Executive Summary

NYCB reported Q1 2024 GAAP net loss to common of $335M (-$0.45 per diluted share) as NIM compressed 54 bps q/q to 2.28% and provision remained elevated; adjusted loss to common was $182M (-$0.25) as the company continued balance sheet de-risking and reserve build .
Management raised $1.05B of equity (anchored by Liberty Strategic Capital), bolstering capital/liquidity (CET1 9.45%; 10.14% fully converted; liquidity $28.0B), and outlined targets for peer-level profitability by Q4 2026 (ROAA 1%, ROATCE 11–12%, CET1 11–12%) .
Credit costs and reserves remained a focus: provision was $315M; NPL ratio rose to 0.97% with higher multi-family and CRE NPLs; ACL to loans increased to 1.48% (office coverage 10.33%) .
Deposits were $74.9B (83% insured or collateralized), with available reciprocal capacity of $17.2B; mix shifted toward higher-cost CDs, pressuring NIM; efficiency ratio rose to 82.5% as revenues fell and opex rose seasonally .
Management expects elevated provision for the remainder of 2024; S&P Global consensus estimates were unavailable in our data, so estimate comparisons could not be provided .

What Went Well and What Went Wrong

What Went Well
- Capital and liquidity strengthened: $1.05B equity raised; CET1 9.45% (10.14% fully converted); liquidity $28.0B; TBV/share $9.07 (as reported) .
- Clear multi‑year profitability roadmap: targets for ROAA (1%), ROATCE (11–12%), CET1 (11–12%) by Q4 2026 signal strategic intent and end-state metrics .
- Noninterest income, ex. bargain purchase adjustments, showed resilience with adjusted noninterest income $130M; mortgage gain-on-sale margin improved q/q to 0.48% from 0.32% in Q4 .
- CEO tone emphasized decisive actions and team execution: “we took a number of decisive actions designed to establish a strong foundation for future growth and sustainable profitability” .
What Went Wrong
- Margin pressure: NIM fell to 2.28% (-54 bps q/q) as cost of funds rose (borrowed funds +85 bps q/q) and deposit mix shifted to higher-cost CDs .
- Credit normalization and reserve build: provision was $315M; NPLs rose to 0.97% of loans; net charge-offs were $81M; ACL to loans increased to 1.48% (office coverage 10.33%) .
- Operating leverage deteriorated: total revenues declined to $633M while noninterest expense of $699M (seasonal comp/benefits and higher incentives) pushed the efficiency ratio to 82.47% .

Financial Results

Metric	Q1 2023	Q3 2023	Q4 2023	Q1 2024
Total Revenues ($M)	$2,653	$1,042	$886	$633
Net Income (Loss) to Common ($M)	$1,998	$199	$(260)	$(335)
Diluted EPS ($)	$2.87	$0.27	$(0.36)	$(0.45)
Net Interest Margin (%)	2.60%	3.27%	2.82%	2.28%
Provision for Credit Losses ($M)	$170	$62	$552	$315
PPNR, adj. ($M)	$263	$421	$285	$98

Notes: Q1 2023 revenues/earnings include a large bargain purchase gain from the Signature transaction; adjusted figures are provided separately where disclosed .

Segment breakdown: Not applicable; NYCB does not report discrete operating segments in these materials.

KPIs

KPI	Q3 2023	Q4 2023	Q1 2024
Deposits ($B)	$82.675	$81.365	$74.858
Total Assets ($B)	$111.230	$116.322	$112.900
CET1 Ratio (%) – Company	9.60	9.10	9.45
NPLs / Loans (%)	0.47	0.51	0.97
ACL / Loans (%)	0.74	1.17	1.48
Efficiency Ratio (%)	56.15	67.86	82.47
Tangible BVPS ($)	$10.25	$10.06	$9.07

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability targets (ROAA, ROATCE)	By Q4 2026	n/a	ROAA 1%; ROATCE 11–12% by Q4 2026	Introduced
CET1 Capital Target	By Q4 2026	n/a	CET1 11–12% by Q4 2026	Introduced
Credit Costs	FY 2024	n/a	Expect elevated provision over remainder of 2024	Updated outlook
Dividend	Current run-rate	$0.05 per share in Q4 2023	$0.05 per share in Q1 2024 (actual)	Maintained payout level

Earnings Call Themes & Trends

(Transcript unavailable in our system for Q1 2024; thematic comparisons reflect management commentary from the press releases/8-Ks.)

