Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q4 2007 Earnings Presentation
35 slides from Flagstar Bank, N.a's earnings presentation, Jan 29, 2008
Slide 1: Fourth Quarter 2007 Investor Presentation
Exhibit 99.1 Fourth Quarter 2007 Investor Presentation
Slide 2: Forward-looking Statements and Associated Risk Factors
Forward-looking Statements and Associated Risk Factors Safe Harbor Provisions of the Private Securities LitigationReform Act of 1995 This presentation, like many written and oral communicationspresented by New York CommunityBancorp, Inc. and our authorized officers,-maycontain certain forward-lookin
Slide 3: We are a leading financial institution in the competitive Metro New York/New Jersey region
We are a leading financial institution in the competitive Metro New York/New Jersey region. With assets of $30.6 billion: We operate the 6th largest thrift in the nation and the largest in New York State. (a) With a portfolio of $14.1 billion: We are the leading producer of multi-family loans for po
Slide 4: We have a consistent business model that focuses on building value while building the Company
We have a consistent business model that focuses on building value while building the Company. The growth of our business through accretive mergers and acquisitions: Since 12/31/99, we have acquired five community banks, two commercial banks, and one branch network, expanding our franchise from 14 t
Slide 5: 4th Quarter 2007 Performance Highlights
4th Quarter 2007 Performance Highlights
Slide 6: Our 4Q 2007 performance featured several year-over-year improvements
Our 4Q 2007 performance featured several year-over- year improvements. Revenue Net interest income rose 9.7% year-over-year to $154.4 million; non- Growth interest income rose 16.8% to $26.5 million during that time. Margin Our net interest margin rose 9 bp year-over-year to 2.36%; excluding Expansi
Slide 7: Our net interest margin has been stable in a challenging rate environment
Our net interest margin has been stable in a challenging rate environment. Y-O-Y Y-O-Y Increase Increase (dollars in thousands) 4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007 (Decrease) 2006 2007 (Decrease) Average yield on loans 6.08% 6.14% 6.44% 6.37% 6.12% 4 bp 5.92% 6.27% 35 bp Average yield on interes
Slide 8: The strength of our capital position has enabled us to pay a strong dividend
The strength of our capital position has enabled us to pay a strong dividend. Both of our bank subsidiaries are well capitalized institutions: 12/31/07 Community Bank Commercial Bank Leverage capital ratio 7.69% 9.10% Our tangible capital measures grew year-over-year: (dollars in billions) 12/31/06
Slide 9: The strategies we pursued in 2007 will continue to yield benefits in 2008
The strategies we pursued in 2007 will continue to yield benefits in 2008. Strategy Benefits The PennFed and Synergy acquisitions boosted our Community Bank franchise in We continued to grow New Jersey from eight to 53 branches and our market rank from 18th to 5th in the through accretive in-market
Slide 10: We are well positioned to capitalize on opportunities presented in the current market
We are well positioned to capitalize on opportunities presented in the current market. We have no subprime or Alt-A mortgages in our loan or securities portfolios. Refinancing activity is likely to increase as more of our multi-family loans approach their contractual repricing dates. Competition for
Slide 11: Our Business Model: Growth through Acquisitions
Our Business Model: Growth through Acquisitions
Slide 12: We have completed eight acquisitions since 2000
We have completed eight acquisitions since 2000. 1 April 1859 3 Nov. 1993 5 July 2001 7 Dec. 2005 9 April 2007 11 Oct. 2007 Queens County Public trading Merger-of- We acquire We acquire We acquire Savings Bank, of New York equals with Long Island PennFed Synergy forebear of Community Richmond Financ
Slide 13: Our balance sheet reflects the benefits of our growth-through-acquisition strategy
Our balance sheet reflects the benefits of our growth-through- acquisition strategy and the organic growth of our loan portfolio. w/ PFSB, Doral, w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY & SYNF (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 12/31/06 12/31/07 Number of branches 14
Slide 14: Cash flows from post-merger sale of acquired assets are converted into securities and then loans
The cash flows from the post-merger sale of acquired assets are typically converted into securities and then into loans. $20,363 $19,653 w/ PFSB, w/ ABNY Doral, & SYNF (dollars in millions) $17,029 w/ LICB $13,396 $12,119 Loans $10,919 Securities $10,499 $9,500 w/ RSLN $7,081 $5,405 $5,489 $5,637 $5
Slide 15: Since repositioning our balance sheet in June 2004, we have completed five transactions
Since repositioning our balance sheet in June 2004, we have completed five transactions with other in-market banks.(a) (dollars in millions) Total Assets Acquired $7,058 Commercial Bank Assets 3,834 Savings Institution Assets 3,224 Total Deposits Acquired $4,779 Commercial Bank Deposits 2,600 Saving
Slide 16: We currently have 165 locations in New York and 53 in New Jersey
We currently have 165 locations in New York and 53 in New Jersey. The NYCB Franchise New York Community Bank Traditional branches 125 In-store branches 47 Campus branches 5 Customer convenience centers 3 Subtotal 180 New York Commercial Bank Traditional branches 38 Total locations 218 New York Commu
Slide 17: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition- driven. w/ PFSB, Doral, & SYNF w/ ABNY w/ LICB (in millions) Deposits $1,273 $1,123 w/ RSLN $846 CDs $720 $739 NOW, MMAs, and Savings $4,971 Demand deposits $5,551 $6,012 w/ RCBK $5,247 $5,911 Total deposits: 36.7% CAGR Core deposits: 40.2% CAGR $455
