Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2009 Earnings Presentation
37 slides from Flagstar Bank, N.a's earnings presentation, May 1, 2009
Slide 1: First Quarter 2009 Investor Presentation
First Quarter 2009 Investor Presentation Exhibit 99.1
Slide 2: Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
New York Community Bancorp, Inc. Page 2 Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 Forward-looking Statements and Associated Risk Factors This presentation, like many written and oral communications presented by New York Community Bancorp, Inc. and our authorized
Slide 3: We are a leading financial institution in the competitive Metro New York/New Jersey region
New York Community Bancorp, Inc. Page 3 We are a leading financial institution in the competitive Metro New York/New Jersey region. (a) SNL Financial as of 4/28/09
Slide 4: We have a consistent business model that focuses on building value
New York Community Bancorp, Inc. Page 4 We have a consistent business model that focuses on building value while building the Company. Our total return to shareholders increased at a compound annual growth rate of 32.1% between our IPO and 3/31/09. (a) Please see page 33 for a reconciliation of our
Slide 5: Our Business Model: Multi-family Lending
Our Business Model: Multi-family Lending
Slide 6: Multi-family Loan Portfolio
New York Community Bancorp, Inc. Page 6 Multi-family Loan Portfolio (in millions) Multi-family loans have grown at a CAGR of 30.5% since 12/31/99.
Slide 7: Commercial Real Estate Loan Portfolio
New York Community Bancorp, Inc. Page 7 Commercial Real Estate Loan Portfolio (in millions) Our commercial real estate loans feature the same structure as our multi-family loans.
Slide 8: Our Business Model: Asset Quality
Our Business Model: Asset Quality
Slide 9: Net Charge-offs / Average Loans
New York Community Bancorp, Inc. Page 9 Net Charge-offs / Average Loans NYB Net charge-offs: $236,000 $21,000 $420,000 $6.1 million $431,000 We continue to be distinguished by our low level of net charge-offs. NYB SNL Bank and Thrift Index (a) $5.1 million (a) SNL Financial as of 4/28/09
Slide 10: The quality of our loan portfolio has consistently exceeded that of our industry
New York Community Bancorp, Inc. Page 10 The quality of our loan portfolio has consistently exceeded that of our industry. (a) SNL Financial as of 4/28/09 NYB SNL Bank and Thrift Index (a)
Slide 11: Net Charge-offs / Loan Loss Allowance
New York Community Bancorp, Inc. Page 11 Net Charge-offs / Loan Loss Allowance 20.16% 20.05% 19.23% 0.43% 3.65% 5.37% 3/31/08 12/31/08 3/31/09 (a) SNL Financial as of 4/28/09 Our charge-offs typically represent a much smaller percentage of our loan loss allowance compared to our industry peers. NYB
Slide 12: Credit metrics through the last credit crisis versus now
New York Community Bancorp, Inc. Page 12 At or for the Twelve Months Ended December 31, For the four years ended 12/31/92 – at the height of the last credit crisis – NCOs represented 0.12% of average loans. At or for the Three Months Ended March 31, 2009 1989 1990 1991 1992 NPLs / Total Loans 1.46%
Slide 13: While NPLs have increased, they represent a nominal percentage of our loan portfolio
New York Community Bancorp, Inc. Page 13 While NPLs have increased in the wake of the economic crisis, they represent a nominal percentage of our loan portfolio. Loan Type Non-Performing Loans as a Percent of Total Loans at December 31, 2008 March 31, 2009 Multi-family 0.24% 0.34% Commercial real es
Slide 14: Asset quality reflects our multi-family lending niche and strong underwriting
New York Community Bancorp, Inc. Page 14 The quality of our assets reflects the nature of our multi-family lending niche and our strong underwriting standards.