Topic	Previous Mentions (Q3 2023 and Q4 2023)	Current Period (Q1 2024)	Trend
Capital & Liquidity	Prepared for Category IV; building liquidity; dividend cut to $0.05 to accelerate capital; CET1 9.10% (Q4)	Raised $1.05B equity; CET1 9.45% (10.14% fully converted); liquidity $28B	Improving capital/liquidity
NIM & Funding Costs	NIM expanded to 3.27% in Q3; then compressed to 2.82% in Q4 due to liquidity build	NIM 2.28% (-54 bps q/q) amid higher cost of funds and CD mix shift	Pressure intensifying
Credit/CRE Exposure	Q3 NPLs rose on two office loans; Q4 reserve build, two loans drove NCOs; ACL to loans 1.17%	NPLs 0.97%; ACL to loans 1.48%; office coverage 10.33%	Higher reserves; tighter stance
Deposits	Stable ex. custodial in Q3; Q4 deposits down slightly to $81.4B	Deposits $74.9B; 83% insured/collateralized; reciprocal capacity $17.2B	Lower balance, improved quality
Mortgage/Servicing	Gain-on-sale margin 0.59% (Q3) → 0.32% (Q4); MSR returns supportive	Gain-on-sale margin 0.48%; adjusted noninterest income $130M	Stabilizing

Management Commentary

“During the first quarter, we took a number of decisive actions designed to establish a strong foundation for future growth and sustainable profitability… These actions included a $1.05 billion capital investment… We also completed an in-depth due diligence of the loan portfolio…” — Joseph Otting, President & CEO .
“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%…” .
“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.” .

Q&A Highlights

Q1 2024 earnings call transcript is not available in our system; we therefore cannot provide Q&A highlights or clarifications beyond what’s in the press release and 8‑K. The company hosted the call on May 1, 2024 at 8:00 a.m. ET, with replay/webcast details provided in the release .

Estimates Context

S&P Global consensus estimates for Q1 2024 were unavailable in our data due to a mapping issue for NYCB, so we could not compare results to Street expectations. Values retrieved from S&P Global were unavailable due to missing CIQ mapping.

Where adjustments may need to occur:

Given the NIM compression, higher cost of funds, and elevated reserve build, forward revenue/NII and EPS estimates may need to reflect a longer path to margin stabilization and credit cost normalization until deposit mix, funding costs, and CRE office risks improve .

Key Takeaways for Investors

The balance sheet is more resilient post the $1.05B equity raise, with CET1 at 9.45% (10.14% fully converted) and $28B of liquidity; capital trajectory is improving as management targets CET1 of 11–12% by Q4 2026 .
Profitability is under near‑term pressure from NIM compression (2.28%) and elevated provisions ($315M), but management’s end‑state targets (ROAA 1%, ROATCE 11–12%) define a clear multi‑year path if execution continues .
Credit risk remains the swing factor: NPLs rose to 0.97% and ACL to 1.48% of loans (office coverage 10.33%); further reserve build is expected through 2024, which could weigh on earnings but de‑risks the portfolio .
Deposit base quality is solid (83% insured/collateralized) with reciprocal capacity of $17.2B, but the mix shift to CDs and higher borrowings elevated funding costs; margin stabilization hinges on mix/funding normalization .
Operating efficiency deteriorated (82.47% ratio) on lower revenues and seasonal opex; cost discipline and revenue stabilization are needed to restore positive operating leverage .
Mortgage/servicing businesses provided some offset (gain-on-sale margin 0.48%), but are not yet sufficient to counter NII/margin headwinds at the consolidated level .
Near‑term trading setup: headlines on capital actions, reserve builds, deposit stability, and CRE office developments likely remain the principal catalysts; medium‑term thesis depends on capital accretion to target, NIM stabilization, and credit normalization by 2026 .

Sources

Q1 2024 Results and 8-K press release content:
Q4 2023 8-K:
Q3 2023 8-K:

NEW YORK COMMUNITY BANCORP, INC. (NYCB)·Q1 2024 Earnings Summary