NYCB 2017 Annual Report

80 NEW YORK COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Years Ended December 31, (in thousands, except per share data) 2017 2016 2015 INTEREST INCOME: Mortgage and other loans $1,417,237 $1,472,020 $1,441,462 Securities and money market investments 165,002 202,849 250,122 Total interest income 1,582,239 1,674,869 1,691,584 INTEREST EXPENSE: Interest-bearing checking and money market accounts 98,980 62,166 46,467 Savings accounts 28,447 31,982 50,776 Certificates of deposit 102,355 76,875 62,906 Borrowed funds 222,454 216,464 1,123,360 Total interest expense 452,236 387,487 1,283,509 Net interest income 1,130,003 1,287,382 408,075 Provision for (recovery of) losses on non-covered loans 60,943 11,874 (3,334) Recovery of losses on covered loans (23,701) (7,694) (11,670) Net interest income after provision for (recovery of) loan losses 1,092,761 1,283,202 423,079 NON-INTEREST INCOME: Fee income 31,759 32,665 34,058 Bank-owned life insurance 27,133 31,015 27,541 Mortgage banking income 19,337 27,281 54,113 Net gain on sales of loans 1,156 15,806 26,133 Net gain on sales of securities 29,924 3,347 4,054 FDIC indemnification expense (18,961) (6,155) (9,336) Gain on sale of covered loans and mortgage banking operations 82,026 -- -- Other 44,506 41,613 74,200 Total non-interest income 216,880 145,572 210,763 NON-INTEREST EXPENSE: Operating expenses: Compensation and benefits 360,985 351,436 342,624 Occupancy and equipment 98,963 98,543 102,435 General and administrative 181,270 188,130 170,541 Total operating expenses 641,218 638,109 615,600 Amortization of core deposit intangibles 208 2,391 5,344 Debt repositioning charge -- -- 141,209 Merger-related expenses -- 11,146 3,702 Total non-interest expense 641,426 651,646 765,855 Income (loss) before income taxes 668,215 777,128 (132,013) Income tax expense (benefit) 202,014 281,727 (84,857) Net income (loss) $ 466,201 $ 495,401 $ (47,156) Preferred stock dividends 24,621 -- -- Net income (loss) available to common shareholders $ 441,580 $ 495,401 $ (47,156) Basic earnings (loss) per common share $0.90 $1.01 $(0.11) Diluted earnings (loss) per common share $0.90 $1.01 $(0.11) Net income (loss) $ 466,201 $ 495,401 $ (47,156) Other comprehensive income (loss), net of tax: Change in net unrealized gain (loss) on securities available for sale, net of tax of $29,740; $1,560; and $437, respectively 41,684 (2,207) 475 Change in the non-credit portion of OTTI losses recognized in other comprehensive income (loss), net of tax of $13; $49; and $44, respectively 20 77 69 Change in pension and post-retirement obligations, net of tax of $2,234; $2,924; and $1,161, respectively 1,585 4,015 (1,445) Less: Reclassification adjustment for sales of available-for-sale securities, net of tax of $1,245; $1,127; and $306, respectively (1,743) (1,577) (434) Total other comprehensive income (loss), net of tax 41,546 308 (1,335) Total comprehensive income (loss), net of tax $ 507,747 $ 495,709 $ (48,491) See accompanying notes to the consolidated financial statements.