Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Federal Home Loan Bank of San Francisco Annual Member Conference 2003
39 slides from Flagstar Bank, N.a's conference presentation, Sep 15, 2003
Slide 1: From Strategy to Strength
Exhibit 99.1 Exhibit 99.1 [LOGO] NEW YORK COMMUNITY BANCORP, INC. FROM STRATEGY TO STRENGTH Joseph R. Ficalora President and Chief Executive Officer New York Community Bancorp, Inc. Federal Home Loan Bank of San Francisco Annual Member Conference September 15, 2003
Slide 2: Forward-looking Statements and Risk Factors
[LOGO] Forward-looking Statements and Risk Factors New York Community Bancorp, Inc. and Roslyn Bancorp, Inc. have filed, and will be filing, a joint proxy statement / prospectus and other relevant documents concerning the merger with the United States Securities and Exchange Commission (the “SEC”).
Slide 3: Forward-looking Statements (continued)
The following factors, among others, could cause the actual results of the merger to differ materially from the expectations stated in this presentation: the ability of the two companies to obtain the required shareholder or regulatory approvals of the merger; the ability to effect the proposed rest
Slide 4: Our Mission
[LOGO] From Strategy to Strength: Our Mission Our primary goal is the creation of shareholder value. The mission of New York Community Bancorp, Inc. is to create shareholder value by consistently delivering the thrift industry’s top financial performance, and by providing those who live and work in
Slide 5: Our Balance Sheet
[LOGO] From Strategy to Strength: Our Balance Sheet With post-merger assets of $21.0 billion, we will be the nation’s 6th largest thrift. (in billions) At June 30, 2003 NYB Pro Forma (Stand-alone) w / RSLN Total assets $ 12.4 $ 21.0(a) Mortgage loans 5.8 9.5 Multi-family loans 4.9 6.2 Securities 5.4
Slide 6: Our Marketplace
[LOGO] From Strategy to Strength: Our Marketplace We will serve over one million accounts in a highly attractive marketplace. (a) [GRAPHIC] POPULATION (in millions) The Bronx 1.33 Suffolk 1.42 Nassau 1.33 Queens 2.23 Brooklyn 2.47 S.I. 0.44 TOTAL: 9.22 HOUSEHOLDS (in millions) The Bronx 0.463 Suffol
Slide 7: Marketplace: Total Deposits by County
(in billions) The Bronx $ 9.1 Suffolk $ 24.7 Nassau $ 38.6 Queens $ 31.8 Brooklyn $ 27.2 S.I. $ 7.2 TOTAL: $ 138.7 Map Source: Y-Merge.com, a division of SNL Financial (a) Pro forma with RSLN 5
Slide 8: Market Leader
[LOGO] From Strategy to Strength: Market Leader We are a leading lender, depository, and producer of revenues in our chosen market. • The leading producer of multi-family loans for portfolio in New York City (a) • The second largest thrift depository in Queens and Staten Island (a) • The second larg
Slide 9: Industry Leader
[LOGO] From Strategy to Strength: Industry Leader Our performance and returns on investment have earned national recognition. #1 Best-performing Company—Total Returns The Wall Street Journal (Savings & Loans) March 10, 2003 #1 Top-performing Large Thrift in the U.S. ThriftINVESTOR (for the 5th conse
Slide 10: Performance
[LOGO] From Strategy to Strength : Performance We have been ranked the nation’s top-performing thrift for the past 5 years. (a) At or for the At or for the 12 Months Ended 6 Months Ended December 31, 2002 June 30, 2003 Ranking Industry NYB NYB Industry NYB NYB Criteria Average (b) GAAP Cash (c) Aver
Slide 11: Our Strategies
[LOGO] From Strategy to Strength: Our Strategies Our success has been the result of several key strategies. • Multi-family lending • Cost containment • Leveraged growth • Human resources • Community banking • Strategic alliances • Branch expansion • Capital management • Deposit mix • Acquisitions •
Slide 12: Multi-family Lending
[LOGO] From Strategy to Strength: Multi-family Lending We have a profitable, efficient, and risk-averse lending niche. Strategy Benefits • Rent-controlled / rent-stabilized buildings generate stable • Produces higher term yields than alternative 1-4 year assets cash flow • 5-year fixed / 5-year adju
Slide 13: Multi-family Lending: Leading Producer
[LOGO] From Strategy to Strength: Multi-family Lending We are the leading producer of multi-family loans for portfolio in New York City. (in millions) (6 Mos. Originations) 1H 2003 Pro Forma w 2000 2001 2002 / RSLN All Other Loan Originations $ 74 $ 359 $ 501 $ 726 Multi-family Loan Originations $ 5
