Flagstar Bank, N.a. · NYSE:FLG

Flagstar Bank, N.a — New York Community Bancorp — Salomon Smith Barney 2003 Financial Services Conference

27 slides from Flagstar Bank, N.a's conference presentation, Jan 28, 2003

  1. Slide 1: New York Community Bancorp, Inc.

    New York Community Bancorp, Inc. Measure the difference. Invest in the strength. Salomon Smith Barney 2003 Financial Services Conference January 29, 2003

  2. Slide 2: Forward-looking Statements and Risk Factors

    N ¥ Q Forward-looking Statements and Risk Factors This presentation contains certain forward-looking statements with regard to the Company's praspective performance and strategies within the meaning of Section 274 of the Securities Act of 1933, as amended, and Section 21€ of the Secures Exchange Act

  3. Slide 3: Measure the difference.

    Measure the difference. + Industry data SNL OstaSouroe 82002) + NYCB data — Company reports + NYCB 2000 and 2001 data based on core earrings, wtich exclude certain non-recurring charges stemming from the Company's merger transactions and certain gains stemming from the sale of securities, Bankovmed

  4. Slide 4: Measure the Difference: Performance

    Ny Y Si Measure the Difference: Performance Based on its 1995 — 2001 earnings, NYCB is ranked the top-performing large thrift.* 2001 2001 2002 Core Ranking Industry NYCB NYCB NYCB NYCB Criteria Average™ Core Cash GAAP Cash ROA | 0.83% 1.65% 2.33% 2.29% 2.59% ROE | 861 18.30 25.90 19.95 22.60 Efficie

  5. Slide 5: Measure the Performance: Balance Sheet

    Measure the Performance: Balance Sheet The baila. nefited from M&A, restructuring, and levera, Improvement Since 12/31/01 12/31/00 12/31/02 Total assets $11.3bn Multi-family loans $4.5bn Mortgage originations $2.6bn Stockholders’ equity $1.3bn Tangible stockholders’ equity $647.5mn 1-4 family loans

  6. Slide 6: Measure the Performance: Earnings

    Measure the Performance: Earnings NYCB’s nings growth wa 8% YOY rise in core revenues. Improvement Since 2002 20014 2000 Diluted EPS $2.22 T cay F 171% Diluted Cash EPS $2.52 32% 89% Net interest income $373.3mn 81% 41% Core other operating income* $84.8mn 66% 941% ROA 2.29% 64 bp* 73bp* Spread 412%

  7. Slide 7: Measure the Performance: ROA

    ly Measure the Performance: ROA ie NYCB’s 2002 ROA exceeds the industry average by 146 basis points. 2.50% 2.00% 150% 1.00% 0.50% 0.00% 1997 1998 1999 2000 2001 2002 U.S. Thrifts 0.83% 0.89% 0.83% 0.74% 0.76% 0.83% MNYCB 161% 1.62% 1.69% 1.56% 165% 2.29% NYB 1m om New York Community Bancorp, Inc. 7

  8. Slide 8: Measure the Performance: ROE

    ly Measure the Performance: ROE ie NYCB’s 2002 ROE is more than twice the industry average. 25.00% 20.00% 15.00% 10.00%] 5.00% 0.00% + 1997 1998 1999 2001 2002 U.S. Thrifts 8.41% 7.92% 712 7.40% 7.89% 8.35% mNYCB 12.95% 17.32% 22.99% 19.40% 18.30% 19.95% NYB | ou New York Community Bancorp, Inc. 8 N

  9. Slide 9: Measure the Performance: Net Interest Margin

    Nv Ly Q Measure the Performance: Net Interest Margin NYCB’s margin has consistently exceeded the industry average. 500% 400% 3.00% 2.00% 100% 0.00% 1997 1998 1999 2000 2001 2002 U.S. Thrifts 3.48% 3.42% 3.40% 3.28% 3.19% 3.42% @NYCB 445% 424% 3.79% 3.33% 3.59% 431% nye | aa New York Community Bancor

  10. Slide 10: Measure the Performance: Efficiency Ratio

    Measure the Performance: Efficiency Ratio NYCB’s 2002 efficiency ratio is 3,867 basis points below the industry average. 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% + 1997 1998 1999 2001 2002 U.S. Thrifts 58.38% 59.84% 63.13% 62.44% 63.38% 63.99% @NYCB 41.86% 36.51% 29.95% 30.20% 35.03% 2

  11. Slide 11: Measure the Quality: NPAs/Total Assets

    Measure the Quality: NPAs/Total Assets Exceptional asset quality has been a hallmark of NYCB throughout its public life. 080% 080% ; i 0.40% 020% 0.00% weave; 123188) 28189 t281OO ATM «128102 U.S. Thrifts 0.66% 054% 0.45% 047% 061% 0.65% mNYCB 058% 0.38% 0.17% 0.19% 0.19% 0.15% NYB | aan New York Co

  12. Slide 12: Measure the Quality: NPLs/Total Loans

    Measure the Quality: NPLs/Total Loans NYCB’s asset quality reflects the strong performance of its multi-family loans. 1.00% 080% “ -_ 060% : 040% 020% 0.00% au7 128188128189 28ND tam 1281002 U.S. Thrifts 0.87% 0.76% 0.62% 061% 0.81% 0.88% mNYCB 055% 041% 0.19% 0.25% 0.32% 0.30% NyB . am New York Com

  13. Slide 13: Measure the Quality: NCOs/Average Loans

    Measure the Quality: NCOs/Average Loans The absence of any net charge-offs attests to NYCB’s underwriting standards. 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% + 1997 1998 1999 2000 2001 2002 U.S. Thrifts 0.14% 0.14% 0.14% 0.14% 0.18% 0.22% @NYCB 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% nye | aa New York Commun

  14. Slide 14: Invest in the strength.

    Invest in the strength.

