Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Investor Presentation (June 2017)
34 slides from Flagstar Bank, N.a's investor presentation, Jun 6, 2017
Slide 1: First Quarter 2017 Investor Presentation
Exhibit 99.1 First Quarter 2017 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements 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, an
Slide 3: We rank among the largest U.S. bank holding companies
We rank among the largest U.S. bank holding companies. MULTI-FAMILY TOTAL RETURN ASSETS DEPOSITS MARKET CAP LOANS ON INVESTMENT $48.8 billion $28.7 billion $27.1 billion $6.8 billion 4,237% With assets of With deposits of With a portfolio of With a market cap From 11/23/93 $48.8 billion at $28.7 bil
Slide 4: Our Business Model
OUR BUSINESS MODEL
Slide 5: Strategic Loan Production
STRATEGIC LOAN PRODUCTION
Slide 6: We are a leading producer of multi-family loans on non-luxury buildings in NYC
We are a leading producer of multi-family loans on non-luxury buildings in NYC with rent-regulated units. MULTI-FAMILY PORTFOLIO STATISTICS LOAN PORTFOLIO AT OR FOR THE 3 MONTHS ENDED (in millions) 3/31/17 $26,961 $27,054 % of non-covered loans held for $25,989 $23,849 investment = 72.5% $20,714 Ave
Slide 7: The way we lend in this market niche has distinguished our performance
The way we lend in this market niche has distinguished our performance from that of other multi-family lenders. Of the loans in our portfolio that are collateralized by multi-family buildings in the five boroughs of New York City, 88% are collateralized by buildings with rent- regulated units featur
Slide 8: Commercial real estate lending has been a logical extension of multi-family loans
Commercial real estate lending has been a logical extension of our emphasis on multi-family loans. COMMERCIAL REAL ESTATE PORTFOLIO STATISTICS LOAN PORTFOLIO AT OR FOR THE 3 MONTHS ENDED (in millions) 3/31/17 $7,860 $7,727 % of non-covered loans held for $7,366 $7,637 $7,536 investment = 20.2% Avera
Slide 9: The launch of our specialty finance business provided another lending niche
The launch of our specialty finance business provided us with another lending niche of high quality. LOAN TYPES • Syndicated asset-based (ABLs) and dealer floor- SPECIALTY FINANCE plan (DFPLs) loans LOAN AND LEASE PORTFOLIO • Equipment loan and lease financing (EF) CLIENT CHARACTERISTICS (in million
Slide 10: Asset Quality
ASSET QUALITY
Slide 11: Our record of asset quality in downward credit cycles has distinguished us
Our record of asset quality in downward credit cycles has consistently distinguished us from our industry peers. NON-PERFORMING LOANS(a)(b)/ TOTAL LOANS(a) S & L CRISIS GREAT RECESSION CURRENT CREDIT CYCLE 4.17% 4.00% 4.05% 3.41% 3.56% 2.91% 2.71% 2.83% 2.63% 2.60% 2.48% 2.47% 2.35% 2.10% 2.22% 1.51
Slide 12: Few of our non-performing loans have resulted in actual losses
Few of our non-performing loans have resulted in actual losses. NET CHARGE-OFFS / AVERAGE LOANS S & L CRISIS GREAT RECESSION CURRENT CREDIT CYCLE 2.83% 2.89% 1.77% 1.50% 1.63% 1.28% 1.24% 1.17% 0.91% 0.76% 0.54% 0.68% 0.53% 0.46% 0.47% 0.35% 0.21% 0.13% 0.07% 0.06% 0.13% 0.13% 0.05% 0.00% 0.00% 0.04
Slide 13: The quality of our assets reflects our lending niche and strong underwriting
The quality of our assets reflects the nature of our lending niche and our strong underwriting standards. Conservative loan-to-value ratios CONSERVATIVE Conservative debt service coverage ratios: 120% for multi-family loans and 130% for CRE UNDERWRITING loans Multi-family and CRE loans are based on
Slide 14: Efficiency
EFFICIENCY
Slide 15: Efficiency has been another Company hallmark
Efficiency has been another Company hallmark. HISTORICAL DRIVERS OF EFFICIENCY RATIO (a) OUR EFFICIENCY 61.27% • Multi-family Multi-family and and CRE CRE lending lending are are both both broker driven, with the borrower paying fees - broker-driven, with the borrower paying fees 50.99% to to the mo
Slide 16: Our efficiency ratio has increased significantly since Dodd-Frank
Our efficiency ratio has increased significantly since the enactment of Dodd-Frank. PREPARING FOR SIFI STATUS Following the enactment of the Dodd-Frank Act, we began allocating significant resources towards SIFI preparedness. The degree to which we have already leveraged the cost of SIFI compliance
Slide 17: Residential Mortgage Banking
RESIDENTIAL MORTGAGE BANKING
Slide 18: We are a nationwide producer of 1-4 family loans
We are a nationwide producer of 1-4 family loans. Loan production is driven by our proprietary real time, web- accessible mortgage banking technology platform, which securely controls the lending process while mitigating business and regulatory risks. FEATURES Approximately 900 approved clients incl
