Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Merger or Acquisition (October 2005)
28 slides from Flagstar Bank, N.a's merger presentation, Oct 11, 2005
Slide 1: Strategic Acquisition of Atlantic Bank
Exhibit 99.1 Announces October 10,a2005 Strategic Acquisition of
Slide 2: Forward-Looking Statements Safe Harbor
Forward-Looking Safe This Inc. as Securities Forward-looking effects materials, transaction; successfully revenue In locally relevant local portfolios; management development threatened in companies and occurrence Readers make statements 1 legislation addition, amended. other and Harbor presentation
Slide 3: Additional Information and Disclosure
New regarding Bancorp, and, by Corp., Long transaction. with Additional 2 directing together the York Island 1601 proposed Inc. its Community Disclosure information Information Veterans aFinancial proposed with and request Long transaction other Highway, to Corp. transaction Bancorp, isIsland docume
Slide 4: Transaction Summary
Seller: Transaction Form Financing Access Expected Due Required Indemnification 3 Diligence: ofWholly-Owned and Consideration: Approvals: Closing: Plan: Balance Value: Summary Completed Significant Protection: First $400 Sheet Customary Subsidiary 100% Quarter million Repositioning Flexibility—Combi
Slide 5: Conservative Financial Impact Assumptions
Conservative Revenue Identifiable Estimated of 4 4.50% Synergies: atFinancial Cost Restructuring Intangibles: closing Transaction Savings: and None Impact: return Core Charge: $9.5 Assumptions assumed Immediately deposit million to $19.2 current intangible after-tax million levels accretive (represe
Slide 6: Strategic Rationale
Strategic Geographic Provides Improves Atlantic Attractive Estimated Strong (1) 5 integration Excluding Bank an Rationale interest low-cost transaction internal expansion established has rate maintained track rate Parent-Related deposit pricing. risk offull-service record. New return profile base: a
Slide 7: Attractive Transaction Pricing vs Precedent Transactions
Attractive Precedent Atlantic’s NYB’s with acquisition Tangible Implied (1) 6 (2) (3) (4) Cost 2006E LTM Multiple Deposit Book Savings LTM Transactions(4) Transaction adjustments)(2) Calculated Deposits Precedent net ofProjections 1.81 Net Premium(3) income (and Income(1) 2.76 Pricing transactions a
Slide 8: Atlantic At-a-Glance
Atlantic Attractive deposits, Solid Cash Net Efficiency NPAs/Loans Allowance NCOs/Average Tangible Total (1) 7 Interest ROATA ROATE Risk-Based Profitability Data At-a-Glance(1) Equity/Tangible 77%(2) Commercial Ratio for Margin +at1.31% 19.09 Loan OREO or Loans 55.36 core Capital for and 3.38 Losses
Slide 9: Accelerates Balance Sheet Repositioning
Accelerates Assets 20,000 22,500 25,000 27,500 93% 7% Core ($ 4,000 5,000 6,000 7,000 8,000 9,000 NYB 83% 17% Long Pro Atlantic(1) Commercial (1) 8 inExcludes Forma(2) Forma millions) Deposits(3) Island 6/30/05 $7,366 $25,205 NYB’s Financial Banking $365 $338 $30,000 $10,000 $540 million $1,120 Bala
Slide 10: Builds Commercial Franchise While Bolstering Core Deposits
Builds Loans(1) NYB C&I CRE Other Multi-family Pro ($ Deposits(1) Demand CDs NOW, Total: (1) 9 (2)inPro Forma(2) 2% 36% 34% millions) 16% 18% 8% 9% $15,684 $17,259 $11,538 $13,415(3) Money aforma Data Strong 6% as 9% 76% 71% Market of Commercial for Juneand 30,Savings 2005. acquisition Franchise 58%
Slide 11: Expands NYB Footprint
Expands Bronx NYB Suffolk Kings Richmond Atlantic CountyAtlantic Nassau Westchester 2Deposits Manhattan Queens Kings Nassau 1NYB’s Branches 5160 Westchester 362 40 Footprint by 54$675 224 Deposits County ($M) (1) Total Note: 57 10 ATMs 17 Branch$1,461 (22 in-branch data for NYB and as 35 of remote)
Slide 12: Provides Entry Into Attractive Manhattan Market
Provides ($ Rank Manhattan 4 in millions) 1 2 3 Institution Entryof47 JPMorgan Citigroup Bank Into Branches Attractive Chase 63 New 95,838.492 Deposits Manhattan $140,012.2 Market 27.97 2.41 Market Share 40.86% and Strengthens Market Share in Other Counties 5 6 7 8 9 10 23 HSBC Bank Bank Charles Isr
Slide 13: Enhances NYB's Superior Market Demographics
7% Enhances Population 6 5 4 3 2 NYB’s GrowthSuperior 2005—2010(1) Market Demographics 1 0 6 7% 0.63% 1.34% 1.90% 2.30% 4.21% 4.90% 5 4 3 2 .42% 1 S127,895 2005 Westchester $ W 0 25,000 50,000 75,000 100,000 125,000 $150,000 $55,925 $64,761 $80,966 $96,341 $116,072 $117,025 Staten Suffolk Nassau Man
Slide 14: Post-Merger New York Community Bank Structure