Slide 14: Leveraged Growth
[LOGO] From Strategy to Strength: Leveraged Growth We have pursued a profitable strategy of leveraged growth. Strategy Benefits • Capitalize on the yield curve • Provides liquidity • Invest in mortgage-backed securities, corporate bonds, trust • Reduces interest rate risk preferred securities, and U
Slide 15: Leveraged Growth: Borrowings and Securities
[LOGO] From Strategy to Strength: Leveraged Growth We have been capitalizing on the yield curve since 2001. (in millions) Borrowings Pro forma w / RSLN 12/31/00 12/31/01 12/31/02 6/30/03 Other $ 200 $ 369 $ 682 Reverse repos $ 79 $ 530 $1,972 $ 1,910(b) FHLB-NY advances $ 959(a) $1,777 $2,251 $ 3,78
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Slide 17: Community Banking
[LOGO] From Strategy to Strength: Community Banking We have consistently placed an emphasis on community banking. Strategy Benefits • Retain name of acquired bank • Capitalizes on brand equity • Maintain tradition of personal service • Promotes customer loyalty • Offer traditional banking products a
Slide 18: Community Banking: Divisional Bank Structure
[LOGO] From Strategy to Strength: Community Banking Our structure recognizes and capitalizes on the brand equity of our divisional banks. New York Community Bancorp, Inc. New York Community Bank Queens County Roslyn Richmond County Savings Bank Savings Bank Savings Bank CFS Ironbound First Savings M
Slide 19: Community Banking: Convenience and Customer Service
[LOGO] From Strategy to Strength: Community Banking We emphasize convenience and exceptional customer service. • Hours: Weekend, extended evening, and early-bird hours • Products & services: A full-service menu of traditional banking products and services, complemented by an extensive range of alter
Slide 20: Branch Expansion
[LOGO] From Strategy to Strength: Branch Expansion Our branching strategy has enhanced our efficiency and customer service. Strategy Benefits • De novo branches at turn-key locations • Improves efficiency • In-market acquisitions / mergers • Immediately increases deposit share • Blend of traditional
Slide 21: Deposit Mix
[LOGO] From Strategy to Strength: Deposit Mix Earnings growth has been supported by our strategic mix of deposits. Strategy Benefits • Emphasize core deposits • Reduces funding costs • Offer alternative investment products • Provides cross-selling opportunities • Run-off higher cost CDs • Discourage
Slide 22: Deposit Mix: 2nd Largest Thrift Depository
[LOGO] From Strategy to Strength: Deposit Mix We are the 2nd largest thrift depository in the New York metro region. (a) (in billions) Pro Forma w / RSLN 12/31/99 12/31/00 12/31/01 12/31/02 6/30/03 CDs $ 0.7 $ 1.9 $ 2.4 $ 1.9 $ 5.1 Core Deposits $ 0.4 $ 1.4 $ 3.0 $ 3.3 $ 6.1 Total Deposits: $ 1.1 $
Slide 23: Risk Management
[LOGO] From Strategy to Strength: Risk Management Our risk-averse nature is reflected in our strategic mix of assets and liabilities. Strategy Benefits • Emphasize multi-family lending • Reduces interest rate risk • Originate 1-4 family and consumer loans on a conduit basis • Reduces credit risk • E
Slide 24: Risk Management: Net Interest Margin
[LOGO] From Strategy to Strength: Risk Management Our balance sheet structure has shielded our margin from interest rate volatility. 5-year U.S. Treasury CMT Range: 2.27% - 6.69% 3-month LIBOR Range: 1.12% - 6.86% NYB net interest margin Range: 3.33% - 4.31% 12/31/98 12/31/99 12/31/00 12/31/01 12/31
Slide 25: Risk Management: Asset Quality
[LOGO] From Strategy to Strength: Risk Management The quality of our assets attests to our underwriting standards. NPAs to Total Assets 12/31/99 12/31/00 12/31/01 12/31/02 6/30/03 U.S. Thrifts 0.52% 0.53% 0.67% 0.70% 0.67% NYB 0.17% 0.19% 0.19% 0.15% 0.11% Industry Data Source: SNL Financial 22
Slide 26: Cost Containment
[LOGO] From Strategy to Strength: Cost Containment Efficiency is a key component of our financial performance. • Emphasis on multi-family lending • Above-average deposits per traditional branch (NYB: $79 million; RSLN: $164 million at 6/30/03) • Franchise expansion through M & A • Cost-effective de
