Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — New York Society of Securities Analysts Annual Banking Conference 2002
33 slides from Flagstar Bank, N.a's conference presentation, Dec 12, 2002
Slide 1: Measure the difference. Invest in the strength.
New York Community Bancorp, Inc. Measure the dtfference. Invest in the strength. New York Society of Securities Analysts 4 Annual Banking Conference December 12, 2002
Slide 2: Forward-looking Statements and Risk Factors
N y GQ Forward-looking Statements and Risk Factors This presentation contains certain forward-looking statements with regard to the Campany'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
Slide 3: Measure the difference.
Measure the difference. “Industry data — SNL Oat SNYCR data — C -N¥CB 2000 ane 2 SNYCB and N.Y. poe
Slide 4: Measure the Difference: Performance
Measure the Difference: Performance - 2001 earnings, NYCB is ranked the top-performing large thrift.* 2001 2001 9 Mos. 2002 Core Ranking Industry NYCB NYCB NYCB NYCB Criteria Average Core Cash GAAP Cash ROA 0.83% 1.65% 2.33% 2.25% 2.60% ROE 8.61 18.30 25.90 19.79 22.88 Efficiency ratio | 62.61 35.03
Slide 5: Measure the Performance: ROA
ly Measure the Performance: ROA ie NYCB’s YTD ROA exceeds the industry average by 142 basis points. 2.50% 2.00% 150% 1.00% 0.50% 0.00% 1997 1998 1999 2000 2001 YTD 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% 2.25% New York Community Bancorp, Inc. 5
Slide 6: Measure the Performance: ROE
Measure the Performance: ROE NYCB’s YTD ROE is more than twice the industry average. 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% + 1997 1998 1999 2001 YTD 2002 U.S. Thrifts 8.41% 7.92% 112% 7.40% 7.89% 8.35% MNYCB 295% 732% 22.99% 19.40% 18.30% 19.79% New York Community Bancorp, Inc. 6
Slide 7: Measure the Performance: Net Interest Margin
Nv . GQ Measure the Performance: Net Interest Margin NYCB’s margin has consistently exceeded the industry average. 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 1997 1998 1999 2000 2001 YTD 2002 U.S. Thrifts 3.48% 342% 3.40% 3.28% 3.19% 342% MNYCB 445% 420% 3.19% 3.33% 359% 436% New York Community Bancorp, In
Slide 8: Measure the Performance: Efficiency Ratio
Measure the Performance: Efficiency Ratio NYCB’s YTD efficiency ratio is 3,508 basis points below the industry average. 70.00% 60.00%] == ij 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% + 1997 1998 1999 2001 YTD 2002 U.S. Thrifts 58.38% 59.84% 63.13% 62.44% 63.38% 63.99% MNYCB 41.86% 36.51% 29.95% 30.20
Slide 9: 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. 020% 050% ial 040% 020% 0.00% 1997 1998 1999 2000 2001 YTD 2002 U.S. Thrifts 0.66% 0.54% 0.45% 0.47% 0.61% 0.65% mNYCB 054% 038% O1T% 0.19% 0.19% 011% New York Community Bancorp,
Slide 10: Measure the Quality: NPLs/Total Loans
Measure the Quality: NPLs/Total Loans NYCB’s asset quality reflects the fully-performing status of its multi-family loans. 1.00% 080% “ -_ 060% " 040% 020% 000% 1997 1998 1999 2000 2001 YTD 2002 U.S. Thrifts 0.87% 0.76% 0.62% 061% 0.81% 0.88% ENYCE 062% 044% 0.20% 0.25% 0.33% 021% New York Community
Slide 11: 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. 025% 020% 0.15% 0.10% 0.05% 0.00% 1997 1998 1999 2000 2001 YTD 2002 U.S. Thrifts 0.14% 0.14% 0.14% 0.14% 0.18% 0.22% MNYCB 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% New York Community Banco
Slide 12: Measure the Value: Total Returns
Measure the Value: Total Returns NYCB consistently generates above-average shareholder returns. 250.0% 20.00% 150.00% 10.00% 50.00% 0.00% N.Y. Peers * mNYCB 218.44% 152.13% 74.83% One-Year 3-Year 5-Year "ALY. Peels: AF, DCOM, GPT, ICBC, NFB, RSLN, & S18 New York Community Bancorp, Inc. 12
Slide 13: Invest in the strength.
