Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2009 Earnings Presentation
39 slides from Flagstar Bank, N.a's earnings presentation, Sep 14, 2009
Slide 1: Second Quarter 2009 Investor Presentation
Second Quarter 2009 Investor Presentation Exhibit 99.1
Slide 2: Forward-looking Statements and Associated Risk Factors
New York Community Bancorp, Inc. Page 2 Forward-looking Statements and Associated Risk Factors This presentation, like many written and oral communications presented by New York Community Bancorp, Inc. and our authorized officers, may contain certain forward-looking statements regarding our prospect
Slide 3: We are a leading financial institution in the Metro New York/New Jersey region
New York Community Bancorp, Inc. Page 3 We are a leading financial institution in the competitive Metro New York/New Jersey region. (a) SNL Financial as of 9/9/09 (b) Please see page 39 for a reconciliation of our GAAP and operating earnings.
Slide 4: 2nd Quarter 2009 Performance Highlights
2nd Quarter 2009 Performance Highlights
Slide 5: In 2Q 2009, we generated strong operating earnings metrics
New York Community Bancorp, Inc. Page 5 In 2Q 2009, we generated strong operating earnings metrics. Performance Highlights: 2Q 2009 2Q 2008 Y-O-Y Change Significant operating earnings growth (a) $89,053 $75,116 18.6 % Substantial operating EPS growth (a) $0.26 $0.23 13.0 % Significant margin expansi
Slide 6: Our asset quality measures continued to exceed those of our industry peers
New York Community Bancorp, Inc. Page 6 At or for the Three Months Ended 6/30/09 Our asset quality measures continued to exceed those of our industry peers . Asset Quality: NYB SNL Bank & Thrift Index (a) SNL Thrift Index (a) Net charge-offs / average loans 0.04% 0.73% 0.20% Non-performing loans / t
Slide 7: Net interest margin and yield trends
New York Community Bancorp, Inc. Page 7 (dollars in thousands) 2Q 2008 1Q 2009 2Q 2009 Linked-quarter Increase (Decrease) Y-O-Y Increase (Decrease) Average balance of loans $20,478,132 $22,108,647 $22,382,786 1.2% 9.3% Average yield on loans 6.07% 5.83% 5.75% (8) bp (32) bp Average yield on interest
Slide 8: Both of our bank subsidiaries are well capitalized institutions
New York Community Bancorp, Inc. Page 8 Both of our bank subsidiaries are well capitalized institutions: 6/30/09 Community Bank Commercial Bank Leverage capital ratio 7.00% 12.19% Tier 1 risk-based capital ratio 10.16% 12.20% Total risk-based capital ratio 10.62% 12.70% We continue to maintain stron
Slide 9: Our total return to shareholders increased at a compound annual growth rate of 31.3%
New York Community Bancorp, Inc. Page 9 Our total return to shareholders increased at a compound annual growth rate of 31.3% between our IPO and 6/30/09. We have a consistent business model that focuses on building value while building the Company. (a) Please see page 34 for a reconciliation of our
Slide 10: Our Business Model: Multi-family Loan Production
Our Business Model: Multi-family Loan Production
Slide 11: Multi-family Loan Portfolio
New York Community Bancorp, Inc. Page 11 Multi-family Loan Portfolio (in millions) Multi-family loans have grown at a CAGR of 29.9% since 12/31/99.
Slide 12: Commercial Real Estate Loan Portfolio
New York Community Bancorp, Inc. Page 12 Commercial Real Estate Loan Portfolio (in millions) Our commercial real estate loans feature the same structure as our multi-family loans.
Slide 13: Our Business Model: Asset Quality
Our Business Model: Asset Quality
Slide 14: Net Charge-offs / Average Loans
New York Community Bancorp, Inc. Page 14 Net Charge-offs / Average Loans NYB Net Charge-offs: $22,000 $222,000 $458,000 $6.1 million $431,000 We continue to be distinguished by our low level of net charge-offs. $14.3 million NYB SNL Bank and Thrift Index (a) SNL Thrift Index (a) (a) SNL Financial as
Slide 15: The quality of our loan portfolio has consistently exceeded that of our industry
New York Community Bancorp, Inc. Page 15 The quality of our loan portfolio has consistently exceeded that of our industry. NYB SNL Bank and Thrift Index (b) SNL Thrift Index (b) (a) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest.
