Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Investor Presentation (December 2003)
27 slides from Flagstar Bank, N.a's investor presentation, Dec 10, 2003
Slide 1: Combining Strengths/Creating Value: Third Quarter 2003 Investor Presentation
Combining Strengths/Creating Value: Performance Combining Strengths/Creating Value Third Quarter 2003 Investor Presentation
Slide 2: Forward-looking Statements and Risk Factors
Forward-looking Statements and Risk Factors This presentation, and other written materials and oral statements made by management, may contain certain forward-looking statements regarding the Company’s prospective performance and strategies, including the recent merger with Roslyn Bancorp, Inc., wit
Slide 3: Market Cap
Combining Strengths/Creating Value: Market Cap Since 11/23/93, the value of NYCB’s shares has appreciated as much as 3,066%. (dollars in millions, except per share data) Market capitalization Price per share (adjusted for 8 splits including a 4-for-3 stock split on 5/21/03) Annual yield produced by
Slide 4: Market Cap: third most valuable thrift
Combining Strengths/Creating Value: Market Cap With a market cap of $7.5 billion, we are the nation’s third most valuable thrift. LONG ISLAND- U.S. THRIFTS BASED COMPANIES NEW YORK THRIFTS 1 1 1 Washington Mutual Computer Associates New York Community 2 Golden West 2 New York Community 2 GreenPoint
Slide 5: Total Returns
Combining Strengths/Creating Value: Total Returns Since 11/23/93, the total return to our charter investors has been as high as 3,918%. (dollars in millions, except per share data) Total return from 11/23/93 through the date noted, assuming dividends were reinvested Price per share (adjusted for 8 s
Slide 6: Total Returns: merger value creation
Combining Strengths/Creating Value: Total Returns Each of our merger transactions has provided an opportunity for share value creation. Total Return Increase in thru 12/2/03 (a) Dividend (b) NYCB – November 23, 1993 3,918 % 6,657 % Haven – June 27, 2000 590 200 Richmond County – March 27, 2001 210 2
Slide 7: Total Assets
Combining Strengths/Creating Value: Total Assets With assets of approximately $23 billion, we are the largest thrift in New York State. (dollars in billions) 1. New York Community 2. GreenPoint Financial 3. Astoria Financial 4. Independence Community 5. Staten Island Bancorp
Slide 8: The Marketplace
Combining Strengths/Creating Value: The Marketplace We serve over one million accounts in a highly attractive marketplace. WESTCHESTER NEW JERSEY BRONX SUFFOLK NASSAU MANHATTAN QUEENS BROOKLYN STATEN ISLAND POPULATION HOUSEHOLDS TOTAL DEPOSITS (in millions) (in millions) (in billions) Map Source: Y-
Slide 9: The Franchise: deposit rankings
Combining Strengths/Creating Value: The Franchise We rank among the leading thrifts in our core markets. QUEENS STATEN ISLAND NASSAU Total Total Total Deposit Deposit Deposit Rank Thrift Share Rank Thrift Share Rank Thrift Share 1 AF 9.16% 1 SIB 33.82% 1 GPT 10.57% 2 NYCB 8.73 2 NYCB 19.33 2 NYCB 9.
