Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q4 2014 Earnings Presentation
34 slides from Flagstar Bank, N.a's earnings presentation, Feb 4, 2015
Slide 1: Fourth Quarter 2014 Investor Presentation
Exhibit 99.1 * * * * * * * Fourth Quarter 2014 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements and Associated Risk Factors Certain statements in this presentation,like those made in our other written and oral communications, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such fo
Slide 3: We are one of the top 25 U.S. bank holding companies
We are one of the top 25 U.S. bank holding companies. Multi-Family Total Return Assets Deposits Market Cap Loans on Investment $48.6 billion $28.3 billion $23.8 billion $7.1 billion 4,319% With assets of With deposits of With a portfolio of With a market cap From 11/23/93 $48.6billionat $28.3billion
Slide 4: 4Q and Full-Year 2014 Performance Highlights
* * * * * * * * ****************** 4Q and Full-Year 2014 Performance Highlights
Slide 5: We generated solid earnings in 2014
We generated solid earnings in 2014. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS 4Q 2014 Earnings 2014 Earnings GAAP Cash(a) GAAP Cash(a) Strong Profitability Measures: Earnings $131,197 $140,460 $485,397 $524,373 EPS $0.30 $0.32 $1.09 $1.19 Return on average tangible assets
Slide 6: Our balance sheet measures reflect stability and strength
Our balance sheet measures reflect stability and strength. Balance Sheet Asset Quality 12/31/14 At or for the Three Months Ended 12/31/14 Total loans / total assets 73.8% Non-performing loans (a) / total loans (a) 0.23% Securities / total assets 14.6% Non-performing assets (b) / total assets (b) 0.3
Slide 7: A Successful Business Model
* * * * * * * * **************** A Successful Business Model
Slide 8: Our business model has consistently focused on building value for our investors
Our business model has consistently focused on building value for our investors. Strong Credit Residential Growth Multi-Family Standards/ Efficient Mortgage through Lending Superior Asset Operation Banking Acquisitions Quality We have Net charge-offs Since January Our efficiency ratio Our assets hav
Slide 9: Multi-Family Loan Production
* * * * * * * **************** Multi-Family Loan Production
Slide 10: Our focus on multi-family lending on rent-regulated buildings distinguishes us
Ourfocusonmulti-familylendingon rent-regulatedbuildingshas enabledusto distinguish ourselvesfromourindustrypeers. 60.9% of the rental housing units in New York City are subject to rent regulation and therefore feature below-market rents. (a) Rent-regulated buildings are more likely to retain their t
Slide 11: We are the leading producer of multi-family loans for portfolio in New York City
We aretheleadingproducerof multi-familyloansfor portfolioin NewYorkCity. (in millions) MULTI-FAMILY LOAN PORTFOLIO PORTFOLIO STATISTICS AT 12/31/2014 % of non-covered loans held for investment = 72.2% Averageprincipal balance= $5.0million Expected weighted averagelife= 3.0years % of our multi-family
Slide 12: Our commercial real estate loans feature the same structure as our multi-family loans
Ourcommercialrealestateloansfeaturethe samestructure asourmulti-familyloans. (in millions) COMMERCIAL REAL ESTATE PORTFOLIO STATISTICS LOAN PORTFOLIO AT 12/31/2014 % of non-covered loans held for investment = 23.1% Average principal balance = $5.0 million Expected weighted average life = 3.2 years %
Slide 13: Asset Quality
* * * * * * * ***************** Asset Quality
Slide 14: Low level of net charge-offs in downward credit cycles
We have been distinguished by our low level of net charge- offs in downward credit cycles. NET CHARGE-OFFS / AVERAGE LOANS S & L Crisis Great Recession Current Credit Cycle 5-Year Total 4-Year Total 4-Year Total NYCB: 17 bp NYCB: 37 bp NYCB: 54 bp SNL U.S. Bank and Thrift Index: 540 bp SNL U.S. Bank
Slide 15: The quality of our loan portfolio continues to exceed that of our industry
The quality of our loan portfolio continues to exceed that of our industry. NON-PERFORMING (a)(b)/ TOTALLOANS LOANS (a) S & L Crisis Great Recession Current Credit Cycle Average NPLs/Total Loans Average NPLs/Total Loans Average NPLs/Total Loans NYCB: 2.08% NYCB: 1.43% NYCB: 0.71% SNL U.S. Bank and T
Slide 16: 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. Risk-Averse Mix of Conservative Active Board Multiple Non-Covered Loans Underwriting Involvement Appraisals Held for Investment (at 12/31/14) • Conservative loan-to- • All loans originated for •
Slide 17: Residential Mortgage Banking
* * * * * * * * ************** Residential Mortgage Banking
