Mittwoch, 28.10.2020 12:05 von PR Newswire | Aufrufe: 9

New York Community Bancorp, Inc. Reports Third Quarter 2020 Diluted EPS Of $0.23 On Continued Double-Digit NIM Expansion And Strong Loan Growth While 95% Of $3.1 Billion In Eligible Loan Deferrals Returned To Payment Status

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PR Newswire


WESTBURY, N.Y., Oct. 28, 2020 /PRNewswire/ --


Third Quarter 2020 Summary

Earnings:


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Diluted EPS of $0.23, up 10% compared to the second quarter of the year and up 21% compared to the year-ago third quarter.

Kurse

  

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Net income available to common shareholders for the third quarter was $107.6 million, up 11% compared to the second quarter of the year and up 18% compared to the year-ago third quarter.


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Pre-provision net revenue for the third quarter of 2020 totaled $167.1 million, up 6% relative to the second quarter of the year and up 22% compared to the year-ago third quarter. (1)


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The efficiency ratio for the third quarter was 43.47%, down slightly compared to the second quarter of the year and compared to 47.37% in the year-ago third quarter.


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Third quarter results included a provision for credit losses of $13.0 million, down 26% compared to the second quarter of the year.

Net Interest Margin/Income:


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The net interest margin increased 11 bps to 2.29% compared to the second quarter of the year and was up 30 bps compared to the year-ago third quarter.


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Prepayment income added nine bps to the third quarter NIM, same as in the previous quarter.  Excluding the impact from prepayments, the NIM on a non-GAAP basis would have been 2.20%, up 11 bps sequentially and 32 bps compared to the year-ago third quarter.


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Net interest income for the third quarter increased 6% to $281.9 million compared to the second quarter and was up 19% compared to the year-ago third quarter driven by significantly lower interest expense.

Balance Sheet:


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 Total loans held for investment grew $935 million on a year-to-date basis to $42.8 billion, up 3% annualized and increased $523 million, up 5% annualized  compared to the second quarter, led by continued growth in the multi-family portfolio and a rebound in specialty finance lending.


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During the first nine months of 2020, multi-family loans increased $942 million or 4% annualized to $32.1 billion and increased $504 million or 6% annualized on a sequential basis.


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Specialty finance loans and leases totaled $3.1 billion, up $138 million or 19% annualized compared to the previous quarter and are up 22% annualized compared to the beginning of 2020.


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Total deposits of $31.7 billion were relatively unchanged compared to both the previous quarter and to year-end 2019.

Asset Quality:


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From June 30, 2020 through October 22nd, 95% of the $3.1 billion of loan deferrals eligible to come off of deferral returned to payment status and represented 7.3% of total loans as of this date compared to 14.4% at June 30, 2020.


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Non-performing assets declined to $54.9 million or 0.10% of total assets, compared to $63.2 million or 0.12% of total assets as of June 30, 2020; NPAs included $32.0 million of non-performing taxi medallion loans compared to $33.6 million in the previous quarter.


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The allowance for loan and lease losses increased $14.0 million to $188.3 million at September 30, 2020, compared to the previous quarter, and represented 415.22% of non-performing loans and 0.44% of total loans.

Capital Position at September 30, 2020:


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Common Equity Tier 1 Capital Ratio was 9.68%.


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Tier 1 Risk-Based Capital Ratio was 10.94%.


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Total Risk-Based Capital Ratio was 13.00%.


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Leverage Capital Ratio was 8.42%.

(1)

Pre-provision net revenue is a non-GAAP measure, but we believe it is 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 September 30, 2020 of $115.8 million, up 10% compared to the $105.3 million we reported for the three months ended June 30, 2020 and up 17% compared to the $99.0 million the Company reported in the year-ago quarter.  For the nine months ended September 30, 2020, the Company reported net income of $321.4 million, up 9% compared to the $293.9 million of net income reported in the first nine months of 2019.

Net income available to common shareholders for the third quarter of 2020 totaled $107.6 million, up 11% compared to $97.1 million for the second quarter of 2020 and was up 18% compared to the $90.8 million reported for the third quarter of 2019.  On a year-to-date basis, net income available to common shareholders totaled $296.8 million, up 10% compared to the $269.2 million reported for the first nine months of 2019.

On a per share basis, the Company reported diluted EPS of $0.23 for the third quarter of 2020, up 10% compared to the $0.21 reported for the second quarter of 2020, and up 21% compared to the $0.19 reported for the third quarter of 2019.  For the first nine months of 2020, diluted EPS were $0.63, up 11% compared to diluted EPS of $0.57 for the first nine months of 2019.

