Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — RBC Capital Markets Financial Institutions Conference 2002
26 slides from Flagstar Bank, N.a's conference presentation, Sep 19, 2002
Slide 1: New York Community Bancorp - RBC Capital Markets Financial Institutions Conference
ty New York COMMUNITY 433) BANCORP INC. RBC Capital Markets Financial Institutions Conference September 19, 2002
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* 32.8*
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 + Robust asset and loan growth + Exceptional asset quality + Effective cost control + Aggressive capital management strategies + 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 6/30102 limited to outstanding loan commitments of $481.9 million and investment commitments of $296.4 million + No unconsol
Slide 7: The Company has been named the top performing large thrift
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 8: 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 tos 64 Total Average Assets: Total Average Assets: Total Average Assets: Total Average Assets: $1.98 $238 $6.4B** $9.68 (1 Mortgage and other ioans fj) Money market investme
Slide 9: The profitability of the Company's 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 10: The 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 11: 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 (dota in mons) Sie Mos. Production $1,600 70% $4426 $1,400 60% $1,200 50% $4,000 ii $791.3 a0 0) 9003.4 47 3.0% ena $1189 $409.8 20% $400 x + + + a 218% sono | pny 1.6% 162% 169% 1h
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% ey 0.19% 0.19% 0.14% 12181197 12181198 12181199 12181100 12181101 6130/02 Non-pertorming assets as a percentage of total assets Non-pertarming loans as a percentage of loans, net
Slide 13: Effective Cost Control
New York Community Bancorp, Inc. Effective Cost Control = ae asa e138 ae one Bas Eo aes aan ae 1997 1998 1999 2000 2001 1H 2002 industry efficiency ratio. NYCE efficiency ratia "Core eamings i NYCB cash efficiency ratio 13
Slide 14: Aggressive Capital Management Strategies
New York Community Bancorp, Inc. Aggressive 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 millio
Slide 15: Disciplined Acquisitions
Disciplined Acquis New York Community Bancorp, Inc. NYCB Haven Richmond 2002 {ota in mi Bancorp County Results ‘Announcement Date: June 2000 March 2001 2 Completed Date: November 2000 | July 2001 Announced Transaction Value: | $196 $802 Assets /Deposits: $2,966 /92,151" | $9,219/s2099" | $10,240 /$5
Slide 16: The Company has aggressively restructured its balance sheet
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 17: Loan growth fueled by originations and merger transactions
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 fuser sams Total Loans _ $1.68 Total Loans $3.68" Total Loans $5.4B"* Total Loans $5.38"** Loan Portfolio Yield 8.07% Loan Portfolio Yield 7.9
Slide 18: 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 6/30/02 12/31/01 Total Deposits $1.18 Cost of Deposits 3.87% Total Deposits $3.3B* Cost of Deposits 4.07% Total Deposits $5.3
Slide 19: Banking offices in the attractive metro New York / New Jersey market
New York Community Bancorp, Inc. The Company now has 109 banking offices in the attractive metro New York / New Jersey market. Traditional In-store Locations © Branches Branches Total Queens 7 8 25 Statenisiand 17 8 23" New Jersey 16 3 19 Nassau 2 2 14 Suffolk 16 16 Other NYC 1 7 Westchester i. 9
Slide 20: 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 sans $178.5 $08.9 S64 on $510 woo 2.5 : @ 1999 2000 2001 1H 2002 Total Core Total Core Total
Slide 21: 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 & $66.7 go Ky st 5 $34 $455 J e 28 $301 6.8 : 5 $16 102001 102002 202001 202002 102001 102002 202001
Slide 22: Record of significant earnings growth expected to continue in 2002 and 2003
New York Community Bancorp, Inc. The Company’s record of significant earnings growth is expected to continue in 2002 and 2003. an, $2.75 CAGR: $2,328 $2.48. 237 22 Diluted GAAP EPS: 24 .84%* 92.13. Diluted Cash EPS: 31.66% $191 $2.15 $133 stat $a96 $4.04 $072 $0.74 ee $060 $048 1997 1998 1999 2000 2
Slide 23: NYCB's 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% 2399% 22.59% 19.71% soaps aea0% ante 19.83% 12.95% 793% 8.14% 8.12% 861% S78 9.18% 1997 1998 1999 2000 2001 1H 2002 Industry ROE NYCB ROE * Core earings ME NYCB Cash ROE
Slide 24: The Company's Cash ROA has consistently exceeded the industry average
New York Community Bancorp, Inc. The Company’s Cash ROA has consistently exceeded the industry average. oem i Lil Average Assets $4413 sips $1pe53 $2013 $6068 $9p022 (inthousands) 1897 198 1958 co 001 swe industry ROA © onyce ROA * Core earnings Mi NYCB Cash ROA
Slide 25: 1,606% increase in share price since 11/23/93
New York Community Bancorp, Inc. Reflecting a 1,606% increase in share price since 11/23/93, the Company’s market capitalization grew 2,676% through 9/13/02. (ollas in milions, except per share amounts) $3028 232 s1omr 6 $392 $004 son ‘em $28.15 7 287 ‘n $9 sags Vs i en 112383 128194 128185 128186 1
Slide 26: 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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