COMPANY TARGETS PEER LEVEL PROFITABILITY BY FOURTH QUARTER 2026 INCLUDING ROAA OF 1%, ROATCE OF 11% - 12%, AND A CET1 CAPITAL RATIO OF 11% - 12% SUCCESSFULLY RAISED OVER $1 BILLION IN EQUITY, BOLSTERING CAPITAL AND LIQUIDITY POSITION STRENGTHENED BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT TEAM INCREASED ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES TO 1.48% COMPARED TO 1.17% LAST QUARTER DEPOSITS REMAIN RESILIENT POST CAPITAL RAISE ALONG WITH AMPLE LIQUIDITY WELL CAPITALIZED WITH CET1 RATIO OF 9.45%, OR 10.14% FULLY CONVERTED HICKSVILLE, N.Y., May 1, 2024 /PRNewswire/ -- New York Community Bancorp, Inc. (NYSE:NYCB) ("the Company") today reported its results for the first quarter of 2024 and provided an update on its financial targets through 2026. First Quarter 2024 Summary Financial Results: The Company reported a net loss of $327 million for first quarter 2024 and a net loss available to common shareholders of $335 million, or $0.45 per diluted share.  As adjusted for merger-related expenses and bargain purchase gain, the net loss was $174 million and net loss available to common shareholders of $182 million, or $0.25 per diluted share. Asset Quality Deposits   •          ACL on loans and leases totaled $1.2 billion, or 1.48% of LHFI •          Office ACL coverage, excluding owner-occupied,  increased to 10.33% •          Multi-family ACL coverage increased to 1.27% •          Non-office CRE ACL coverage increased to 1.52% •          Nonperforming loans were 97 basis points of LHFI   •          Total deposits of $74.9 billion, including 24% non-interest-bearing and 19% interest-bearing DDA •          83% of insured or collateralized deposits ($12.6 billion uninsured) •          Available reciprocal capacity of $17.2 billion Capital Liquidity   •           At March 31, 2024: –         CET1 ratio of 9.45%  –         CET1 ratio, fully converted of 10.14% •          Tangible book value per share of $9.07 as reported, or $6.33 fully converted   •          Total liquidity of $28.0 billion •          Cash held on balance sheet of $12.9 billion •          $4.1 billion of high quality liquid assets ("HQLA") •          $11.7 billion of available borrowing capacity   CEO COMMENTARY  "During the first quarter, we took a number of decisive actions designed to establish a strong foundation for future growth and sustainable profitability," commented Joseph Otting, President and Chief Executive Officer.  "These actions included a $1.05 billion capital investment anchored by Liberty Strategic Capital and we strengthened our senior executive management team with the addition of four proven leaders, whose backgrounds and expertise will be instrumental in our efforts to improve the earnings profile of the bank and enhance long-term shareholder value.  We also completed an in-depth due diligence of the loan portfolio, which included a thorough review of the top 250 multi-family loans, the top 50 office loans, and the top 50 non-office commercial real estate loans, and increased our credit reserve during the quarter.  We anticipate an elevated level of loan loss provision over the remainder of 2024 related to the potential for market and rate conditions to impact borrower performance on certain portions of our loan portfolio." Mr. Otting continued, "Since taking on the CEO role, my focus has been on transforming New York Community Bank into a high-performing, well-diversified regional bank.  While this year will be a transitional year for the Company, we have a clear path to profitability over the following two years.  By the end of 2026, we target significantly higher profitability and higher capital levels, including a return on average earnings assets of 1%, a return on average tangible common equity of 11% to 12%, supported by a common equity tier 1 capital target in the range of 11% to 12%." "Finally, I would like to personally thank all of our teammates.  I know the past several months have been tumultuous and you have endured multiple challenges along the way.  Your dedication has been nothing short of amazing.  My sincere thanks to each and every one of you." NET INCOME (LOSS) | NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS The Company reported a first quarter 2024 net loss of $327 million compared to a net loss of $2.7 billion in the prior quarter and net income of $2.0 billion in the year ago quarter.  