Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2021 Earnings Presentation
28 slides from Flagstar Bank, N.a's earnings presentation, Jul 28, 2021
Slide 1: Second Quarter 2021 Investor Presentation
Second Quarter 2021 Investor Presentation Exhibit 99.1
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation may include forward‐looking statements by the Company and our authorized officers pertaining to such matters as our goals, intentions, and expectations regarding revenues, earnings, loan production, asset quality, capital levels, and acquisitions, among
Slide 3: Overview: Who we are
→ We are a leading producer of multi-family loans in New York City. Within this market we focus almost exclusively on the non-luxury, rent regulated niche, where average rents are below market. → Our expertise in this particular lending niche arises from: A consistent presence in this market for ove
Slide 4: NYCB & FBC – Enhancing Shareholder Value
Accelerates our transition towards building a dynamic commercial banking organization NYCB & FBC – Enhancing Shareholder Value By Leveraging Two Like-Minded Organizations with Distinctive Strategic Strengths Creates a top-tier regional bank with significant scale and broader diversification Combines
Slide 5: Creates a Top-Tier Bank with National Scale
Creates a Top-Tier Bank with National Scale and Strong Footholds in Northeast/Midwest and Exposure to High Growth Markets Source: Company Filings, S&P Global Market Intelligence, FDIC Note: FBC retail home lending offices (87 offices) not denoted on map; Branch map as of 30-Jun-20 FDIC data; Branch
Slide 6: Multiple Opportunities with Flagstar
Multiple Opportunities with Flagstar Financially Compelling Transaction 16% accretive to 2022 consensus EPS estimates, at announcement Immediately accretive to Tangible Book Value per share by 3.5%, at announcement Strong Capital Generation Excess capital generation of $500 million annually after pa
Slide 7: NYCB & FBC – Benefits of Scale
NYCB & FBC – Benefits of Scale The combined Company will rank at or near the top in a number of its key businesses With a bigger balance sheet and larger capital base, it will have the opportunity to leverage up in a number of these businesses and/or increase its market share These businesses includ
Slide 8: We rank among the largest U.S. bank holding companies
We rank among the largest U.S. bank holding companies… Total Assets: $57.5 billion, 76% of which are loans and 11% are investment securities Total Deposits: $34.2 billion, up 11% annualized Total Loans: $43.6 billion, primarily multi-family and CRE Total Market Capitalization: $5.2 billion
Slide 9: … but without the risk other large banks have
… but without the risk other large banks have. Ratio NYCB At 6/30/2021 SNL Bank &Thrift Index At 6/30/2021 Peers At 6/30/2021 NCOs/Average Loans (0.01)% 0.22% 0.14% Cumulative losses (a) 106 bp 2,396 bp 1,336 bp NPAs/Total Assets 0.07% 0.50% 0.70% NPLs/Total Loans 0.07% 0.93% 1.00% ALLL/NPLs 641.41%
Slide 10: A Strong Capital Position
A Strong Capital Position Ratio NYCB At 6/30/2021 SNL Bank &Thrift Index At 6/30/2021 Peers At 6/30/2021 Total Risk-Based Capital 13.05% 14.99% 13.36% Tier 1 Risk-Based Capital 11.05 12.77 11.48 Common Equity Tier 1 9.84 11.97 10.39 Tier 1 Leverage 8.25 9.09 8.47
Slide 11: Total HFI Loans: $43.6 bn
Total HFI Loans: $43.6 bn Loans at 6/30/21 Loans – 3% Annualized Loan Growth Majority of portfolio focused on low-risk multi-family loans on non-luxury, rent-regulated buildings Market leader in this asset class having developed strong expertise and industry relationships over the last five decades
Slide 12: Multi-Family Portfolio Statistics
Multi-Family Portfolio Statistics for the 3 Months Ended 6/30/21 75% of loans held-for-investment (68% of originations) 78.1% of loans are in Metro New York Weighted average life = 2.4 years Weighted average LTV: 57.83%, overall Weighed average LTV on NYS rent-regulated: 54.53% Multi-Family Loan Por
Slide 13: Multi-Family Portfolio Well Insulated Against Rent Regulation Changes
→ $19.3 billion or 59% of the MF portfolio is subject to NYS rent regulations; WALTV (1) on this portion of the MF portfolio is 54.53%, 330 basis points below the overall MF portfolio. Our Multi-Family Portfolio is Well Insulated Against Recent Changes in the Rent Regulation Laws → We lend on curren
Slide 14: Commercial Real Estate Loan Portfolio