Slide 16: Net Charge-offs / Average Loan Loss Allowance
New York Community Bancorp, Inc. Page 16 Net Charge-offs / Average Loan Loss Allowance Our charge-offs typically represent a smaller percentage of our loan loss allowance compared to our industry peers. (a) SNL Financial as of 9/9/09 NYB SNL Bank and Thrift Index (a) SNL Thrift Index (a)
Slide 17: Historically, few of our non-performing loans have resulted in charge-offs
New York Community Bancorp, Inc. Page 17 At or for the Twelve Months Ended December 31, Historically, few of our non-performing loans have resulted in charge-offs. At or for the Six Months Ended June 30, 2009 1990 1991 1992 2007 2008 NPLs / Total Loans (a) 2.48% 2.10% 2.83% 0.11% 0.51% 1.49% NCOs /
Slide 18: The quality of our assets reflects our multi-family lending niche
New York Community Bancorp, Inc. Page 18 The quality of our assets reflects the nature of our multi-family lending niche and our strong underwriting standards.
Slide 19: NPLs represent a nominal percentage of our loan portfolio
New York Community Bancorp, Inc. Page 19 While NPLs have increased in the wake of the economic crisis, they represent a nominal percentage of our loan portfolio. Loan Type Non-Performing Loans as a Percent of Total Loans at June 30, 2009 Multi-family 0.70% Commercial real estate 0.30 Acquisition, de
Slide 20: Our Business Model: Efficiency
Our Business Model: Efficiency
Slide 21: Our operating efficiency ratio was 36.72% in 2Q09
New York Community Bancorp, Inc. Page 21 Our operating efficiency ratio was 36.72% (a) in 2Q 2009, well below the SNL Bank and Thrift Index efficiency ratio of 56.87%. (b) (a) Please see page 34 for a reconciliation of our GAAP and operating efficiency ratios. (b) SNL Financial as of 9/9/09 NYB (a)
Slide 22: Our Business Model: Growth through Acquisitions
Our Business Model: Growth through Acquisitions
Slide 23: We have completed eight acquisitions since 2000
New York Community Bancorp, Inc. Page 23 April 1859 Nov. 1993 July 2001 Dec. 2005 April 1993 Nov. 2000 Oct. 2003 April 2006 April 2007 July 2007 Oct. 2007 Queens County Savings Bank, forebear of New York Community Bank, is established in Queens. Public trading of New York Community Bancorp shares be
Slide 24: Our growth has been driven by organic loan production and acquisitions
New York Community Bancorp, Inc. Page 24 (a) Please see pages 35 and 36 for reconciliations of our GAAP and non-GAAP capital measures. Our growth has been driven by organic loan production and our earnings-accretive acquisition strategy. (dollars in billions) 12/31/99 w/ HAVN 12/31/00 w/ RCBK 12/31/
Slide 25: Loans and securities as a percentage of total assets
New York Community Bancorp, Inc. Page 25 (dollars in millions) % of Total Assets: 12/31/05 12/31/06 29.5% 55.7% 21.4% 64.8% 17.3% 69.0% 12/31/07 12/31/04 18.8% 66.6% 6/30/09 Loans Securities 12/31/08 18.2% 68.4% We typically convert the cash flows from the post-merger sale of acquired assets into se
Slide 26: Deposits
New York Community Bancorp, Inc. Page 26 Deposits Total deposits: 31.2% CAGR Core deposits: 36.6% CAGR Demand deposits: 42.1% CAGR (in millions) CDs NOW, MMAs, and Savings Demand deposits Total Deposits: $10,457 $12,168 $12,694 $13,236 $14,376 Our deposit growth has been largely acquisition- driven.
