Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q4 2004 Earnings Presentation
28 slides from Flagstar Bank, N.a's earnings presentation, Jan 26, 2005
Slide 1: Fourth Quarter 2004 Investor Presentation
Exhibit 99.1 Fourth Quarter 2004 Investor Presentation
Slide 2: Forward-looking Statements
Thisother The Forward-looking “believe,” Company’s 2004, There statements. general interest composition assets, frames; pending guidelines; which and Additionally, Readers undertakes 2 is Company filing, is are including we liabilities, economic rates, the inherently are oreconomic, aare “estimate,”
Slide 3: A Leading Producer of Multi-Family Loans
A Leading We The deposits United (a) (b) 3 2004SNL NY are leading States ametro DataSource of leading Financial $10.4 producer (d) region lender, billion Institution includes of depository, multi-family (a)(b)Queens, Ranked in theand loans Metro Kings, among revenue inNew Richmond, New theproducer.
Slide 4: A Proven Business Model
Wesolid A focus 4 Proven have onbalance the aBusiness proven future sheet business Model A profitable model lending built on niche several Exceptional fundamental asset strengths. quality A balanced approach to funding A highly efficient operation An attractive dividend yield The capacity for earnin
Slide 5: A Solid Balance Sheet
A Solid In (dollars 12/31/04 Y-O-Y Multi-family Total Core Borrowed Stockholders’ Tangible 5 2004, deposits loans securities Balance inwe equity 12/31/03 funds billions) 13.4 significantly loans 6.6 equity 7.1 1.1 10.5 10.1 Sheet 6.0 % $9.8 9.5 0.9 3.2 27.6 Change 9.9 11.4 (25.5) 34.8 $7.4 2.9 2.1 s
Slide 6: A Solid Balance Sheet: Capital Measures
A Solid 12/31/04 Y-O-Y Company Equity/Assets Tangible Bank Leverage Tier Total (a) 6 Excluding 1risk-based Capital risk-based Balance stockholders’ equity/Tangible 12/31/03 ratio Capital Measures: net 13.27% 8.63% capital Sheet capital unrealized Measures: % Change 7.95% 12.24% equity ratio ratio as
Slide 7: Multi-Family Loan Originations
A Solid We (in Total Multi-family $359 $542 $74 2000 $4,210 $1,830 $3,383 $947 $2,059 $501 Total: 7 millions) are $791 2001 Loans: $616 the Balance 2002 leading $1,150 881% Loan Loans: Sheet 2003 producer Originations $2,560 677% 2004$4,330 of multi-family All$6,040 Other Loan loans Originations for
Slide 8: Securities Portfolio Reduced
A Solid We (in $776 $207 12/31/03 $2,039 $5,501 Total: Debt Mortgage-backed 8 millions) reduced & $1,184 $1,806 $9,500 Equity Balance our $2,901 $7,081 Securities securities Sheet & $2,167 -related Available portfolio 12/31/04 Securities 25.5% for Sale Available inDebt 2004. for & Equity Sale Mortga
Slide 9: Our Niche: Multi-Family Lending
A Profitable Our Niche: Longstanding 9 primary Rent-controlled Lending lending relationships niche Niche: andiswith -stabilized Multi-Family highly leading profitable, buildings mortgage Lending efficient, in brokers NYC and5-year Represents resilient. fixed /a5-year significant adjustable sourcerat
Slide 10: Multi-Family Loan Portfolio
A Profitable (in Multi-family 12/31/00 $9,842 $7,369 $4,494 $3,255 $1,946 406% At % Average 10 of 12/31/04 millions) totalprincipal 12/31/01 loans: Lending mortgage Loan 73.5% balance: 12/31/02 Portfolio Niche: loans $2.9 12/31/03 Multi-Family aremillion our principal 12/31/04 Average Lending asset.