Net loss available to common shareholders in the current quarter was $335 million, or $0.45 per diluted share, compared to $2.7 billion, or $3.76 per diluted share, in the prior quarter and net income of $2.0 billion, or $2.87 per diluted share, in the year ago quarter.  As adjusted for merger-related items and a bargain purchase gain adjustment, the net loss for the quarter ended March 31, 2024, was $174 million and net loss available to common shareholders was $182 million, or $0.25 per diluted share. The prior quarter net income and diluted EPS included goodwill impairment of $2.4 billion.  As adjusted for this item and for merger-related items arising from both the Flagstar acquisition and the Signature transaction, and the FDIC special assessment, net loss for the quarter ended December 31, 2023, was $185 million.  Net income for the three months ended March 31, 2023 included a bargain purchase gain of $2.0 billion arising from the Signature transaction.  As adjusted for this item and for other merger-related items arising from both the Flagstar acquisition and the Signature transaction, net income for the quarter ended March 31, 2023, was $167 million.  EARNINGS SUMMARY FOR THE THREE MONTHS ENDED MARCH 31, 2024 Net Interest Income, Net Interest Margin, and Average Balance Sheet   Net Interest Income and Net Interest Margin Summary March 31, 2024 For the Three Months Ended compared to (%): (dollars in millions) March 31, 2024 December 31,2023 March 31, 2023 December 31, 2023 March 31, 2023 Net interest income $                 624 $                 740 $                 555 -16 % 12 % For the Three Months Ended compared to (bp): Yield/Cost March 31, 2024 December 31, 2023 March 31, 2023 December 31, 2023 March 31, 2023 Mortgage and other loans, net 5.68 % 5.72 % 4.92 % -4 76 Securities 4.30 % 4.39 % 3.86 % -9 44 Interest-earning cash and cash equivalents 5.52 % 5.28 % 4.96 % 24 56 Total interest-earning assets 5.51 % 5.55 % 4.80 % -4 71 Total interest-bearing deposits 3.85 % 3.62 % 2.40 % 23 145 Borrowed funds 4.99 % 4.14 % 3.56 % 85 143 Total interest-bearing liabilities 4.19 % 3.73 % 2.77 % 46 142 Net interest margin 2.28 % 2.82 % 2.60 % -54 -32   Net Interest Income Net interest income totaled $624 million in first quarter 2024, down $116 million, or 16%, compared to fourth quarter 2023, and an increase of $69 million, or 12%, compared to the first quarter of 2023.  The decrease from the fourth quarter 2023 is primarily driven by a 54 basis points reduction in the net interest margin and higher average interest-bearing liabilities, partially offset by higher average cash balances.  The increase from the first quarter of 2023 was primarily driven by higher average loans, along with higher average cash balances reflecting actions to proactively manage liquidity needs.  These increases were partially offset by a 32 basis points reduction in the net interest margin and higher average interest-bearing liabilities. Net Interest Margin The net interest margin for the first quarter 2024 was 2.28%, down 54 basis points compared to fourth quarter 2023 and down 32 basis points compared to first quarter 2023.  The 54 basis points reduction compared to fourth quarter 2023 was primarily driven by a higher cost of funds with the average rate on borrowing costs increasing 85 basis points and the impact from a deposit mix shift from lower cost interest-bearing checking and MMA to higher cost certificates of deposits.  The 32 basis points reduction compared to first quarter 2023 was primarily due to the impact from higher interest rates on the cost of funds with average cost of borrowed funds increasing 143 basis points and average cost of interest-bearing deposits increasing 145 basis points, partially offset by higher earning asset yields which increased 71 basis points. Average Balance Sheet March 31, 2024 For the Three Months Ended compared to: (dollars in billions) March 31, 2024 December 31, 2023 March 31, 2023 December 31, 2023 March 31, 2023 Mortgage and other loans, net $84 $86 $71 -2 % 19 % Securities 12 11 11 1 % 7 % Interest-earning cash and cash equivalents 