Slide 15: Our Business Model: Efficiency
Our Business Model: Efficiency
Slide 16: Operating efficiency ratio versus SNL Bank and Thrift Index
New York Community Bancorp, Inc. Page 16 Our operating efficiency ratio was 36.63% (a) in 1Q 2009, well below the SNL Bank and Thrift Index efficiency ratio of 54.92%. (b) (a) Please see page 33 for a reconciliation of our GAAP and operating efficiency ratios. (b) SNL Financial as of 4/28/09 NYB (a)
Slide 17: Our Business Model: Growth through Acquisitions
Our Business Model: Growth through Acquisitions
Slide 18: We have completed eight acquisitions since 2000
New York Community Bancorp, Inc. Page 18 April 1859 Nov. 1993 July 2001 Dec. 2005 April 1993 Nov. 2000 Oct. 2003 April 2006 April 2007 July 2007 Oct. 2007 Queens County Savings Bank, forebear of New York Community Bank, is established in Queens. Public trading of New York Community Bancorp shares be
Slide 19: Growth driven by organic loan production and acquisition strategy
New York Community Bancorp, Inc. Page 19 (a) Please see pages 34 and 35 for reconciliations of our GAAP and non-GAAP capital measures. Our growth has been driven by organic loan production and our earnings-accretive acquisition strategy. (dollars in billions) 12/31/99 w/ HAVN 12/31/00 w/ RCBK 12/31/
Slide 20: Converting acquired assets into securities and then into loans
New York Community Bancorp, Inc. Page 20 (dollars in millions) % of Total Assets: 12/31/05 12/31/06 29.5% 55.7% 21.4% 64.8% 17.3% 69.0% 12/31/07 12/31/04 18.8% 66.6% 3/31/09 Loans Securities 12/31/08 18.2% 68.4% We typically convert the cash flows from the post-merger sale of acquired assets into se
Slide 21: Our deposit growth has been largely acquisition-driven
New York Community Bancorp, Inc. Page 21 $658 $3,752 $5,247 $5,945 $6,913 $6,797 $6,779 Deposits $5,911 $6,012 $5,551 $4,971 $6,448 $6,246 $739 $846 $1,123 $1,273 $1,047 $1,068 $378 $40 12/31/99 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 Total deposits: 32.1% CAGR Core deposits: 36.3% CAGR
Slide 22: 161 locations in New York and 54 in New Jersey
New York Community Bancorp, Inc. Page 22 Largely reflecting our acquisition strategy, we currently have 161 locations in New York and 54 in New Jersey. BRANCH LOCATIONS COMMUNITY BANK COMMERCIAL BANK Queens County Savings Bank (34) New York Commercial Bank (19) Roslyn Savings Bank (56) Atlantic Bank
Slide 23: Deposit market share by county
New York Community Bancorp, Inc. Page 23 NASSAU COUNTY, NY QUEENS COUNTY, NY SUFFOLK COUNTY, NY RICHMOND COUNTY, NY ESSEX COUNTY, NJ (dollars in thousands) Rank Institution Deposits Market Share JPMorgan Chase & Co. $11,479,033 22.46% Citigroup Inc. 7,371,145 14.42 Capital One Financial Corp. 6,250,
Slide 24: Loans Outstanding
New York Community Bancorp, Inc. Page 24 Loans Outstanding (in millions) Multi-family Loans Outstanding All Other Loans Outstanding Multi-family loans: 30.5% CAGR Total loans: 32.8% CAGR $1,611 $17,029 $19,653 Total Loans: $677 $6,332 $4,971 Total Originations: $22,293 $666 $20,363 $4,853 While acqu
Slide 25: 1st Quarter 2009 Performance Highlights
1st Quarter 2009 Performance Highlights
Slide 26: Our 1Q 2009 performance was our strongest in several quarters
New York Community Bancorp, Inc. Page 26 Our 1Q 2009 performance was our strongest in several quarters. (a) Please see page 36 for a reconciliation of our GAAP and cash earnings. (b) Please see page 37 for a reconciliation of our GAAP and operating earnings. (c) Please see page 33 for a reconciliati
