Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2013 Earnings Presentation
38 slides from Flagstar Bank, N.a's earnings presentation, Oct 28, 2013
Slide 1: Third Quarter 2013 Investor Presentation
Exhibit 99.1 ******************* Third Quarter 2013 Investor Presentation
Slide 2: Forward-looking Statements and Associated Risk Factors
Forward-looking Statements and Associated Risk Factors Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 This presentation, like many written and oral communications presented by New York Community Bancorp, Inc. (the “Company”) and our authorized officers, may contain ce
Slide 3: New York Community Bancorp ranks among the top 25 bank holding companies in the United States
New York Community Bancorp ranks among the top 25 bank holding companies in the United States. Multi-Family Total Return Assets Deposits Market Cap Loans on Investment $45.8 billion $25.3 billion $20.2 billion $6.7 billion 3,768% With assets of With deposits of With a portfolio of With a market cap
Slide 4: Growth-through-acquisition strategy: 272 locations in five states
Largely reflecting our growth-through-acquisition strategy, we currently have 272 locations in five states. Metro New York New Jersey Ohio 120 Community Bank Branches 49 Community Bank Branches 28 Community Bank Branches 35 Commercial Bank Branches Florida Arizona 26 Community Bank Branches 14 Commu
Slide 5: 3rd Quarter 2013 Performance Highlights
3rd Quarter 2013 ***************** Performance Highlights
Slide 6: We generated solid earnings in 3Q 2013
We generated solid earnings in 3Q 2013. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS 3Q 2013 GAAP Earnings Cash Earnings (a) Strong Profitability Measures: Earnings $114,200 $124,463 EPS $0.26 $0.28 Return on average tangible assets (b) 1.11% 1.19% Return on average tangible
Slide 7: Our 9/30/13 balance sheet reflects continued strength
Our 9/30/13 balance sheet reflects continued strength. PERFORMANCE HIGHLIGHTS: 9/30/13 12/31/12 Loans, net / total assets 70.2% 71.5% Securities / total assets 15.5 11.1 Deposits / total assets 55.3 56.4 Core deposits / total deposits 71.8 63.3 Wholesale borrowings / total assets 31.0 29.6 New York
Slide 8: Our asset quality measures compare favorably with our industry
Our asset quality measures continue to compare favorably with those of our industry as a whole. At or for the Three Months Ended 9/30/13 12/31/12 SNL U.S. SNL U.S. Bank and Bank and ASSET QUALITY: NYCB Thrift Index NYCB Thrift Index Non-performing loans (a)(b) / total loans (a) 0.43% 1.28% 0.96% 2.2
Slide 9: We continue to maintain a strong capital position
We continue to maintain a strong capital position. (dollars in billions) 9/30/13 12/31/12 Tangible stockholders’ equity / tangible assets excluding accumulated other comprehensive loss, net of tax (a) 7.61% 7.79% Tangible stockholders’ equity (a) $3.2 $3.2 9/30/13 12/31/12 Community Bank Commercial
Slide 10: A Successful Business Model
A Successful ***************** Business Model
Slide 11: 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 Multi-family loans Net charge-offs Since January Our efficiency ratio Our
Slide 12: Multi-Family Loan Production
Multi-Family ***************** Loan Production
Slide 13: 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 14: 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 9/30/13 % of non-covered loans held for investment = 69.2% Average principal balance = $4.5 million Expected weighted average life = 3.0 years 3Q 2013 o
Slide 15: Our commercial real estate loans feature the same structure as multi-family loans
Our commercial real estate loans feature the same structure as our multi-family loans. (in millions) PORTFOLIO STATISTICS COMMERCIAL REAL ESTATE AT 9/30/13 LOAN PORTFOLIO % of non-covered loans held for investment = 24.8% Average principal balance = $4.7 million Expected weighted average life = 3.2
Slide 16: Asset Quality
Asset ***************** Quality
Slide 17: Asset quality has improved dramatically since the peak of non-performance
The quality of our assets has improved dramatically since the peak of non-performance at 3/31/10. Y-O-Y IMPROVEMENT at 9/30/13 NPLs / Total Loans: 49 bp NPAs / Total Assets: 25 bp Non-Performing Loans (a)(b) / Total Loans (a) Non-Performing Assets (c) / Total Assets (c) (a) Non-performing loans and
Slide 18: 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, andby52 consecutivequarterswith no losseson assetsgeneratedbythe Company.(a) NET CHARGE-OFFS / AVERAGE LOANS Last Credit Cycle Current Credit Cycle 5-Year Total 5.75 -Year Total NYCB: 17 bp NYCB: 90 bp SNL U.S.
