New York Community Bancorp reports Q3 adjusted EPS (69c), consensus (40c)

Reports Q3 Net charge-offs totaled $240M, compared to $349M for Q2 and $24M last year. Chairman, President, and CEO, Joseph M. Otting stated, “During the Q3, we made significant progress on each of our strategic priorities, as we continue to transition into a diversified regional bank. The first of which is our funding mix. We had a second consecutive quarter of strong deposit growth, especially in the Private Bank, where we are seeing many customers returning to Flagstar and we are winning new relationships. Also, we utilized a portion of our liquidity from deposit growth and previously announced business transaction, to pay down a significant amount of wholesale borrowings. Wholesale borrowings declined nearly $9 billion or 31% to $19B, while deposits increased $4B or 5% to $83B. This positive shift in our overall funding mix will help reduce our overall funding costs.