Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2014 Earnings Presentation
34 slides from Flagstar Bank, N.a's earnings presentation, Nov 3, 2014
Slide 1: Third Quarter 2014 Investor Presentation
EXHIBIT 99.1 * * * * * * * Third Quarter 2014 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements and Associated Risk Factors Certain statements in this presentation, like those made in our other written and oral communications, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such f
Slide 3: We are one of the top 25 U.S. bank holding companies.
We are one of the top 25 U.S. bank holding companies. Multi-Family Total Return Assets Deposits Market Cap Loans on Investment $48.7 billion $28.3 billion $22.9 billion $7.0 billion 4,216% With assets of With deposits of With a portfolio of With a market cap From 11/23/93 $48.7billionat $28.3billion
Slide 4: 3rd Quarter 2014 Performance Highlights
* * * * * * * 3rd Quarter 2014 **************** Performance Highlights
Slide 5: We generated solid earnings in 3Q 2014.
We generated solid earnings in 3Q 2014. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS GAAP Earnings Cash Earnings (a) 3Q 2014 2Q 2014 3Q 2014 2Q 2014 Strong Profitability Measures: Earnings $120,258 $118,688 $129,605 $128,571 EPS $0.27 $0.27 $0.29 $0.29 Return on average tangi
Slide 6: Our balance sheet measures reflect stability and strength.
Our balance sheet measures reflect stability and strength. Balance Sheet Asset Quality Company Capital Bank Capital Ratios to Total Assets At or for the 3 Months Ended at 9/30/14 9/30/14 9/30/14 9/30/14 • Total loans = 72.8% • Non-performing loans (a) / • Stockholders’ equity / total The Community B
Slide 7: A Successful Business Model
* * * * * * * A Successful **************** Business Model
Slide 8: Our business model has consistently focused on building value for our investors.
Our business model has consistently focused on building value for our investors. Strong Credit Residential Growth Multi-Family Standards/ Efficient Mortgage through Lending Superior Asset Operation Banking Acquisitions Quality Wehaveoriginated Net charge-offs Since January Our efficiency ratio Our a
Slide 9: Multi-Family Loan Production
* * * * * * * Multi-Family **************** Loan Production
Slide 10: Our focus on multi-family lending on rent-regulated buildings has enabled us to distinguish ourselves
Our focus on multi-family lending on rent-regulated buildings has enabled us to distinguish ourselves from our industry peers. 60.9% of the rental housing units in New York City are subject to rent regulation and therefore feature below-market rents. (a) Rent-regulated buildings are more likely to r
Slide 11: We are the leading producer of multi-family loans for portfolio in New York City.
We are the leading producer of multi-family loans for portfolio in New York City. (in millions) MULTI-FAMILY LOAN PORTFOLIO PORTFOLIO STATISTICS AT 9/30/2014 • % of non-covered loans held for investment = 70.9% • Average principal balance = $4.8 million • Expectedweightedaveragelife= 2.8years • % of
Slide 12: Our commercial real estate loans feature the same structure as our multi-family loans.
Our commercial real estate loans feature the same structure as our multi-family loans. (in millions) COMMERCIAL REAL ESTATE PORTFOLIO STATISTICS LOAN PORTFOLIO AT 9/30/2014 % of non-covered loans held for investment = 23.8% Average principal balance = $4.9 million Expected weighted averagelife= 3.4y
Slide 13: Asset Quality
* * * * * * * * * * * * * * * ***************** ***************** ***************** ***************** Asset ***************** ***************** **************** ***************** Quality ***************** ***************** *****************
Slide 14: We have been distinguished by our low level of net charge-offs in downward credit cycles.
We have been distinguished by our low level of net charge- offs in downward credit cycles. NET CHARGE-OFFS / AVERAGE LOANS S & L Crisis Great Recession Current Credit Cycle * 5-Year Total 4-Year Total 4-Year Total NYCB: 17 bp NYCB: 37 bp NYCB: 54 bp SNL U.S. Bank and Thrift Index: 540 bp SNL U.S. Ba
Slide 15: The quality of our loan portfolio continues to exceed that of our industry.
The quality of our loan portfolio continues to exceed that of our industry. (a)(b)/ TOTAL LOANS NON-PERFORMING LOANS (a) S & L Crisis Great Recession Current Credit Cycle Average NPLs/Total Loans Average NPLs/Total Loans Average NPLs/Total Loans NYCB: 2.08% NYCB: 1.43% NYCB: 0.71% SNL U.S. Bank and
Slide 16: The quality of our assets reflects the nature of our lending niche and our strong underwriting standards.