Commercial Real Estate Loan Portfolio (in millions) Originations: $1,842 $1,180 $1,039 $967 $1,226 $958 $70 Net Charge-Offs (Recoveries): $(1) $(1) $0 $3 $0 $2 $0 Commercial real estate is a logical extension of our multi-family niche. CRE Portfolio Statistics for the 3 Months Ended 6/30/21 16% of l
Slide 15: Specialty Finance Loan and Lease Portfolio
Specialty Finance Loan and Lease Portfolio (in millions) Originations: $1,068 $1,266 $1,784 $1,917 $2,800 $2,694 $606 Net charge-Offs: $0 $0 $0 $0 $0 $0 $0 Our specialty finance business is another high-quality lending niche. Loan Types 7% of loans held-for-investment 20% of originations Syndicated
Slide 16: Non-Performing Loans / Total Loans
Non-Performing Loans(a)(b) / Total Loans(a) Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired (“PCI”) loans. Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest. Our non-performing loa
Slide 17: Net Charge-Offs / Average Loans
… and very few of our non-performing loans have resulted in actual losses. Net Charge-Offs / Average Loans Cumulative Total NYCB: 1.06 bp SNL U.S. Bank and Thrift Index: 2,438 bp The calculation of our net charge-offs to average loans excludes taxi medallion-related charge-offs of $59.6 million, $12
Slide 18: Principal Deferrals
Principal deferrals declined significantly during Q2’21, down 60% to $1 billion from $2.5 billion at Q1’21. *Outstanding balance excludes deferred fees and mark-to-market adjustments. Principal Deferrals As of June 30, 2021 Outstanding Deferrals as a ($ in millions) Deferral Balance* % of O/B WA LTV
Slide 19: Total deferrals have declined since the start of the pandemic
Total deferrals have declined substantially since the start of the pandemic All Deferrals Roll Forward- 6/30/20 to 6/30/21 ($ in millions) Total % of Total Portfolio Total Loans As of June 30, 2020 $7,368.4746987799927 0.17417014316437807 $42,306.187299999998 New Deferrals 1,054.8843560800001 Loans
Slide 20: COVID-related Special Mention and Substandard Loans
COVID-related Special Mention and Substandard loans have decreased as risk ratings have improved. MF/CRE Special Mention and Sub-Standard Trend as of 6/30/2021 (figures in thousands) 44196 44286 44377 Non Covid Covid* Total % Covid Non Covid Covid* Total % Covid Non Covid Covid* Total % Covid Multi-
Slide 21: Efficiency Ratio
Efficiency Ratio Peer Group NYCB Highly Efficient Operator with Effective Business Model. Low Cost, Efficient Business Model Multi-family and CRE lending are both broker-driven, with the borrower paying fees to the mortgage brokerage firm Products and services are typically developed by third-party
Slide 22: Deposits – Significant Progress on Growing Core Deposits
Total Deposits: $34.2 bn Deposits at 6/30/21 Deposits – Significant Progress Made on Growing Core Deposits Deposits generated through retail and commercial channels Loan-related deposits up 22% annualized from December 31, 2020 to $3.9 billion CDs have declined to 26% of total deposits from 38% in t
Slide 23: For More Information
Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: Investor Relations New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 For More Information
Slide 24: Appendix
Appendix
Slide 25: Securities and Funding Composition
Securities and Funding Composition Funds at 6/30/21 0.88% cost of funds Significant capacity given eligibility of multi-family loans Total Funding: $49.6 bn Entire portfolio is available for sale Consists primarily of GSE-related securities Overall yield is 2.55% 25% is variable rate Securities at 6
Slide 26: Experienced Management Team
Experienced Management Team Thomas R. Cangemi Robert Wann John J. Pinto John Adams Chairman of the Board President & Chief Executive Officer Senior Executive Vice President & Chief Operating Officer Senior Executive Vice President & Chief Financial Officer Executive Vice President & Chief Lending Of
Slide 27: Non-GAAP Financial Measures
While average stockholders’ equity, average assets, return on average assets, and return on average stockholders’ equity are financial measures that are recorded in accordance with U.S. generally accepted accounting principles ("GAAP"), average tangible stockholders’ equity, average tangible assets,
Slide 28: Peer Group
Peer Group Peer Ticker Bank OZK OZK BankUnited, Inc. BKU Comerica Incorporated CMA F.N.B. Corporation FNB Fifth Third Bancorp FITB Huntington Bancshares Incorporated HBAN Investors Bancorp, Inc. ISBC M&T Bank Corporation MTB People's United Financial, Inc. PBCT Signature Bank SBNY Sterling Bancorp S
New York Community Bancorp — Q2 2021 Earnings Presentation on 6ix