Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2011 Earnings Presentation
40 slides from Flagstar Bank, N.a's earnings presentation, Jul 27, 2011
Slide 1: Second Quarter 2011 Investor Presentation
Second Quarter 2011 Investor Presentation
Slide 2: Safe Harbor Statement
Safe This performance statements Forward-looking provisions. “estimate,” actual There include, estate securities; ratings quality institutions; savings products any beyond agencies, our judicial, rent in capital technological terrorist For “Risk In discussions Furthermore, Readers undertake Page acc
Slide 3: (a) New Assets
(a) New Assets With Multi-Family Market Total Note:York Page 3deposits Return With Capitalization SNL Community Except New assets on Financial Loans ofInvestment York as $21.8 ofWith $40.6 With billion Bancorp (b)aindicated, otherwise Community Bloomberg aFrom portfolio billion market at ranks 6/30/
Slide 4: Largely reflecting our acquisition strategy, 276 branches in five states
Largely Metro 157 Florida 25 Page Branches Branches 4New New Arizona reflecting York York 1452Branches Branches New Community our acquisition Jersey 28Ohio Branches Bancorp, strategy, Inc.we currently have 276 locations in five states.
Slide 5: Meaningful market share in several markets we serve
We have Market Rank Richmond Nassau Queens Suffolk Essex Cuyahoga Palm Page 5Beach County, New Number County County a County, meaningful County York County, NJ 35 30 44 ofCommunity 14 7.50 22 4.47 OH 6.25 Branches FL 15.65 15.25% share 20 22105764.61 4.33 14,086 1,606 2,584 of Deposit 12Bancorp, 3,0
Slide 6: Our performance ranking among thrifts
(a) Our Rank NYB AF WFSL PBCT TFSL HCBK17,707 performance 6on $41,047 10,885 ³24,962 13,389 52,429 Source: Specific 43.13 (b) Composite assets Page New $2 2.82 5.40 126.45 36.32 -51.48 billion York SNL 13 for Profitability 22 1917 score, 14 the 22 1Financial 24 158114 Community based 12 23 15 10 1NA
Slide 7: 2nd Quarter 2011 Performance Highlights
2nd Quarter 2011 Performance Highlights
Slide 8: Our 2Q 2011 Performance Highlights
(a) Our (dollars 2Q GAAP Earnings EPS Return Margin Net Continued Efficiency 2011 interest 2Q (a) 8 OPERATING on Stability: 2011 in $0.27 (b) Please Page Please Performance New(a) average thousands, ratio Efficiency: margin see$119,459 performance $0.26 Yorksee (c)Community page tangible page 40.99%
Slide 9: Our 6/30/11 Performance Highlights: balance sheet
Our 6/30/11 Performance Loans, Securities Deposits Core Wholesale Page deposits 9 net/ /total New /borrowings total total York balance Highlights: / total assets assets assets Community deposits sheet 52.9 /11.6 70.5% total 12/31/10 reflected 54.1 11.7 64.1 assets Bancorp, 69.5% 53.7 14.0 66.4 3/31/
Slide 10: Our Asset Quality
Ouror At SNL Non-performing Net (a) PageNon-performing charge-offs asset U.S. 10 forNew the quality Bank Three York /and non-covered average measures Community Months Asset loans loans are Quality: continue Ended defined loans (b) Bancorp, 6/30/11 0.09 NYB (a) toascompare / 0.47 total non-accrual Th
Slide 11: Our Capital
(a) Capital Y-O-Y Tangible Our In July Page dividend 11(dollars 2011, growth Please equity stockholders’ New we has has in see / declared York tangible been billions) been pageaequity supported 39 significant assets our Community6/30/10 for(a) 30th aBancorp, excluding (a) reconciliation $2.9 consecu
Slide 12: A Successful Business Model
A Successful Business Model
Slide 13: Our Business Model
(a) Our Growth Multi-Family Strong Mortgage Efficient Pagebusiness 13Credit through Please Operation Banking New model Lending Standards/ see WeCommunity York In page Our has completed 1H We consistently operating 37 Net 2011, originated for charge-offs ten aBancorp, our reconciliation efficiency ac
Slide 14: Growth through Acquisitions
