Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q4 2022 Earnings Presentation
28 slides from Flagstar Bank, N.a's earnings presentation, Jan 31, 2023
Slide 1: Fourth Quarter 2022 Investor Presentation
Fourth Quarter 2022 Investor Presentation Parent company of
Slide 2: Forward-Looking Information
24th Quarter 2022 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, and ac
Slide 3: Financial and strategic highlights
34th Quarter 2022 Acquisition/organic driven growth model • The transition to a commercial bank model well underway o Commercial loans represented 33 percent of the total loans at FY 2022 compared to less than 25 percent FY 2021 o Multi-family loans represented 55 percent of total loans at YE 2022 c
Slide 4: Quarterly income comparison and observations
44th Quarter 2022 Observations • Non-interest income increased $182 million driven by the bargain purchase gain related to the Flagstar transaction. • The mortgage servicing rights portfolio yielded an annualized 6.8% return for the month of December. • Net gain on loan sales, fee income, and loan a
Slide 5: Balance sheet highlights
54th Quarter 2022 $mm Observations • Total deposits increased $17.0 billion, or 41%, from the prior quarter, primarily due to: • Non-interest bearing accounts growth of $8.2 billion • Interest-bearing checking and money market accounts growth of $2.6 billion Interest and non-interest bearing liabili
Slide 6: Deposits and lending
64th Quarter 2022 Deposits and lending • Highlights – Total deposit cost of 1.93 percent in Q4 2022. – Deposits generated through retail and commercial channels – Loan-related deposits up 10% or $389 million from December 31, 2021 to $4.4 billion – CDs have declined to 21% of total deposits from 24%
Slide 7: Asset Quality Metrics
74th Quarter 2022 Asset Quality Metrics Ratio NYCB At 12/31/2022 S&P U.S. BMI Banks Index (b) At 9/30/2022 Peers (b) At 9/30/2022 NCOs/Average Loans 0.00% 0.08% 0.11% Cumulative losses (a) 107 bp 2,433 bp 1,363 bp NPAs/Total Assets 0.17% 0.37% 0.46% NPLs/Total Loans 0.20% 0.57% 1.03% ALLL/NPLs 279%
Slide 8: Regulatory Capital
84th Quarter 2022 Regulatory Capital Ratio NYCB At 12/31/2022 S&P U.S. BMI Banks Index (a) At 9/30/2022 Peers (a) At 9/30/2022 Total Risk-Based Capital 11.66% 14.52% 12.81% Tier 1 Risk-Based Capital 9.78 12.48 10.87 Common Equity Tier 1 9.06 11.84 10.10 Tier 1 Leverage 9.70 9.55 9.17 (a) Data for 4Q
Slide 9: Credit Quality: Non-Performing Loans/Total Loans
94th Quarter 2022 (a) Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired (“PCI”) loans. (b) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest. Our non-performing loans at 12/31/16, 12
Slide 10: Credit Quality: Net Charge-Offs/Average Loans
104th Quarter 2022 Credit Quality (a) The calculation of our net charge-offs to average loans excludes taxi medallion-related charge-offs of $59.6 million, $12.8 million, $10.2 million, $11.9 million, and $2 million, for 2017, 2018, 2019, 2020, 2021, and a $(6) million net recovery for 4Q22, respect
Slide 11: Community banking and corporate overview
114th Quarter 2022 Community banking • Flagstar Bank, N.A. is a leading regional bank with a balanced, diversified lending platform • 395 branches across a 9 state footprint • Second-largest multi-family portfolio lender in the country and the leading multi-family portfolio lender in the New York Ci
Slide 12: Loan Portfolio
124th Quarter 2022 Total HFI Loans: $69.0 bn Loan Portfolio • Majority of portfolio focused on low-risk multi-family loans on non-luxury, rent- regulated buildings - Market leader in this asset class having developed strong expertise and industry relationships over the last five decades • Consistent
Slide 13: Multi-Family Portfolio
134th Quarter 2022 Multi-Family Portfolio Statistics for the 3 Months Ended 12/31/22 • We are a leading indirect multi-family, rent regulated lender in the New York Metro Region. Multi-family loans have been our primary lending focus for the past five decades • 55% of loans held-for-investment (29%
Slide 14: Commercial Real Estate Portfolio
144th Quarter 2022 Originations: $1,180 $1,039 $967 $1,226 $958 $893 $1,086 Net Charge-Offs (Recoveries): $(1) $0 $3 $0 $2 $2 $0 Commercial Real Estate Portfolio CRE Portfolio Statistics for the 3 Months Ended 12/31/22 • 12% of loans held-for-investment (8% of originations) Commercial Real Estate Lo