14 7 4 112 % 237 % Other interest-earning assets 0 0 1 NM NM Total interest-earning assets 110 104 87 6 % 27 % Total interest-bearing deposits 60 60 48 — % 24 % Borrowed funds 26 16 22 64 % 15 % Total interest-bearing liabilities 85 75 70 13 % 21 % Non-interest-bearing deposits $19 $23 $13 -15 % 47 %   Average loan balances decreased $1.5 billion, or 2%, to $84.1 billion compared to the previous quarter primarily driven by lower consumer loans due to the sale of the RV/marine portfolio, as well as, lower multi-family, and warehouse loan balances. Average cash balances increased to $14.3 billion during the quarter, up $7.6 billion, reflecting actions to proactively manage liquidity needs and average securities were relatively flat.  The year-over-year increases are primarily driven by the Signature transaction. Average interest-bearing liabilities increased $10.0 billion, or 13% to $85.3 billion on a quarter-over-quarter basis primarily driven by higher average borrowed funds which increased $10.0 billion to $25.7 billion, while average interest-bearing deposits were flat at $59.5 billion. Provision for Credit Losses For the three months ended March 31, 2024, the provision for credit losses totaled $315 million compared to a $552 million provision for the three months ended December 31, 2023, and a $170 million provision for the three months ended March 31, 2023 which included a $132 million initial provision for credit losses for the acquired Signature loan portfolio.  The increase reflects changes in market conditions and interest rates that are expected to affect portions of our portfolios that are subject to current market stresses. Net charge-offs totaled $81 million for the three months ended March 31, 2024, compared with $185 million for the three months ended December 31, 2023.  Net charge-offs on a non-annualized basis represented 0.10% and 0.22% of average loans outstanding for the three months ended March 31, 2024, and for the three months ended December 31, 2023, respectively.  First quarter net charge-offs were $104 million lower compared to the prior quarter despite commercial real estate net charge-offs increasing $22 million. Pre-Provision Net Revenue The tables below detail the Company's PPNR and related measures, which are non-GAAP measures, for the periods noted: March 31, 2024 For the Three Months Ended compared to: (dollars in millions) March 31, 2024 December 31, 2023 March 31, 2023 December 31, 2023 March 31, 2023 Net interest income $                  624 $                  740 $                  555 -16 % 12 % Non-interest income 9 127 2,098 -93 % NM Total revenues $                  633 $                  867 $                2,653 -27 % -76 % Total non-interest expense 699 3,132 476 -78 % 47 % Pre - provision net revenue (non-GAAP) $                  (66) $              (2,265) $                2,177 NM NM Bargain purchase gain 121 11 (2,001) NM NM Provision for bond related credit losses — — 20 NM NM Merger-related and restructuring expenses 43 63 67 -32 % -36 % Goodwill impairment — 2,426 — NM NM FDIC special assessment — 49 — NM NM Pre - provision net revenue excluding merger-related and restructuring expenses and bargain purchase gain, as adjusted (non-GAAP) $                    98 $                  284 $                  263 -66 % -63 %   For the three months ended March 31, 2024, pre-provision net loss totaled $66 million compared to a pre-provision net loss of $2.3 billion for the three months ended December 31, 2023.  Excluding the impact of merger-related and restructuring expenses, FDIC special assessment, bargain purchase gain and goodwill impairment, PPNR for the three months ended March 31, 2024, was $98 million, down $186 million, or 66%, compared to $284 million for the three months ended December 31, 2023. Non-Interest Income March 31, 2024 For the Three Months Ended compared to: (dollars in millions) March 31, 2024 December 31, 2023 March 31, 2023 December 31, 2023 March 31, 2023 Fee income $34 $39 $27 -13 % 26 % Bank-owned life insurance 10 11 10 -9 % — % Net return on mortgage servicing rights 21 33 22 -36 % -5 % Net gain on loan sales and securitizations 20 16 20 25 % — % Net loan administration income 16 17 7 -6 % 129 % Bargain purchase gain (121) (11) 2,001 NM NM Other income 29 22 11 32 % 164 % Total non-interest income $9 $127 $2,098 NM NM Impact of Notable Item: Bargain purchase gain (121) (11) 2,001 NM NM Adjusted noninterest income (non-GAAP) $130 $138 $97 -6 % 34 % Net mortgage gain on sale margin 0.48 % 0.32 % 0.76 % 16 -28 Loans subserviced for others (accounts) 987,228 1,044,009 1,094,869 -5 % -10 %   For the three months ended March 31, 2024, non-interest income totaled $9 million compared to $127 million for the fourth quarter 2023 and $2.1 billion for the first quarter 2023.  