Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q4 2008 Earnings Presentation
39 slides from Flagstar Bank, N.a's earnings presentation, Jan 27, 2009
Slide 1: Fourth Quarter 2008 Investor Presentation
Exhibit 99.1 Fourth Quarter 2008 Investor Presentation
Slide 2: Forward-looking Statements and Associated Risk Factors
Forward-looking Statements and Associated Risk Factors. Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 This presentation, like many written and oral communications presented by New York Community Bancorp, Inc. and our authorized officers, may contain certain forward-
Slide 3: We are a leading financial institution in the competitive Metro New York/New Jersey region
We are a leading financial institution in the competitive Metro New York/New Jersey region. (a) SNL Financial as of 1/23/09 Note: All Company data is as of 12/31/08. Page 3 New York Community Bancorp, Inc.
Slide 4: 4th Quarter 2008 Performance Highlights
* * * * * * * ************ 4th Quarter 2008 ************ ************ Performance Highlights ************
Slide 5: Our 4Q 2008 performance was our strongest in several quarters
Our 4Q 2008 performance was our strongest in several quarters. (dollars in thousands) Our Performance Highlights: 4Q 2007 4Q 2008 Change 2007 2008 Change Significant operating earnings growth (a) $67,515 $92,442 36.9% $275,314 $322,506 17.1% Significant margin expansion 2.36% 2.87% 51 bp 2.38% 2.63%
Slide 6: Our earnings growth was driven by increased loan production
Our earnings growth was driven by increased loan production. (dollars in thousands) At or for the At or for the Twelve Months Ended Twelve Months Ended Loan Growth: 12/31/07 12/31/08 Change Total originations $ 4,852,513 $ 5,880,934 21.2% Multi-family loan originations 2,465,492 3,200,364 29.8% Tota
Slide 7: Our balance sheet reflected superior asset quality and continued capital strength
Our balance sheet reflected superior asset quality measures and continued capital strength. At or for the Twelve Months Ended 12/31/08 Asset Quality: NYB SNL Bank & Thrift Index(a) NCOs / average loans 0.016% 1.76% NPLs / total loans 0.51% 2.18% NPAs / total assets 0.35% 2.03% Capital Strength: 12/3
Slide 8: The expansion of our net interest margin has been driven by loan growth
The expansion of our net interest margin has been driven by loan growth and a reduction in our funding costs. Linked-quarter Y-O-Y Increase Increase (dollars in thousands) 4Q 2007 3Q 2008 4Q 2008 (Decrease) (Decrease) Average balance of loans $19,766,367 $21,032,989 $21,608,984 2.7% 9.3% Average yie
Slide 9: The strength of our capital position has enabled us to pay a strong dividend
The strength of our capital position has enabled us to pay a strong dividend. Both of our bank subsidiaries are well capitalized institutions: 12/31/08 Community Bank Commercial Bank Leverage capital ratio 7.13% 10.33% Our tangible capital measures were enhanced by our common stock offering in May 2
Slide 10: We have a consistent business model that focuses on building value
We have a consistent business model that focuses on building value while building the Company. Our total return to shareholders increased at a compound annual growth rate of 33.2% between our IPO and 12/31/08. (a) Please see page 38 for a reconciliation of our GAAP and operating efficiency ratios. (
Slide 11: Our Business Model: Multi-family Lending
* * * * * * * *************** *************** Our Business Model: *************** Multi-family Lending ***************
Slide 12: Multi-family loans have grown at a CAGR of 31.4% since 12/31/99
Multi-family loans have grown at a CAGR of 31.4% since 12/31/99. (in millions) Multi-family Loan Portfolio Page 12 New York Community Bancorp, Inc.
Slide 13: Our commercial real estate loans feature the same structure as our multi-family loans
Our commercial real estate loans feature the same structure as our multi-family loans and are often secured by mixed-use properties. (in millions) Commercial Real Estate Loan Portfolio Page 13 New York Community Bancorp, Inc.
