Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2018 Earnings Presentation
31 slides from Flagstar Bank, N.a's earnings presentation, May 8, 2018
Slide 1: First Quarter 2018 Investor Presentation
First Quarter 2018 Investor Presentation Exhibit 99.1
Slide 2: Forward-Looking Information
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 acquisitions, among
Slide 3: Assets $49.7 billion; company at a glance
Assets $49.7 billion We recorded assets of $49.7 billion at 3/31/18. We rank among the largest U.S. bank holding companies. Bloomberg Note: Except as otherwise indicated, all industry data was provided by S&P Global Market Intelligence as of 5/8/18. Deposits $29.2 billion With 255 branches in Metro
Slide 4: 1Q 2018 Performance Highlights
1Q 2018 Performance Highlights
Slide 5: Income Statement Highlights
(dollars in thousands, except per share data) 1Q 2018 Strong Profitability Measures: Net income available to common shareholders $98,345 Diluted earnings per common share $0.20 Return on average assets 0.87% Return on average common stockholders’ equity 6.26 Return on average tangible assets (a) 0.9
Slide 6: Balance Sheet Highlights
Company Capital 3/31/18 Common stockholders’ equity / total assets 12.64% Common equity tier 1 capital ratio 11.46 Tier 1 risk-based capital ratio 12.93 Total risk-based capital ratio 14.43 Leverage capital ratio 9.50 Bank Capital 3/31/18 Community Bank: Common equity tier 1 capital ratio 13.55% Tot
Slide 7: Loans and Deposits
Total HFI Loans: $38.8 bn Average Yield on Loans: 3.72% Total Deposits: $29.2 bn Average Cost of Interest-Bearing Deposits: 1.10% Loans at 3/31/18 Deposits at 3/31/18 Loans and Deposits
Slide 8: Our regulatory capital ratios exceed those of our peers
Our regulatory capital ratios exceed those of our peers. Ratio NYCB At 3/31/18 Peers (Median At 3/31/18) SNL B&T (Median at 3/31/18) Tier 1 Risk-Based Capital 12.93% 11.96% 11.98% Total Risk-Based Capital 14.43 13.57 13.59 Tier 1 Leverage 9.50 9.47 9.88 Common Equity Tier 1 11.46 10.82 11.15
Slide 9: Looking Forward
Looking Forward
Slide 10: Loan Growth Should Continue Throughout 2018
Loan Growth Should Continue Throughout 2018 Total HFI loans grew $501 million or 5% on an annualized basis, and we expect loan growth to continue throughout 2018. Multi-family loans increased $582 million or 8% on an annualized basis We have ample room to grow on a trailing quarterly average basis w
Slide 11: With market interest rates on the rise, portfolio coupons may have bottomed
With market interest rates on the rise, portfolio coupons may have bottomed
Slide 12: Regulatory reform bill S.2155 and SIFI threshold
→ The Senate passed a bipartisan regulatory reform bill (S.2155) in March 2018. → The bill has now moved to the House Financial Services Committee for their approval to bring it to the full House for a vote. → Raising the SIFI threshold would: facilitate our ability to engage in mergers with institu
Slide 13: Our Business Model: Strategic Loan Production
Our Business Model Strategic Loan Production
Slide 14: Multi-Family Loan Portfolio
Portfolio Statistics at or for the 3 Months Ended 3/31/18 % of non-covered loans held for investment = 73.7% Average principal balance = $5.8 million Weighted average life = 2.7 years % of our multi-family loans located in Metro New York = 76.2% % of HFI loan originations = 70.6% Multi-Family Loan P
Slide 15: Multi-family lending in rent-regulated NYC buildings
→ Of the loans in our portfolio that are collateralized by multi-family buildings in the five boroughs of New York City, 88% are collateralized by buildings with rent-regulated units featuring below-market rents. → Rent-regulated buildings are more likely to retain their tenants – and, therefore, th
Slide 16: Commercial Real Estate Loan Portfolio