Growth through Acquisitions
Slide 15: We have completed ten acquisitions since 2000
WeApril 1. Haven $2.7 $2.1 6. PennFed Assets: $2.3 Deposits: $1.6 Branches: Transaction Note: Page Nov. have billion 15 The (HAVN) Assets: 2000 2007 New completed Financial Deposits: 43 23 number $3.7 $2.5 $485 $370 Type: 2. Branches: York 7.Assets: July Bancorp July billion million Savings of netwo
Slide 16: Our Deposits
Our (in NOW, CDs C AmTrust $1,768 DEPOSITS w/ & $9,054 $40 12/31/99 Total Page A SYNF PFSB, millions) $1,223 G deposit 16 deposits: Deposits: Branches: R MMAs, $1,852 $2,609 New s12/31/00 w/ Doral, $4,362 growth ABNY Desert York $1,964 $7,835 29.8% and $1,076 14 12/31/01 $Community 86 Savings Hills
Slide 17: Our Loans Outstanding
Acquisitions (in PFSB, Non-Covered ABNY CRE Covered RSLN C After 12/31/99 Total (a) Page AOriginations millions) G17 $6,123 loans: Loans: Originations: After $4,008 Doral, RCBK R $2,888 $5,016 $1,467 New Loan s12/31/00 HAVN AmTrust 28.4% & $2,482 LOANS $1,611 have York Loan $4,298 Portfolio After of
Slide 18: Our Mortgage Banking Operation
Our (in Funded $3,436.7 $7,316.9 1H Statistics •Features: Page Average As The 1-4 % Rank 1H Loan Our 1,000 100% Loans millions) 2010 sold mortgage largest 2011 family 18 loans the accessible among mortgage of 1-4 can New to 2H $2,621.9 at lending FICO loan-to-value loans mortgage GSEs vast aFamily o
Slide 19: Multi-Family Loan Production
Multi-Family Loan Production
Slide 20: A leading producer of multi-family loans in New York City
For more Page 20 New thanYork 40 years, Community we haveBancorp, been a leading Inc. producer of multi-family loans on apartment buildings in New York City, most of which feature below-market rents.
Slide 21: Our focus on rent-regulated multi-family buildings
(a) 64.0% Rent-regulated Our Multi-family Pagefocus 21ofNew Source: the on rental loans multi-family buildings New York are housing York less are Communitylending costly City units more Rent in tolikely onNew inproduce this Bancorp,Guidelines rent-regulated to York niche retain Inc.and City market B
Slide 22: Our Multi-Family Loan Portfolio
AtAverage Portfolio (in •Prepayment 12/31/07 Page Years %6/30/11, Expected Option Both Range millions) of22loans –6-10: advance in New floor above advance statistics 12/31/08 loan-to-value years weighted multi-family penalties: held York equal prime; 1-5: from for 2at 12/31/09 Community –to rate 6/3
Slide 23: Our Commercial Real Estate Loan Portfolio
Our (in Commercial $6,123 12/31/07 Portfolio Terms: •Prepayment Page Average Years Expected 2Q % Option Both Range Recorded millions) of commercial 2011 23total loans –$5,438 advance 6-10: in New floor above advance statistics 12/31/08 principal loan-to-value originations years weighted as loans pen
Slide 24: Asset Quality
Asset Quality
Slide 25: Our Net Charge-Offs
(a) Both Net Last 0.91% 1.17% 1.28% 1.50% 1990 4-Year Current 2.85% 0.13% 0.68% 0.95%(a) 1.63% 0.00% 2007 4.5-Year SNL PageCharge-Offs Credit U.S. historically 1991 2008 250.04% 2.89% 0.21% 0.03% Total Credit Non-annualized Total Bank New1992 2009 Cycle NYB: 0.07% 0.23%(a) NYB: Cycle and York1993 20
Slide 26: Our Non-performing Loans
TheNon-performing Non-Performing Last 4.00% 2.48% 2.83% 3.41% 12/31/90 1.51% 2.10% Current 2.04%(b) 2.71% 4.26% 4.41% 4.84% 12/31/07 0.11% 0.51% 1.45% 1.76%(b) SNL (a) Page quality Credit U.S. 262.35% 4.05% Credit New 12/31/91 12/31/08 2.23%(b) Bank Cycle ofYork our Cycle and Loans loan 12/31/92 12/
Slide 27: Non-performing loans and charge-offs
(c) Historically At NPLs(a) bp (a) Pageor 145 Non-performing forbp 27 Non-annualized /the Total 11and New At bp or Loans currently, 48for York bp loans the 2.48% 19112 are few CommunitybpMonths 2.10% defined 202 of our bp2.83% Ended non-performing 167 as non-accrual Bancorp, bp1.51% December Inc. 0.