  15. Slide 15: Multi-family Market Niche

    Strength: Multi-family Market Niche NYCB is the #1 muiti-family lender for portfolio in NYC. $2,800 $2,400 $2,000 $1,600 $1200 (otters in mitions) $800 $400 $0 1997 1998 1999 2000 2001 2002 All Other Mortgage Originations $342 $424 $734 $743 $3588 $503.1 Multifamily Loan Originations $4189 $4098 = $

  16. Slide 16: Strength: Multi-family Lending Strategy

    Nv Y Strength: Multi-family Lending Strategy ie The strength of NY¢ erforr nphasis on i nding. Rent-controlled / Rent-stabilized buildings 5-year fixed / 5-year adjustable term Average term to maturity: 4 years a wna A PROFITABLE, ‘Average loan’ $19 million EFFICIENT, & RISK-AVER SE Average LTV rati

  17. Slide 17: Risk-averse Loan Portfolio

    Strength: Risk-averse Loan Portfolio The structure of NYCB’s loan portfolio provides insulation against credit risk. 960005 aaa $5,0007 |..4-aramy Stain #4000 € = $9000 = $2,000: #1000 to Tae Tae oo “aati Mat famiyLoans(@h)—_ $13a8.4 1987 tone en Teta Loan) we05 feam0 sac er ‘verge Weld eT 756 7786

  18. Slide 18: Interest-earning Assets

    Strength: Interest-earning Assets NYCB’s average interest-earning assets have grown 376% over the past three years. (allars in milions) 12/31/99 12/31/00 12/31/01 12131102 ws gea0e see6 1389 = saa $153" > sy ‘ eer wes $1631 $1,303 28 $5.87" os $608 Total Average Assets: | [Total Average Assets: | [T

  19. Slide 19: Deposit Mix

    Strength: Deposit Mix e rise in core deposits has contributed to the growth in net interest income. (allars in milions) 12131199 1213100 12/31/01 12131102 sare $1983 $900 $9907 YY $1,874 $2,408 see Core Deposits YY cbs Coresfotal Deposits 38.8% 42.5% 55.8% 62.9% Total Deposits $4.1 Bn $3.3 Bn* $5.5

  20. Slide 20: M&A Strategy

    Strength: M&A Strategy Ny 'Y Si NYCB’s transactions have been highly accretive to earnings. Haven Richmond NYCB dota in tone Bancorp County 2002 Results Announcement Date: June 2000 March 2001 ren Completed Date: November 2000 uly 2001 8 Announced Transaction Value: $196 se02 ' Assets / Deposits: $2

  21. Slide 21: Efficiency

    Strength: Efficiency The consistent effi ’s operations stems from everal sou! Emphasis on multi-family lending Franchise expansion through M & A De novo branch expansion at turn-key locations EFFICIENCY Hub & spoke approach to in-store branching Profitable conduit relationships Sale of third-party p

  22. Slide 22: Revenue Generation

    Strength: Revenue Generation Core other operating income represented 19% of 2002 core revenues. (ola in mitons) $04.8 Core ather operating income* Net interest income IES $510 $2058 $68.9 p $73.4 p 1999 2000 2001 2002 Total Core Total Core Total Core Total Core Revenues: $71.4] | Revenues: $81.2| |

  23. Slide 23: Third-party Product Sales

    Strength: Third-party Product Sales NYCB is in the top 1% of thrifts generating income from investment product saies.* (allars in milions) GROSS SALES GROSS REVENUES $1692 $108 $123.3 $72 | 2001 2002 2001 2002 * Singer's Aanuty and Funds Report 30 2002 aa New York Community Bancorp, Inc. 23

  24. Slide 24: Capital Management

    Strength: Capital Management ie NYCB a ry g pital. 7 stock splits in 9 years, including 2 in 2001 5 million shares authorized for repurchase in 4Q 02 51-fold increase in quarterly cash dividend CAPITAL = ra TT MANAGEMENT $400 million shelf registration filed in 2Q 02 STRATEGIES $1475 million, net, g

  25. Slide 25: Earnings Capacity

    Strength: Earnings Capacity NYCB projects 20% diluted EPS growth in 2003. CAGR Diluted Cash EPS: 25.55% Diluted EPS: 33.03% $0.82 $0.48 t T T T T T i 1997 1998 1999 2000 2001 2002 2003 Company Estimates NYB aa New York Community Bancorp, Inc. 25

  26. Slide 26: Shareholder Value Creation

    Strength: Shareholder Value Creation The value of NYCB’s shares has appreciated 1,673% since 11/23/93. (allars in milions, except share data) Market capitalization Price per share (adjusted for 7 spits) 232 1D Annual yield produced by current dividend on shares purchased at this date $1,087 geo | 95

  27. Slide 27: For more information:

    For more information: The Company trades on the NYSE under the symbol + Log onto our web site: www.myNYCB.com + E-mail requests to: iangarola@myNYCB.com + Call Investor Relations at: (516) 683-4420 + Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 NYB aa New York Com

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