Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2004 Earnings Presentation
31 slides from Flagstar Bank, N.a's earnings presentation, Aug 11, 2004
Slide 1: Second Quarter 2004 Investor Presentation
Exhibit 99.1 Exhibit 11, Second August Quarter 99.120042004 Investor Presentation
Slide 2: Forward-looking Statements
This in performance such statement Forward-looking “believe,” recent Factors deposit composition Government, technological time Readers forward-looking 2 presentation, forward-looking deleveraging the flows, that are for “expect,” Company’s cautioned could of and purposes including factors loan the
Slide 3: Investment Features
Investment We A transactions 3 leading have afinancial successful Features The capacity institution business to grow in model the earnings Metro built on New andour capital York fundamental market Astrengths. great lending niche Exceptional asset quality Solid funding sources A highly efficient oper
Slide 4: Market Leader in the New York Metro Region
Market We The deposits from (a) (b) 4 SNL NY are leading investment ametro Leader DataSource of leading $10.0 producer region product lender, billion includes of depository, multi-family (a)(b) salesQueens, (c) The leading and loans Kings, revenue supermarket in Richmond, Newproducer York banking Ci
Slide 5: Multi-family Loans: Our Niche
Multi-family Our Niche: Approximately 5 primary Rent-controlled lending Loans: 86% of Key niche and loans Features is-stabilized highly refinance profitable, buildings with theefficient, Bank in NYCwithin and 5-year 4resilient. years fixedNo / 5-year lossesadjustable in 2 decades rates Pre-payment p
Slide 6: Multi-family Loan Portfolio Key Statistics
We6/30/04 (in Multi-family 12/31/00 At 339% Average 6 millions) are the principal 12/31/01 leading Loans: Loan balance: 12/31/02 producer Portfolio Key Statistics $2.7 12/31/03 of multi-family million 6/30/04 Average loans $1,946 loan-to-value: for $3,255 portfolio $4,494 in 59.0% New $7,369 Expecte
Slide 7: Commercial Real Estate Loans: Our Niche
Commercial Our Niche: National than 7 CRE a decade Office credit loans Real and retail areEstate mixed-use made shopping Loans: in accordance buildings centers Key Features on in with Long NYC; theIsland same terms 5-yearasfixed our /multi-family 5-year adjustable loans.rates Pre-payment penalties:
Slide 8: Commercial Real Estate Loan Portfolio Key Statistics
Our6/30/04 (in Commercial 12/31/00 474 At Average 8 millions) % commercial principal 12/31/01 Realreal Estate balance: 12/31/02 estate Loans: Loan $1.7 portfolio 12/31/03 Portfolio Key million has Statistics 6/30/04 Average grown$324 249% loan-to-value: $562 in the $533 past $1,445 57.7% 18 months.
Slide 9: Construction Loans: Our Niche
Construction We Niche: Bulk 9 lend ofResidential proceeds to 9 of Loans the distributed unit top : Key 10 subdivisions Features developers upon progress on onLong Long completion Island Island.Floating of units rate that tied have to various signed contract economicofindices sale No losses in more t
Slide 10: Construction Loan Portfolio Key Statistics
Our6/30/04 (in Construction 12/31/00 At 1,176% Average 10 millions) assetprincipal 12/31/01 mixLoan Loans: has balance: been 12/31/02 Portfolio Keyenhanced Statistics $2.2 12/31/03 million by the 6/30/04 Average addition $59loan-to-value: of$152 Roslyn’s $117 lending $644 52.0% $753 relationships. T
Slide 11: 1-4 Family Loans: The Extensive Menu
1-4 Family The Extensive Loans 11 way sold wemenu to Loans lend theofhas conduit : fixed- Keyboosted Features within and our adjustable-rate 10 revenues days of & closing, loans efficiency, offered service-released and Allreduced loans originated Provides our creditother by risk. a income third-part
Slide 12: 1-4 Family Loan Portfolio Key Statistics
The6/30/04 (in 1-4 $1,267 53% $731 12/31/00 $266 At Average 12 millions) Family 1-4 $594 $1,318 family principal 12/31/01 Loans: Loanloan Portfolio balance: 12/31/02 Key portfolio Statistics $104,000 12/31/03 largely Average consists 6/30/04 of loan-to-value: loans acquired 38.0% in merger Expected
Slide 13: Loan Production
Loan We (in Commercial Construction 1-4 Other Multi-family 1H 13 millions) 2004 are Family Production Loans currently Loan Loans Real Loans Originations: projecting Estate Loans 25% Multi-family net loan growth $2,213 in Commercial 2004. real estate 569 Construction 260 1-4 Family 88 Other 38 Total
Slide 14: Asset Quality: Key Statistics
Asset Our 39 that subdivision 14 consecutive is loan Quality: under portfolio construction contract Key quarters isStatistics structured forwithout loans sale inin to 3Q any 10+ reduce 2004, net years charge-offs credit NPAs Allowance risk. = 0.09% against forofloan the totalloan losses assets; loss
Slide 15: Funding: Deposits
Funding: We (in $5,967 347% $3,307 12/31/00 $1,383 (a) Core #4 15 bank Queens, millions) are Deposits deposits $6,177 $3,043 the Queens 12/31/01 Key second Kings, = Statistics 62% County: largest 12/31/02 Richmond, of total #2 thrift thrift, 12/31/03 deposits Nassau, depository #5 bank Average 6/30/
Slide 16: Funding: Growth Strategy
Funding: We (in $9,924 Wholesale 6/30/04 2Q Reduced 3Q Established Introduced 16 millions) 2004 are $10,016 transitioning wholesale Growth Borrowings new regional checking Strategy borrowings from manager Deposits /asavings wholesale structure by $5.1 products toInitiated billion a retail thatInitia
Slide 17: Funding: Our Market
Funding: Our Market Division Traditional In-store Queens Total Long Staten Brooklyn Westchester Hudson Essex 87 (a) 17 52 Includes footprint Island 142(a)(b) & Island Served 25 Branches County, Union Our 48Branches 5one 33 &33 17 9has Branch Other 27 Counties, traditional 5NJ expanded 23(b) 62(a)(b)
Slide 18: Funding: Cash Flows
Funding: Cash (in 1H Interest Flat + 18200 millions) 2004 $flows 1,931 bpRate Projected $Cash 1,931 from $Scenario: 950 Flows securities $$2H 800 1,330 2004 $ 950 will Projected be redeployed 2005 into loan production in 1H 2004 & 2005.