Slide 27: We currently have 159 locations in New York and 53 in New Jersey
New York Community Bancorp, Inc. Page 27 Largely reflecting our acquisition strategy, we currently have 159 locations in New York and 53 in New Jersey. BRANCH LOCATIONS (#) COMMUNITY BANK COMMERCIAL BANK Queens County Savings Bank ( 34 ) New York Commercial Bank ( 18 ) Roslyn Savings Bank ( 56 ) Atl
Slide 28: Deposit market share by county
New York Community Bancorp, Inc. Page 28 NASSAU COUNTY, NY QUEENS COUNTY, NY SUFFOLK COUNTY, NY RICHMOND COUNTY, NY ESSEX COUNTY, NJ (dollars in thousands) Rank Institution Deposits Market Share JPMorgan Chase & Co. $11,479,033 22.46% Citigroup Inc. 7,371,145 14.42 Capital One Financial Corp. 6,250,
Slide 29: Loans Outstanding
New York Community Bancorp, Inc. Page 29 Loans Outstanding (in millions) Multi-family Loans Outstanding All Other Loans Outstanding Multi-family loans: 29.9% CAGR Total loans: 32.2% CAGR $1,611 $17,029 $19,653 Total Loans: $677 $6,332 $4,971 Total Originations: $22,777 $1,676 $20,363 $4,853 While ac
Slide 30: Total Return on Investment
Total Return on Investment
Slide 31: Total Return on Investment
New York Community Bancorp, Inc. Page 31 Total Return on Investment SNL Thrift Index (a) NYB (b) 14.7% 6.2% 107.5% 5.7% Annual yield produced by $1.00 per share dividend on shares purchased at the date indicated: (a) SNL Financial (b) Bloomberg As a result of nine stock splits in a span of 10 years,
Slide 32: We are committed to building value for our investors
New York Community Bancorp, Inc. Page 32 We are committed to building value for our investors. Our Goals
Slide 33: For More Information
New York Community Bancorp, Inc. Page 33 9/14/2009 For More Information
Slide 34: Reconciliation of GAAP and operating efficiency ratios
New York Community Bancorp, Inc. Page 34 For the Three Months Ended For the Years Ended December 31, June 30, 2009 2008 2007 2006 2005 2004 (dollars in thousands) GAAP Operating GAAP Operating GAAP Operating GAAP Operating GAAP Operating GAAP Operating Total net interest income and non-interest inco
Slide 35: Reconciliation of GAAP and Non-GAAP Capital Measures
New York Community Bancorp, Inc. Page 35 Reconciliation of GAAP and Non-GAAP Capital Measures June 30, December 31, (dollars in thousands) 2009 2008 2007 2006 2005 2004 Total stockholders’ equity $ 4,210,666 $ 4,219,246 $ 4,182,313 $ 3,689,837 $ 3,324,877 $ 3,186,414 Less: Goodwill (2,436,401) (2,43
Slide 36: Reconciliation of capital measures 1999-2003
New York Community Bancorp, Inc. Page 36 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 measures at Dec
Slide 37: Reconciliation of Net Interest Income and Adjusted Net Interest Income
New York Community Bancorp, Inc. Page 37 Reconciliation of Net Interest Income and Adjusted Net Interest Income For the Three Months Ended June 30, 2009 2008 Average Average (dollars in thousands) Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Assets: Interest-earning asse
Slide 38: Analysis of second quarter 2008 adjusted net interest income
New York Community Bancorp, Inc. Page 38 The following table presents an analysis of the Company’s second quarter 2008 net interest income as if the aforementioned $39.6 million debt repositioning charge had not been recorded. Although such adjusted net interest income is not a measure of performanc
Slide 39: Reconciliation of GAAP and Operating Earnings
New York Community Bancorp, Inc. Page 39 The following table presents a reconciliation of the Company’s GAAP and operating earnings for the three months ended June 30, 2008 and 2009: Reconciliation of GAAP and Operating Earnings For the Three Months Ended June 30, (in thousands, except per share dat
New York Community Bancorp — Q2 2009 Earnings Presentation on 6ix