Flagstar Bank, N.A. · NYSE:FLG
Flagstar Bank, N.A — Flagstar Financial — Q3 2024 Earnings Presentation
25 slides from Flagstar Bank, N.A's earnings presentation, Oct 25, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results October 25, 2024
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Information This earnings presentation 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, earn
Slide 3: Strategic Update: Our Five Areas of Strategic Focus
Strategic Update Our Five Areas of Strategic Focus 1 2 3 4 5 Continue to Bolster Ongoing Execution of Achievable Capital and Improve Funding Focus on Credit and Management and Operating Plan Earnings Forecast Profile Risk Management Talent Expanded C&I Second Pro-forma CET1 of Strong liquidi
Slide 4: Positive Momentum Continued During Third Quarter 2024
Positive Momentum Continued During Third Quarter 2024 Key Takeaways Sustained deposit growth in primary areas of focus; Private Banking deposits 1 increased $1.8 billion to $17.9 billion, up 11%, compared to the prior quarter Positive shift in funding mix combined with a strong liquidity position an
Slide 5: Meaningfully Revamped C&I Senior Leadership Team
Meaningfully Revamped C&I Senior Leadership Team Significant Investment in C&I and Private Banking Leadership Reflecting Management’s Commitment to an Area of Strategic Growth Richard Raffetto Senior Executive Vice President, President of Commercial & Private Banking Joined July 2024 More than 30
Slide 6: C&I Growth Strategy
C&I Growth Strategy 1 Establish a relationship-focused commercial bank model 2 Enhance Commercial, Corporate, and Specialized Industries platform 3 Invest in product capabilities to drive relationship primacy and fee income Attract new talent in areas of market opportunities and growth; currently ha
Slide 7: Capital and Liquidity Position
Capital and Liquidity Position Category IV $50 – 100B NYCB Flagstar NYCB Flagstar NYCB Flagstar NYCB Flagstar Banks Asset Banks Q4’23 Q1’24 Q2’24 Q3’24 Most Recent Available Most Recent Available CET1 Ratio (Pro-forma for mortgage 9.0% 10.1%(1) 11.2%(1) 11.4%(1) 10.8% 11.2% sale) CET1 Ratio (Pro-for
Slide 8: Forecast Update
Forecast Update Includes impact from exit of mortgage business 2024 2025 2026 2027 Diluted Core EPS(1) ($3.10 – 3.00) ($0.35 – 0.30) $0.75 – 0.80 $2.10 – 2.20 Efficiency Ratio(2) 95 – 100% 85 – 90% 65 – 70% 45 – 50% CET1 Ratio 10.75 – 11.00% 10.50 – 11.00% 10.00 – 10.50% 10.25 – 10.75% ROAA NM NM 0.
Slide 9: Forecast Update (cont'd)
Forecast Update (cont’d) Includes impact from exit of mortgage business 2024 2025 2026 2027 ($ in millions) Net Interest Income $2,150 – 2,200 $2,050 – 2,100 $2,500 – 2,600 $3,000 – 3,100 Net Interest Margin 1.90 – 2.00% 1.95 – 2.10% 2.40 – 2.60% 2.80 – 2.90% Provision for Loan Losses $1,100 – 1,200
Slide 10: Deposits | Overview
Deposits | Overview Well Diversified Deposit Base by Product Core Deposit Growth(1) $ in billions Balance ($B) Industry 9/30/2024 Noninterest-Bearing Demand $18.6 15% Interest-Bearing Demand $15.3 $63.8 Money Markets $6.4 $59.5 $55.5 Savings $13.5 Retail CDs $22.7 Jumbo CDs $6.5 Total Deposits $83.0
Slide 11: Commercial Real Estate Payoffs YTD 2024
Commercial Real Estate Payoffs YTD 2024 YTD CRE Portfolio Payoffs at Par YTD Total Payoffs Substandard (%) Multi-Family $1.8 billion 37% Significant year-to-date CRE payoffs at par with Office $148 million 94% 34% of the payoffs from substandard loans Non-Office CRE $648 million 13% Total CRE $2.6 b
Slide 12: Loan Portfolio | In-Depth Review
Loan Portfolio | In-Depth Review Total Loans HFI at 9/30/2024 Multi-Family and CRE: In-Depth MF and CRE Review: $71.1 Billion (amortized cost) $40.5 Billion (UPB) $39.2 Billion (UPB) or 97% Reviewed Other Non-Office (2) Non-Office $1.8 Multi-Family CRE CRE 2% $33.2 Co-op $4.8B $4.5B 47% $2.0 (2) 3%