Commenting on the Company's third quarter performance, President and Chief Executive Officer Joseph R. Ficalora stated: "We are very pleased with our strong third quarter results, especially given the uneven economic recovery and the lingering effects from the COVID-19 pandemic over the past quarter.  We had solid net income and EPS growth during the current third quarter, driven by strong loan growth and double-digit net interest margin expansion resulting in continued net interest income growth.  At the same time, operating expenses remained well-contained leading to higher levels of pre-provision net revenues.

"More importantly, our loan deferrals declined significantly.  From June 30, 2020 to October 22nd, $3.1 billion of loan deferrals were eligible to come off of their deferral period. As of October 22nd, 95% of these deferrals returned to payment status. As of this date, deferrals represented 7.3% of total loans compared to 14.4% as of June 30, 2020. Going forward, an additional $3.1 billion of deferrals are scheduled to come off of their deferral period, the majority of which are eligible to do so during November. Given October's strong payment performance, we remain confident about deferral payment trends through the remainder of the year.

"Our asset quality metrics remain very strong and rank among the best in the industry. Our NPAs declined on a linked quarter basis and we recorded a net recovery during the quarter. As always, we will continue to closely monitor our entire loan portfolio for any signs of stress.

"Our net interest margin increased 11 basis points to 2.29% during the third quarter, compared to the second quarter level.  Excluding the impact from prepayment income, the margin also increased 11 basis points to 2.20%.  The continued improvement was the result of lower funding costs as our maturing certificates of deposits repriced significantly lower during the quarter, while the cost of our borrowings also declined. At the same time, loan yields were relatively stable, down only five basis points on a sequential basis.

"On the lending side, our loan portfolio grew, both on a year-to-date and sequential basis.  Overall, loans grew 3% annualized on a year-to-date basis and 5% on an annualized basis compared to the prior quarter.  The linked-quarter growth was driven by ongoing growth in our core multi-family portfolio and a rebound in our specialty finance portfolio.  We ended the third quarter with a solid loan pipeline, which bodes positively for fourth quarter loan growth.

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

DIVIDEND DECLARATION

The Board of Directors yesterday declared a quarterly cash dividend of $0.17 per share on the Company's common stock.  Based on a closing price of $8.33 as of October 27, 2020, this represents an annualized dividend yield of 8.2%.  The dividend is payable on November 17, 2020 to common shareholders of record as of November 7, 2020.

BALANCE SHEET SUMMARY

At September 30, 2020, assets totaled $54.9 billion, up $1.3 billion compared to December 31, 2019.  This growth was primarily due to continued loan growth offset somewhat by a decline in the securities portfolio. This growth was funded mainly through wholesale borrowings while total deposits were relatively unchanged.

Total loans and leases held for investment increased to $42.8 billion, up $935 million or 3% annualized compared to December 31, 2019 and up $523 million or 5% annualized compared to June 30, 2020.  Loan growth for both the year-to-date and quarter-to-date periods was driven by growth in our multi-family portfolio and in our specialty finance portfolio, offset by a decline in the commercial real estate ("CRE") portfolio.

Total securities, consisting mainly of available-for-sale securities, declined $621 million compared to December 31, 2019 but increased modestly compared to June 30, 2020.  The Company has refrained from meaningfully growing the securities portfolio, given the currently low interest rate environment, which is expected to persist in the foreseeable future.

On the liability side, total deposits of $31.7 billion were relatively unchanged compared to both the previous quarter and compared to the levels at December 31, 2019.  However, the deposit mix is trending toward lower cost deposit account categories. Borrowed funds rose $1.1 billion compared to December 31, 2019 and $675 million compared to June 30, 2020.

Loans

Total multi-family loans rose $942 million or 4% annualized to $32.1 billion compared to the balance at December 31, 2019.  On a linked-quarter basis, total multi-family loans increased $504 million or 6% annualized compared to June 30, 2020.  The continued growth in our multi-family portfolio is the result of three factors:  increased refinancing activity as many loans are nearing their contractual maturity or option repricing dates; higher retention rates; and market share gains as some bank and thrift competitors have either retrenched from this market or are no longer focused on this type of lending.

The specialty finance portfolio rebounded during the third quarter.  Specialty finance loans and leases increased $138 million to $3.1 billion or 19% annualized compared to the second quarter of this year.  On a year-to-date basis, specialty finance loans and leases grew $439 million or 22% annualized compared to December 31, 2019.  During second-quarter 2020, the COVID-19 pandemic had a temporary negative impact on this category, especially in the dealer financing segment.  This segment returned to form during the third quarter while other borrowers have drawn on their lines during the current quarter as their businesses have improved.

The CRE loan portfolio declined $197 million or 4% annualized compared to the balance at December 31, 2019, and declined $45 million or 3% annualized compared to the balance at June 30, 2020.

