Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2021 Earnings Presentation
28 slides from Flagstar Bank, N.a's earnings presentation, Oct 27, 2021
Slide 1: Third Quarter 2021 Investor Presentation
Third Quarter 2021 Investor Presentation Exhibit 99.1
Slide 2: Forward-Looking Information
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, and acquisitions, among
Slide 3: Overview: Who we are
→ We are a leading producer of multi-family loans in New York City. Within this market we focus almost exclusively on the non-luxury, rent regulated niche, where average rents are below market. → Our expertise in this particular lending niche arises from: A consistent presence in this market for ove
Slide 4: NYCB & FBC – Enhancing Shareholder Value
Accelerates our transition towards building a dynamic commercial banking organization NYCB & FBC – Enhancing Shareholder Value By Leveraging Two Like-Minded Organizations with Distinctive Strategic Strengths Creates a top-tier regional bank with significant scale and broader diversification Combines
Slide 5: Creates a Top-Tier Bank with National Scale
Creates a Top-Tier Bank with National Scale and Strong Footholds in Northeast/Midwest and Exposure to High Growth Markets Source: Company Filings, S&P Global Market Intelligence, FDIC Note: FBC retail home lending offices (87 offices) not denoted on map; Branch map as of 30-Jun-20 FDIC data; Branch
Slide 6: Multiple Opportunities with Flagstar
Multiple Opportunities with Flagstar Financially Compelling Transaction 16% accretive to 2022 consensus EPS estimates, at announcement Immediately accretive to Tangible Book Value per share by 3.5%, at announcement Strong Capital Generation Excess capital generation of $500 million annually after pa
Slide 7: NYCB & FBC – Benefits of Scale
NYCB & FBC – Benefits of Scale The combined Company will rank at or near the top in a number of its key businesses With a bigger balance sheet and larger capital base, it will have the opportunity to leverage up in a number of these businesses and/or increase its market share These businesses includ
Slide 8: We rank among the largest U.S. bank holding companies
We rank among the largest U.S. bank holding companies… Total Assets: $57.9 billion, 75% of which are loans and 10% are investment securities Total Deposits: $34.6 billion, up 5% annualized Total Loans: $43.7 billion, primarily multi-family and CRE Total Market Capitalization: $6.5 billion
Slide 9: … but without the risk other large banks have
… but without the risk other large banks have. Ratio NYCB At 9/30/2021 SNL Bank & Thrift Index (b) At 6/30/2021 Peers (b) At 6/30/2021 NCOs/Average Loans 0.00% 0.21% 0.12% Cumulative losses (a) 106 bp 2,395 bp 1,334 bp NPAs/Total Assets 0.06% 0.47% 0.70% NPLs/Total Loans 0.06% 1.03% 1.00% ALLL/NPLs
Slide 10: A Strong Capital Position
A Strong Capital Position Ratio NYCB At 9/30/2021 SNL Bank & Thrift Index (a) At 6/30/2021 Peers (a) At 6/30/2021 Total Risk-Based Capital 13.11% 15.17% 14.15% Tier 1 Risk-Based Capital 11.13 13.02 12.11 Common Equity Tier 1 9.92 12.37 10.70 Tier 1 Leverage 8.50 9.37 8.53 (a) Data for 3Q21 not curre
Slide 11: Total HFI Loans: $43.7 bn
Total HFI Loans: $43.7 bn Loans at 9/30/21 Loans – 1% Annualized Loan Growth Majority of portfolio focused on low-risk multi-family loans on non-luxury, rent-regulated buildings Market leader in this asset class having developed strong expertise and industry relationships over the last five decades
Slide 12: Multi-Family Portfolio Statistics
Multi-Family Portfolio Statistics for the 3 Months Ended 9/30/21 75% of loans held-for-investment (61% of originations) 76.9% of loans are in Metro New York Weighted average LTV: 58.50%, overall Weighed average LTV on NYS rent-regulated: 55.23% Multi-Family Loan Portfolio (in millions) Originations:
Slide 13: Multi-Family Portfolio Well Insulated Against Rent Regulation Changes
→ $19.2 billion or 58% of the MF portfolio is subject to NYS rent regulations; WALTV (1) on this portion of the MF portfolio is 55.23%, 327 basis points below the overall MF portfolio. Our Multi-Family Portfolio is Well Insulated Against Recent Changes in the Rent Regulation Laws → We lend on curren
Slide 14: Commercial Real Estate Loan Portfolio
