Flagstar Bank, N.A. · NYSE:FLG
Flagstar Bank, N.A — New York Community Bancorp — Q4 2016 Earnings Presentation
29 slides from Flagstar Bank, N.A's earnings presentation, Feb 1, 2017
Slide 1: Fourth Quarter 2016 Investor Presentation
Exhibit 99.1 Fourth Quarter 2016 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information This presentation may include forward-looking statements by the Company and our authorized officers pertaining to such matters as our goals, intentions, and expectations regarding revenues, earnings, loan production, asset quality, capital levels, an
Slide 3: We rank among the largest U.S. bank holding companies
We rank among the largest U.S. bank holding companies. MULTI-FAMILY TOTAL RETURN ASSETS DEPOSITS MARKET CAP LOANS ON INVESTMENT $48.9 billion $28.9 billion $26.7 billion $7.7 billion 4,784% With assets of With deposits of With a portfolio of With a market cap From 11/23/93 $48.9 billion at $28.9 bil
Slide 4: Our Business Model
OUR BUSINESS MODEL
Slide 5: Strategic Loan Production
STRATEGIC LOAN PRODUCTION
Slide 6: Multi-family loans collateralized by non-luxury buildings in NYC
The vast majority of our multi-family loans are collateralized by non-luxury buildings in NYC with rent-regulated units. MULTI-FAMILY PORTFOLIO STATISTICS LOAN PORTFOLIO AT OR FOR THE 12 MOS. ENDED (in millions) 12/31/16 % of non-covered loans held for $25,989 $26,961 investment = 72.1% $23,849 $20,
Slide 7: The way we lend in this market niche has distinguished our performance
The way we lend in this market niche has distinguished our performance from that of other producers of multi-family loans. Of the loans in our portfolio that are collateralized by multi-family buildings in the five boroughs of New York City, 88% are collateralized by buildings with rent- regulated u
Slide 8: Commercial real estate lending as a logical extension of multi-family
Commercial real estate lending has been a logical extension of our emphasis on multi-family loans. COMMERCIAL REAL ESTATE PORTFOLIO STATISTICS LOAN PORTFOLIO AT OR FOR THE 12 MOS. ENDED (in millions) 12/31/16 % of non-covered loans held for $7,860 $7,727 $7,436 $7,366 $7,637 investment = 20.7% Avera
Slide 9: Launch of specialty finance business provided another lending niche
The launch of our specialty finance business provided us with another lending niche of high quality. LOAN TYPES Syndicated asset-based (ABLs) and dealer SPECIALTY FINANCE floor-plan (DFPLs) loans Equipment loan and lease financing (EF) LOAN AND LEASE PORTFOLIO CLIENT CHARACTERISTICS (in millions) $1
Slide 10: Asset Quality
ASSET QUALITY
Slide 11: Our record of asset quality in downward credit cycles
Our record of asset quality in downward credit cycles has consistently distinguished us from our industry peers. NON-PERFORMING LOANS(a)(b)/ TOTAL LOANS(a) S & L CRISIS GREAT RECESSION CURRENT CREDIT CYCLE 4.17% 4.00% 4.05% 3.56% 3.41% 2.91% 2.83% 2.71% 2.63% 2.48% 2.47% 2.60% 2.35% 2.22% 2.10% 1.66
Slide 12: Few of our non-performing loans have resulted in actual losses
Few of our non-performing loans have resulted in actual losses. NET CHARGE-OFFS / AVERAGE LOANS S & L CRISIS GREAT RECESSION CURRENT CREDIT CYCLE 2.83% 2.89% 1.77% 1.50% 1.63% 1.28% 1.24% 1.17% 0.91% 0.76% 0.68% 0.54% 0.53% 0.46% 0.35% 0.41% 0.13% 0.21% 0.13% 0.00% 0.00% 0.04% 0.07% 0.06% 0.00% 0.03
Slide 13: Asset quality reflects our lending niche and strong underwriting standards
The quality of our assets reflects the nature of our lending niche and our strong underwriting standards. Conservative loan-to-value ratios CONSERVATIVE Conservative debt service coverage ratios: 120% for multi-family loans and 130% for CRE UNDERWRITING loans Multi-family and CRE loans are based on
Slide 14: Efficiency
EFFICIENCY
Slide 15: Efficiency has been another hallmark of the Company