Slide 13: Multi-Family Portfolio | Overview
Multi-Family Portfolio | Overview Proactively Reducing Multi-Family Exposure(1) Highlights $ in billions Q3’24 Multi-Family, excluding Co-op, portfolio ALLL: -6% 1.86% $35.2 Multi-Family ACL among the highest relative to other $34.8 multi-family focused lenders in the Northeast $33.9 $33.1 Mul
Slide 14: Multi-Family Portfolio | In-Depth Review
Multi-Family Portfolio | In-Depth Review Multi-Family Portfolio Reviewed (UPB)(1) Highlights $ in billions 97% of total Multi-family loans reviewed to date 100% of the largest loans have been reviewed 98% of multi-family where rent regulated loans are Reviewed between 50% and 100% have been re
Slide 15: Office Portfolio | In-Depth Review
Office Portfolio | In-Depth Review Office Portfolio Reviewed (UPB) Highlights $ in billions Already reviewed 93% of office portfolio, remaining is smaller balance loans Have taken substantial net charge-offs of $388 million on existing loans in the office portfolio Reviewed $2.4B, 93% Under Re
Slide 16: Non-Office CRE Portfolio | Overview
Non-Office CRE Portfolio | Overview Total Non-Office CRE Portfolio Reviewed (UPB)(1) Highlights $ in billions Q3’24 Non-Office CRE portfolio ALLL: 1.92%, or 2.15% excluding owner-occupied In-depth reviews performed on 94% of the portfolio Reviewed Most loans under review are non-New York City
Slide 17: Asset Quality | Allowance for Credit Loss Detail
Asset Quality | Allowance for Credit Loss Detail ACL as a % to LHFI increased to 1.87% 6/30/2024 9/30/2024 Change in ($ in millions) Allowance ALLL % Allowance ALLL % ALLL % Multi-Family $618 1.71% $624 1.78% 7 bps Multi-Family (excl. Co-op) $613 1.81% $614 1.86% 5 bps Co-op $5 0.25% $10 0.45% 20 bp
Slide 18: Asset Quality
Asset Quality Non-accrual Loans (NAL) (9/30/2024)(1) Highlights $ in millions 68% of total NALs are current, compared to 61% at CRE 6/30/2024 $692 C&I Total loans 30 to 89 days past due decreased $940 $235 million, or 78%, compared to 6/30/2024 Other Total 68% $83 Moved approximately $174 mill
Slide 19: Liquidity Sources
Liquidity Sources Maintaining a Strong Liquidity Position $ in billions Highlights $41.5 Our liquidity profile remains solid Total liquidity of $41.5 billion with a Borrowing Capacity & coverage ratio of 299% $19.0 High-Quality Liquid Assets $27.6 Cash(1) held on balance sheet of $22.5 billion
Slide 20: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights ($ in millions) NYCB Flagstar 9/30/24 Net Interest Income $510 INCOME STATEMENT SUMMARY Noninterest Income(1) $135 Noninterest Expense(1) $656 Provision for Loan Losses $242 Net Income / (Loss) Attributable to Common Shareholders $(289) Diluted Earnings / (Loss) per Comm
Slide 21: Investment Profile
Investment Profile Pro-forma for the capital raise, NYCB currently trades at approximately 0.63x of tangible book value, compared to 1.79x for Category IV banks and 1.55x for banks with assets between $50 - $100 billion Q3’24 TBV Per Share: $18.18 Q3’24 TBV: $7.5 billion Over time, as we suc
Slide 22: Appendix
Appendix
Slide 23: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Tangible Book Value Per Common Share Adjusted Noninterest Expense 9/30/2024 Three Months Ended Total stockholders equity $8,571 9/30/2024 Less: Core deposit and other intangibles 519 Noninterest expense $716 Less: Preferred stock 503 Less: Intangible ass
Slide 24: Peer Groups
Peer Groups Category IV Banks Ticker Banks with $50B - $100B in Assets Ticker Citizens Financial CFG BOK Financial BOKF Fifth Third Bancorp FITB Columbia Banking System COLB First Citizens Banc. FCNC.A Comerica CMA Huntington Banc. HBAN East West Bancorp EWBC KeyCorp KEY First Horizon FHN M&T Bank M
Slide 25: 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 3rd Quarter 2024 25