NEW YORK COMMUNITY BANCORP, INC.
EMPLOYEE SAVINGS PLAN
Notes
to Financial Statements
December 31, 2022 and 2021
general, are exposed to various risks, such as interest, credit, and overall market volatility risk. Due to the level of risk associated with certain investment securities, it is reasonably
possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts, reported in the Statements of Net Assets Available for Plan Benefits and participant account
balances.
The Plan invests indirectly in securities with contractual cash flows such as asset backed securities, collateralized mortgage
obligations and commercial mortgage backed securities, including securities backed by subprime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate value,
delinquencies or defaults, or both, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.
The Plan’s exposure to a concentration of credit risk is limited by the diversification of investments across various participant-directed
fund elections. Additionally, the investments within each participant-directed fund election are further diversified into varied financial instruments, with the exception of the common and preferred stock fund of the employer, which invests in a
single security, the common and preferred stock of New York Community Bancorp, Inc.
At December 31, 2022 and 2021, approximately 45%
and 52%, respectively, of the Plan’s net assets were invested in the common stock fund of the employer. As of December 31, 2022 and 2021, 0.18% and 0.11%, respectively of the Plan’s net assets were invested in the preferred stock fund
of the employer. The underlying value of the common and preferred stock is entirely dependent upon the performance of the employer and the market’s evaluation of such performance. It is at least reasonably possible that changes in the fair
value of the New York Community Bancorp, Inc. common and preferred stock in the near term could materially affect participants account balances and the amounts reported in the Statements of Net Assets Available for Plan Benefits and the Statements
of Changes in Net Assets Available for Plan Benefits.
| (5) |
Related Party Transactions
(Parties-in-Interest) |
Pentegra
Retirement Services, Inc. is the record-keeper for the Plan. Pentegra Trust Company is the trustee and Reliance Trust Company is the custodian of the Plan for the years ended December 31, 2022 and 2021. The Plan invests in the common and
preferred stock of the Plan Sponsor. These transactions qualify as parties-in-interest transactions.
Certain fees paid to related parties for services to the Plan were paid by the Plan Sponsor. Mutual fund operation expenses are paid from a
fund’s assets and are reflected in the fund’s share/unit price and dividends.
KPMG LLP, the auditor of the Plan’s financial
statements, is also a party-in-interest as defined by ERISA.
The Internal Revenue Service has determined and informed the Bank by a letter dated October 22, 2013 that the Plan is qualified and the
trust established under the Plan is tax-exempt, under the appropriate sections of the IRC. The Plan has been amended since receiving the determination letter. However, the Plan administrator believes that the
Plan is currently designed, and being operated, in compliance with the applicable requirement of the IRC. Therefore, they believe that the Plan was qualified, and the related trust was tax-exempt as of the
financial statement date.
U.S. GAAP requires plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or
asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon
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