New York Community Bancorp, Inc. (NYCB) Bundle
A Brief History of New York Community Bancorp, Inc.
New York Community Bancorp, Inc. (NYCB) has undergone significant transformations over the years, culminating in its current status as a leading regional bank in the United States. As of 2024, the company continues to adapt to changing market conditions and consumer demands.
Financial Performance in 2024
As of September 30, 2024, NYCB reported a net interest income of $1.69 billion for the first nine months, a decrease of 28% from $2.34 billion in the same period of 2023. Non-interest income plummeted by 91%, totaling $236 million compared to $2.56 billion in the previous year. This resulted in total revenues of $1.93 billion, down 61% from $4.90 billion in the first nine months of 2023.
| Metric | 2024 (9 Months) | 2023 (9 Months) | % Change |
|---|---|---|---|
| Net Interest Income | $1.69 billion | $2.34 billion | -28% |
| Non-Interest Income | $236 million | $2.56 billion | -91% |
| Total Revenues | $1.93 billion | $4.90 billion | -61% |
Loan and Deposit Trends
As of September 30, 2024, the average loans held decreased by 11% year-over-year to $81.29 billion. This decline was primarily attributed to lower multi-family, commercial real estate, and commercial and industrial loan balances. Conversely, total deposits increased by 5% to $83 billion, reflecting strong retail deposit growth driven by promotional rates.
| Metric | 2024 (Sept) | 2023 (Sept) | % Change |
|---|---|---|---|
| Average Loans | $81.29 billion | $91.86 billion | -11% |
| Total Deposits | $83 billion | $79 billion | +5% |
Asset Quality and Provision for Credit Losses
The company faced challenges in asset quality, with total non-accrual loans held for investment reaching $2.51 billion as of September 30, 2024, up 29% from the previous quarter. The provision for credit losses was notably high at $947 million for the first nine months of 2024, compared to $281 million in the same period of 2023, reflecting increased credit risk in the current economic environment.
| Metric | 2024 (9 Months) | 2023 (9 Months) | % Change |
|---|---|---|---|
| Total Non-Accrual Loans | $2.51 billion | $1.94 billion | +29% |
| Provision for Credit Losses | $947 million | $281 million | +237% |
Net Income and Profitability Ratios
As of September 30, 2024, NYCB reported a net loss of $280 million, significantly down from a net income of $207 million in the same quarter of 2023. The diluted loss per share for the third quarter was $(0.79), compared to earnings of $0.81 per share in the prior year.
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Income (Loss) | $(280 million) | $207 million |
| Diluted Earnings (Loss) per Share | $(0.79) | $0.81 |
NYCB's capital measures reflect a Common Equity Tier 1 (CET1) ratio of 10.8% as of September 30, 2024. The tangible book value per common share was reported at $18.18, down from $30.08 a year prior.
| Metric | 2024 (Sept) | 2023 (Sept) |
|---|---|---|
| CET1 Ratio | 10.8% | 9.43% |
| Tangible Book Value per Share | $18.18 | $30.08 |
A Who Owns New York Community Bancorp, Inc. (NYCB)
Major Shareholders
As of 2024, the ownership structure of New York Community Bancorp, Inc. (NYSE: NYCB) includes a diverse range of institutional and retail investors. The largest shareholders are as follows:
| Shareholder Type | Name | Percentage Owned |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 7.8% |
| Institutional Investor | BlackRock, Inc. | 6.5% |
| Institutional Investor | State Street Corporation | 4.9% |
| Institutional Investor | Wellington Management Co. LLP | 4.2% |
| Retail Investor | Joseph M. Otting (CEO) | 0.5% |
| Other | Insider Ownership | 1.5% |
Stock Performance
As of October 2024, NYCB's stock price is $7.15 per share, reflecting a year-to-date decline of approximately 30%. The market capitalization is approximately $2.97 billion. The price-to-earnings (P/E) ratio stands at 12.5, indicating that the stock may be undervalued compared to its earnings potential.
Recent Financial Performance
For the third quarter of 2024, New York Community Bancorp reported a net loss of $280 million, or $0.79 per diluted share. This compares to a net income of $207 million for the same quarter in 2023. The company's total revenues decreased to $623 million, down 40% year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Interest Income | $510 million | $882 million | -42% |
| Non-Interest Income | $113 million | $160 million | -29% |
| Total Revenues | $623 million | $1,042 million | -40% |
| Total Assets | $118.4 billion | $114.3 billion | +3% |
| Total Deposits | $83 billion | $79 billion | +5% |
Insider and Institutional Ownership
Insider ownership remains relatively stable, with significant stakes held by current executives. The top four institutional shareholders hold a combined total of approximately 23.4% of the company's shares, indicating a strong institutional interest in NYCB.
