders’ equity, our average assets and average tangible assets, and the related GAAP and non-GAAP profitability measures at or for the three and twelve months ended December 31, 2019: (1) To calculate return on average assets for a period, we divide net income 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. (2) 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. 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. Reconciliations of GAAP and Non-GAAP Measures (dollars in thousands) For the Three Months Ended December 31, 2019 For the Twelve Months Ended December 31, 2019 Average common stockholders’ equity $ 6,187,536 $ 6,161,146 Less: Average goodwill (2,426,379) (2,428,703) Average tangible common stockholders’ equity $ 3,761,157 $ 3,732,443 Average assets $ 52,477,943 $52,109,158 Less: Average goodwill (2,426,379) (2,428,703) Average tangible assets $50,051,564 $49,680,455 Net income available to common shareholders (1) $92,967 $362,215 GAAP: Return on average assets 0.77% 0.76% Return on average common stockholders’ equity 6.01 5.88 Non-GAAP: Return on average tangible assets (2) 0.81 0.80 Return on average tangible common stockholders’ equity (2) 9.89 9.70

Peer Group Peer Ticker Bank OZK OZK BankUnited, Inc. BKU Comerica Incorporated CMA F.N.B. Corporation FNB Fifth Third Bancorp FITB Huntington Bancshares Incorporated HBAN Investors Bancorp, Inc. ISBC M&T Bank Corporation MTB People's United Financial, Inc. PBCT Signature Bank SBNY Sterling Bancorp STL Synovus Financial Corp. SNV Valley National Bancorp VLY Webster Financial Corporation WBS Zions Bancorporation ZION