Slide 14: Our Business Model: Asset Quality
* * * * * * * ***************** ***************** Our Business Model: ***************** Asset Quality *****************
Slide 15: The quality of our loan portfolio has consistently exceeded that of our industry
The quality of our loan portfolio has consistently exceeded that of our industry. SNL Bank & Thrift Index(a) NYB (a) SNL Financial as of 1/23/09 Page 15 New York Community Bancorp, Inc.
Slide 16: We continue to be distinguished by our low level of net charge-offs
We continue to be distinguished by our low level of net charge-offs. Net Charge-offs / Average Loans NYB Net charge-offs : -- $236,000 $21,000 $420,000 $431,000 $6.1 million SNL Bank & Thrift Index(a) NYB (a) SNL Financial as of 1/23/09 Page 16 New York Community Bancorp, Inc.
Slide 17: The quality of our assets reflects our multi-family lending niche and underwriting standards
The quality of our assets reflects the nature of our multi-family lending niche and our strong underwriting standards. á Conservative loan-to-value (“LTV”) ratios á Minimum debt coverage ratio: 120%, except for CRE loans (130%) á All loans approved by the Mortgage and Real Estate Committee or the Cr
Slide 18: Our Business Model: Efficiency
* * * * * * * ***************** ***************** Our Business Model: ***************** Efficiency *****************
Slide 19: Our operating efficiency ratio was 35.94% in 4Q 2008
Our operating efficiency ratio was 35.94% (a) in 4Q 2008, well below the SNL Bank and Thrift Index efficiency ratio of 73.86%. (b) (a) Please see page 38 for a reconciliation of our GAAP and operating efficiency ratio. (b) SNL Financial as of 1/23/09 Page 19 New York Community Bancorp, Inc.
Slide 20: Our Business Model: Growth through Acquisitions
* * * * * * * *********** * *********** Our Business Model: * Growth through Acquisitions *********** * *********** *
Slide 21: We have completed eight acquisitions since 2000
We have completed eight acquisitions since 2000. 1 April 1859 3 Nov. 1993 5 July 2001 7 Dec. 2005 9 April 2007 11 Oct. 2007 Queens County Public trading Merger-of- We acquire We acquire We acquire Savings Bank, of New York equals with Long Island PennFed Synergy forebear of Community Richmond Financ
Slide 22: Our balance sheet reflects the benefits of our growth-through-acquisition strategy
Our balance sheet reflects the benefits of our growth-through- acquisition strategy and the organic growth of our loan portfolio. w/ PFSB, Doral, & w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY SYNF (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 12/31/06 12/31/07 12/31/08 Number of bra
Slide 23: We typically convert post-merger asset sale cash flows into securities and then loans
We typically convert the cash flows from the post-merger sale of acquired assets into securities and then into loans. (dollars in millions) Loans w/ PFSB, Securities w/ ABNY Doral, & SYNF w/ LICB w/ RSLN % of Total 44.8% 40.5% 55.7% 29.5% 64.8% 21.4% 69.0% 17.3% 66.6% 18.8% 68.4% 18.2% Assets: 12/31
Slide 24: We currently have 162 locations in New York and 54 in New Jersey
Largely reflecting our acquisition strategy, we currently have 162 locations in New York and 54 in New Jersey. Our Franchise New York Community Bank Traditional branches 125 In-store branches 45 Campus branches 5 Customer convenience centers 3 Subtotal 178 New York Commercial Bank Traditional branch
Slide 25: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition- driven. w/ PFSB, Doral, & SYNF (in millions) Deposits w/ ABNY w/ LICB w/ RSLN CDs NOW, MMAs, and Savings Demand deposits Total deposits: 33.3% CAGR w/ RCBK Core deposits: 37.8% CAGR Demand deposits: 43.7% CAGR w/ HAVN Total Deposits: $1,076 $3,257 $5,
Slide 26: The expansion of our franchise has enabled us to compete against money center banks
The expansion of our franchise has enabled us to compete very effectively against the region’s money center banks. (dollars in thousands) RICHMOND COUNTY, NY NASSAU COUNTY, NY QUEENS COUNTY, NY Market Market Market Rank Institution Deposits Share Rank Institution Deposits Share Rank Institution Depo