Market Trends
The banking sector has faced challenges in 2024, with many institutions experiencing increased credit loss provisions. NYCB's provision for credit losses for Q3 2024 was $242 million, significantly higher than the $62 million reported in Q3 2023, reflecting a cautious approach to potential loan defaults.
Conclusion on Ownership Structure
New York Community Bancorp, Inc. has a well-diversified ownership structure with substantial institutional backing. The company's recent financial performance indicates challenges ahead, particularly concerning credit quality and profitability.
New York Community Bancorp, Inc. (NYCB) Mission Statement
Company Overview
New York Community Bancorp, Inc. (NYCB) is the parent company of Flagstar Bank, N.A., one of the largest regional banks in the United States. As of September 30, 2024, NYCB reported total assets of $114.4 billion, total stockholders’ equity of $8.6 billion, and total deposits of $83.0 billion.
Mission Statement
NYCB's mission is to provide high-quality financial services and solutions that enhance the financial well-being of its customers while delivering sustainable value to its shareholders and supporting the communities in which it operates.
Core Values
- Customer Focus: Prioritizing the needs and experiences of customers.
- Integrity: Upholding the highest ethical standards in all operations.
- Community Engagement: Actively participating in and supporting local communities.
- Innovation: Continuously evolving to meet the changing demands of the market.
Financial Performance
| Period | Net Income (Loss) (in millions) | Net Interest Income (in millions) | Total Revenues (in millions) | Total Non-Interest Expense (in millions) |
|---|---|---|---|---|
| Q3 2024 | ($280) | $510 | $623 | $716 |
| Q2 2024 | ($323) | $557 | $671 | $705 |
| Q3 2023 | $207 | $882 | $1,042 | $712 |
Key Metrics as of September 30, 2024
| Metric | Value |
|---|---|
| Total Assets | $114.4 billion |
| Total Loans | $73.0 billion |
| Total Deposits | $83.0 billion |
| Common Equity Tier 1 Ratio | 10.76% |
| Tangible Book Value per Share | $18.18 |
Strategic Initiatives
NYCB is focused on transforming into a diversified regional bank. Key strategic initiatives include:
- Enhancing customer relationships through improved service delivery.
- Expanding product offerings to meet diverse customer needs.
- Increasing operational efficiency to reduce costs.
- Investing in technology to drive innovation and customer experience.
Recent Developments
In the third quarter of 2024, NYCB reported a significant reduction in net interest income, totaling $510 million, down from $882 million in the same quarter of the previous year. The decline was attributed to lower average loan balances and increased competition for deposits. The company’s total non-interest expense increased to $716 million, reflecting ongoing investments in operational improvements and technology enhancements.
Outlook
NYCB aims to leverage its strong capital position and liquidity to navigate the challenges in the banking environment while continuing to focus on customer satisfaction and community support.
How New York Community Bancorp, Inc. (NYCB) Works
Overview of Business Operations
New York Community Bancorp, Inc. (NYCB) operates primarily through its banking subsidiary, Flagstar Bank, N.A. As of September 30, 2024, the company has total assets amounting to approximately $97.6 billion, with total deposits reaching $83 billion, reflecting a growth of $4 billion or 5% compared to the previous quarter .
Financial Performance
For the third quarter of 2024, NYCB reported a net loss of $280 million, translating to a loss of $0.79 per diluted share. This was an improvement from a net loss of $323 million in the prior quarter . For the first nine months of 2024, the net loss totaled $930 million, compared to net income of $2.6 billion for the same period in 2023 .
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $510 million | $557 million | $882 million |
| Non-Interest Income | $113 million | $114 million | $160 million |
| Total Revenues | $623 million | $671 million | $1.042 billion |
| Total Non-Interest Expense | $716 million | $705 million | $712 million |
| Pre-Provision Net Revenue | $(93) million | $(34) million | $330 million |
Interest Income and Margin
The net interest margin for Q3 2024 was reported at 1.79%, down 19 basis points from the previous quarter and down 148 basis points year-over-year . The decline in net interest margin is attributed to rising costs of funds and a reduction in average loan balances, which decreased by 8% to $76.6 billion compared to the prior quarter .
Loan Portfolio and Asset Quality
As of September 30, 2024, NYCB's total loans held for investment (LHFI) amounted to $76.6 billion, a decrease of $6.7 billion or 8% from the previous quarter . The allowance for credit losses was $1.3 billion, representing 1.87% of loans held for investment . Non-performing loans (NPLs) increased to 3.54% of total loans held for investment .
| Loan Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Loans Held for Investment | $76.6 billion | $83.3 billion | $85.7 billion |
| Allowance for Credit Losses | $1.3 billion | $1.3 billion | $667 million |
| Non-Performing Loans Ratio | 3.54% | 2.60% | 0.52% |
Capital Position and Liquidity
NYCB maintains a strong capital position, with a common equity tier 1 (CET1) ratio of 10.76% as of September 30, 2024 . The company reported total liquidity of over $41 billion, significantly higher than the previous quarter .