Invest in the strength.
Slide 14: Strength: Multi-family Market
iche Strength: Multi-family Market NYCB is the #1 muiti-family lender for portfolio in NYC. $2,000 $1,600 $1200 $800 (atlars in mitions) $400 $0 = 7 os. 1997 1998 1999 2000 2001 ae All Other Mortgage Originations $342 $424 8734_——S7H3 $3588 $3985 = Multifamily Loan Originations $4189 = $4098 «= $603
Slide 15: A Profitable, Efficient, & Risk-averse Loan Portfolio
Rent-controlled / Rent-stabilized buildings 5-year fixed / 5-year adjustable term ‘Average term to maturity: 4 years Average loan: $1.7 million Average LTV ratio: 58% Stabilized cash flow Pre-payment penalties: 5-5-4-3-2 points No net charge-offs since 1987 New York Community Bancorp, Inc. 15 A PROF
Slide 16: Risk-averse Loan Portfolio
Strength: Risk-averse Loan Portfolio The performance of NYCB’s loan portfolio provides insulation against credit risk. 96,000) aaa 95,000) | satamiy Stas $4,000 € = $3,000 = $2,000: $1,000 0 7aa188 72Ri00 oo a2 at famityLoans(@h) $1 348.4 1957 tone tae Teta Loan) He05 fe Bacar i600. ‘verge Weld eos
Slide 17: The Franchise
Strength: The Franchise i ine Nasa Note: Map reflects €0 of our 109 banking offoes. New York Community Bancorp, Inc. 17
Slide 18: Deposit Mix
Strength: Deposit Mix The rise in core deposits has contributed to the growth in net interest income. 12/31/99 12/31/00 12/31/01 9/30/02 $1,860.0 Total Deposits $4.1 Bn $3.3 Bn* $5.5 Bn** $5.1 Bn*** "Includes deposits acquired in the Haven transaction, Includes deposits acquired in the Richmond Coun
Slide 19: Strength: Interest Rate Risk Management
Nv Y Strength: Interest Rate Risk Management GS NYCB’s margin has provided a cushion against changes in interest rates. 200 = m0 Syear US. 1 iad 5 a0 — poms Z Le ssa eh Eo 2 7 rs —NYCB netinterest margin g F \ = 100 2 Pe 2 aw = -200 é 400 v 500 1998 1999 20019 Mos. 2002 420% 3.79% 3.5944 436% _NYCB
Slide 20: M&A Strategy
Strength: M&A Strategy Ny 'Y Ch have bet on highly ive to earnings. Haven Richmond NYCB re Bancorp County 2002 Results Announcement Date: June 2000 March 2001 i Completed Date: November 2000 July 2004 - Announced Transaction Value: $196 $802 Assets ‘Deposits: $2,966 1 $2,151* $3,213 / $2,095 $10,040
Slide 21: Efficiency
Strength: Efficiency The consistent efficiency of NYCB’s operations stems from several sour 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
Slide 22: Revenue Generation
Strength: Revenue Generation Core other operating income represents 17.7% of YTD core revenues. (allars in milions) $50.7 Core other operating income 217A Net interest income $510 3 $205.8 $68.9 $73.4 1999 2000 2001 9 Mos. 2002 Total Core Total Core Total Core Total Core Revenues: $71.4 Revenues: $8
Slide 23: Third-party Product Sales
Strength: Third-party Product Sales GS NYCB is in the top 1% of thrifts generating income from investment product saies.* (allars in milions) GROSS SALES GROSS REVENUES. $1465 $8.6 $92.2 $5.0 9 Mos. 2001 9 Mos. 2002 9 Mos. 2001 9 Mos. 2002 * Singer's Annuity and Funds Report 1H 2002 New York Communi
Slide 24: Capital Management