Slide 18: Our revenue mix has been enhanced since establishing mortgage banking
Our revenue mix has been enhanced since the establishment of our mortgage banking operation in January 2010. Loans can be originated/purchased in all 50 states and the District of Columbia. Loan production is driven by our proprietary real time, web-accessible mortgage banking technology platform, w
Slide 19: Prepayment penalty and mortgage banking income have contributed to ROTA stability
Prepayment penalty income and mortgage banking income have contributed to the stability of our ROTA. (dollars in millions) Return on Average Tangible Assets (a) Prepayment Penalty Income Mortgage Banking Income Total: Average 10-Year Treasury Rate 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2
Slide 20: Efficiency
* * * * * * * * ************** Efficiency
Slide 21: Our efficiency is driven by several factors
Our efficiency is driven by several factors. Multi-family andCRElendingarebothbroker- EFFICIENCY RATIO driven,withtheborrowerpayingfeestothe mortgage brokeragefirm. Productsandservicesaretypically developedby third-partyproviders andthesaleoftheseproducts generatesadditionalrevenues. Franchise expan
Slide 22: Growth Through Acquisitions
* * * * * * * * ***************** Growth Through Acquisitions
Slide 23: Since our first acquisition, we have grown from $1.9 billion to $48.6 billion
Since our first acquisition, we have grown from $1.9 billion in assets to $48.6 billion. 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) (RC
Slide 24: From 2000 to 2012, deposit growth was largely acquisition-driven
From 2000 to 2012, our deposit growth was largely acquisition-driven. DEPOSITS (in millions) w/ Aurora w/ w/ Desert AmTrust Hills CDs NOW, MMAs, and Savings Demand deposits w/ PFSB, Doral, & SYNF w/ ABNY w/ LICB w/ RSLN w/ RCBK w/ HAVN Total Deposits: $3,268 $5,472 $10,360 $12,168 $12,764 $13,311 $2
Slide 25: Acquisitions provided much of the funding for organic loan growth
From2000to 2012,acquisitions providedmuchof the fundingfor the organicgrowthof ourloanportfolio. LOANS OUTSTANDING After Aurora (in millions) After After Desert Hills AmTrust After Held-for-Investment Loans PFSB, Doral, & Multi-family After SYNF CRE ABNY After All other HFI loans LICB Loans held for
Slide 26: Total Return on Investment
* * * * * * * * ****************** Total Return on Investment
Slide 27: Quarterly cash dividends are a significant component of building value
Our quarterly cash dividends are a significant component of our commitment to building value for our investors. TOTAL RETURN ON INVESTMENT SNL U.S. Bank and Thrift Index NYCB (a) As a result of nine stock splits between 1994 and 2004, our charter shareholders have 2,700 shares of NYCB stock for each
Slide 28: Appendix
* * * * * * * **************** Appendix
Slide 29: Reconciliations of GAAP Earnings and Non-GAAP Cash Earnings
Reconciliations of GAAP Earnings and Non-GAAP Cash Earnings Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and non-GAAP cash earnings for the three and twelve months ended December 31, 2014. For the For the Three Months Ended Twelve
Slide 30: Reconciliations of GAAP Earnings and Non-GAAP Cash Earnings
Reconciliations of GAAP Earnings and Non-GAAP Cash Earnings Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and non-GAAP cash profitability measures for the three and twelve months ended December 31, 2014. For the For the Three Month
Slide 31: Reconciliations of Efficiency and Cash Efficiency Ratios
Reconciliations of Efficiency and Cash Efficiency Ratios The following table presents a reconciliation of the Company’s efficiency and cash efficiency ratios for the three and twelve months ended December 31, 2014. For the For the Three Months Ended Twelve Months Ended December 31, 2014 December 31,
Slide 32: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Tangible and adjusted tangible stockholders’ equity and tangible and adjusted tangible assets are non-GAAP financial measures. The following table presents reconciliations of these non-GAAP measures with the related GAAP measures at December 31
Slide 33: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Average tangible assets is a non-GAAP financial measure. The following table presents a reconciliation of this non-GAAP measure with the related GAAP measure for the three months ended December 31, September 30, June 30, and March 31, 2014; Dec
Slide 34: 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 NewYorkCommunity Bancorp, Inc.4Q 2014 2/4/15 34
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