Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2023 Earnings Presentation
30 slides from Flagstar Bank, N.a's earnings presentation, Apr 28, 2023
Slide 1: First Quarter 2023 Investor Presentation
First Quarter 2023 Investor Presentation Parent company of
Slide 2: Forward-Looking Information
21st 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: Financial and strategic highlights
3 Acquisition/Organic driven growth model • Significant amount of liquid assets and sufficient sources of readily available funds ◦ In addition to cash and unencumbered securities, significant borrowing capacity at FHLB-NY and FRB • Available liquidity totaled $42.2 billion as of March 31, 2023 • Un
Slide 4: 1st Quarter 2023 Observations
41st Quarter 2023 Observations • Adjusted non-interest income(1) increased $58 million due to: • Net return on MSR, up $16 million • Net gain on loan sales up $15 million • Net loan administration income up $4 million Non-interest income • Net interest income increased $176 million, up 46% • Net int
Slide 5: Balance sheet highlights
51st Quarter 2023 $mm Observations Balance sheet highlights Incr (Decr)(1) Balance at March 31, 2023 Balance at December 31, 2022 $ % Cash, cash equivalents and due from banks $ 22,250 $ 2,032 $ 20,218 995 % Securities(2) 7,613 9,074 (1,461) (16) % Loans held-for-sale 1,305 1,115 190 NM Loans and le
Slide 6: Deposits and loans
61st Quarter 2023 Deposits and loans • Highlights – Deposits generated through retail and commercial channels – Non-interest bearing deposits at 27% of total deposits Total Deposits $84.8 billion Total Loans HFI $82.5 billion • Largest category of earning assets consists of loans held-for-investment
Slide 7: Deposits by segment and uninsured
71st Quarter 2023 Deposits by segment and uninsured Deposits by Segment Uninsured Deposits Community Banking 4.3% Custodial 4.1% Digital & BaaS 10.2% Premier Banking 2.8% Private Client Group 32.7% Retail Banking 32.4% Wholesale 7.6% Other 5.9% Insured 65.6% Uninsured 33.9% Uninsured - Collateralize
Slide 8: Deposit Flow Analysis
81st Quarter 2023 Deposit Flow Analysis Key Observations • 12/31/2022 to 3/17/2023: $58.7B to $53.1B ◦ -$2.7B BaaS: Reserve account withdrawal from Circle Internet Financial. ◦ -$1.6B Government as a Service: Planned consumer spend down of the proceeds from California Middle Class Tax Relief Program
Slide 9: Liquidity Profile
91st Quarter 2023 Liquidity Profile Cash - Federal Reserve 53.3% Unpledged Securities 16.8% Fed Funds Borrowing Capacity 5.5% FHLB Capacity 24.4% The Bank's $42.2 billion of total ready liquidity reflects a significant amount of liquid assets and sufficient sources of readily-available funds that ca
Slide 10: Asset Quality Metrics
101st Quarter 2023 Asset Quality Metrics Ratio NYCB S&P US BMI Banks Index Peers At March 31, 2023 At December 31, 2022 At December 31, 2022 NCOs/Average Loans 0.00% 0.11% 0.14% Cumulative losses (a) 107 bp 2,436 bp 1,364 bp NPAs/Total Assets 0.13% 0.39% 0.41% NPLs/Total Loans 0.18% 0.52% 0.91% ALLL
Slide 11: Regulatory Capital
111st Quarter 2023 Regulatory Capital Ratio NYCB S&P US BMI Banks Index Peers At March 31, 2023 At December 31, 2022 At December 31, 2022 Total Risk-Based Capital 11.59% 14.35% 12.59% Tier 1 Risk-Based Capital 9.87 12.32 10.66 Common Equity Tier 1 9.29 11.65 9.76 Tier 1 Leverage 9.18 9.58 8.72 → • W
Slide 12: Credit Quality: Non-Performing Loans/Total Loans
121st 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 13: Credit Quality: Net Charge-Offs/Average Loans
131st 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 and Company Overview
141st Quarter 2023 Community banking • Flagstar Bank, N.A. is a leading regional bank with a balanced, diversified lending platform • 435 branches nationally • Second-largest multi-family portfolio lender in the country and the leading multi-family portfolio lender in the New York City • Second larg
Slide 15: Loan Portfolio
151st Quarter 2023 Total HFI Loans: $82.5 billion Loan Portfolio • Majority of portfolio focused on low-risk multi-family loans on non-luxury, rent- regulated buildings - Market leader in this asset class having developed strong expertise and industry relationships over the last five decades • Consi
Slide 16: Multi-Family Portfolio