Additionally, as of September 30, 2020, the Company had $117.3 million of loans held for sale, up $14 million compared to June 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 held for sale.

During the third quarter, the average loan size for our multi-family loans was $6.6 million and for our CRE loans, it was $6.7 million.  Both metrics were relatively unchanged compared to the average loan size in the previous quarter.

The weighted average life of the multi-family portfolio for the third quarter of the year was 2.0 years compared to 1.9 years for the second quarter of the year, and for the CRE portfolio, it was 2.3 years, unchanged compared to the prior quarter.

Originations

For the three months ended September 30, 2020, loans and leases originated for investment, excluding PPP loan originations, totaled $3.0 billion, down 9% compared to June 30, 2020 and exceeded that quarter's pipeline by $800 million.  Originations rose 31% compared to the $2.3 billion we originated during the third quarter of last year.  For the nine months ended September 30, 2020, originations totaled $9.0 billion, up 23% compared to $7.3 billion for the nine months ended September 30, 2019.

Pipeline

The current loan pipeline stands at $1.8 billion.  Of this amount, approximately 61% is new money, slightly better than the previous quarter.  The current pipeline composition includes $1.4 billion in multi-family loans, $141 million in specialty finance loans and leases, and $199 million in CRE loans.

Funding

Deposits

In line with the Company's strategy to substantially reduce its cost of funds given the significant drop in market interest rates and the correct expectation that market rates will remain low for an extended period of time, CDs declined $1.1 billion during the third quarter and $3.2 billion on a year-to-date basis to $11.0 billion.

Some of the drop in CDs was offset by growth in other deposit categories, which have lower rates. Interest-bearing checking and money market accounts rose $553 million, while they increased $1.5 billion on a year-to-date basis, to $11.7 billion. Savings accounts increased $340 million to $6.0 billion compared to the second quarter and they rose $1.2 billion compared to year end 2019. Also, non-interest-bearing checking accounts grew $135 million on a linked-quarter basis and $624 million on a year-to-date basis to $3.1 billion.

Looking ahead, the Company has $5.8 billion in CDs which are scheduled to mature during the fourth quarter of this year.  These CDs carry a weighted average interest rate of 1.46%.  Over the next four quarters (fourth quarter 2020 through third quarter 2021), the Company has $11.6 billion of CDs with a weighted average interest rate of 1.21% which are scheduled to mature.

During the current third quarter, our deposit costs dropped 31 basis points to 0.85% compared to the second quarter of 2020 and 104 basis points compared to the year-ago quarter.  For the nine months ended September 30, 2020, our deposit costs declined 65 basis points to 1.21% compared to the nine months ended September 30, 2019.

Borrowings

During the third quarter of 2020, the Company continued to take advantage of the low interest rate environment and favorable capital market conditions to lock in intermediate-to-long-term funding at attractive rates.  Wholesale borrowings, consisting primarily of advances from the Federal Home Loan Bank of New York (the "FHLB-NY") increased $675 million to $15.0 billion compared to the previous quarter and rose $1.1 billion compared to the level at year-end 2019.

The FHLB-NY advances that the Company added during the current quarter had a blended rate of 0.45% and an average term of 2.0 years.  This compared to an overall average cost of 1.97% during the current quarter.  The Company has an additional $725 million of FHLB-NY advances maturing in the fourth quarter of 2020 with an average weighted cost of 1.18%.  Over the next four quarters (fourth quarter 2020 through third quarter 2021), we have $1.4 billion of maturing FHLB-NY advances with a weighted average cost of 1.44%.

Liquidity

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

As of September 30, 2020, our available funding with the FHLB-NY was $7.3 billion and with the FRB-NY, it was $1.1 billion.  Additionally, the unencumbered portion of the securities portfolio totaled $3.9 billion.

Asset Quality

Loan Deferral Update

During the second quarter of 2020, the Company implemented various loan modification programs with some of its borrowers, in accordance with the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act").  These modifications were primarily full-payment deferrals for an initial six-month period, with the ability to extend again at the end of the deferral period, at the Bank's discretion.

From June 30, 2020 to October 22, 2020, we had $3.1 billion of loan deferrals that were eligible to come off of their deferral period. As of October 22nd, approximately $3.0 billion or 95% of these deferrals returned to payment status, while the remaining 5% or $157 million have come off deferral but are still due for their first payment. We continue to work with these borrowers on a case by case basis to provide additional assistance, if needed, in line with regulatory guidance and the CARES Act.

Going forward, we have an additional $3.1 billion of loan deferrals eligible to come off of their deferral periods, $2.9 billion of which, are scheduled to do so during November.

Non-Performing Assets

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