Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2014 Earnings Presentation
35 slides from Flagstar Bank, N.a's earnings presentation, Aug 6, 2014
Slide 1: Second Quarter 2014 Investor Presentation
Exhibit 99.1 Second Quarter 2014 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements and AssociatedRisk 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 fo
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 $48.6 billion $27.4 billion $22.3 billion $7.1 billion 4,176% With assets of With deposits of With a portfolio of With a market cap From 11/23/93 $48.6billionat $27.4billion
Slide 4: Growth-through-acquisition strategy, over 270 locations in five states
Largely reflecting our growth-through-acquisition strategy, we have over 270 locations in five states. Metro New York New Jersey Ohio 126 Community Bank Branches 48 Community Bank Branches 28 Community Bank Branches 30 Commercial Bank Branches Florida Arizona 27 Community Bank Branches 14 Community
Slide 5: 2nd Quarter 2014 Performance Highlights
XXXXX 2nd Quarter 2014 XX Performance Highlights
Slide 6: We generated solid earnings in 2Q 2014
We generated solid earnings in 2Q 2014. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS 2Q 2014 GAAP Earnings CashEarnings(a) Strong Profitability Measures: Earnings $118,688 $128,571 EPS $0.27 $0.29 Return on average tangible assets (b) 1.06% 1.13% Return on average tangible st
Slide 7: 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 6/30/14 6/30/14 6/30/14 6/30/14 • Total loans = 71.8% • Non-performing loans (a)(b) / • Stockholders’ equity / total The Communit
Slide 8: A Successful Business Model
XXXXX A Successful XX Business Model
Slide 9: 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 We have originated Net charge-offs Since January Our efficiency ratio Our
Slide 10: Multi-Family Loan Production
XXXXX Multi-Family XX Loan Production
Slide 11: Our focus on multi-family lending on rent-regulated buildings distinguishes us
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 12: 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 6/30/2014 % of non-covered loans held for investment = 69.8% Average principal balance = $4.8 million MULTI-FAMILY Expected weighted averagelife= 2.8 ye
Slide 13: 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 LOAN PORTFOLIO PORTFOLIO STATISTICS AT 6/30/2014 % of non-covered loans held for investment = 23.8% Average principal balance = $4.9 million Expected weighted averagelife= 3.3
Slide 14: Asset Quality
XXXXX Asset XX Quality
Slide 15: 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 16: 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 T
Slide 17: The quality of our assets reflects our lending niche and 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 6/30/14) • Conservative loan-to- • All loans originated for •
Slide 18: Residential Mortgage Banking
XXXXX Residential XX Mortgage Banking
Slide 19: 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 20: Prepayment penalty income and mortgage banking income have contributed to ROTA stability
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 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2
Slide 21: Efficiency
XXXXX XX Efficiency
Slide 22: Our efficiency is driven by several factors
Our efficiency is driven by several factors. EFFICIENCY RATIO 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 and the sale of these products generates additional
Slide 23: Growth Through Acquisitions
XXXXX Growth Through XX Acquisitions
Slide 24: Since our first acquisition, we have grown from $1.9 billion in assets to $48.6 billion
Since our first acquisition, we have grown from $1.9 billion in assets to $48.6 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 25: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition-driven. DEPOSITS (in millions) w/ Aurora w/ w/ Desert AmTrust Hills CDs NOW, MMAs, and Savings Demand deposits 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
Slide 26: Acquisitions have provided much of the funding for organic loan growth
Acquisitions have 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, & Held-for-Investment Loans SYNF After Multi-family ABNY CRE After LICB All other HFI loans Loans held for sal
Slide 27: Total Return on Investment
XXXXX Total Return XX on Investment
Slide 28: Quarterly cash dividends are a significant component of building value for investors
Our quarterly cash dividends are a significant component of our commitment to building value for our investors. TOTAL RETURN ON INVESTMENT SNL U.S. Bank and Thrift Index NYCB (a) CAGR since IPO: 27.7% As a result of nine stock splits between 1994 and 2004, our charter shareholders have 2,700 shares
Slide 29: Appendix
XXXXX XX Appendix
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 earnings for the three months ended June 30, 2014. For the Three Months Ended (in thousands, except per share data) June
Slide 31: 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 measures for the three months ended June 30, 2014. For the Three Months Ended (in thousands) June 30, 2014 Aver
Slide 32: Reconciliations of GAAP and Cash Efficiency Ratios
Reconciliations of GAAP and Cash Efficiency Ratios The following table presents a reconciliation of the Company’s GAAP and cash efficiency ratios for the three months ended June 30, 2014. For the Three Months Ended June 30, 2014 (dollars in thousands) GAAP Cash Total net interest income and non-inte
Slide 33: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Tangible and adjusted tangible stockholders’ equity and tangible and adjusted tangible assets are non-GAAP financial measures. The following table presents reconciliations of these non-GAAP measures with the related GAAP measures at June 30, 20
Slide 34: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Average tangible assets and average tangible stockholders’ equity are non-GAAP financial measures. The following table presents reconciliations of these non-GAAP measures with the related GAAP measures for the three months ended March 31, and J
Slide 35: 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 8/6/14 New York Community Bancorp, Inc. Page 35
New York Community Bancorp — Q2 2014 Earnings Presentation on 6ix