Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q4 2017 Earnings Presentation
32 slides from Flagstar Bank, N.a's earnings presentation, Feb 2, 2018
Slide 1: Fourth Quarter 2017 Investor Presentation
Fourth Quarter 2017 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: Assets, Deposits, Multi-Family Loans, Equity, Market Cap, Total Return
Assets $49.1 billion We recorded assets of $49.1 billion at 12/31/17. We rank among the largest U.S. bank holding companies. Bloomberg Note: Except as otherwise indicated, all industry data was provided by S&P Global Market Intelligence as of 1/31/18. Deposits $29.1 billion With 255 branches in Metr
Slide 4: 4Q 2017 Performance Highlights
4Q 2017 Performance Highlights
Slide 5: Income Statement Highlights
(dollars in thousands, except per share data) 4Q 2017 Strong Profitability Measures: Net income available to common shareholders $128,314 Diluted earnings per common share $0.26 Return on average assets 1.13% Return on average common stockholders’ equity 8.21 Return on average tangible assets (a) 1.
Slide 6: Balance Sheet Highlights
Company Capital 12/31/17 Common stockholders’ equity / total assets 12.81% Common equity tier 1 capital ratio 11.36 Tier 1 risk-based capital ratio 12.84 Total risk-based capital ratio 14.32 Leverage capital ratio 9.58 Bank Capital 12/31/17 Community Bank: Common equity tier 1 capital ratio 13.43% T
Slide 7: Loans and Deposits
Total HFI Loans: $38.4 bn Average Yield on Loans: 3.68% Total Deposits: $29.1 bn Average Cost of Interest-Bearing Deposits: 0.97% Loans at 12/31/17 Deposits at 12/31/17 Loans and Deposits
Slide 8: Our regulatory capital ratios exceed those of our peers
Our regulatory capital ratios exceed those of our peers. Ratio NYCB At 12/31/17 Peers (Median At 12/31/17) Tier 1 Risk-Based Capital 12.84% 11.65% Total Risk-Based Capital 14.32 13.32 Tier 1 Leverage 9.58 9.40 Common Equity Tier 1 11.36 10.93
Slide 9: Looking Forward
Looking Forward
Slide 10: Strong Loan Growth in Q4 2017 Should Carry Over into 2018
Strong Loan Growth in Q4 2017 Should Carry Over into 2018 Total non-covered loans grew 9% on an annualized basis, and we expect loan growth to continue throughout 2018. Held-for-investment loan originations rose 34% from the previous quarter, including 42% growth in multi-family originations and 39%
Slide 11: With market interest rates on the rise, portfolio coupons may have bottomed
With market interest rates on the rise, portfolio coupons may have bottomed Page 1
Slide 12: Regulatory reform bill and SIFI threshold
→ The Senate Banking Committee passed a bipartisan regulatory reform bill (S.2155) which should go to the full Senate for a vote later in Q1 2018. → Raising the SIFI threshold would: facilitate our ability to engage in mergers with institutions, regardless of size; enable us to grow our loan portfol
Slide 13: The Tax Cuts and Jobs Act provides two benefits
The Tax Cuts and Jobs Act provides two benefits: → A one-time $42 million net tax benefit arising from the impact of the Act, including the re-measurement of the Company’s deferred tax liability; and → A lower effective income tax rate - on an on-going basis, we expect that our effective tax rate in
Slide 14: Our Business Model: Strategic Loan Production
Our Business Model Strategic Loan Production
Slide 15: Multi-Family Loan Portfolio
Portfolio Statistics at or for the 3 Months Ended 12/31/17 % of non-covered loans held for investment = 73.1% Average principal balance = $5.8 million Weighted average life = 2.6 years % of our multi-family loans located in Metro New York = 75.9% % of HFI loan originations = 66.0% Multi-Family Loan
Slide 16: Multi-family lending in rent-regulated buildings
→ Of the loans in our portfolio that are collateralized by multi-family buildings in the five boroughs of New York City, 88% are collateralized by buildings with rent-regulated units featuring below-market rents. → Rent-regulated buildings are more likely to retain their tenants – and, therefore, th
Slide 17: Commercial Real Estate Loan Portfolio
Commercial Real Estate Loan Portfolio (in millions) Originations: $2,168 $1,661 $1,842 $1,180 $1,039 Net Charge-Offs (Recoveries): $0 $1 $(1) $(1) $0 Commercial real estate lending has been a logical extension of our emphasis on multi-family loans. Portfolio Statistics at or for the 3 Months Ended 1
Slide 18: Specialty Finance Loan and Lease Portfolio
Specialty Finance Loan and Lease Portfolio (in millions) Originations: $258 $848 $1,068 $1,266 $1,784 Net charge-Offs: $0 $0 $0 $0 $0 The launch of our specialty finance business provided us with another high-quality lending niche. Loan Types Syndicated asset-based (ABLs) and dealer floor-plan (DFPL
Slide 19: Our Business Model: Asset Quality
Our Business Model Asset Quality
Slide 20: Conservative Underwriting
Conservative Underwriting Conservative loan-to-value ratios Conservative debt service coverage ratios: 120% for multi-family loans and 130% for CRE loans Multi-family and CRE loans are based on the lower of economic or market value. Active Board Involvement The Mortgage Committee and the Credit Comm
Slide 21: Non-Performing Loans / Total Loans
S & L Crisis Great Recession Current Credit Cycle 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 b
Slide 22: Net Charge-Offs / Average Loans
S & L Crisis Few of our non-performing loans have resulted in actual losses. Current Credit Cycle Net Charge-Offs / Average Loans (0.02)% 4-Year Total NYCB: 72 bp Peer Group: 480 bp 6-Year Total NYCB: 17 bp Peer Group: 162 bp The SNL U.S. Bank and Thrift Index is used for this period only. The calcu
Slide 23: Our Business Model: Efficiency
Our Business Model Efficiency
Slide 24: Efficiency has been another Company hallmark
Efficiency has been another Company hallmark. Historical Drivers of Our Efficiency 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 providers; their sales are a complementar
Slide 25: NYCB Efficiency Ratio Prior to and Since Dodd-Frank
NYCB Efficiency Ratio Prior to and Since Dodd-Frank SIFI Compliance At this juncture, the majority of the SIFI-related investments have been made. Key infrastructure investments to date include: Enhanced ERM and corporate governance frameworks Bottom-up capital planning and stress testing capabiliti
Slide 26: Our Business Model: Growth through Acquisitions
Our Business Model Growth through Acquisitions
Slide 27: Our history of earnings-accretive transactions
Transaction Type: Savings Bank Commercial Bank Branch FDIC Deposit We have a long history of earnings-accretive transactions. The number of branches indicated for our transactions is the number of branches in our current franchise that stemmed from each. 1. Nov. 2000 Haven Bancorp (HAVN) Assets: $2.
Slide 28: Total return over the course of our public life
The benefits of our business model are reflected in our total return over the course of our public life. Total Return on Investment Bloomberg CAGR since IPO: 23.1% → 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 o
Slide 29: For More Information
2/2/18 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 30: Appendix
Appendix
Slide 31: 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 32: Peer Group
Peer Group Peer Ticker BankUnited, Inc. BKU Comerica Incorporated CMA F.N.B. Corporation FITB Fifth Third Bancorp FNB Huntington Bancshares Incorporated HBAN Investors Bancorp, Inc. ISBC M&T Bank Corporation MTB Bank of the Ozarks OZRK People's United Financial, Inc. PBCT Signature Bank SBNY Sterlin
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