Commercial Real Estate Loan Portfolio (in millions) Originations: $1,661 $1,842 $1,180 $1,039 $177 Net Charge-Offs (Recoveries): $1 $(1) $(1) $0 $3 Commercial real estate lending has been a logical extension of our emphasis on multi-family loans. Portfolio Statistics at or for the 3 Months Ended 3/3
Slide 17: Specialty Finance Loan and Lease Portfolio
Specialty Finance Loan and Lease Portfolio (in millions) Originations: $848 $1,068 $1,266 $1,784 $397 Net charge-Offs: $0 $0 $0 $0 $0 The launch of our specialty finance business provided us with another high-quality lending niche. Loan Types Syndicated asset-based (ABLs) and dealer floor-plan (DFPL
Slide 18: Our Business Model: Asset Quality
Our Business Model Asset Quality
Slide 19: Conservative Underwriting
Conservative Underwriting Conservative loan-to-value ratios Conservative debt service coverage ratios: 120% for multi-family loans and 130% for CRE loans Multi-family and CRE loans are based on the lower of economic or market value. Active Board Involvement The Mortgage Committee and the Credit Comm
Slide 20: Non-Performing Loans / Total Loans
Non-Performing Loans(a)(b) / Total Loans(a) Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired (“PCI”) loans. Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest. Our non-performing loa
Slide 21: Net Charge-Offs / Average Loans
Few of our non-performing loans have resulted in actual losses. Net Charge-Offs / Average Loans Cumulative Total NYCB: 99 bp SNL U.S. Bank and Thrift Index: 2,270 bp The calculation of our net charge-offs to average loans for 2017 excludes charge-offs of $59.6 million on taxi medallion-related loans
Slide 22: Our Business Model: Efficiency
Our Business Model Efficiency
Slide 23: Efficiency has been another Company hallmark
Efficiency has been another Company hallmark. Historical Drivers of Our Efficiency 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; their sales are a complementar
Slide 24: Efficiency Ratio Prior to and Since Dodd-Frank
NYCB Efficiency Ratio Prior to and Since Dodd-Frank SIFI Compliance At this juncture, the majority of the SIFI-related investments have been made. Key infrastructure investments to date include: Enhanced ERM and corporate governance frameworks Bottom-up capital planning and stress testing capabiliti
Slide 25: Our Business Model: Growth through Acquisitions
Our Business Model Growth through Acquisitions
Slide 26: History of earnings-accretive transactions
Transaction Type: Savings Bank Commercial Bank Branch FDIC Deposit We have a long history of earnings-accretive transactions. The number of branches indicated for our transactions is the number of branches in our current franchise that stemmed from each. 1. Nov. 2000 Haven Bancorp (HAVN) Assets: $2.
Slide 27: Total return over the course of our public life
The benefits of our business model are reflected in our total return over the course of our public life. Total Return on Investment Bloomberg CAGR since IPO: 22.9% → As a result of nine stock splits between 1994 and 2004, our charter shareholders have 2,700 shares of NYCB stock for each 100 shares o
Slide 28: For More Information
5/8/18 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. 615 Merrick Avenue Westbury, NY 11590 For More Information
Slide 29: Appendix
Appendix
Slide 30: Non-GAAP financial measures reconciliation
While average stockholders’ equity, average assets, return on average assets, and return on average stockholders’ equity are financial measures that are recorded in accordance with U.S. generally accepted accounting principles ("GAAP"), average tangible stockholders’ equity, average tangible assets,
Slide 31: Peer Group
Peer Group Peer Ticker BankUnited, Inc. BKU Comerica Incorporated CMA F.N.B. Corporation FITB Fifth Third Bancorp FNB Huntington Bancshares Incorporated HBAN Investors Bancorp, Inc. ISBC M&T Bank Corporation MTB Bank of the Ozarks OZRK People's United Financial, Inc. PBCT Signature Bank SBNY Sterlin
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