Slide 18: The expansion of our franchise has enabled us to compete against money center banks
The expansion of our franchise has enabled us to compete very effectively against the region’s money center banks. (dollars in thousands) RICHMOND COUNTY, NY NASSAU COUNTY, NY QUEENS COUNTY, NY Market Market Market Rank Institution Deposits Share Rank Institution Deposits Share Rank Institution Depo
Slide 19: The bulk of our loan growth has been organic
While acquisitions have contributed to the growth of our loan portfolio, the bulk of our loan growth has been organic. w/ PFSB, (in millions) Loans Outstanding Doral, & SYNF w/ ABNY w/ LICB Multi-family Loans Outstanding $6,308 $5,124 All Other Loans Outstanding $4,175 w/ RSLN $3,557 Multi-family lo
Slide 20: Our Business Model: Multi-family Lending
Our Business Model: Multi-family Lending
Slide 21: Multi-family loans have grown at a CAGR of 34.1% since 12/31/99
Multi-family loans have grown at a CAGR of 34.1% since 12/31/99. Portfolio statistics at 12/31/07: (in millions) % of total loans = 69.0% Average principal balance = $3.4 million Average loan-to-value ratio = 64.5% Multi-family Loan Portfolio Expected weighted average life = 3.6 $14,529 $14,055 year
Slide 22: Our multi-family loans feature a unique refinancing cycle
Our multi-family loans feature a unique refinancing cycle. NYB Rent Roll / Refinances Loan Income Stream Borrower Based on Higher Increases Uses Funds Income Stream, over the to Improve Increasing Short Term the Property Loan Size and (3–5 years) Term Yield NYB NYB Originates Rent Roll / Borrower In
Slide 23: Our commercial real estate loans feature the same structure as multi-family loans
Our commercial real estate loans feature the same structure as our multi-family loans. (in millions) Portfolio statistics at 12/31/07: % of total loans = 18.8% Commercial Real Estate Loan Portfolio Average principal balance = $2.0 million Average loan-to-value ratio = 56.9% $3,826 Expected weighted
Slide 24: Our Business Model: Asset Quality
* Our Business Model: Asset Quality
Slide 25: The quality of our assets has been distinctively solid
The quality of our assets has been distinctively solid. Non-performing Assets / Total Assets 0.81% 0.65% 0.66% 0.60% 0.60% 0.56% 0.51% 0.48% 0.43% 0.19% 0.19% 0.17% 0.15% 0.15% 0.12% 0.11% 0.08% 0.07% 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 U.S. Banks & Thrif
Slide 26: Charge-offs equaled 0.002% of average loans in 2007
Charge-offs equaled 0.002% of average loans in 2007. Net Charge-offs / Average Loans 0.30% 0.29% 0.27% 0.22% 0.22% 0.21% 0.20% 0.15% 0.15% 0.00% 0.00% 0.00% 0.00% 0.00% 0.002% 0.000% 0.002% 0.002% 1999 2000 2001 2002 2003 2004 2005 2006 2007 NYB Charge-offs: -- -- -- -- -- $236,000 $21,000 $420,000
Slide 27: The quality of our assets reflects our strong credit and underwriting standards
The quality of our assets reflects our strong credit and underwriting standards. Conservative loan-to-value (“LTV”) ratios Minimum debt coverage ratio: 120% All loans approved by the Mortgage and Real Estate Committee or the Credit Committee (a majority of the Board of Directors) Director and execut
Slide 28: Our Business Model: Operating Efficiency
Our Business Model: Operating Efficiency
Slide 29: We continue to rank among the most efficient bank holding companies in the nation
We continue to rank among the most efficient bank holding companies in the nation. Efficiency Ratio 65.04% 63.76% 65.12% 63.83% 64.44% 64.69% 64.85% 65.05% 63.43% 41.18% 37.59% 31.16% 30.20% 30.50% 28.86% 25.32% 23.59% 21.46% 1999 2000 2001 2002 2003 2004 2005 2006 2007 U.S. Banks & Thrifts(a) NYB (
Slide 30: Our efficiency has been driven by lending, product development, and branch expansion
Our efficiency has been driven by our approach to lending, product development, and branch expansion. Multi-family and commercial real estate lending are both broker-driven, without cost to the Company. One-to-four family loans are originated on a pass-through basis and sold shortly after closing, s
Slide 31: Our business model has created significant value for our shareholders over time
Our business model has created significant value for our shareholders over time. 2,885% 2,479% Total return from 11/23/93 through the date noted, assuming dividends were reinvested CAGR since IPO = 39.2% Cumulative cash return provided by dividends on shares purchased at the date indicated through 1
Slide 32: We are committed to building value for our investors
We are committed to building value for our investors. Our Goals in 2008 Improve Our Performance Metrics: Continue to expand our net interest margin Maintain a strong level of operating efficiency Increase our revenues through the cross-sale of products and services Grow our operating earnings Streng
Slide 33: For More Information
For More Information Log onto our web site: www.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 1/29/2008 Page 33
Slide 34: Reconciliation of GAAP and Operating Efficiency Ratios
Reconciliation of GAAP and Operating Efficiency Ratios The following table presents reconciliations of the Company’s GAAP and operating efficiency ratios for the years ended December 31, 1999, 2000, 2001, 2003, 2004, 2005, 2006, and 2007. For the year ended December 31, 2002, the Company’s GAAP and
Slide 35: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation of GAAP and Non-GAAP Capital Measures The following table presents reconciliations of the Company’s stockholders’ equity, tangible stockholders’ equity, and adjusted tangible stockholders’ equity; total assets, tangible assets, and adjusted tangible assets; and the related capital mea
New York Community Bancorp — Q4 2007 Earnings Presentation on 6ix