Slide 19: Efficiency
Efficiency 2000 U.S. NYB (a) Sources Emphasis branching 19 1Q Thrifts 2001 30.20% 2004 ofon Profitable is Ratio Efficiency 2002 65.72% SNL amulti-family (b) key 2003 30.50% industry component 65.21% third-party 1H (b) 2004 lending data. 63.26% 25.32% of1H alliances our Above-average 2004 65.10% fina
Slide 20: Successful Merger Transactions
Successful We Merger Acquired Mergers Features: of 20 assets haveTransactions: completed and aHaven solid Merger earnings record Bancorp Transactions: within of (HAVN) successful 4-5 months Key onmerger Features 11/30/00 of announcement transactions. Merged with Systems Richmond integrated County wi
Slide 21: Earnings Capacity
Earnings From (in 1998 1, (a) 92% (b) Please 21 087% Please thousands) Excludes 1999 1998 seeCapacity: see reconciliation 2000 toan reconciliation 2003, after-tax 2001 Historical the2002 Company to repositioning GAAP 2003 ofEarnings core 1H grew earnings earnings 2003 charge its 1H core on toof 2004
Slide 22: Appendix
Appendix
Slide 23: Assets
We millions) Assets (in Available-for-Sale Held-to-Maturity Multi-family Loans: Commercial Construction 1-4 Available-for-sale Securities: Held-to-maturity Total 23 have Family Assets Loans Securities better &$11,877 at Real real Loans $8,536 753 Other 6/30/04 positioned $8,464 estate 4,530 Securiti
Slide 24: Investment Securities
Investment (dollars Debt Mortgage-backed At Carrying Total 24 June & available held Equity in 30, Value to millions) Securities 2004 maturity Securities for Estimated & and sale -related $4,530 -related $3,934 Available Held Book Securities 5.46% securities Securities 4.55% toYield Maturity for Sale
Slide 25: Available-for-Sale Securities
Available-for-Sale The (dollars At Carrying Available-for-sale Mortgage-backed Private Agency Total 25 June estimated available-for-sale label in 30, CMOs Value thousands) 2004 CMOs average 641,591 Estimated securities mortgage-backed Securities 1,299,158 life mortgage- 4.29 Book of$3.77 the 1,660,0
Slide 26: Deposits
Deposits (in Core CDs Savings Non-interest-bearing NOW Deposits: 26 millions) deposits Deposits & MMArepresented $ 2,594 Savings 62% of2,846 totalCDs deposits 3,839atNon-interest-bearing 6/30/04. 737 Total Deposits $10,016
Slide 27: Interest Rate Risk Profile
WeJune At Interest +200 (a) 27 In have basis addition Rate 30, significantly points 2004 Risk Sensitivity to aover Profile flattening improved 12Gap: months: yield 1-year our(2.44)% curve, interest Gap:the 0.20% -200 rate Company’s risk basis 3-year profile. points Gap: projected over 6.40% 12 2005
Slide 28: Profitability Measures
1H Excludes Excluding (dollars Earnings Other Non-interest Income Net Additional stockholders’ Profitability Diluted ROA ROE Efficiency Cash (a) 28 2004 interest income 16.63 earnings ROA ROE efficiency 2.04% operating tax EPS Cash inEarnings Excluding thousands) aratio 19.04 contributions 2.34 expe
Slide 29: Reconciliation of Non-GAAP Measures
Reconciliation presented 2003 Gain Curtailment Early Merger-related Total Core The For (in Adjustments Repositioning Income Net Basic Diluted 29 thousands, the income following on earnings 2001 adjustments retirement core earnings Years Six tax core earnings sales for earnings 2000 Months expense be
Slide 30: Reconciliation of Cash Earnings
Reconciliation The 2004 For (in Additional related Associated Dividends Amortization Total Adjustments Net repositioning Income Cash Basic Diluted 30 thousands, the income loss following repositioning earnings additional cash benefit Six tax cash onon earnings contributions tax Months benefit sales
Slide 31: For More Information
For More The Log 615 31 8/11/04 Merrick Company onto our Information: Avenue web trades site: Westbury, onwww.myNYCB.com the NYSE NY under 11590theE-mail symbolrequests “NYB”.to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc.
New York Community Bancorp — Q2 2004 Earnings Presentation on 6ix