Slide 15: Commercial real estate and ADC portfolio characteristics
154th Quarter 2022 • Diversified property types which are primarily income- producing in the normal course of business • Focused on experienced top-tier developers with significant deposit and non-credit product opportunities Commercial Real Estate ($bn) Commercial real estate & ADC Portfolio Charac
Slide 16: Home builder finance
164th Quarter 2022 Home builder loan commitments(1) ($mm) ● National relationship-based lending platform launched in 1Q16 - Attractive asset class with good spreads (~375 bps) - Meaningful cross-sell opportunities including warehouse loans, commercial deposits and purchase originations ● Flagstar is
Slide 17: Commercial and Industrial Portfolio
174th Quarter 2022 Commercial & Industrial ($bn) Commercial and Industrial Portfolio Portfolio Characteristics State Breakdown excluding warehouse • Lines of credit and term loans for working capital needs, equipment purchases, and expansion projects • Primarily floating rate • The financial and ins
Slide 18: Specialty Finance
184th Quarter 2022 Originations: $1,266 $1,784 $1,917 $2,800 $2,694 $3,153 $6,001 Net charge-Offs: $0 $0 $0 $0 $0 $0 $0 Specialty Finance Loan Types – 7% of loans held-for-investment – 35% of originations – Syndicated asset-based and dealer floor-plan loans, primarily revolving lines of credit. – Eq
Slide 19: Warehouse lending
194th Quarter 2022 FBC warehouse loan commitments ($bn) Warehouse lending Lenders ranked by commitments ($mm) Source: Inside Mortgage Finance Report published on September 1, 2022, with balances as of June 2022. ● National relationship-based lending platform with approximately 594 active relationshi
Slide 20: Appendix
Appendix
Slide 21: Securities and Funding Composition
214th Quarter 2022 Securities and Funding Composition • 2.12% cost of funds • Significant capacity given eligibility of multi-family loans Total Funding: $80.1 billion • Entire portfolio is available for sale • Consists primarily of GSE-related securities • Overall average yield is 3.26% • 15% are v
Slide 22: Mortgage banking
224th Quarter 2022 Closings by mortgage type ($bn) Net gain on loan sales – revenue and margin Fallout-adjusted locks by channel ($bn) Closings by purpose and expense ratio ($bn) Mortgage banking $5 0.56% Gain on loan sale ($mm) Gain on sale margin (HFS) December 2022 $0.7 0.2 0.4 0.1 Correspondent
Slide 23: Servicing portfolio
234th Quarter 2022 154 7 35 Servicing portfolio MSR portfolio characteristics (% UPB) MSR portfolio statistics Net return (loss) on mortgage servicing rights ($mm) By Vintage 2022 24% 2021 33% 2020 25% 2019 & prior 18% By Investor Freddie 23% Fannie 60% GNMA 16% Private 1% Measure ($mm) 12/31/2022 U
Slide 24: 2023 Guidance
244th Quarter 2022 Guidance(1) 1. See cautionary statements on slide 2. Provision for Credit Losses • Average loan growth of approximately 5% • Q1-23 NIM continues to expand from Q4 '22 levels to a range of 2.55% to 2.65% Non-interest income • Q1-23 Gain on Sale revenue of $18 million to $22 million
Slide 25: Peer Group
254th Quarter 2022 Peer Group Peer Ticker Citizens Financial CFG Comerica CMA Fifth Third Bancorp FITB First Citizens Bancshares FCNC.A Huntington Bancshares Incorporated HBAN KeyCorp KEY M&T Bank Corporation MTB Regions Financial Corporation RF Signature Bank SBNY Synovus Financial Corporation SNV
Slide 26: For More Information
264th Quarter 2022 Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: Investor Relations New York Community Bancorp, Inc. 102 Duffy Avenue Hicksville, NY 11801 For More Information
Slide 27: Adjusted net income and diluted earnings per share
274th Quarter 2022 Adjusted net income and diluted earnings per share 3 Months ended December 31, 2022 3 Months ended December 31, 2021 12 Months ended December 31, 2022 12 Months ended December 31, 2021 Net income – GAAP $ 172 $ 150 $ 650 $ 596 Merger-related expenses, net of tax(1) 48 5 59 20 Barg
Slide 28: Reconciliations of GAAP and Non-GAAP Measures
284th Quarter 2022 Reconciliations of GAAP and Non-GAAP Measures $mm Non-GAAP Ratio Reconciliations At or for the three months ended At or for the twelve months ended December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2021 Total Stockholders’ Equity $ 8,824 $ 6,746 $ 8,824 $ 7,044 L
New York Community Bancorp — Q4 2022 Earnings Presentation on 6ix