Slide 27: Asset quality measures exceed industry peers
New York Community Bancorp, Inc. Page 27 At or for the Three Months Ended 3/31/09 Our asset quality measures continued to exceed those of our industry peers . Asset Quality: NYB SNL Bank & Thrift Index (a) NCOs / average loans 0.02% 2.26% NPLs / total loans 0.79% 2.31% NPAs / total assets 0.55% 2.17
Slide 28: Net interest margin expansion driven by loan growth and lower funding costs
New York Community Bancorp, Inc. Page 28 (dollars in thousands) 1Q 2008 4Q 2008 1Q 2009 Linked-quarter Increase (Decrease) Y-O-Y Increase (Decrease) Average balance of loans $20,244,263 $21,608,984 $22,108,647 2.3% 9.2% Average yield on loans 6.19% 5.92% 5.83% (9)bp (36)bp Average yield on interest-
Slide 29: Both bank subsidiaries are well capitalized
New York Community Bancorp, Inc. Page 29 Both of our bank subsidiaries are well capitalized institutions: 3/31/09 Community Bank Commercial Bank Leverage capital ratio 7.11% 11.28% Tier 1 risk-based capital ratio 10.55% 14.06% Total risk-based capital ratio 11.00% 14.57% Our tangible capital measure
Slide 30: Total Return on Investment
New York Community Bancorp, Inc. Page 30 Total Return on Investment SNL Bank & Thrift Index (a) NYB (b) 14.7% 6.2% 107.5% 240% 615% 462% 213% 105% 717% 2,479% 2,885% 2,059% 1,956% 11/23/93 12/31/99 12/31/06 12/31/07 12/31/08 3/31/09 5.7% Annual yield produced by $1.00 per share dividend on shares pu
Slide 31: We are committed to building value for our investors
New York Community Bancorp, Inc. Page 31 We are committed to building value for our investors. Our Goals
Slide 32: For More Information
New York Community Bancorp, Inc. Page 32 5/1/2009 For More Information
Slide 33: Reconciliation of GAAP and Operating Efficiency Ratios
New York Community Bancorp, Inc. Page 33 For the Three Months Ended For the Years Ended December 31, March 31, 2009 2008 2007 2006 2005 2004 (dollars in thousands) GAAP Operating GAAP Operating GAAP Operating GAAP Operating GAAP Operating GAAP Operating Total net interest income and non-interest inc
Slide 34: Reconciliation of GAAP and Non-GAAP Capital Measures
New York Community Bancorp, Inc. Page 34 Reconciliation of GAAP and Non-GAAP Capital Measures March 31, December 31, (dollars in thousands) 2009 2008 2007 2006 2005 2004 Total stockholders’ equity $4,235,886 $ 4,219,246 $ 4,182,313 $ 3,689,837 $ 3,324,877 $ 3,186,414 Less: Goodwill (2,436,401) (2,43
Slide 35: Reconciliation of Capital Measures 1999-2003
New York Community Bancorp, Inc. Page 35 The following table presents reconciliations of the Company’s stockholders’ equity, tangible stockholders’ equity, and adjusted tangible stockholders’ equity; total assets, tangible assets, and adjusted tangible assets; and the related capital measures at Dec
Slide 36: Reconciliation of GAAP and Cash Earnings
New York Community Bancorp, Inc. Page 36 Reconciliation of GAAP and Cash Earnings The following table presents a reconciliation of the Company’s GAAP and cash earnings for the three months ended March 31, 2008 and 2009: For the Three Months Ended March 31, March 31, (in thousands, except per share d
Slide 37: Reconciliation of GAAP and Operating Earnings
New York Community Bancorp, Inc. Page 37 For the Three Months Ended March 31, (in thousands, except per share data) 2009 2008 GAAP Earnings $88,689 $72,371 Adjustments to GAAP earnings: Visa litigation charge -- (1,647) Gain on debt repurchases -- (926) Income tax effect -- Operating earnings $88,68
New York Community Bancorp — Q1 2009 Earnings Presentation on 6ix