Post-Merger New Community Queens Roslyn Richmond Atlantic CFS Ironbound First Roosevelt Long Commercial NYB’s 13 Bank Savings York Island structure Savings County Bank Savings Community Commercial Bank County Divisions Commercial Divisions Structure Bank Savings Bank supports Savings Bank of NJ Banc
Slide 15: Atlantic Has Produced a Stable Margin During Rising Rates
Atlantic 3 4% 2 1 3.33% 0 Q1 Note: 14 2004 Has Data 3.39% Produced Q2represents 2004 3.37% a Stable Q33.26% core 2004 net Q4 Margin 3.25% interest 2004 During 3.28% Q1margin. 2005 Q2a Period 2005 of Rising Interest Rates
Slide 16: Atlantic Provides Minimal Loan Risk
Atlantic Minimal Loan 1–4 Other C&I Total CRE ($ Multi-Family CAGR: 15 6/30/2005 2004 2003 2002 2001 inFamily 27% millions) and 31% $1.3B portfolio Portfolio 10% 8.2 33.5 Provides Loan net Multi-family % 4% charge-offs—5 %28% Portfolio $313 $1,000 $600 comprised (6/30/05) $132 NYB $373 400 $222 750
Slide 17: Atlantic Deposit Highlights
24.3%$1.46B(2) Atlantic Deposit Jumbo Non-Jumbo Demand Savings Money NOW Total: Average (1) (2) 16 6% average CDs Market Data Composition(1) 27% Has Deposit has cost 24% 13% CDs steadily parent-related aas ofHighly Excluding annual 19% of total Highlights(1) 11% June reduced deposits: Attractive gro
Slide 18: Strong Bank Credit Quality
Strong Bank NYB(2) Net Allowance Non-Performing (1) 17 (2) Charge-offs/Average &Credit Data Atlantic Results for areas Quality(1) Loan ofAssets/Loans Loans Combined June Losses/Loans Losses/ pro-forma 30, Loans for2005. Thrift 194+0.02% the OREO 405 Peers(3) 0.52 Long 206 0.05% 0.77 0.27 3220.53 Isl
Slide 19: Revenue Enhancement Opportunities
Revenue commercial Introduction Opportunities Expands Increased Exposure 18 Enhancement to small more oftocommercial and sell diversified middle commercial deposit Opportunities market banking gathering borrowers loan lending products products franchise into to NYB’s NYB’s customers retail franchise
Slide 20: Strong NYB Integration Track Record
Strong NYB Pro Integration 19 formas has Integration successfully to reflect be completed conservative Track integrated Record in 2006 cost three savings large acquisitions assumptionsDue and diligence no revenuecompleted enhancement Common community banking focus
Slide 21: Atlantic 2006E Earnings Impact Analysis
($ in Back 2006E(1) Atlantic After-tax Adjustments: Impact Transaction Add Purchase Other Incremental (before (1) (2) 20 millions) Adjustments(2) of financing Assumes Net Accounting Cost 2007E Loss Atlantic CDI Earnings NYB Income IncludesSavings ofopportunity Amortization acosts) Parent-Related Net
Slide 22: Summary
Geographic Summary Provides Improves Atlantic Attractive Estimated Strong (1) 21 integration Excluding Bank an interest low-cost transaction internal expansion established has rate maintained track rate Parent-Related deposit pricing. risk offull-service record. NYB’s return profile base: aImmediate
Slide 23: Appendix: Supplemental Information
Appendix: Supplemental Information
Slide 24: Transaction Cost Savings Sources
Transaction ($ Sources Compensation Benefit General, Total Represents (1) 23 in millions) cost plans $14.5 of administrative savings Cost 25% Synergies 3.0 million and Savings of$9.5M benefits Atlantic’s pre-tax. and Amount (1)$4.5 other Core(after-tax) 2.0 Pre-Tax Operating Expenses
Slide 25: Loan and Deposit Composition
Loan Loans(1) 17% Atlantic 31% Other Commercial 1-4 18% Multi-Family NYB(2) Deposits(1) Atlantic(3) ($ Pro Demand Jumbo Non-Jumbo Savings NOW Total: (1) (2) 24 inFamily Forma millions) and 10% 6% $15,934 $1,324 $17,259 $11,953 $1,461 $13,415 and CDs Data 27% 23% Deposits 24% 9% ProDeposit Money 4% 2
Slide 26: Atlantic Historical Performance Ratios
Atlantic At 2002 Return Loans/Deposits AFS Tangible Equity/Tangible Tier NPAs/Loans NCOs/Average Reserves/NPAs Reserves/Loans (1) 25 orISecurities/Assets 2003 For Capital on As isCommon the Average a2004 ofSolid +Year Ratio March OREO Loans 54.24 72.92 2.02 Assets 2004 Performing Ended Assets Equity
Slide 27: Atlantic Historical Balance Sheet
Atlantic: ($ At Assets Commercial Multi-Family 1-4 Allowance Net Goodwill Liabilities Money Deposits: Savings Time NOW Non-interest-bearing Securities FHLB Other Common Total (1) 26 in December Includes Family Loans millions) Assets Cash Investment Loans Deposits Liabilities Assets(1) 137.5 Liabilit
Slide 28: Atlantic Historical Income Statement
Atlantic: ($ For 2002 Provision/Recovery Total Pre-Tax Taxes Net 27 inthe Interest Income millions) 2003 Non-Interest 16.9 Year Income Historical 2004 18.2 Income $25.3 Ended 23.4 42.2 2004 $27.3 Income Expense Income Six $86.7 after for 10.1 45.5 2005 Months Loan $35.1 Provision 11.9 58.5 $82.3 23.
New York Community Bancorp — Merger or Acquisition (October 2005) on 6ix