Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2023 Earnings Presentation
31 slides from Flagstar Bank, N.a's earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Investor Presentation
Second Quarter 2023 Investor Presentation Parent company of
Slide 2: Forward-Looking Information
22nd Quarter 2023 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 ac
Slide 3: Strong operating performance, capital and disciplined credit
32nd Quarter 2023 Acquisition/ Organic driven growth model Strong operating performance • Total assets of $118.8 billion declined $4.9 billion compared to March 31, 2023, primarily due to cash being used to paydown wholesale borrowings. • Total loans of $83.3 billion an increase of $0.7 billion, or
Slide 4: Quarterly income comparison
42nd Quarter 2023 Observations • Adjusted non-interest income(1) increased $64 million, up 66%, due to: • Net loan administration income up $32 million, driven by subservicing income related to the Signature transaction • Fee income, up $21 million, driven by full quarter impact of Signature transac
Slide 5: Balance sheet highlights
52nd Quarter 2023 $mm Observations Balance sheet highlights Incr (Decr)(1) Balance at June 30, 2023 Balance at March 31, 2023 $ % Cash, cash equivalents and due from banks $ 15,806 $ 22,250 $ (6,444) (29) % Securities(2) 7,796 7,613 183 2 % Loans held-for-sale 2,194 1,305 889 68 % Loans and leases H
Slide 6: Deposits and loans
62nd Quarter 2023 Deposits and loans • Highlights – Deposits generated through retail and commercial channels – Non-interest bearing deposits at 33% of total deposits. Excluding $5.9 billion of custodial deposits related to the Signature transaction, non-interest bearing deposits as a percent of tot
Slide 7: Deposits by segment and uninsured
72nd Quarter 2023 Deposits by segment and uninsured Deposits by Segment Uninsured Deposits Community Banking 3.7% Custodial 11.7% Digital & BaaS 10.0% Premier Banking 2.5% Private Client Group 29.9% Retail Banking 30.3% Wholesale 6.4% Other 5.6% Insured 57.2% Uninsured 35.1% Uninsured - Collateraliz
Slide 8: Deposit flow analysis
82nd Quarter 2023 Deposit flow analysis $84,854 $88,497$5,946 03/31/2023 Signature Flagstar/NYCB Signature Custodials 6/30/203 -$1,412 -$891 Key Observations • -$1.4B Signature: Primarily due to runoff of higher cost brokered deposits (-$1.1B) and CDs (-$0.3B), partially offset by higher demand depo
Slide 9: Asset quality metrics
92nd Quarter 2023 Asset quality metrics Ratio NYCB S&P US BMI Banks Index Peers At June 30, 2023 At March 31, 2023 At March 31, 2023 NCOs/Average Loans 0.00% 0.11% 0.18% Cumulative losses (a) 107 bp 2,436 bp 1,368 bp NPAs/Total Assets 0.21% 0.34% 0.51% NPLs/Total Loans 0.28% 0.50% 0.75% ALLL/NPLs 25
Slide 10: Regulatory capital
102nd Quarter 2023 Regulatory capital Ratio NYCB Peers At June 30, 2023 At March 31, 2023 Total Risk-Based Capital 11.94% 12.87% Tier 1 Risk-Based Capital 10.16 10.91 Common Equity Tier 1 9.58 9.93 Tier 1 Leverage 7.37 9.36 → • We remain well capitalized and well above the minimum thresholds for all
Slide 11: Credit quality: Non-performing loans/total loans
112nd Quarter 2023 (a) Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired (“PCI”) loans. (b) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest. Our non-performing loans at 12/31/16, 1
Slide 12: Credit quality: NPAs/total assets vs peers
122nd Quarter 2023 Credit quality 1. Refer to slide 28 for list of peers 2. Source: Company disclosures, peers results as of 6/30/2023, except for peers 8 and 10 which are as of 3/31/2023 NPAs/Total Assets 0.19% 0.21% 0.21% 0.24% 0.30% 0.30% 0.32% 0.33% 0.38% 0.39% 0.41% 0.43% 0.54% 1.19% Peer 1 NYC
Slide 13: Credit quality: Net charge-offs/average loans
132nd Quarter 2023 Credit quality (a) The calculation of our net charge-offs to average loans excludes taxi medallion-related charge-offs of $59.6 million, $12.8 million, $10.2 million, $11.9 million, and $2 million, for 2017, 2018, 2019, 2020, 2021, and a $(6) million net recovery for 4Q22, respect
Slide 14: Community banking
142nd Quarter 2023 Community banking • Flagstar Bank, N.A. is a leading regional bank with a balanced, diversified lending platform • Second-largest multi-family portfolio lender in the country and the leading multi-family portfolio lender in the New York City • Second largest mortgage warehouse len
Slide 15: Expanding Private Banking capabilities
152nd Quarter 2023 • Entrepreneurial, team-based culture • Deliver through client-centric model to mass affluent, high net worth and commercial clients focused on exceptional service executed through single-point-of-contact model • Disciplined credit risk management approach aligned with risk appeti
Slide 16: Loan portfolio
