Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2002 Earnings Presentation
30 slides from Flagstar Bank, N.a's earnings presentation, Jul 22, 2002
Slide 1: Second Quarter 2002 Investor Presentation
ty New York COMMUNITY 433) BANCORP INC. Second Quarter 2002 Investor Presentation
Slide 2: Forward-Looking Statements and Risk Factors
New York Community Bancorp, Inc. Forward-Looking Statements and Risk Factors This presentation contains certain fowardlooking statement with regatd tothe Company's prospective performance and tategies within the meaning of Sacton 27A of te Secures Act of 893, as amended, and Section 21E of the Seout
Slide 3: Balance Sheet Summary
New York Community Bancorp, Inc. Balance Sheet Summary 6/30/02 Y-0-Y Increase + Assets $10.2 billion 126.7% +Loans 5.3 62.3 + Multi-family loans 4.0 88.9 + Mortgage originations 1.4 171.6 + Securities available for sale 3.4 453.3 + Deposits 5.3 71.9 + Core deposits 3.3 136.8 + Market cap 3.0* 70.1*
Slide 4: Income Statement Summary
New York Community Bancorp, Inc. Income Statement Summary (ola in milions, except per share amounts) For the 6 Mos. Ended 6/30/02 «Earnings $104.5 + Diluted EPS 1.03 + Cash eamings 126.4 + Diluted cash EPS 1.25 +ROA 2.18% + Spread 4.15 + Margin 4,33 Y-0-Y Increase 125.4% 37.3 120.2 34.4 17bp 110 102
Slide 5: Investment Features
New York Community Bancorp, Inc. Investment Features + Industry-leading financial performance + Strong asset and loan growth + Pristine asset quality + Effective cost control + Disciplined acquisitions + Attractive markets + Superior shareholder returns
Slide 6: Financial Reporting / Corporate Governance Practices
New York Community Bancorp, Inc. Financial Reporting / Corporate Governance Practices + Transparent financials: what you see is what you get + Off-balance sheet commitments at 6/30/02 limited to outstanding loan commitments of $481.9 million and investment commitments of $296.4 million + No unconsol
Slide 7: The Company is highly ranked among U.S. banks
New York Community Bancorp, Inc. The Company is highly ranked among U.S. banks and among all U.S. stocks for its financial performance and price appreciation. #1 Top-performing Large Thrifts in the U.S. ThriftNVESTOR (for the 4 consecutive year) May 2002 #2. Best Performing Large U.S. Banking U.S. B
Slide 8: Named the top performing large thrift in the nation
New York Community Bancorp, Inc. The Company has been named the top performing large thrift in the nation based on its 1995-2001 performance.* 2001 2001 1H 2002 Core Ranking Industry NYCB NYCB NYCB NYCB Criteria Average Core Cash Core Cash ROA 0.83% 1.65% 2.33% 207% 263% ROE 8.61 18.30 25.90 18.87 2
Slide 9: Robust Average Interest-earning Asset Growth
New York Community Bancorp, Inc. Robust Average Interest-earning Asset Growth (ola in mons) 12/31/99 12/31/00 12/31/01 6/30/02 i tos Y 1.5 pee son tmn0 ce aw zis Total Average Assets: Total Average Assets: Total Average Assets: Total Average Assets: $1.98 $238 $6.4B** $9.68 (1 Mortgage and other ioa
Slide 10: Multi-Family Loan Origination Performance in a Variety of Interest Rate Environments
New York Community Bancorp, Inc. Multi-Family Loan Origination Performance in a Variety of Interest Rate Environments (atin mons) Six Mos. Production $1,600 1.0% $1,4126 $1,400 80% $1,200 50% $1,000 i $ro13 80% $600 $6034 $5117 2.0% wraa sues suge ee 20% $400) = += + 218% ooo |) 168 16% 162% 1.69% 1
Slide 11: Profitability of the multi-family mortgage loan portfolio
New York Community Bancorp, Inc. The profitability of the Company’s multi-family mortgage loan portfolio reflects several factors. + Efficient production process + Adjustable rate structure — primarily 5-year fixed/5-year adjustable + 4-year average term to maturity + Pre-payment penalties =Year1: 5
Slide 12: Exceptional Asset Quality
New York Community Bancorp, Inc. MY exceptional Asset Quality 0.55% 0.54% 0.42% 0.30% 0.33% 0.25% 0.26% 0.19% ie 0.19% 0.19% 0.14% 12181197 12181198 12181199 12181100 12181101 680102 Non-pertorming assets as a percentage of total assets Non-pertarming loans as a percentage of loans, net
Slide 13: Quality of the multi-family mortgage loan portfolio
New York Community Bancorp, Inc. The quality of the multi-family mortgage loan portfolio is supported by consistent underwriting standards. + Average LTV ratio: 58.8% + Minimum debt coverage ratio: 120% + Average debt coverage ratio: approximately 140% + Average loan: $1.7 million + Primarily rent-c
Slide 14: Effective Cost Control
New York Community Bancorp, Inc. Effective Cost Control He cay ” = cry esas 15% ee nee 1997 1998 1999 2000 2001 1H 2002 Industry efficiency ratio. NYCB efficiency ratia "Core eamings tq ME NYCB casm enciency rato SNL Finandal- 1H2002 not yet avaliable
Slide 15: Capital Management Strategies
New York Community Bancorp, Inc. Capital Management Strategies + 7 stock splits since 1994, including two in 2001 + A61-fold increase in the quarterly cash dividend since 1994, including a 54% increase in the past year + 14 share repurchases authorized since 10/94, including a 2.25 million share rep
Slide 16: A Disciplined Acquirer