161st Quarter 2023 Multi-Family Portfolio Statistics for the three months ended March 31, 2023 • We are a leading indirect multi-family, rent regulated lender in the New York Metro Region. Multi-family loans have been our primary lending focus for the past five decades • 46% of loans held-for-invest
Slide 17: Commercial Real Estate and ADC Portfolio
171st Quarter 2023 • Diversified property types which are primarily income- producing in the normal course of business • Focused on experienced top-tier developers with significant deposit and non-credit product opportunities Commercial Real Estate and ADC ($bn) Commercial real estate & ADC Portfoli
Slide 18: Office Portfolio Characteristics
181st Quarter 2023 Office Portfolio Characteristics Portfolio Profile Portfolio by location Manhattan - NY 55% Queens - NY; 7% Michigan; 6% Pennsylvania; 5% New Jersey; 5% Nassau County-NY; 4% DC; 3% Suffolk County-NY; 3% Other; 12% UPB by option/contractual maturity year ($MM) $286 $432 $496 $829 $
Slide 19: Home builder loan commitments
191st Quarter 2023 Home builder loan commitments(1) ($mm) ● National relationship-based lending platform launched in 1Q16 - Attractive asset class with good spreads (~375 bps) - Meaningful cross-sell opportunities including warehouse loans, commercial deposits and purchase originations ● Flagstar is
Slide 20: Commercial and Industrial Portfolio
201st Quarter 2023 Commercial & Industrial ($bn) Commercial and Industrial Portfolio Portfolio Characteristics State Breakdown • Lines of credit and term loans for working capital needs, equipment purchases, and expansion projects • Primarily floating rate Industry Breakdown NBV Warehouse/MSR $ 6.9
Slide 21: Warehouse lending
211st Quarter 2023 FBC warehouse loan commitments ($bn) Warehouse lending Lenders ranked by commitments ($mm) Source: Inside Mortgage Finance Report published on September 1, 2022, with balances as of June 2022. ● National relationship-based lending platform ● Attractive asset class with good spread
Slide 22: Appendix
Appendix
Slide 23: Securities and Funding Composition
231st Quarter 2023 Securities and Funding Composition • 2.40% cost of funds • Significant capacity given eligibility of multi-family loans Total Funding: $107.2 billion • Entire portfolio is available for sale • Consists primarily of GSE-related securities • Overall average yield is 3.86% • 17% are
Slide 24: Mortgage banking
241st Quarter 2023 Closings by mortgage type ($bn) Net gain on loan sales – revenue and margin Fallout-adjusted locks by channel ($bn) Closings by purpose and expense ratio ($bn) Mortgage banking $5 $20 0.56% 0.76% Gain on loan sale ($mm) Gain on sale margin (HFS) December 2022 03/31/2023 $0.7 $2.2
Slide 25: Servicing portfolio
251st Quarter 2023 154 7 35 Servicing portfolio MSR portfolio characteristics (% UPB) MSR portfolio statistics Net return (loss) on mortgage servicing rights ($mm) By Vintage 2023 2% 2022 25% 2021 32% 2020 25% 2020 & prior 16% By Investor Freddie 24% Fannie 59% GNMA 17% Private 1% Measure ($mm) 12/3
Slide 26: Guidance
26 Guidance(1) 1. See cautionary statements on slide 2. Provision for Credit Losses • Q2-23 NIM continues to expand from Q1 '22 levels to a range of 2.70% to 2.80% Non-interest income • Q2-23 Gain on Sale revenue of $20 million to $24 million • Net return on MSR is 8 - 10% Non-interest expense • Ful
Slide 27: Peer Group
271st Quarter 2023 Peer Group Peer Ticker Citizens Financial CFG Comerica CMA Fifth Third Bancorp FITB First Citizens Bancshares FCNC.A Huntington Bancshares Incorporated HBAN KeyCorp KEY M&T Bank Corporation MTB Regions Financial Corporation RF Synovus Financial Corporation SNV Valley National Banc
Slide 28: Adjusted net income and diluted earnings per share
281st Quarter 2023 Adjusted net income and diluted earnings per share Three Months Ended March 31, 2023 Three Months Ended December 31, 2022 Three Months Ended March 31, 2022 Net income - GAAP $ 2,006 $ 172 $ 155 Merger-related and restructuring expenses, net of tax (1) 50 48 5 Bargain purchase gain
Slide 29: Reconciliations of GAAP and Non-GAAP Measures
291st Quarter 2023 Reconciliations of GAAP and Non-GAAP Measures $mm Non-GAAP Ratio Reconciliations Three months ended March 31, 2023 Three months ended December 31, 2022 Three months ended March 31, 2022 Total Stockholders’ Equity $ 10,782 $ 8,824 $ 6,909 Less: Goodwill and other intangible assets
Slide 30: For More Information
301st 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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