On October 26, 2023, New York Community Bancorp Inc (NYCB, Financial) released its third quarter 2023 earnings report. The company reported a GAAP basis diluted EPS of $0.27, which includes several merger-related items. Adjusted for these items, the diluted EPS for the third quarter was $0.36, down from $0.47 in the second quarter of 2023.
Financial Performance
The net income available to common stockholders for the third quarter was $199 million, compared to $405 million in the second quarter of 2023, which includes a bargain purchase gain of $141 million. Adjusted for these items, the net income available to common stockholders for the third quarter was $266 million, down from $345 million in the second quarter of 2023.
Net Interest Margin and Income
The net interest margin (NIM) for the third quarter of 2023 improved to 3.27%, up six basis points compared to the second quarter of 2023. Net interest income during the third quarter of 2023 totaled $882 million, compared to $900 million during the previous quarter of 2023.
Balance Sheet Summary
As of September 30, 2023, total assets were $111.2 billion, a decline of $7.6 billion compared to June 30, 2023. This was primarily due to a decline in cash balances, a portion of which was used to pay down wholesale borrowings and brokered deposits. This was partially offset by growth in the loan portfolio.
Asset Quality
Non-performing assets (NPAs) were $404 million at September 30, 2023 or 0.36% of total assets. Non-performing loans (NPLs) were $392 million at September 30, 2023 or 0.47% of total loans. The allowance for credit losses totaled $619 million at September 30, 2023 or 158% of non-performing loans and 0.74% of total loans.
CEO Commentary
“Our third-quarter operating results reflect another strong performance for the Company, highlighted by a number of positives. The net interest margin continued to expand and is above 3.00% for the second consecutive quarter, we grew loans despite the high interest rate environment, and deposit trends were stable." - Thomas R. Cangemi, President and Chief Executive Officer
Dividend Declaration
On October 24, 2023, the Company's Board of Directors declared a quarterly cash dividend of $0.17 per share on the Company's common stock. The dividend is payable on November 16, 2023 to common stockholders of record as of November 6, 2023.
Explore the complete 8-K earnings release (here) from New York Community Bancorp Inc for further details.