| Capital Ratios | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|
| CET1 Ratio | 10.76% | 9.54% | 9.05% |
| Tier 1 Risk-Based Capital Ratio | 11.42% | 10.43% | 9.62% |
| Total Risk-Based Capital Ratio | 13.92% | 12.78% | 11.77% |
| Leverage Capital Ratio | 7.32% | 7.53% | 7.75% |
Deposits and Funding
As of September 30, 2024, NYCB's total deposits were $83 billion, reflecting a growth of $4 billion or 5% . Retail deposits accounted for $35 billion, while private bank deposits rose to $17.9 billion . The loan-to-deposit ratio was 86%, a significant decline from 110% in Q1 2024 .
Non-Interest Income
Non-interest income for the first nine months of 2024 totaled $236 million, a drastic decrease from $2.56 billion in the same period of 2023 . This decline is primarily due to lower transaction volumes in loan sales and securitizations .
| Non-Interest Income Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Non-Interest Income | $113 million | $114 million | $160 million |
| Net Gain on Loan Sales | $5 million | $18 million | $28 million |
| Net Return on Mortgage Servicing Rights | $34 million | $19 million | $23 million |
Provision for Credit Losses
For the third quarter of 2024, the provision for credit losses was $242 million, compared to $390 million in the previous quarter . Year-to-date, the total provision for credit losses reached $947 million, significantly higher than $281 million in the same period of 2023 .
How New York Community Bancorp, Inc. (NYCB) Makes Money
Net Interest Income
For the third quarter of 2024, New York Community Bancorp, Inc. reported a net interest income of $510 million, a decrease of 8% from the previous quarter and 42% from the same quarter in 2023. The total net interest income for the first nine months of 2024 was $1.691 billion, down 28% year-over-year from $2.337 billion in 2023.
| Period | Net Interest Income (in millions) | Change vs Previous Period |
|---|---|---|
| Q3 2024 | $510 | -8% |
| Q3 2023 | $882 | -42% |
| 9M 2024 | $1,691 | -28% |
| 9M 2023 | $2,337 | - |
Loan Portfolio
As of September 30, 2024, the average loan balances decreased to $76.6 billion, representing an 8% decline from the previous quarter and an 11% decrease year-over-year. The average mortgage and other loans yielded 5.53% in Q3 2024, down from 5.82% in Q3 2023.
Deposits and Funding
For the third quarter of 2024, total deposits stood at $83 billion, reflecting a growth of $4 billion or 5% from the previous quarter. The average interest-bearing deposits rose to $63.6 billion, a 7% increase compared to the previous quarter and 10% year-over-year.
| Category | Amount (in billions) | Change vs Previous Period |
|---|---|---|
| Total Deposits | $83.0 | +5% |
| Interest-Bearing Deposits | $63.6 | +7% |
| Average Loans | $76.6 | -8% |
Non-Interest Income
In Q3 2024, non-interest income totaled $113 million, a decrease of 1% compared to the previous quarter and 29% year-over-year. The primary contributors included fee income of $42 million and net returns on mortgage servicing rights of $34 million.
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Non-Interest Income | $113 | $160 |
| Fee Income | $42 | $58 |
| Net Return on Mortgage Servicing Rights | $34 | $23 |
Expenses and Losses
Total non-interest expense for Q3 2024 was $716 million, a slight increase of 2% from the previous quarter. The provision for credit losses rose significantly to $242 million in Q3 2024, compared to $62 million in Q3 2023. Net charge-offs were $240 million, representing 0.31% of average loans outstanding.
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Total Non-Interest Expense | $716 | $712 |
| Provision for Credit Losses | $242 | $62 |
| Net Charge-Offs | $240 | $24 |
Profitability Metrics
New York Community Bancorp reported a net loss of $280 million for Q3 2024, translating to a loss per diluted share of $0.79. This compares to a net income of $207 million for the same quarter in 2023. The efficiency ratio was recorded at 105.96%, indicating a challenging cost management environment.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss (in millions) | $280 | $207 |
| Loss per Diluted Share | $0.79 | $0.82 |
| Efficiency Ratio | 105.96% | 56.15% |
Capital and Liquidity
The Common Equity Tier 1 (CET1) ratio was reported at 10.8% as of September 30, 2024, with total liquidity exceeding $41 billion. The book value per common share decreased to $19.43 from $32.66 year-over-year.
| Category | Value |
|---|---|
| CET1 Ratio | 10.8% |
| Total Liquidity (in billions) | $41 |
| Book Value per Common Share | $19.43 |
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Article updated on 8 Nov 2024
Resources:
- New York Community Bancorp, Inc. (NYCB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of New York Community Bancorp, Inc. (NYCB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View New York Community Bancorp, Inc. (NYCB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.