Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2024 Earnings Presentation
25 slides from Flagstar Bank, N.a's earnings presentation, Oct 25, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results October 25, 2024
Slide 2: Cautionary Statement: Forward-Looking Information
3rd Quarter 2024 2 Cautionary Statement Forward-Looking Information This earnings presentation and the associated conference call may include forward‐looking statements by the Company and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding
Slide 3: Our Five Areas of Strategic Focus
3rd Quarter 2024 3 Our Five Areas of Strategic Focus Long-Term Targets Strategic Update Pro-forma CET1 of 11.4%, in line or above peers On track to meet earnings forecast by year-end 2027 Significant progress in reducing operating expenses through headcount reductions and cost controls Ongoi
Slide 4: Positive Momentum Continued During Third Quarter 2024
3rd Quarter 2024 4 Positive Momentum Continued During Third Quarter 2024 1 Sustained deposit growth in primary areas of focus; Private Banking deposits increased $1.8 billion to $17.9 billion, up 11%, compared to the prior quarter 3 Substantially completed the annual CRE loan portfolio review. Conti
Slide 5: Meaningfully Revamped C&I Senior Leadership Team
3rd Quarter 2024 5 Meaningfully Revamped C&I Senior Leadership Team Significant Investment in C&I and Private Banking Leadership Reflecting Management’s Commitment to an Area of Strategic Growth Richard Raffetto Senior Executive Vice President, President of Commercial & Private Banking Joined July 2
Slide 6: C&I Growth Strategy
3rd Quarter 2024 6 1 Establish a relationship-focused commercial bank model 3 Invest in product capabilities to drive relationship primacy and fee income 4 Attract new talent in areas of market opportunities and growth; currently have added over 30 new hires 5 Differentiate the banker and client exp
Slide 7: Capital and liquidity metrics versus peers
3rd Quarter 2024 7 NYCB Flagstar Q4’23 NYCB Flagstar Q1’24 NYCB Flagstar Q2’24 NYCB Flagstar Q3’24 Category IV Banks Most Recent Available $50 – 100B Asset Banks Most Recent Available CET1 Ratio (Pro-forma for mortgage sale) 9.0% 10.1%(1) 11.2%(1) 11.4%(1) 10.8% 11.2% CET1 Ratio (Pro-forma for mortg
Slide 8: Forecast Update
3rd Quarter 2024 8 2024 2025 2026 2027 Diluted Core EPS(1) ($3.10 – 3.00) ($0.35 – 0.30) $0.75 – 0.80 $2.10 – 2.20 Efficiency Ratio(2) 95 – 100% 85 – 90% 65 – 70% 45 – 50% CET1 Ratio 10.75 – 11.00% 10.50 – 11.00% 10.00 – 10.50% 10.25 – 10.75% ROAA NM NM 0.30 – 0.40% 0.90 – 1.00% ROATCE NM NM 4.50 –
Slide 9: Forecast Update (cont'd)
3rd Quarter 2024 9 ($ in millions) 2024 2025 2026 2027 Net Interest Income $2,150 – 2,200 $2,050 – 2,100 $2,500 – 2,600 $3,000 – 3,100 Net Interest Margin 1.90 – 2.00% 1.95 – 2.10% 2.40 – 2.60% 2.80 – 2.90% Provision for Loan Losses $1,100 – 1,200 $225 – 275 $225 – 275 $150 – 180 Noninterest Income
Slide 10: Deposits | Overview
3rd Quarter 2024 10 Industry Balance ($B) 9/30/2024 Noninterest-Bearing Demand $18.6 Interest-Bearing Demand $15.3 Money Markets $6.4 Savings $13.5 Retail CDs $22.7 Jumbo CDs $6.5 Total Deposits $83.0 Deposits | Overview Core Deposit Growth(1)Well Diversified Deposit Base by Product Total deposit
Slide 11: YTD CRE Portfolio Payoffs at Par
3rd Quarter 2024 11 Commercial Real Estate Payoffs YTD 2024 YTD Payoffs Total Substandard (%) Multi-Family $1.8 billion 37% Office $148 million 94% Non-Office CRE $648 million 13% Total CRE $2.6 billion 34% Significant year-to-date CRE payoffs at par with 34% of the payoffs from substandard loans YT
Slide 12: Loan Portfolio | In-Depth Review
3rd Quarter 2024 12 Multi- Family, $32.3B Multi-Family, $33.1B Thorough annual review on MF and CRE loan portfolios now at 97% and will continue to proactively review remaining population mainly small balance loans Multi-Family $33.2 47% C&I $16.5 23% CRE $12.5 18% 1-4 Family $5.2 7% Co-op $2.0 3% O