Slide 19: 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) Last Credit Cycle Current Credit Cycle SNL U.S. Bank and Thrift Index NYCB (a) Non-performing loans and total loans exclude covered loans. (b) Non-performing loans are defined as
Slide 20: Few of our non-performing loans have resulted in charge-offs
Historically and currently, few of our non-performing loans have resulted in charge-offs. At or for the At or for the 12 Months Ended December 31, 3 Months Ended Last Credit Cycle (a) Current Credit Cycle (a) 1989 1990 1991 1992 1993 2008 2009 2010 2011 2012 9/30/13 NPLs (b)(c) / Total Loans (b) 1.4
Slide 21: Asset quality 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 • Conservative loan-to- • All loans originated for • All propertie
Slide 22: Residential Mortgage Banking
Residential ***************** Mortgage Banking
Slide 23: Our residential mortgage banking operation ranks among the top 15 aggregators
Our residential mortgage banking operation ranks among the top 15 aggregators of agency-conforming one-to-four family loans in the U.S. Acquired through our AmTrust Bank transaction in December 2009 History Established as a subsidiary of New York Community Bank in April 2010 Over 131,900 loans origi
Slide 24: Prepayment penalty income and mortgage banking income contribute 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 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2
Slide 25: Efficiency
***************** Efficiency
Slide 26: Our efficiency is driven by several factors
Our efficiency is driven by several factors. Franchise expansion has largely stemmed from mergers and acquisitions; we generally do not engage in de novo branch development. Multi-family and commercial real estate lending are both broker-driven, with the borrower paying fees to the mortgage brokerag
Slide 27: Growth Through Acquisitions
Growth Through ***************** Acquisitions
Slide 28: Since our first acquisition, we have grown from $1.9 billion to $45.8 billion in assets
In the 13 years since our first acquisition, we have grown from $1.9 billion in assets to $45.8 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 transacti
Slide 29: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition-driven. DEPOSITS (in millions) CDs NOW, MMAs, and Savings Demand deposits Total Deposits: $3,268 $5,472 $10,360 $12,168 $12,764 $13,311 $22,418 $21,890 $22,326 $24,878 $25,309 Total Branches: 86 120 139 152 166 217 276 276 275 275 272 New York Communit
Slide 30: 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 (in millions) Held-for-Investment Loans Multi-family CRE All other HFI loans Loans held for sale Covered loan portfolio Total Loans Outstanding: $3,636 $5,405 $10,499 $17,029 $19,653 $20,36
Slide 31: Total Return on Investment
Total Return ***************** on Investment
Slide 32: 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: 28.6% As a result of nine stock splits between 1994 and 2004, our charter shareholders have 2,700 shares
Slide 33: 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 10/28/13 New York Community Bancorp, Inc. Page 33
Slide 34: 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, 2013. For the Three Months Ended (in thousands, except per share data)
Slide 35: 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 September 30, 2013. For the Three Months Ended (in thousands) September 30,
Slide 36: 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 September 30, 2013. For the Three Months Ended September 30, 2013 (dollars in thousands) GAAP Cash Total net interest income an
Slide 37: 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 September 3
Slide 38: 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, June
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