Flagstar Bank, N.A. · NYSE:FLG
Flagstar Bank, N.A — New York Community Bancorp (NYCB Flagstar) — Q1 2024 Earnings Presentation
22 slides from Flagstar Bank, N.A's earnings presentation, May 1, 2024
Slide 1: Strategic Update and First Quarter 2024 Results
Strategic Update and First Quarter 2024 Results May 1, 2024
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information This earnings release and the associated conference call may include forward‐looking statements by the Company and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding (a) revenues, earnings
Slide 3: Our Strategy and Targets
NYCB Flagstar Will Transform Into a Fully Diversified Bank With a Strong Balance Sheet, Robust Capital Position and Meaningful Earnings Power Our Strategy 1 Bolster Management and Board 2 Develop a Realistic Operating Plan 3 Achievable Capital and Earnings Forecast 4 Rigorous Credit Risk Management
Slide 4: Management Team with Extensive Turnaround Expertise
Management Team with Extensive Turnaround Expertise Joseph Otting Craig Gifford President & Chief Executive Officer, Director Sr. Executive Vice President & Chief Financial Officer Joined 2024 Joined 2024 ▪ Served as the 31st Comptroller of the Currency ▪ More than 30 years of banking experience ▪ F
Slide 5: Board of Directors – Best-In-Class Governance
Board of Directors – Best-In-Class Governance Steven Mnuchin Joseph Otting Milton Berlinski Lead Independent Director; Chairman of Nominating & President & Chief Executive Officer, Director Director; Chairman of Compensation Committee Corporate Governance Committee Joined 2024 Joined 2024 Joined 202
Slide 6: Operating Plan – The Path to Profitability
Operating Plan – The Path to Profitability Short-Term 1 Loan Portfolio Repricing Benefit to NII and NIM 2 Focus on Workout of Problem Loans Long-Term Reduction in NPAs Begin Building a More Robust Middle Market Higher Yielding Assets and Relationship-Based 3 Relationship Banking Platform Deposits Ca
Slide 7: Base Forecast Summary
Base Forecast Summary Q4’26 2024 2025 2026 Annualized Diluted EPS ($0.50 – 0.55) $0.35 – 0.40 $0.50 – 0.60 $0.65 – 0.75 Efficiency Ratio 80 – 85% 65 – 70% 60 – 65% 55 – 60% CET1 Ratio 10.0 – 10.25% 10.5 – 11.0% 11.0 – 12.0% 11.0 – 12.0% ROAA NM 0.45 – 0.50% 0.75 – 0.85% 0.95 – 1.00% ROATCE NM 6.5 –
Slide 8: Base Forecast Summary
Base Forecast Summary Q4’26 ($ in millions) 2024 2025 2026 Annualized Net Interest Income $2,400 – 2,450 $2,600 – 2,700 $2,900 – 3,100 $3,100 – 3,250 Net Interest Margin 2.2 – 2.3% 2.4 – 2.5% 2.7 – 2.8% 2.8 – 3.0% Provision for Loan Losses $750 – 800 $150 – 200 $150 – 200 $150 – 200 Noninterest Inco
Slide 9: Balance Sheet Position
Balance Sheet Position $50 – 100B Asset NYCB Flagstar NYCB Flagstar Category IV Banks Banks Q4’23 Q1’24 Most Recent Available Most Recent Available TCE / TA 6.4% 6.5% 6.4% 6.7% CET1 Ratio 9.0% 10.1% 10.4% 10.8% (As Preferred Converted)(1) CET1 Ratio 8.4% 9.4% 8.5% 9.3% (Inclusive of AOCI)(1)(2) ALLL
Slide 10: In-Depth Due Diligence by NYCB Flagstar and Independent Third-Party
In-Depth Due Diligence by NYCB Flagstar and Independent Third-Party Total Loans HFI: Multi-Family and CRE: In-Depth CRE Review: $82.3 Billion $47.8 Billion UPB $17.8 Billion UPB / 37% Reviewed Other $1.7 Top 50 Non- Warehouse 2% Non-Office Office CRE (3) $5.2 CRE (2) $1.8B 6% $7.4B Multi-Family 1-4
Slide 11: Office Portfolio | Overview