Slide 19: Growth Through Acquisitions
GROWTH THROUGH ACQUISITIONS
Slide 20: We have a long history of earnings-accretive transactions
We have a long history of earnings-accretive transactions. 1. Nov. 2000 2. July 2001 3. Oct. 2003 4. Dec. 2005 5. April 2006 Haven Bancorp Richmond County Roslyn Bancorp, Long Island Atlantic Bank of (HAVN) Financial Corp. Inc. (RSLN) Financial Corp. New York (ABNY) (RCBK) (LICB) Assets: Assets: Ass
Slide 21: The termination of the Astoria merger was due to external factors
The termination of the Astoria merger was due to external factors, and continues to impact the value of our shares. Financially and strategically, the Astoria merger was a well-conceived transaction. Both our shareholders and Astoria’s overwhelmingly approved the merger. The regulatory approval proc
Slide 22: 1Q 2017 Performance Highlights
1Q 2017 PERFORMANCE HIGHLIGHTS
Slide 23: Income Statement Highlights
Income Statement Highlights (dollars in thousands, except per share data) 1Q 2017 Strong Profitability Measures: Earnings $103,957 Earnings per common share $0.21 Return on average assets 0.85% Return on average common stockholders’ equity 6.76 (a) Return on average tangible assets 0.90 (a) Return o
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights BALANCE SHEET ASSET QUALITY 3/31/17 At or for the Three Months Ended 3/31/17 Loans, net / total assets 79.8% Non-performing loans (a) / total loans (a) 0.16% Securities / total assets 7.6 Non-performing assets (b) / total assets (b) 0.15 Deposits / total assets 58.8 Net char
Slide 25: Loans and Deposits
Loans and Deposits LOANS DEPOSITS AT 3/31/17 AT 3/31/17 Savings 19% CRE 19% ADC 1% CDs 26% Multi- C&I NOW and Family 5% MMA 70% 45% 1-4 Family (Non- covered) 1% Covered Non- Other Loans Interest- 0% 4% Bearing 10% TOTAL HFI LOANS: $38.9 BN TOTAL DEPOSITS: $28.7 BN AVERAGE YIELD ON LOANS: 3.67% AVERA
Slide 26: Our leverage and risk-based capital ratios exceed those of regional peers
Reflecting the benefit of our recent preferred stock offering, our leverage and risk-based capital ratios exceed those of our regional peers. NYCB REGIONAL PEERS (a) RATIO AT 3/31/17 (MEDIAN AT 3/31/17) Tier 1 Risk-Based Capital 12.23% 11.58% Total Risk-Based Capital 13.71 13.26 Tier 1 Leverage 9.24
Slide 27: Since 4Q 2014, we have been managing assets below the SIFI threshold
Since 4Q 2014, we have been managing our assets below the current SIFI threshold. STRATEGIC ASSET MANAGEMENT Reduced securities by $3.8 billion through a combination of repayments, sales, and calls Sold loans of $4.5 billion: Total Assets – $2.8 billion of multi-family loans (largely through partici
Slide 28: Our commitment to building value is reflected in our total return
Our commitment to building value for our investors is reflected in our total return over the course of our public life. TOTAL RETURN ON INVESTMENT 4,784% 4,682% 4,265% 4,319% 4,237% SNL U.S. Bank and Thrift Index 3,843% NYCB (a) 3,069% 2,754% 2,670% 2,059% CAGR since IPO: 24.1% 717% 615% 609% 393% 4
Slide 29: Looking Forward
LOOKING FORWARD
Slide 30: We continue to be encouraged by recent signs of regulatory easing
We continue to be encouraged by recent signs of regulatory easing. Qualitative stress testing for financial institutions with assets greater than $50 billion and less than $250 billion has been eliminated. The regulatory approval process for mergers resulting in the creation of a bank holding compan
Slide 31: We also are encouraged by proposed changes to federal tax laws
We also are encouraged by proposed changes to the federal tax laws for corporations. The proposed changes to the federal corporate tax laws would be expected to benefit our earnings in two important ways: Our current federal corporate tax rate is 35%. All other things being equal, a reduction in the
Slide 32: For More Information
For More Information VISIT OUR WEBSITE : ir.myNYCB.com E-MAIL REQUESTS TO : ir@myNYCB.com CALL INVESTOR RELATIONS AT : (516) 683-4420 Investor Relations New York Community Bancorp, Inc. WRITE TO : 615 Merrick Avenue Westbury, NY 11590 Page 32 6/6/17
Slide 33: Appendix
APPENDIX
Slide 34: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures While average stockholders’ equity, average assets, return on average assets, and return on average stockholders’ equity are financial measures that are recorded in accordance with U.S. generally accepted accounting principles ("GAAP"), average tangible
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