Slide 13: Multi-Family Portfolio | Overview
3rd Quarter 2024 13 $1.3B $0.7B Multi-Family Portfolio | Overview Highlights Q3’24 Multi-Family, excluding Co-op, portfolio ALLL: 1.86% Multi-Family ACL among the highest relative to other multi-family focused lenders in the Northeast Multi-Family ALLL reflects the mix of the company’s loans i
Slide 14: Multi-Family Portfolio | In-Depth Review
3rd Quarter 2024 14 $976 $4,864 $5,049 $8,658 $13,211 2024 2025 2026 2027 2028+ Multi-Family Portfolio | In-Depth Review Highlights 97% of total Multi-family loans reviewed to date 100% of the largest loans have been reviewed 98% of multi-family where rent regulated loans are between 50% and 1
Slide 15: Office Portfolio | In-Depth Review
3rd Quarter 2024 15 Highlights Already reviewed 93% of office portfolio, remaining is smaller balance loans Have taken substantial net charge-offs of $388 million on existing loans in the office portfolio Remaining loans to be reviewed, which represents 7% of the portfolio, have an average UPB
Slide 16: Non-Office CRE Portfolio | Overview
3rd Quarter 2024 16 Non-Office CRE Portfolio | Overview Q3’24 Non-Office CRE portfolio ALLL: 1.92%, or 2.15% excluding owner-occupied In-depth reviews performed on 94% of the portfolio Most loans under review are non-New York City small balance loans Total Non-Office CRE Portfolio Profile (UPB
Slide 17: ACL as a % to LHFI increased to 1.87%
3rd Quarter 2024 17 ACL as a % to LHFI increased to 1.87% 6/30/2024 9/30/2024 ($ in millions) Allowance ALLL % Allowance ALLL % Change in ALLL % Multi-Family $618 1.71% $624 1.78% 7 bps Multi-Family (excl. Co-op) $613 1.81% $614 1.86% 5 bps Co-op $5 0.25% $10 0.45% 20 bps CRE $325 3.31% $289 3.14% (
Slide 18: Asset Quality
3rd Quarter 2024 18 MF $1,504 CRE $692 C&I $235 Other $83 68% of total NALs are current, compared to 61% at 6/30/2024 Total loans 30 to 89 days past due decreased $940 million, or 78%, compared to 6/30/2024 Moved approximately $174 million of non-accrual loans to held for sale at the agreed up
Slide 19: Maintaining a Strong Liquidity Position
3rd Quarter 2024 19 $22.5 $19.0 $41.5 $13.9 Liquidity Net Uninsured Deposits Liquidity Sources Maintaining a Strong Liquidity Position Our liquidity profile remains solid Total liquidity of $41.5 billion with a coverage ratio of 299% Cash(1) held on balance sheet of $22.5 billion $19 billion
Slide 20: Q3 2024 Financial Highlights
3rd Quarter 2024 20 ($ in millions) NYCB Flagstar 9/30/24 Net Interest Income $510 Noninterest Income(1) $135 Noninterest Expense(1) $656 Provision for Loan Losses $242 Net Income / (Loss) Attributable to Common Shareholders $(289) Diluted Earnings / (Loss) per Common Share $(0.79) Dividends Per Sha
Slide 21: Investment Profile
3rd Quarter 2024 21 Investment Profile Pro-forma for the capital raise, NYCB currently trades at approximately 0.63x of tangible book value, compared to 1.79x for Category IV banks and 1.55x for banks with assets between $50 - $100 billion Q3’24 TBV Per Share: $18.18 Q3’24 TBV: $7.5 billion
Slide 22: Appendix
Appendix
Slide 23: Reconciliations of GAAP and Non-GAAP Measures
3rd Quarter 2024 23 Note: $ in millions except share data | Please note that columns of data may not add due to rounding. Reconciliations of GAAP and Non-GAAP Measures Tangible Book Value Per Common Share 9/30/2024 Total stockholders equity $8,571 Less: Core deposit and other intangibles 519 Less: P
Slide 24: Peer Groups
3rd Quarter 2024 24 Category IV Banks Ticker Citizens Financial CFG Fifth Third Bancorp FITB First Citizens Banc. FCNC.A Huntington Banc. HBAN KeyCorp KEY M&T Bank MTB Regions Financial RF Banks with $50B - $100B in Assets Ticker BOK Financial BOKF Columbia Banking System COLB Comerica CMA East West
Slide 25: For More Information
3rd Quarter 2024 25 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. 102 Duffy Avenue Hicksville, NY 11801 For More Information
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