Slide 27: Cost Containment: Efficiency Ratio
[LOGO] From Strategy to Strength: Cost Containment We have been ranked the nation’s 3rd most efficient bank holding company. Efficiency Ratio 1999 2000 2001 2002 1H 03 U.S. Thrifts 63.13% 65.72% 66.42% 62.67% 64.33% NYB 29.95% 30.20%(a) 35.03%(a) 25.32% 24.52% (a) Core efficiency ratio; please see r
Slide 28: Human Resources
[LOGO] From Strategy to Strength: Human Resources Our officers, directors, and staff are highly vested in the Company’s success. • Approximately 30% of shares outstanding are held by directors, officers, staff, and family members • Stock benefit plans represent a significant portion of employee comp
Slide 29: Strategic Alliances
[LOGO] From Strategy to Strength: Strategic Alliances We generate significant revenues through third-party alliances. Strategy Benefits • Originate 1-4 family and consumer loans through third- • Reduces credit and interest rate risk party conduits • Enhances efficiency • Offer third-party investment
Slide 30: Strategic Alliances: Fee and Service Income
[LOGO] From Strategy to Strength: Strategic Alliances Fee and service-related income is expected to rise approximately 37% Y-O-Y in 2003. (in millions) Fee and Service-related Income Pro Forma w /RSLN (a) 1999 2000 2001 2002 2003 $ 1.9 $ 4.6 $ 42.4 $ 64.0 $87.4 (a) 1H 03 annualized 27
Slide 31: Capital Management
[LOGO] From Strategy to Strength: Capital Management We actively manage our capital. Strategy Benefits • 8 stock splits in 9 years, including 3 since 1Q 2001 • Strengthens our capital position • 4.3 million shares repurchased in 2002; 4.2 million in 1H • Insulates against economic adversity 2003 • F
Slide 32: Acquisitions
[LOGO] From Strategy to Strength: Acquisitions We have a solid record of accretive in-market transactions. Strategy Benefits • Acquired Haven Bancorp on 11/30/00 • Expands the franchise • Merged with Richmond County Financial Corp. on 7/31/01 • Increases deposit share • Announced merger with Roslyn
Slide 33: Balance Sheet Restructuring
[LOGO] From Strategy to Strength: Balance Sheet Restructuring We have restructured the balance sheet following each merger transaction. Strategy Benefits Post-HAVN • Reduces interest rate risk • Sold loans and securities • Reduces credit risk • Downsized borrowings • Reduces extension risk Post-RCBK
Slide 34: Acquisitions: Franchise, Value and Performance
[LOGO] From Strategy to Strength: Acquisitions Our franchise, value, and performance have been enhanced by merger transactions. (dollars in billions, except per share data) Pro Forma w / HAVN w / RCBK w / RSLN 12/31/99 12/31/00 12/31/01 12/31/02 6/30/03 No. of branches 14 86 120 110 140(a) Loan / de
Slide 35: Shareholder Value
[LOGO] From Strategy to Strength : Shareholder Value Since our IPO, the value of NYB’s shares has appreciated as much as 2,543%. (dollars in millions, except per share data) 11/23/93 12/31/94 12/31/95 12/31/96 12/31/97 12/31/98 12/31/99 12/31/00 12/31/01 12/31/02 6/30/03 7/14/03 7/14/03 Market capit
Slide 36: Shareholder Value: Merger Appreciation
[LOGO] From Strategy to Strength : Shareholder Value Each of our merger transactions has provided an opportunity for share value creation. % Appreciation(a) Share Price Dividend NYB—November 23, 1993 2,543% 6,215% Haven—June 27, 2000(b) 464 176 Richmond County—March 27, 2001(b) 150 130 Roslyn—June 2
Slide 37: Reconciliation of GAAP and Non-GAAP Measures
[LOGO] Appendix Reconciliation of GAAP and Non-GAAP Measures 1. The Company calculated its diluted cash earnings per share for 2002 by adding back to the year’s net income non-cash items totaling $30.5 million. The Company calculated its diluted cash earnings per share for 1H 2003 by adding back to
Slide 38: Reconciliation of GAAP and Non-GAAP Measures (continued)
expenses, resulting in a net charge of $11.4 million, or $0.20 per diluted share. The 2001 amount included a gain of $39.6 million recorded in other operating income and charges of $23.5 million and $3.0 million, respectively, recorded in operating expenses and income tax expense, resulting in an af
Slide 39: For More Information
[LOGO] For More Information: The Company trades on the NYSE under the symbol “NYB”. • 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 9/15/