162nd Quarter 2023 Total HFI Loans: $83.3 billion Loan portfolio • Majority of portfolio focused on low-risk multi-family loans on non-luxury, rent- regulated buildings - Market leader in this asset class having developed strong expertise and industry relationships over the last five decades • Avera
Slide 17: Multi-Family portfolio
172nd Quarter 2023 Multi-Family Portfolio Statistics for the three months ended June 30, 2023 • We are a leading indirect multi-family, rent regulated lender in the New York Metro Region. Multi-family loans have been our primary lending focus for the past five decades • 46% of loans held-for-investm
Slide 18: Commercial real estate and ADC portfolio
182nd Quarter 2023 • Diversified property types which are primarily income- producing in the normal course of business • For additional information on Office, see slide 18 • For additional information on Homebuilder see slide 19 Commercial Real Estate and ADC ($bn) Commercial real estate & ADC Portf
Slide 19: Office portfolio characteristics
192nd Quarter 2023 Office portfolio characteristics Portfolio Profile Portfolio by location Manhattan 55% Queens; 7% PA; 5% NJ; 5% MI; 5% Nassau County-NY; 4% DC; 3% Suffolk County-NY; 3% Other; 13% UPB by option/contractual maturity year ($MM) $248 $429 $502 $826 $690 $337 $280 $50 2023 2024 2025 2
Slide 20: Home builder loan commitments
202nd Quarter 2023 Home builder loan commitments(1) ($mm) ● National relationship-based lending platform launched in 1Q16 - Attractive asset class with good spreads (~375 bps) - Meaningful cross-sell opportunities including warehouse loans, commercial deposits and purchase originations ● Flagstar is
Slide 21: Commercial and industrial portfolio
212nd Quarter 2023 Commercial & Industrial ($bn) Commercial and industrial portfolio Industry Breakdown NBV Flagstar Financial $6.7 Warehouse 6.0 Specialty Finance 4.8 MSR 1.7 Financial & Insurance 1.4 Other 3.3 Total C&I $23.9 Flagstar Financial 28% Warehouse 25% Specialty Finance 20% MSR 7% Financ
Slide 22: Warehouse lending
222nd Quarter 2023 Warehouse loan commitments ($bn) Warehouse lending Lenders ranked by commitments ($mm) Source: Inside Mortgage Finance Report published on April 2023 with balances as of 3/31/2023. ● National relationship-based lending platform ● Attractive asset class with good spreads and low cr
Slide 23: Appendix
Appendix
Slide 24: Securities and funding composition
242nd Quarter 2023 Securities and funding composition • 2.35% cost of funds including non-interest bearing deposits • Significant capacity given eligibility of multi-family loans Total Funding: $104.9 billion • Entire portfolio is available for sale • Consists primarily of GSE-related securities • O
Slide 25: Mortgage banking
252nd Quarter 2023 Closings by mortgage type ($bn) Net gain on loan sales – revenue and margin Fallout-adjusted locks by channel ($bn) Closings by purpose ($bn) Mortgage banking $5 $20 $25 0.56% 0.76% 0.56% Gain on loan sale ($mm) Gain on sale margin (HFS) December 2022 1Q23 2Q23 $0.7 $2.6 $4.5 0.2
Slide 26: Servicing portfolio
262nd Quarter 2023 154 7 35 Servicing portfolio MSR portfolio characteristics (% UPB) MSR portfolio statistics Net return (loss) on mortgage servicing rights ($mm) By Vintage 2023 5% 2022 24% 2021 31% 2020 23% 2020 & prior 17% By Investor Freddie 24% Fannie 58% GNMA 18% Private 1% Measure ($mm) 12/3
Slide 27: 2023 Guidance
27 Guidance(1) 1. See cautionary statements on slide 2. Provision for Credit Losses • Q3-23 NIM estimated to be between 2.95% to 3.05% Non-interest income • Q3-23 Gain on Sale revenue of $20 million to $24 million • Net return on MSR is 8 - 10% • Loan administration income estimated at $15 million N
Slide 28: Peer group
282nd Quarter 2023 Peer group Peer Ticker Citizens Financial CFG Comerica CMA Fifth Third Bancorp FITB First Citizens Bancshares FCNC.A First Horizon Corporation FHN Huntington Bancshares Incorporated HBAN KeyCorp KEY M&T Bank Corporation MTB Regions Financial Corporation RF Synovus Financial Corpor
Slide 29: Adjusted net income and diluted earnings per share
292nd Quarter 2023 Adjusted net income and diluted earnings per share Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Three Months Ended June 30, 2022 Net income - GAAP $ 413 $ 2,006 $ 171 Merger-related and restructuring expenses, net of tax (1) 81 50 3 Bargain purchase gain (141
Slide 30: Reconciliations of GAAP and non-GAAP measures
302nd Quarter 2023 Reconciliations of GAAP and non-GAAP measures $mm Non-GAAP Ratio Reconciliations Three months ended June 30, 2023 Three months ended March 31, 2023 Three months ended June 30, 2022 Total Stockholders’ Equity $ 11,060 $ 10,782 $ 6,824 Less: Goodwill and other intangible assets (3,1
Slide 31: Investor Relations contact
312nd Quarter 2023 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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