Slide 10: The Franchise: competing for depositors
Combining Strengths/Creating Value: The Franchise We compete for depositors by emphasizing convenience and community. Convenience: Multiple delivery channels; 147 locations; 24/7 access Service: State-of-the-art technology expedites transaction processing, account access Choices: Full-service menu o
Slide 11: The Franchise: divisional banks
Combining Strengths/Creating Value: The Franchise Our structure recognizes and capitalizes on the brand equity of our divisional banks. Multiple Community Divisions
Slide 12: The Lending Niche: multi-family originations
Combining Strengths/Creating Value: The Lending Niche We are the leading producer of multi-family loans for portfolio in New York City. (in millions) (9 Mos. Originations) All Other Loan Originations Multi-family Loan Originations Pipeline (stand-alone) Total $616 $1,150 $2,560 $2,357 $681 $1,459
Slide 13: The Lending Niche: competing for borrowers
Combining Strengths/Creating Value: The Lending Niche We compete for borrowers by emphasizing our niche lending expertise. Expertise: Originating multi-family and construction loans with the best credit results over many decades of cyclical change Service: Rapid response and consistency expedite loa
Slide 14: The Lending Niche: profitable, risk-averse
Combining Strengths/Creating Value: The Lending Niche We have a profitable, efficient, and risk-averse lending niche. Multi-family Loans Construction Loans Rent-controlled /-stabilized buildings Construction loans currently yielding generate stable cash flow spreads of approximately 300 bps 5-year f
Slide 15: Efficiency: 3rd most efficient
Combining Strengths/Creating Value: Efficiency We have been ranked the nation’s 3rd most efficient bank holding company. Efficiency Ratio (a) Core efficiency ratio; please see reconciliation to GAAP efficiency ratio on Page 26, #1. Industry Data Source: SNL Financial
Slide 16: Efficiency: sources of efficiency
Combining Strengths/Creating Value: Efficiency Efficiency is a key component of our lending and retail banking strategies. Emphasis on multi-family / construction lending Above-average deposits per traditional branch Franchise expansion through M & A SOURCES OF EFFICIENCY Cost-effective de novo bran
Slide 17: Asset Quality: NPAs to total assets
Combining Strengths/Creating Value: Asset Quality Exceptional asset quality has been a hallmark of NYCB throughout our public life. NPAs to Total Assets Industry Data Source: SNL Financial
Slide 18: Asset Quality: NCOs to average loans
Combining Strengths/Creating Value: Asset Quality The quality of our assets attests to our underwriting standards. NCOs to Average Loans Industry Data Source: SNL Financial
Slide 19: Performance: top-performing thrift
Combining Strengths/Creating Value: Performance We have been ranked the nation’s top-performing thrift for the past 5 years. (a) At or for the At or for the 12 Months Ended 9 Months Ended December 31, 2002 September 30, 2003 Ranking Industry NYCB NYCB Industry NYCB NYCB Criteria GAAP Cash (c) GAAP C
Slide 20: Record of asset, core deposit, and earnings growth
We have a solid record of asset, core deposit, and earnings growth. 1998 2003 CAGR · Assets $1.7 bn $23.0 bn (a) 67.45% · M-F Loan Originations $452 mn $2.9 bn (b) 45.45% · Core Deposits $379 mn $6.0 bn (c) 77.81% · Diluted EPS $0.45 $2.09 (d) 35.95% (a) Approximated at merger date with RSLN (b) Ass
Slide 21: Performance: diluted EPS growth
Combining Strengths/Creating Value: Performance We expect to exceed the 10% earnings accretion originally projected for 2004. DILUTED EPS GROWTH CAGR: 35.20% (a) (b) Diluted core EPS; please see reconciliation to diluted GAAP EPS on Page 26, #3. Company estimates, excluding the impact of the RSLN me
Slide 22: Post-merger Integration: on schedule
Combining Strengths/Creating Value: Post-merger Integration Our post-merger integration is progressing on schedule. Systems conversion is set for the holiday weekend of January 17 – 19 Post-conversion, the divisional structure will capitalize on the brand equity in three key markets: Roslyn Savings
Slide 23: Post-merger Integration: balance sheet restructuring
Combining Strengths/Creating Value: Post-merger Integration We restructured the balance sheet following each of our prior merger transactions. Strategy Benefits Post-HAVN Reduces interest rate risk Sold loans and securities Reduces credit risk Downsized borrowings Reduces extension risk Post-RCBK En
Slide 24: Investment Returns: national recognition
Combining Strengths/Creating Value: Investment Returns Our record of value creation has earned national recognition… #1 Best-performing Company – Total Returns The Wall Street Journal (Savings & Loans) March 10, 2003 #1 Top-performing Large Thrift in the U.S. ThriftINVESTOR (for the 5th consecutive
Slide 25: Investment Returns: the best is yet to come
Combining Strengths/Creating Value: Investment Returns …and we believe the best is yet to come. With more assets, an expanded franchise, and greater earnings potential, we believe we are better positioned today to create shareholder value than at any prior time in our ten-year history.
Slide 26: For More Information
For More Information: We trade on the NYSE under the symbol “NYB”. Log onto our web site: www.myNYCB.com E-mail requests to: iangarola@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590
Slide 27: Appendix: Reconciliation of GAAP and Non-GAAP Measures
Appendix Reconciliation of GAAP and Non-GAAP Measures 1. As calculated in accordance with GAAP, the Company’s 2000 and 2001 efficiency ratios were 52.08% and 38.04%, respectively. The Company’s 2000 core efficiency ratio excluded a gain of $13.5 million on the sale of a Bank-owned property from othe
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