About New York Community Bancorp

New York Community Bancorp, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides various banking products and services. The company has market-leading positions in several national businesses, including multi-family lending, mortgage originations and servicing, and warehouse lending. The company is the second-largest multi-family portfolio lender in the country and the leading multi-family portfolio lender in the New York City market area, where it specializes in rent-regulated, non-luxury apartment buildings. The company operates branches across nine states, including strong footholds in the Northeast and Midwest and has exposure to high growth markets in the Southeast and on the West Coast. Flagstar Mortgage operates nationally through a wholesale network of approximately 3,000 third-party mortgage originators. The market for the loans the company produces varies, depending on the type of loan. For example, the vast majority of the company’s multi-family loans are collateralized by rental apartment buildings in New York City, while the majority of the properties collateralizing the company’s CRE (commercial real estate loan) and ADC loans are located in the Northeast and Midwest. The company’s specialty finance loans and leases are generally made to large corporate obligors that participate in stable industries nationwide and the company’s warehouse loans are made to mortgage lenders across the country. The company’s customers also have 24-hour access to their accounts through the company’s mobile banking app, online through the company’s website, www.myNYCB.com, or through the company’s bank-by-phone service. The company also offers certain money market accounts, certificates of deposit and checking accounts through a dedicated website: www.myBankingDirect.com. In addition to checking and savings accounts, retirement accounts, and CDs for both businesses and consumers, the company offers a suite of cash management products to address the needs of small and mid-size businesses and professional associations. Loans Multi-Family Loans Multi-family loans are the company’s principal asset. The loans the company produces are primarily secured by non-luxury residential apartment buildings in New York City that feature rent-regulated units and below-market rents—a market the company refers to as the company’s ‘primary lending niche’. The majority of the company’s multi-family loans were secured by rental apartment buildings. Commercial Real Estate The CRE loans the company produces are secured by income-producing properties, such as office buildings, retail centers, mixed-use buildings, and multi-tenanted light industrial properties. Acquisition, Development, and Construction Loans (ADC) The company offers ADC loans. When applicable, as a condition to closing an ADC loan, it is the company’s practice to require that properties meet pre-sale or pre-lease requirements prior to funding. C&I Loans The non-warehouse C&I loans the company produces are primarily made to small and mid-size businesses and finance companies. Such loans are tailored to meet the specific needs of the company’s borrowers, and include term loans, demand loans, revolving lines of credit, and, to a much lesser extent, loans that are partly guaranteed by the Small Business Administration. A broad range of C&I loans, both collateralized and unsecured, are made available to businesses for working capital (including inventory and accounts receivable), business expansion, the purchase of machinery and equipment, and other general corporate needs. C&I loans are typically secured by business assets and personal guarantees of the borrower, and include financial covenants to monitor the borrower’s financial stability. Also included in the company’s C&I portfolio is the company’s national warehouse lending platform with relationship managers across the country. The company offers warehouse lines of credit to other mortgage lenders which allow the lender to fund the closing of residential mortgage loans. Each extension, advance, or draw-down on the line is fully collateralized by residential mortgage loans and is paid off when the lender sells the loan to an outside investor or, in some instances, to the bank. The company produces its specialty finance loans and leases through a subsidiary that is staffed by a group of industry veterans with expertise in originating and underwriting senior securitized debt and equipment loans and leases. The specialty finance loans and leases the company funds fall into three categories: asset-based lending, dealer floor-plan lending, and equipment loan and lease financing. One-to-Four Family Loans The company offers one-to-four family loans. These loans include various types of conforming and non-conforming fixed and adjustable rate loans underwritten using Fannie Mae and Freddie Mac (the Federal Home Loan Mortgage Corporation) guidelines for the purpose of purchasing or refinancing owner occupied and second home properties. Other Loans The company offers other loans that primarily include home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans and other consumer loans, including overdraft loans. The company’s home equity portfolio includes HELOANs, second mortgage loans, and HELOCs. Point of sale loans consist of unsecured consumer installment loans originated primarily for home improvement purposes through a third-party financial technology company who also provides the company a level of credit loss protection. Deposits As of December 31, 2022, the company’s deposits included interest-bearing checking and money market accounts; savings accounts; certificates of deposit; and non-interest-bearing accounts. Securities As of December 31, 2022, the company’s securities included mortgage-related debt securities, such as government-sponsored enterprise (GSE) certificates, GSE collateralized mortgage obligations (CMOs), and private label CMOs; the U.S. treasury obligations; GSE debentures; asset-backed securities; municipal bonds; corporate bonds; foreign notes; and capital trust notes. Regulation and Supervision The bank is a national banking association, subject to federal regulation and oversight by the Office of the Comptroller of the Currency (OCC). The activities of the bank are limited to those specifically authorized under the National Bank Act and related interpretations of the OCC. The company is also subject to regulation and examination by the Federal Deposit Insurance Corporation (FDIC), which insures the deposits of the bank to the extent permitted by law and the requirements established by the Federal Reserve. The bank is also subject to the supervision of the CFPB, which regulates the offering and provision of consumer financial products or services under federal consumer financial laws. As a bank holding company, the company is required to comply with the rules and regulations of the Federal Reserve. The company is required to file certain reports, and the company is subject to examination by, and the enforcement authority of, the Federal Reserve. Under the federal securities laws, the company is also subject to the rules and regulations of the SEC. The deposits of the bank are insured up to applicable limits by the Deposit Insurance Fund. The company is subject to examination, regulation, and periodic reporting under the BHCA, as administered by the Federal Reserve Board (FRB). The Sarbanes-Oxley Act of 2002 generally prohibits loans by the company to its executive officers and directors. The bank is subject to the Bank Secrecy Act (‘BSA’) and other anti-money laundering laws and regulations, including the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act, commonly referred to as the ‘USA PATRIOT Act’ or the ‘Patriot Act’. The bank is also required to comply with the U.S. Treasury’s Office of Foreign Assets Control imposed economic sanctions that affect transactions with designated foreign countries, nationals, individuals, entities and others. The company’s anti-money laundering program is also designed to prevent the company’s products from being used to facilitate business in certain countries or territories, or with certain individuals or entities, including those on designated lists promulgated by the U.S. Department of the Treasury’s Office of Foreign Assets Controls and other U.S. and non-U.S. sanctions authorities. The GLBA requires financial institutions to periodically disclose their privacy practices and policies relating to sharing such information and enable retail customers to opt out of the company’s ability to share certain information with affiliates and non-affiliates for marketing and/or non-marketing purposes, or to contact customers with marketing offers. The bank is a member of the FHLB-NY (Federal Home Loan Bank of New York). As a member of the FHLB-NY, the bank is required to acquire and hold shares of FHLB-NY capital stock. The company’s common stock and certain other securities listed on the cover page of this report are registered with the SEC under the Securities Exchange Act of 1934, as amended (the ‘Exchange Act’). The company is subject to the information and proxy solicitation requirements, insider trading restrictions, and other requirements under the Exchange Act. The bank is subject to oversight by the CFPB (Consumer Financial Protection Bureau) within the Federal Reserve System. The company’s mortgage banking business is subject to the rules and regulations of the U.S. Department of Housing and Urban Development (‘HUD’), the Federal Housing Administration (FHA), the Veterans’ Administration (‘VA’) and Fannie Mae with respect to originating, processing, selling and servicing mortgage loans. The company is also subject to examination by Federal National Mortgage Association (Fannie Mae), FHA and VA to assure compliance with the applicable regulations, policies and procedures. History New York Community Bancorp, Inc. was founded in 1859.