Slide 27: The bulk of our loan growth has been organic
While acquisitions have contributed to the growth of our loan portfolio, the bulk of our loan growth has been organic. w/ PFSB, (in millions) Loans Outstanding Doral, & SYNF w/ ABNY w/ LICB Multi-family Loans Outstanding All Other Loans Outstanding w/ RSLN Multi-family loans: 31.4% CAGR Total loans:
Slide 28: Total Return on Investment
* * * * * * * ************ ************ Total Return on Investment ************ ************
Slide 29: Our business model has created significant value for our shareholders over time
Our business model has created significant value for our shareholders over time. Total Return on Investment CAGR since IPO = 33.2% SNL Bank & Thrift Index(a) NYB (b) Annual yield produced by $1.00 per share dividend on shares purchased at the date indicated: 107.5% 14.7% 6.2% 5.7% 8.4% As a result o
Slide 30: We are committed to building value for our investors
We are committed to building value for our investors. Our Goals Page 30 New York Community Bancorp, Inc.
Slide 31: For More Information
For More Information 1/27/2009 Page 31 New York Community Bancorp, Inc.
Slide 32: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation of GAAP and Non-GAAP Capital Measures The following table presents reconciliations of the Company’s stockholders’ equity, tangible stockholders’ equity, and adjusted tangible stockholders’ equity; total assets, tangible assets, and adjusted tangible assets; and the related capital mea
Slide 33: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation of GAAP and Non-GAAP Capital Measures The following table presents reconciliations of the Company’s stockholders’ equity, tangible stockholders’ equity, and adjusted tangible stockholders’ equity; total assets, tangible assets, and adjusted tangible assets; and the related capital mea
Slide 34: Reconciliation of GAAP and Non-GAAP Earnings
Reconciliation of GAAP and Non-GAAP Earnings The following table presents a reconciliation of the Company’s GAAP and operating earnings for the three months ended December 31, 2008, September 30, 2008, and December 31, 2007: For the Three Months Ended December 31, September 30, December 31, (in thou
Slide 35: Reconciliation of GAAP and Non-GAAP Earnings
Reconciliation of GAAP and Non-GAAP Earnings The following table presents a reconciliation of the Company’s GAAP and operating earnings for the twelve months ended December 31, 2008 and 2007: For the Twelve Months Ended December 31, December 31, (in thousands, except per share data) 2008 2007 GAAP E
Slide 36: Reconciliation of Net Interest Income and Adjusted Net Interest Income
Reconciliation of Net Interest Income and Adjusted Net Interest Income The following table presents an analysis of the Company’s net interest income on a GAAP basis for the twelve months ended December 31, 2008 and 2007. Please see the following page for an analysis of the Company’s adjusted net int
Slide 37: Reconciliation of Net Interest Income and Adjusted Net Interest Income
Reconciliation of Net Interest Income and Adjusted Net Interest Income The following table presents an analysis of the Company’s net interest income for the twelve months ended December 31, 2008 and 2007 as if the $39.6 million debt repositioning charge recorded in the second quarter of 2008 had not
Slide 38: Reconciliation of GAAP and Operating Efficiency Ratios
Reconciliation of GAAP and Operating Efficiency Ratios The following table presents a reconciliation of the Company’s GAAP and operating efficiency ratios for the three months ended December 31, 2008, September 30, 2008, and December 31, 2007: For the Three Months Ended December 31, 2008 September 3
Slide 39: Reconciliation of GAAP and Operating Efficiency Ratios
Reconciliation of GAAP and Operating Efficiency Ratios The following table presents reconciliations of the Company’s GAAP and operating efficiency ratios for the years ended December 31, 2008 and 2007. For the Years Ended December 31, 2008 2007 (dollars in thousands) GAAP Operating GAAP Operating To
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