Slide 11: Multi-Family Lending Refinancing Cycle
A Profitable Our NYB Rent Borrower 11 unique Roll Originates Refinances Uses / Income refinancing Lending Funds Multi-Family Loan Stream Niche: toBased cycle Improve Increases Multi-Family has on Loan Higher supported theBased over Property Income the Lending on theShort Current growth Stream, Term
Slide 12: Our Niche: Commercial Real Estate Lending
A Profitable Our Office Niche: National 5-year Pre-payment 12 CREand fixed credit loans mixed-use /Lending penalties: 5-year retail are made adjustable shopping Niche: buildings 5-4-3-2-1 in accordance Commercial centers rates inpoints NYCon with inLong Real years theEstate Island same 1 through Len
Slide 13: Commercial Real Estate Loan Portfolio
A Profitable Our (in Commercial 12/31/00 $2,141 $1,445 $533 $562 $324 561% At % Average 13 of 12/31/04 millions) commercial totalprincipal 12/31/01 loans: Lending Realreal 16.0% Estate balance: 12/31/02 estate Niche: Loan $2.2 portfolio 12/31/03 Commercial Portfolio million grew 12/31/04 Average Rea
Slide 14: Our Niche: Construction Lending
A Profitable We Niche: Bulk 14 lend ofResidential proceeds to 9 Lending of the distributed unit topNiche: 10 subdivisions developers Construction upon completion on onLong Long Lending Island of Island. units Floating with a signed rate tiedcontract to various of sale economic No losses indices in m
Slide 15: Construction Loan Portfolio
A Profitable Our (in Construction 12/31/00 $804 $644 $117 $152 $59 1,263% At % Average 15 of 12/31/04 millions) asset totalprincipal 12/31/01 mix loans: Lending Loan has6.0% balance: been 12/31/02 Portfolio Niche: enhanced $2.5 12/31/03 Construction million by the 12/31/04 Average addition Lendinglo
Slide 16: Exceptional Asset Quality
Exceptional Our NPAs No 16 losses loan = 0.12% portfolio onAsset local-market residential of total Quality is structured assets unit multi-family subdivision at to 12/31/04 reduceloans construction credit NPLsin risk. =20+ 0.21% years loans of total in 10+loans years at 40 12/31/04 consecutive Allow
Slide 17: Asset Quality Ranks Among Industry's Best
Exceptional Our NCOs/Average NPAs 0.0018% 0.08% 0.15% NPLs/Total 0.12% 0.30% 0.52% U.S. 12/31/04 0.21% 0.46% 0.57% (a) 17 SNL record Thrifts + Loans DataSource of Loans Asset (a)asset 90 Loans N.Y. or Quality quality (U.S. More State Thrifts and Days ranks N.Y.S. Past among (a) NYB Due/Total data th
Slide 18: A Balanced Approach to Funding
A Balanced Total (in 12/31/00 $6,649 $5,967 $3,307 $3,043 $1,383 381% (a) Core Queens 18 Richmond, millions) Deposits deposits core County: 12/31/01 deposits Approach =Queens, 64% #212/31/02 rose thrift, oftoand total $682 Funding #5Nassau 12/31/03 bank deposits million Nassau counties. (11.4%) 12/3
Slide 19: A Highly Efficient Operation
A Highely Efficiency 2000 U.S. NYB (a) (b) Sources Emphasis branching 19 SNL Operating Thrifts 2001 30.20%(b) of DataSource on Profitable Efficient is Ratio Efficiency 2002 65.72% amulti-family efficiency key 2003 30.50%(b) component Operation 65.21% (2004 third-party 2004 ratio; lending U.S. 25.32%
Slide 20: An Attractive Dividend Yield
An The Our Increase 2000 $0.96 $0.66 $0.43 $0.30 $0.25 284% (a) 20 Attractive dividend 2001 annual in 2002 Annual yield Dividend dividends 2003 Dividend currently 2004 Yield shown exceeds Since have 2000 5%. been (a)adjusted to reflect 3-for-2 stock splits on 3/29/01 and 9/20/01 and 4-for-3 stock sp
Slide 21: The Capacity for Earnings Growth
ThePlease From (in 2000 $454,919 $319,695 $229,230 $121,312 $31,822 1,330% (a) 21 thousands) Capacity 2001 2000see 2002 to for reconciliation 2004, 2003 Earnings the2004 Company Growth of GAAP grewand its operating earnings on 1,330%. page 26. (a)
Slide 22: 2004 Earnings Summary
2004 (in 3 Net Non-interest Adjusted Operating Cash Diluted (a) 22Mos. Please millions, interest Earnings earnings Ended operating cash income see Earnings earnings income except income expense EPS reconciliation 12 (b) Summary tax Mos. (b) EPS $101.9 $88.4 per (a) $160.5 26.2 expense $0.39 54.3 $0.
Slide 23: Earnings Summary: ROA, ROE, ROTE
2004 3 ROA ROE ROTE Efficiency Operating Average (a) 23Mos. Please Earnings 11.27 1.49% 32.21 Ended assets see Earnings expenses/ ratio 14.40 1.82% 40.55 reconciliation 12 Summary 0.87 27.56 Mos. Data 0.78 21.46 Ended (a) of December GAAP and 31,operating 2004 December earnings 31,on2004 page 26.
Slide 24: Performance Measures Among Industry's Best
TheExcludes U.S. 1.82%(a) 1.01% 0.80% ROA (a) 2004 40.55% 13.17% 9.85% ROTE 24 Company’s Thrifts Earnings (b) anSummary N.Y. after-tax performance Staterepositioning Thrifts measures (b) NYB charge rank among of $94.9 themillion industry’s in 2Q best. 2004 and an after-tax impairment charge of $5.0
Slide 25: A Focus on the Future
A Focus We Continue income 25 are focused Maintain on to the growFuture onour the achieving efficiency multi-family theMaintain following loan portfolio our goals dividend in Continue 2005. to reduce the securities portfolio Continue to increase deposits Maintain tangible capital ratios Maintain ass
Slide 26: Reconciliation of GAAP and Operating Earnings
Reconciliation The December For Three Ended 2004 (in Net Adjustments Other-than-temporary Balance Gain Merger-related Total Income Core Basic Diluted 26 thousands, the income following on earnings 2004 adjustments core Months December tax core sales sheet 31, earnings 2003 expense effect $83,476 ear
Slide 27: Reconciliation of GAAP and Cash Earnings
Reconciliation The For Three December (in Additional related Associated Dividends Amortization Other-than-temporary Total Adjustments Net repositioning Income Cash Basic Diluted 27 thousands, the income loss following earnings additional cash Months benefit For tax cash on31, on earnings contributio
Slide 28: For More Information
For More The Log 615 28 1/26/05 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 — Q4 2004 Earnings Presentation on 6ix