Efficiency has been another hallmark of the Company. EFFICIENCY RATIO (a) HISTORICAL DRIVERS OF 60.58% OUR EFFICIENCY Multi-family and CRE lending are both 44.53% broker-driven, with the borrower paying fees to the mortgage brokerage firm. Products and services are typically developed by third-party
Slide 16: Efficiency ratio has increased since the enactment of Dodd-Frank
Our efficiency ratio has increased significantly since the enactment of Dodd-Frank. PREPARING FOR SIFI STATUS Following enactment of the Dodd-Frank Act, we began allocating significant resources towards SIFI preparedness. The degree to which we have already leveraged the cost of SIFI compliance is r
Slide 17: Residential Mortgage Banking
RESIDENTIAL MORTGAGE BANKING
Slide 18: We are a nationwide producer of 1-4 family loans
We are a nationwide producer of 1-4 family loans. Loan production is driven by our proprietary real time, web- accessible mortgage banking technology platform, which securely controls the lending process while mitigating business and regulatory risks. FEATURES Approximately 900 approved clients incl
Slide 19: Growth Through Acquisitions
GROWTH THROUGH ACQUISITIONS
Slide 20: We have a long history of earnings-accretive transactions
We have a long history of earnings-accretive transactions. 1. Nov. 2000 2. July 2001 3. Oct. 2003 4. Dec. 2005 5. April 2006 Haven Bancorp Richmond County Roslyn Bancorp, Long Island Atlantic Bank of (HAVN) Financial Corp. Inc. (RSLN) Financial Corp. New York (ABNY) (RCBK) (LICB) Assets: Assets: Ass
Slide 21: 2016 Performance Highlights
2016 PERFORMANCE HIGHLIGHTS
Slide 22: Income Statement Highlights
Income Statement Highlights (dollars in thousands, except per share data) 4Q 2016 FY 2016 Strong Profitability Measures: Earnings $113,733 $495,501 EPS $0.23 $1.01 Return on average assets 0.92% 1.00% Return on average stockholders’ equity 7.43 8.19 Return on average tangible assets (a) 0.97 1.06 Re
Slide 23: Balance Sheet Highlights
Balance Sheet Highlights BALANCE SHEET ASSET QUALITY 12/31/16 At or for the Three Months Ended 12/31/16 Loans, net / total assets 80.3% Non-performing loans (a) / total loans (a) 0.15% Securities / total assets 7.8 Non-performing assets (b) / total assets (b) 0.14 Deposits / total assets 59.0 Net ch
Slide 24: Loans and Deposits
Loans and Deposits LOANS DEPOSITS AT 12/31/16 AT 12/31/16 Savings 18% CRE 20% ADC 1% CDs NOW and 26% Multi- C&I MMA Family 5% 47% 69% 1-4 Family (Non- covered) 1% Covered Non- Other Loans Interest- 0% 4% Bearing 9% TOTAL HFI LOANS: $39.1 BN TOTAL DEPOSITS: $28.9 BN AVERAGE YIELD ON LOANS: 3.77% AVER
Slide 25: Managing our assets below the current SIFI threshold
Since 4Q 2014, we have been managing our assets below the current SIFI threshold. STRATEGIC ASSET MANAGEMENT Reduced securities by $3.7 billion through a combination of repayments, sales, and calls Sold loans of $4.3 billion: Total Assets $2.6 billion of multi-family loans (largely through participa
Slide 26: Cash-on-cash return on shares purchased by charter investors
The cash-on-cash return on shares purchased by our charter investors was 1,607% as of 12/31/16. (a) CASH-ON-CASH RETURN 1534% 1607% 1426% 1318% 1210% 1102% 994% 886% 778% 670% 562% 454% 346% 242% 171% 125% 65% 92% 0% 1% 2% 9% 20% 38% (a) To calculate cash-on-cash return, we divide the cumulative amo
Slide 27: For More Information
For More Information VISIT OUR WEBSITE : ir.myNYCB.com E-MAIL REQUESTS TO : ir@myNYCB.com CALL INVESTOR RELATIONS AT: (516) 683-4420 Investor Relations New York Community Bancorp, Inc. WRITE TO : 615 Merrick Avenue Westbury, NY 11590 Page 27 2/1/17
Slide 28: Appendix
APPENDIX
Slide 29: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures While average stockholders’ equity, average assets, return on average assets, and return on average stockholders’ equity are financial measures that are recorded in accordance with U.S. generally accepted accounting principles ("GAAP"), average tangible
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