The quality of our assets reflects the nature of our lending niche and our strong underwriting standards. Risk-Averse Mix of Conservative Active Board Multiple Non-Covered Loans Underwriting Involvement Appraisals Held for Investment (at 9/30/14) • Conservative loan-to- • All loans originated for •
Slide 17: Residential Mortgage Banking
* * * * * * * * * * * * * * * ***************** ***************** ***************** ***************** Residential ***************** ***************** **************** ***************** Mortgage Banking ***************** ***************** *****************
Slide 18: Our revenue mix has been enhanced since the establishment of our mortgage banking operation
Our revenue mix has been enhanced since the establishment of our mortgage banking operation in January 2010. Loans can be originated/purchased in all 50 states and the District of Columbia. Loan production is driven by our proprietary real time, web-accessible mortgage banking technology platform, w
Slide 19: Prepayment penalty income and mortgage banking income have contributed to the stability of our ROTA.
Prepayment penalty income and mortgage banking income have contributed to the stability of our ROTA. (dollars in millions) Return on Average Tangible Assets (a) Prepayment Penalty Income Mortgage Banking Income Total: Average 10-Year Treasury Rate 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2
Slide 20: Efficiency
* * * * * * * * ***************** ***************** ***************** ***************** ***************** ***************** Efficiency ***************** ***************** ***************** *****************
Slide 21: Our efficiency is driven by several factors.
Our efficiency is driven by several factors. Multi-family and CRE lending are both EFFICIENCY RATIO broker-driven, with the borrower paying fees to the mortgage brokerage firm. Products and services are typically 66.61% 66.96% 65.91% 65.38% developed by third-party providers and the 62.98% sale of t
Slide 22: Growth Through Acquisitions
* * * * * * * * ***************** ***************** ***************** ***************** Growth Through ***************** ***************** ***************** Acquisitions ***************** ***************** *****************
Slide 23: Since our first acquisition, we have grown from $1.9 billion in assets to $48.7 billion.
Since our first acquisition, we have grown from $1.9 billion in assets to $48.7 billion. Transaction Type: Savings Bank Commercial Bank Branch FDIC Deposit Note: The number of branches indicated reflects the number of branches in our current franchise that stemmed from each transaction. New York Com
Slide 24: From 2000 to 2012, our deposit growth was largely acquisition-driven.
From 2000 to 2012, our deposit growth was largely acquisition-driven. DEPOSITS (in millions) w/ Aurora w/ w/ Desert AmTrust Hills w/ PFSB, Doral, & SYNF w/ ABNY w/ LICB w/ RSLN w/ RCBK w/ HAVN Total Deposits: $3,268 $5,472 $10,360 $12,168 $12,764 $13,311 $22,418 $21,890 $24,878 $25,661 $28,308 Total
Slide 25: From 2000 to 2012, acquisitions provided much of the funding for the organic growth of our loan portfolio.
From 2000 to 2012, acquisitions provided much of the funding for the organic growth of our loan portfolio. LOANS OUTSTANDING After Aurora After (in millions) After Desert Hills AmTrust After PFSB, Doral, & After SYNF ABNY After LICB After RSLN After RCBK After HAVN Total Loans Outstanding: $3,636 $5
Slide 26: Total Return on Investment
* * * * * * * * ***************** ***************** ***************** ***************** Total Return ***************** ***************** ***************** on Investment ***************** ***************** *****************
Slide 27: Our quarterly cash dividends are a significant component of our commitment to building value for our investors.
Our quarterly cash dividends are a significant component of our commitment to building value for our investors. TOTAL RETURN ON INVESTMENT CAGR since IPO: 27.3% As a result of nine stock splits between 1994 and 2004, our charter shareholders have 2,700 shares of NYCB stock for each 100 shares origin
Slide 28: Appendix
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Slide 29: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and cash earnings for the three months ended September 30, and June 30, 2014. For the Three Months Ended (in thousands, except pe
Slide 30: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and cash profitability measures for the three months ended September 30, and June 30, 2014. For the Three Months Ended (in thousa
Slide 31: Reconciliations of Efficiency and Cash Efficiency Ratios
Reconciliations of Efficiency and Cash Efficiency Ratios The following table presents a reconciliation of the Company’s efficiency and cash efficiency ratios for the three months ended September 30, and June 30, 2014. For the Three Months Ended September 30, 2014 June 30, 2014 (dollars in thousands)
Slide 32: Reconciliations of GAAP and Non-GAAP Capital Measures
Reconciliations of GAAP and Non-GAAP Capital Measures Tangible and adjusted tangible stockholders’ equity and tangible and adjusted tangible assets are non-GAAP capital measures. The following table presents reconciliations of these non-GAAP measures with the related GAAP measures at September 30, a
Slide 33: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Average tangible assets is a non-GAAP financial measure. The following table presents a reconciliation of this non-GAAP measure with the related GAAP measure for the three months ended September 30, June 30, and March 31, 2014; December 31, Sep
Slide 34: For More Information
For More Information Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at:(516) 683-4420 Investor Relations New York Community Bancorp, Inc. Write to: 615 Merrick Avenue Westbury, NY 11590 11/3/14 New York Community Bancorp, Inc. Page 34
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