Slide 28: The Conservative Underwriting Approach
The CONSERVATIVE ACTIVE MULTIPLE million. •RISK-AVERSE Page A All ADC: Conservative Multi-family Multi-family: CRE: Commercial One-to-Four participates quality loans properties house 2825.0% 2.1% New BOARD originated independent of APPRAISALS York and Family: our and loan-to-value debt 69.6% member
Slide 29: Covered Loans and Assets
All millions) (in $38.0 Covered 1-4 $81.4 OREO Other Total Pagethe Family 29 covered Loans loans New Assets $4,153.0 $3,622.1 $473.6 $386.2 acquired York assets: 6/30/10 6/30/11 Community $4.7 $4.1 in the billion AmTrust Bancorp, Percent andInc. ofDesert total assets: Hills transactions 11.1% 10.1%
Slide 30: Efficiency
Efficiency
Slide 31: Our Efficiency Ratio
(a) Our EFFICIENCY 59.25% 60.65% 62.56% 60.00% 72.37% 70.00% 80.00% 50.00% 37.59% 41.18% 42.21% 40.00% 30.00% 2006 20.00% NYB SNL Pageoperating U.S. 2007 Rank 31 59.21% 56.91% 38.89% 36.16% Please Bank New2008 #15efficiency RATIO see #16 and 35.88% York2009 pages Thrift #92010 #7ratio 37 Community#5
Slide 32: Our Franchise Efficiency
Ourof Franchise Multi-family Products 42 We Pageacquire efficiency 32 ourNew and branches expansion our and services York isdeposits driven commercial are Community has are located by primarily largely typically several real in-store, Bancorp, stemmed estate through factors. developed where lending
Slide 33: Total Return on Investment
| Total Return on Investment |
Slide 34: Total Return on Investment
(a) We TOTAL SNL 3,843% NYB 2,754% CAGR 2,059% 30.9% 717% 244% 444% 11/23/93 As Pageaare result U.S. (a) 614% 213% 34Total committed since 2,479% RETURN Bloomberg 2,885% 12/31/99 Bank NewofReturn: 209% IPO: nine andTrailing York to 12/31/06 stock ON 245% Thrift 3.9% building INVESTMENT splits 219% I
Slide 35: For More Information
For More Log Write (516) ir@myNYCB.com ir.myNYCB.com Investor New Page 7/27/2011 onto York 35 683-4420 to:New Relations our Information Community web Yorksite: Community E-mail Bancorp, requests Bancorp, Inc. 615 to:Inc. Merrick Call Investor AvenueRelations Westbury,at: NY 11590
Slide 36: Reconciliation of GAAP and Operating Earnings
Reconciliation The For (in Income Operating Diluted Pagethousands, the following 36Three tax GAAP operating New earnings effect York Months except table of Earnings GAAP 4,143 earnings Community $113,160 presents per Ended per and share per Share reconciliations Operating share data) Bancorp, $ 0.27
Slide 37: Reconciliation of GAAP and Operating Efficiency Ratios
Reconciliation The For (dollars Total Adjustments: Gain Loss Adjusted Operating Efficiency Pagethe following on 37 non-interest Three in other-than-temporary business New total expenses thousands) ratio York Gain Months non-interest table of40.99% disposition GAAP income Community on $147,900 presen
Slide 38: Reconciliation of Operating Efficiency Ratios, 2006-2010
Reconciliation 2008, For 2010 (dollars Total Visa-related Net (Gain) Loss Balance Gain Operating Adjustments: Acquisition-related Merger-related VISA Retirement Adjusted Efficiency Pagethe gain on 38 2009 net The litigation loss Years in mark-to-market other-than-temporary business termination sale
Slide 39: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation The June (dollars Total Less: Core Stockholders’ Tangible Accumulated Adjusted Page following 30, deposit 39 stockholders’ assets Goodwill in New March stockholders’ assets tangible thousands) $40,602,625 intangibles York other equity table of $38,103,289 (2,436,131) 31, GAAP assets s
Slide 40: Reconciliation of Return on Tangible Equity Measures
Reconciliation The For (dollars Less: Average Net Add Adjusted Return Operating Pagethe Income following back: 40 Average on Three in New Assets Stockholders’ tangible net operating average Income return Amortization thousands) $119,459 income York Months goodwill table of $40,853,788 on stockholder
New York Community Bancorp — Q2 2011 Earnings Presentation on 6ix