New York Community Bancorp, Inc. A Disciplined Acquirer + Very familiar with company and management before acquisition process begins + Extensive due diligence + Complementary operating philosophy and strategy + Low operational and integration risk + Little or no impairment of asset quality + Accret
Slide 17: Acquisition History
New York Community Bancorp, Inc. Acquisition History NYCB Haven Richmond 2002 detain ions) Bancorp County Results Announcement Date: June 2000 March 2001 - Completed Date: November 2000 July 2001 - Announced Transaction Value: $196 $802 sal Assets / Deposits: $2,966 / $2,151" $3,213 / $2,093" $10,24
Slide 18: Successful integration of Haven and Richmond County
New York Community Bancorp, Inc. The successful integration of Haven and Richmond County has had a significant impact on the Company’s franchise and performance. + Established NYCB as the 2" largest thrift depository in Queens and Richmond Counties and the 4" largest in the metro NY region + Expande
Slide 19: Aggressively restructured balance sheet over the past 19 months
New York Community Bancorp, Inc. The Company has aggressively restructured its balance sheet over the past 19 months. + Sold securities totaling $1.4 billion + Sold 1-4 family and other loans totaling $680 million + Securitized 1-4 family loans totaling $572 million + Recorded loan repayments totali
Slide 20: Loan growth fueled by originations and mergers
New York Community Bancorp, Inc. Loan growth has been fueled by originations and the merger transactions. (ola in millons) 12/31/99 12/31/00 12/31/01 6/30/02 ties tis tree thoes? toons tases Total Loans $1.68 Total Loans $3.68" Total Loans $5.48"* Total Loans $5.38"** Loan Portfolio Yield 8.07% Loan
Slide 21: Core deposits have increased dramatically
New York Community Bancorp, Inc. Core deposits have increased dramatically, boosting the Company's capacity for profitable loan production. (ola in milions) 12/31/99 12/31/00 12/31/01 6/30/02 fh9.. tie fr tiaree pave tara ren j es thas fairs ee fore Total Deposits $1.1B* _Total Deposits $3.38" Total
Slide 22: Banking offices in metro New York and New Jersey
New York Community Bancorp, Inc. The Company now has 109 banking offices in metro New York and New Jersey. Traditional In-store Locations Branches Branches Total Queens 17 8 25 Staten Island 17 5 23° New Jersey 16 3 19 Nassau 2 12 14 Suffolk 1 15 16 Other NYC | Westchester == 4 54 54 109 includes a
Slide 23: Other operating income has grown significantly
New York Community Bancorp, Inc. Other operating income has grown significantly, primarily reflecting fees from operations and revenues from third-party product sales. (dollars in millions) ‘Six-Month Totals 205.8 $178.5 Fe a4 $510 ao 2.5 $8.1 1999 2000 2001 1H 2002 Total Core Total Core Total Core
Slide 24: Third-party product sales have risen dramatically
New York Community Bancorp, Inc. Third-party product sales have risen dramatically, generating a 100% year-over-year increase in six- month gross revenues. (ola in milions) Gross Sales Gross Revenues sy $58.7 s se + B $34 $15.5 : Ly se ; $04 26.8 45 $18 192001 102002 202001 202002 192001 102002 2020
Slide 25: Record of significant earnings growth expected to continue
New York Community Bancorp, Inc. The Company’s record of significant earnings growth is expected to continue in 2002 and 2003. — «22, $275 CAGR: $2.32. $2.48. $237 $252 Diluted GAAP EPS: 24.84%" $243. Diluted Cash EPS: 31.66% rey) $215 $133 $4.34 ae $1.04 ae ay $0.2’ $0.60 $0.48 1997 1998 1999 2000
Slide 26: Projecting diluted core EPS growth in 2002 and 2003
New York Community Bancorp, Inc. The Company is projecting diluted core EPS growth of 55% in 2002 and 20% in 2003, driven by higher revenues, greater efficiency, and a lower effective tax rate. + Higher net interest income and expanding spreads and margins, reflecting record levels of mortgage loan
Slide 27: Cash ROE has consistently exceeded the industry average
New York Community Bancorp, Inc. NYCB’s Cash ROE has consistently exceeded the industry average. 32.21% 31.38% 28.13% 25.90% 23.99% 22.99% 19.71% peered 19.40%" sceiee 19.83% 12.98% ed 8.14% 812% 861% * 9.18% 1997 1998 1999 2000 2001 4H2002 Industry ROE NYCB ROE * Core earnings HH NvcB Cash ROE SNL
Slide 28: Cash ROA has consistently exceeded the industry average
New York Community Bancorp, Inc. The Company’s Cash ROA has consistently exceeded the industry average. Average Assets $4413 sips $1pe53 $2013 959989 (inthousands) 1897 198 1958 000 001 industry ROA © onyce ROA * Core earnings I NvcB Cash ROA SNL Finandal- 1H2002 not yet avaliable
Slide 29: 1,562% increase in share price since 11/23/93
New York Community Bancorp, Inc. Reflecting a 1,562 % increase in share price since 11/23/93, the Company’s market capitalization grew 2,616% through 7/17/02. (ollas in milions, except per share amounts) $2,960 92,228 91,007 $3 $604 $832 670 a ss i = $5.24 91633, $1.95 st sa _(eiz00) $4322) gi208 ga
Slide 30: For more information about the Company
New York Community Bancorp, Inc. For more information about the Company: + 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
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