Office Portfolio | Overview Highlights Total Office Portfolio Reviewed (UPB)(1) ◼ Total Office portfolio: $3.1 Billion Other ◼ Q1’24 Office portfolio ALLL: 10.33% $0.8B ◼ Top 50 Office loans were reviewed 25% ─ In-depth due diligence process performed on 75% of the portfolio Reviewed $2.4B ─ Review
Slide 12: Multi-Family Portfolio | Overview
Multi-Family Portfolio | Overview Highlights Total Multi-Family Portfolio Reviewed (UPB) ◼ Total Multi-Family portfolio: $36.9 Billion ◼ Q1’24 Multi-Family portfolio ALLL: 1.27% ◼ Increased from 0.82% in Q4’23 Reviewed ◼ Top 250 Multi-Family loans were reviewed $13.5B ─ In-depth due diligence proces
Slide 13: Non-Office CRE Portfolio | Overview
Non-Office CRE Portfolio | Overview Highlights Total Non-Office CRE Portfolio Reviewed (UPB)(1) ◼ Total Non-Office CRE portfolio: $7.4 Billion(1) ◼ Q1’24 Non-Office CRE portfolio ALLL: 1.52% Reviewed ◼ Top 50 Non-Office CRE loans were reviewed $1.8B 24% ─ In-depth due diligence process performed on
Slide 14: We Increased Our ALLL to 1.48% (+$223 Million)
Allowance for Loan and Lease Losses Detail We Increased Our ALLL to 1.48% (+$223 Million) 12/31/2023 3/31/2024 Change in ($ in millions) Allowance ALLL % Allowance ALLL % ALLL% Multi-Family $307 0.82% $469 1.27% 45bps CRE $361 3.54% $428 4.27% 73bps Office (ex. Owner-Occupied) $279 8.60% $323 10.33%
Slide 15: Deposits | Overview
Deposits | Overview Well Diversified Deposit Base 84% Insured and Collateralized Deposits(1) Balance ($B) Industry 3/31/2024 Noninterest-Bearing Demand $17.7 Uninsured 16% Interest-Bearing Demand $14.2 Money Markets $8.0 Savings $8.2 Insured 84% Retail CDs $20.4 Jumbo CDs $6.4 Total Deposits $74.9 H
Slide 16: Liquidity Sources vs. Uninsured Deposits
16 Liquidity Sources vs. Uninsured Deposits Significant Liquidity Capacity Relative to Uninsured Deposits $ in billions $28.6 ▪ Total liquidity of $28.6 billion which far Borrowing Capacity & $13.1 exceeds uninsured and uncollateralized High-Quality Liquid Assets $16.2 deposits, with a coverage rati
Slide 17: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights ($ in millions) NYCB Flagstar 3/31/24 Net Interest Income $624 INCOME STATEMENT SUMMARY Noninterest Income(1) $130 Noninterest Expense(2) $621 Provision for Loan Losses $315 Net Income / (Loss) to Common Shareholders ($335) Diluted Earnings / (Loss) per Common Share ($0.
Slide 18: Concluding Statements
Concluding Statements Investment Opportunity ◼ Pro-forma for the capital raise, NYCB currently trades at approximately 0.42x of fully converted tangible book value, compared to 1.48x for Category IV banks and 1.35x for banks with assets between $50 - $100 billion ◼ Q1’24 TBV Per Share (As Preferred
Slide 19: Appendix
Appendix 18
Slide 20: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Adjusted Allowance Coverage Ratio 12/31/2023 3/31/2024 Allowance for loan and lease losses ("ALLL") $992 $1,215 Warehouse and government guaranteed loan reserves 7 10 Adjusted ALLL (A) 985 1,205 Total loans and leases held-for-investment 84,619 82,326 Wa
Slide 21: Peer Groups
Peer Groups Category IV Banks Ticker Banks with $50B - $100B in Assets Ticker Citizens Financial CFG Columbia Banking System COLB Fifth Third Bancorp FITB Comerica CMA First Citizens Banc. FCNC.A Cullen/Frost Bankers CFR Huntington Banc. HBAN East West Bancorp EWBC KeyCorp KEY First Horizon FHN M&T
Slide 22: 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 Write to: New York Community Bancorp, Inc. 102 Duffy Avenue Hicksville, NY 11801 21
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