Excluding the bargain purchase gain adjustment of $121 million in the first quarter 2024,  $11 million in the fourth quarter 2023 and $2.0 billion in the first quarter 2023 related to the Signature transaction, non-interest income decreased $8 million compared to fourth quarter 2023 and increased $33 million compared to first quarter 2023. The $8 million decrease compared to the fourth quarter 2023 was primarily driven by a lower net return on MSR and lower fee income from commercial and retail banking fees, partially offset by higher other income.  Net gain on loan sales increased to $14 million from $11 million in the prior quarter.  The current quarter included a net gain of $6 million related to the sale of a loan we moved to held-for-sale in the prior quarter and the sale of the RV/Marine portfolio, both of which closed during the current quarter. The $33 million increase compared to the first quarter 2023 was primarily driven by $18 million higher other income, $9 million higher net loan administration income, and $7 million higher fee income.  Net mortgage gain on sale margin decreased 28 basis points to 48 basis points compared to 76 basis points in the first quarter 2023.  Non-Interest Expense March 31, 2024 For the Three Months Ended compared to: (dollars in millions) March 31, 2024 December 31, 2023 March 31, 2023 December 31, 2023 March 31, 2023 Operating expenses: Compensation and benefits $333 $295 $219 13 % 52 % Other 288 312 173 -8 % 66 % Total operating expenses 621 607 392 2 % 58 % Intangible asset amortization 35 36 17 -3 % 106 % Merger-related and restructuring expenses 43 63 67 -32 % -36 % Goodwill impairment — 2,426 — NM NM Total non-interest expense $699 $3,132 $476 -78 % 47 %   For the three months ended March 31, 2024, non-interest expense totaled $699 million, down $2.4 billion on a linked-quarter basis and up $223 million compared to the first quarter 2023.  Excluding merger-related and restructuring expenses, intangible amortization expense, total operating expenses were $621 million for first quarter 2024.  Excluding merger-related and restructuring expenses, intangible amortization expense, goodwill impairment and the FDIC insurance special assessment of $49 million, total operating expenses were $558 million for the fourth quarter 2023.  The linked-quarter increase was primarily driven by higher compensation and benefits expenses attributable to seasonal factors such as payroll tax and 401(k) match resets, merit increases, and higher incentive compensation.  Excluding merger-related and restructuring expenses, intangible amortization expense, adjusted noninterest expense was $392 million for first quarter 2023.  The year-over-year increase was largely attributable to the impact from the Signature transaction, which closed in late March of 2023. Income Taxes For the three months ended March 31, 2024, the Company reported a benefit for income taxes of $54 million compared to a benefit for income taxes of $112 million for the three months ended December 31, 2023.  The decrease was driven by the loss recognized in the current quarter. The effective tax rate for the three months ended March 31, 2024, was 14.32% compared to 3.96% for the three months ended December 31, 2023. ASSET QUALITY March 31, 2024 For the Three Months Ended compared to: (dollars in millions) March 31, 2024 December 31, 2023 March 31, 2023 December 31, 2023 March 31, 2023 Total non-performing loans ("NPLs") $798 $428 $161 86 % 395 % Total non-performing assets ("NPAs") $811 $442 $174 83 % 365 % NPLs to total loans held for investment 0.97 % 0.51 % 0.20 % 46 77 NPAs to total assets 0.72 % 0.39 % 0.14 % 33 58 Net charge-offs (recoveries) $81 $185 $0 -56 % NM Net charge-offs (recoveries) to average loans (1) 0.10 % 0.22 % — % -12 10 Allowance for credit losses on loans and leases $1,215 $992 $550 22 % 121 % ACL % of total loans held for investment 1.48 % 1.17 % 0.67 % 30 81 ACL % of NPLs 152 % 232 % 341 % (1) Three months ended presented on a non-annualized basis. Non-Performing Assets Total NPLs increased $370 million to $798 million at March 31, 2024, compared to December 31, 2023 and equaled 97 basis points of total loans held-for-investment compared to 51 basis points at December 31, 2023.  