Commercial Real Estate Loan Portfolio (in millions) Originations: $1,842 $1,180 $1,039 $967 $1,226 $958 $655 Net Charge-Offs (Recoveries): $(1) $(1) $0 $3 $0 $2 $0 Commercial real estate is a logical extension of our multi-family niche. CRE Portfolio Statistics for the 3 Months Ended 9/30/21 15% of
Slide 15: Specialty Finance Loan and Lease Portfolio
Specialty Finance Loan and Lease Portfolio (in millions) Originations: $1,068 $1,266 $1,784 $1,917 $2,800 $2,694 $1,943 Net charge-Offs: $0 $0 $0 $0 $0 $0 $0 Our specialty finance business is another high-quality lending niche. Loan Types 8% of loans held-for-investment 27% of originations Syndicate
Slide 16: Non-Performing Loans / Total Loans
Non-Performing Loans(a)(b) / Total Loans(a) Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired (“PCI”) loans. Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest. Our non-performing loa
Slide 17: Net Charge-Offs / Average Loans
… and very few of our non-performing loans have resulted in actual losses. Net Charge-Offs / Average Loans Cumulative Total NYCB: 1.06 bp SNL U.S. Bank and Thrift Index: 2,437 bp The calculation of our net charge-offs to average loans excludes taxi medallion-related charge-offs of $59.6 million, $12
Slide 18: Principal deferrals continued to decline
Principal deferrals continued to decline during the third quarter. *Outstanding balance excludes deferred fees and mark-to-market adjustments. Principal Deferrals As of September 30, 2021 Outstanding Deferrals as a (dollars in millions) Deferral Balance* % of O/B WA LTV Multi-Family $544.7 $32,816.0
Slide 19: Total deferrals have declined substantially since pandemic start
Total deferrals have declined substantially since the start of the pandemic All Deferrals Roll Forward- 6/30/20 to 9/30/21 (dollars in millions) Total % of Total Portfolio Total Loans Active Covid Mods As of June 30, 2020 $ 7,368 17.4% $ 42,306 New Deferrals 1,117 Loans for which Deferral Period End
Slide 20: COVID-related Loans Remain Manageable
COVID-related Loans Remain Manageable. (dollars in thousands) 12/31/2020 3/31/2021 6/30/2021 9/30/2021 Non Covid Covid* Total % Covid Non Covid Covid* Total % Covid Non Covid Covid* Total % Covid Non Covid Covid* Total % Covid Multi-Family Special Mention 166,353 400,403 566,756 71% 205,931 669,161
Slide 21: Highly Efficient Operator with Effective Business Model
Efficiency Ratio Peer Group NYCB Highly Efficient Operator with Effective Business Model. Low Cost, Efficient Business Model Multi-family and CRE lending are both broker-driven, with the borrower paying fees to the mortgage brokerage firm Products and services are typically developed by third-party
Slide 22: Deposits – Significant Progress Made on Growing Core Deposits
Total Deposits: $34.6 bn Deposits at 9/30/21 Deposits – Significant Progress Made on Growing Core Deposits Deposits generated through retail and commercial channels Loan-related deposits up 25% annualized from December 31, 2020 to $4.2 billion CDs have declined to 25% of total deposits from 35% in t
Slide 23: For More Information
Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: Investor Relations New York Community Bancorp, Inc. 102 Duffy Avenue Hicksville, NY 11801 For More Information
Slide 24: Appendix
Appendix
Slide 25: Securities and Funding Composition
Securities and Funding Composition Funds at 9/30/21 0.87% cost of funds Significant capacity given eligibility of multi-family loans Total Funding: $50.1 bn Entire portfolio is available for sale Consists primarily of GSE-related securities Overall yield is 2.21% 25% is variable rate Securities at 9
Slide 26: Experienced Management Team
Experienced Management Team Thomas R. Cangemi Robert Wann John J. Pinto John Adams Chairman of the Board President & Chief Executive Officer Senior Executive Vice President & Chief Operating Officer Senior Executive Vice President & Chief Financial Officer Executive Vice President & Chief Lending Of
Slide 27: 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 stockholders’ equity, average tangible assets,
Slide 28: Peer Group
Peer Group Peer Ticker Bank OZK OZK BankUnited, Inc. BKU Comerica Incorporated CMA F.N.B. Corporation FNB Fifth Third Bancorp FITB Huntington Bancshares Incorporated HBAN Investors Bancorp, Inc. ISBC M&T Bank Corporation MTB People's United Financial, Inc. PBCT Signature Bank SBNY Sterling Bancorp S
New York Community Bancorp — Q3 2021 Earnings Presentation on 6ix