Strength: Capital Management GS 7 stock splits in 9 years, including 2 in 2001 Approximately 500,000 shares repurchased per quarter 61-fold increase in quarterly cash dividend TT Tae CAPITAL $121.3 million in trust preferred securities issued in 4Q 01 MANAGEMENT STRATEGIES $400 million shelf registr
Slide 25: Capital Management
Strength: Capital Management net, through its BONUSES” Units offering on Issuer: Offering: Issue Price: Value Allocation: Coupon: Conversion Premium: Conversion Ratio: Call Protection: Maturity: New York Community Capital Trust V $240 million Cumulative Convertible Trust Preferred (BONUSES), $35 mil
Slide 26: Capital Management
Strength: Capital Management The BONUSES Units offerin, xpected to provide several benefits. Funds high quality multi-family loan production Earnings-accretive with conservative investment assumptions Supports above-average EPS and loan growth Bolsters capital strength and flexibility New York Commu
Slide 27: Capital Management
Strength: Capital Management strengthened by the BONUSES Units offering. NYCB’s capital position has beer At Pro Forma 9/30/02 w/ Offering Increase Tier 1 leverage capital ratio 7.38 % 10.01% 263 bp Tier 1 risk-based capital ratio 15.26 20.08 482 Total risk-based capital ratio 16.17 20.94 477 Book v
Slide 28: Earnings Capacity
Strength: Earnings Capacity NYCB projects 63% diluted EPS growth in 2002. Diluted Cash EPS 2.45, $2.52.$2.5 Diluted EPS 191 $2.16-$2.18 $1.04 $1.35 $0.96 ene $0.74 $0.82 $0.48 tC T T T T T 1 1997 1998 1999 2000 2001 2002 2003 Company Estimates* “Company estimates donot reflect he antcpated beneftoft
Slide 29: Shareholder Value Creation
Strength: Shareholder Value Creation GS NYCB’s market cap has appreciated 2,672% since 11/23/93. (allars in milions, except share data) $3,021 Market capitalization Price per share (adjusted for 7 spits) $2329 1D Annual yield produced by current dividend on shares purchased at this date $1,087 =| "T
Slide 30: Measure the Difference: Stronger Balance Sheet
Measure the Difference: Stronger Balance Sheet The bai sheet has benefited from M&A, restructuring, and Improvement Since 9/30/02 9/30/01 9/30/00 Total assets $10.0bn T 12% T 355% Multi-family loans $4.2bn 35% 164% Mortgage originations $1.9bn 111% 280% Tangible stockholders’ equity $553.5mn 69% 351
Slide 31: Improvement in core revenues
Q02 in core revenues. Diluted EPS Diluted Cash EPS Net interest income Core other operating income ROA Spread Margin Efficiency ratio * Compared to core numbers Improvement Since 3Q.02 3Q01 3.00 $0.58 T zex% F 190% $0.61 1% 154% $98.8mn 66% 506% $19.7mn 45% 1,415% 2.39% 83 bp* 91bp 4.28% 84bp 130bp
Slide 32: Measure the Difference: Stronger Prospects
Measure the Difference: Stronger Prospects NY ecord of ea 98 growth is expected to continue in 2003. Projected 2002 Increase Diluted EPS estimates* $2.16 - $2.18 63% Diluted Cash EPS estimates* $2.40 - $2.45 28% 2003 Diluted EPS estimates* $2.52 - $2.55 17% Diluted Cash EPS estimates* $2.68 - $2.73
Slide 33: For more information:
For more information: 0, the Company will trade on the NYSE under the symbol “NYB”. + 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 New Y