NYCB 2017 Annual Report

exciting news for the Company, the industry, and for consumers. Among other things, the legislation ends company run stress tests for banks under $250 billion in assets, it simplifies capital calculations for community banks, and more impor- tantly, it raises the threshold for designation as a SIFI to $250 billion from the current $50 billion. The legislation now goes to the House of Representatives for a vote, where we hope it receives the same level of bi-partisan support that it received in the Senate. The benefits to the Company from raising the SIFI threshold are many, but most importantly given our business model, we would be better positioned to execute our balance sheet growth strategy, either organically or through acquisitions, without the regulatory constraints and expectations that have been in place over the past several years. Another important piece of legislation, which has already benefited the Company and should continue to do so going forward is the recently enacted Tax Cuts and Jobs Act. At enactment in December of 2017, the Company recorded a one-time, net tax benefit of $42 million. Longer term, as a result of this Act, we expect that our effective tax rate will be approxi- mately 26.5% compared to 37% previously. A Quarter of a Century of Enhancing Shareholder Value In 2018, the Company will be celebrating its 25th year as a publicly-traded company. During this time, we have witnessed many events, including multiple credit cycles, culminating in the period commonly referred to as the Great Recession (2008–2011). The Company successfully navigated through each of these cycles with its asset quality metrics unscathed. It did so by staying true to its roots and focusing on the three core tenets of its business model: conservative lending across all of our lending businesses, organic growth combined with growth through acquisition, and running an efficient operation. From our IPO date to December 31, 2017, we have provided our charter shareholders with a total return on investment of 4,106%. Also, in our 24 years as a publicly-traded company, we have returned $6.4 billion to our common shareholders, including $5.5 billion in cash dividends and $937 million in share repurchases. In Conclusion Whatever the future holds for the Company and the financial industry as a whole, we are steadfast in our belief that we are poised for meaningful growth. If the past proves anything, it is that we have created great value over time for our shareholders when we are allowed to execute our traditional business model without any artificial restraints. On behalf of our Board of Directors, our management team, and our employees, who support our efforts, we thank you for your continued investment and for the confidence it conveys in our leadership. JOSEPH R. FICALORA President and Chief Executive Officer DOMINICK CIAMPA Chairman of the Board April 10, 2018 Sincerely yours, LEFT TO RIGHT: James J. Carpenter, Dominick Ciampa, Robert Wann, Thomas R. Cangemi, and Joseph R. Ficalora Poised for Growth | 3