The increase in NPLs compared to the prior quarter was primarily attributable to an increase in non-performing multi-family and commercial real estate loans.  Total NPAs increased $369 million to $811 million at March 31, 2024, compared to December 31, 2023, and equaled 72 basis points of total assets compared to 39 basis points at December 31, 2023. Allowance for Credit Losses on Loans and Leases At March 31, 2024, the allowance for credit losses on loans and leases was $1.2 billion compared to $992 million at December 31, 2023, up $223 million reflecting changes in market conditions, including interest rates over the quarter.  The in-depth due diligence review we performed of the multi-family and commercial real estate portfolios confirmed our expectations of the potential credit losses that might occur in the portfolio.  The allowance for credit losses on loans and leases to total loans held for investment ratio increased to 1.48% at March 31, 2024, compared to 1.17% at December 31, 2023.  Excluding loans with government guarantees and warehouse loans, the allowance for credit losses was 1.58% at March 31, 2024, compared to 1.26% at December 31, 2023. CAPITAL POSITION The Company's 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. March 31, 2024 December 31, 2023 REGULATORY CAPITAL RATIOS: (1) New York Community Bancorp, Inc. Common equity tier 1 ratio 9.45 % 9.05 % Tier 1 risk-based capital ratio 10.73 % 9.62 % Total risk-based capital ratio 13.09 % 11.77 % Leverage capital ratio 7.90 % 7.75 % Flagstar Bank, N.A. Common equity tier 1 ratio 11.08 % 10.52 % Tier 1 risk-based capital ratio 11.08 % 10.52 % Total risk-based capital ratio 12.33 % 11.61 % Leverage capital ratio 8.16 % 8.48 % (1) The minimum regulatory requirements for classification as a 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%.   About New York Community Bancorp, Inc. New York Community Bancorp, Inc. is the parent company of Flagstar Bank, N.A., one of the largest regional banks in the country. The Company is headquartered in Hicksville, New York. At March 31, 2024, the Company had $112.9 billion of assets, $83.3 billion of loans, deposits of $74.9 billion, and total stockholders' equity of $8.4 billion. Flagstar Bank, N.A. operates 419 branches, including strong footholds in the Northeast and Midwest and exposure to high growth markets in the Southeast and West Coast. Flagstar Mortgage operates nationally through a wholesale network of approximately 3,000 third-party mortgage originators. In addition, the Bank has approximately 100 private banking teams located in over 10 cities in the metropolitan New York City region and on the West Coast, which serve the needs of high-net worth individuals and their businesses. New York Community Bancorp, Inc. has market-leading positions in several national businesses, including multi-family lending, mortgage origination and servicing, and warehouse lending. Flagstar Mortgage is the 7th largest bank originator of residential mortgages for the 12-months ending March 31, 2024, while we are the industry's 5th largest sub-servicer of mortgage loans nationwide, servicing 1.4 million accounts with $367 billion in unpaid principal balances. Additionally, the Company is the 2nd largest mortgage warehouse lender nationally based on total commitments. Post-Earnings Release Conference Call The Company will host a conference call on Wednesday, May 1, 2024, at 8:00 a.m. (Eastern Time) to discuss its first quarter 2024 performance. The conference call may be accessed by dialing (888) 440-5675 (for domestic calls) or (646) 960-0268 (for international calls) and providing the following conference ID: 8007549.  The live webcast will be ...