Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2012 Earnings Presentation
39 slides from Flagstar Bank, N.a's earnings presentation, Aug 13, 2012
Slide 1: Second Quarter 2012 Investor Presentation
Exhibit 99.1 Second Quarter 2012 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-lo
Slide 3: New York Community Bancorp ranks among the top 25 bank holding companies
New York Community Bancorp ranks among the top 25 bank holding companies in the United States. With assets of $43.5 billion at 6/30/12, we are currently the 21st Assets largest bank holding company in the nation. (a) With deposits of $25.0 billion at 6/30/12 and 275 branches in Deposits Metro New Yo
Slide 4: Growth-through-acquisition strategy: 275 locations in five states
Largely reflecting our growth-through-acquisition strategy, we currently have 275 locations in five states. Metro New York New Jersey Ohio 122 Community Bank Branches 51 Community Bank Branches 28 Community Bank Branches 34 Commercial Bank Branches Florida Arizona 26 Community Bank Branches 14 Commu
Slide 5: 2nd Quarter 2012 Performance Highlights
2nd Quarter 2012 Performance Highlights
Slide 6: We generated solid earnings in 2Q 2012
We generated solid earnings in 2Q 2012. (dollars in thousands, except per share data) Performance Highlights 2Q 2011 1Q 2012 2Q 2012 Solid Profitability Measures: Earnings $119,459 $118,253 $131,212 EPS $0.27 $0.27 $0.30 Return on average tangible assets (a) 1.29% 1.24% 1.36% Return on average tangi
Slide 7: Our 6/30/12 balance sheet reflects continued strength
Our 6/30/12 balance sheet reflects continued strength. Performance Highlights: 12/31/11 3/31/12 6/30/12 Loans, net / total assets 71.7% 71.0% 71.0% Securities / total assets 10.8 11.3 9.8 Deposits / total assets 53.0 53.3 57.5 Core deposits / total deposits 66.9 67.3 60.6 Wholesale borrowings / tota
Slide 8: Our asset quality measures compare favorably with our industry
Our asset quality measures continue to compare favorably with those of our industry as a whole. At or for the Three Months Ended 12/31/11 6/30/12 SNL U.S. SNL U.S. Bank and Bank and Asset Quality: NYB Thrift Index NYB Thrift Index Non-performing loans (a)(b) / total loans (a) 1.28% 2.60% 0.95% 2.55%
Slide 9: We continue to maintain a strong capital position
We continue to maintain a strong capital position. (dollars in billions) 12/31/11 6/30/12 Tangible stockholders’ equity / tangible assets excluding accumulated other comprehensive loss, net of tax (a) 7.95% 7.79% (a) Tangible stockholders’ equity / tangible assets 7.78% 7.64% Tangible stockholders’
Slide 10: A Successful Business Model
A Successful Business Model
Slide 11: Our business model has consistently focused on building value
Our business model has consistently focused on building value. Multi-family loans represented $18.2 billion, or 68.6%, of total Multi-Family Lending loans held for investment at 6/30/12. Strong Credit Standards/ Net charge-offs represented 0.05% of average loans in 2Q Superior Asset Quality 2012, re
Slide 12: Multi-Family Loan Production
Multi-Family Loan Production
Slide 13: Our focus on multi-family lending on rent-regulated buildings
Our focus on multi-family lending on rent-regulated buildings has enabled us to distinguish ourselves from our industry peers. 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 r
Slide 14: Leading producer of multi-family loans for portfolio in New York City
We are the leading producer of multi-family loans for portfolio in New York City. (in millions) Multi-Family Loan Portfolio $18,186 $17,433 $16,736 $16,802 $15,726 Portfolio Statistics at 6/30/12: • % of loans held for investment = 68.6% • Average principal balance = $4.1 million • Expected weighted
Slide 15: Multi-family and CRE loans feature the same structure
Our multi-family and commercial real estate loans feature the same structure. Terms: • Years 1-5: Fixed rate tied to the FHLB-NY 5-year fixed advance rate plus a spread • Years 6-10: • Option 1 – Annually adjustable rate at a spread above prime; or • Option 2 – Fixed rate at a spread above the fixed
Slide 16: Our CRE loans are typically collateralized by office, retail and mixed-use buildings
Our CRE loans are typically collateralized by office buildings, retail centers, mixed-use buildings, and multi-tenanted light industrial properties. (in millions) Commercial Real Estate Loan Portfolio $7,158 $6,856 Portfolio Statistics at 6/30/12: $5,438 • % of loans held for investment = 27.0% $4,9
Slide 17: Asset Quality
Asset Quality
Slide 18: The quality of our assets has improved dramatically since 12/31/10
The quality of our assets has improved dramatically since 12/31/10. Y-O-Y IMPROVEMENT at 6/30/12 NPLs / Total Loans: 110 bp 2.63% 2.57% NPAs / Total Assets: 78 bp 2.05% 1.77% 1.76% 1.66% 1.53% 1.37% 1.28% 1.15% 1.07% 0.93% 0.95% 0.75% 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 3/31/12 6/30/12 Non-Per
Slide 19: Low net charge-offs in downward credit cycles
We have been distinguished by our low level of net charge-offs in downward credit cycles, and by 52 consecutive quarters with no losses on assets generated by the Company. (a) Net Charge-Offs / Average Loans Last Credit Cycle Current Credit Cycle 2.84% 2.89% 1.77% 1.63% 1.50% 1.28% 1.17% 0.91% 0.65%
Slide 20: 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 Loans (a)(b) / Total Loans (a) Last Credit Cycle Current Credit Cycle 4.17% 4.00% 4.05% 3.56% 3.41% 2.91% 2.83% 2.71% 2.63% 2.60% 2.48% 2.47% 2.55% 2.35% 2.10% 1.46% 1.51% 1.28% 0.95% 0.51% 12/31/89 12/31/90 1
Slide 21: Few of our non-performing loans have resulted in charge-offs
Historically and currently, few of our non-performing loans have resulted in charge-offs. At or for the At or for the 12 Months Ended December 31, 6 Months Ended Last Credit Cycle (a) Current Credit Cycle (a) 1989 1990 1991 1992 1993 2008 2009 2010 2011 6/30/2012 NPLs (b)(c) / Total Loans (b) 1.46%
Slide 22: Asset quality reflects our multi-family niche and strong underwriting
The quality of our assets reflects the nature of our multi-family lending niche and our strong underwriting standards. CONSERVATIVE UNDERWRITING ACTIVE BOARD INVOLVEMENT • Conservative loan-to-value ratios • All loans originated for portfolio are approved by the Mortgage or Credit Committee (a major
Slide 23: FDIC-assisted loans and OREO covered by loss sharing agreements
The loans and OREO acquired in our FDIC-assisted transactions are covered by loss sharing agreements, thus mitigating credit risk. (in millions) Covered Assets 12/31/09 12/31/10 12/31/11 6/30/12 Other OREO Loans Other $62.4 OREO OREO $309.7 Loans Other $71.4 Other $50.7 $423.3 Loans Loans $386.6 $34
Slide 24: Residential Mortgage Banking
Residential Mortgage Banking
Slide 25: Leading aggregator of agency-conforming one-to-four family loans
Our residential mortgage banking operation is a leading aggregator of agency-conforming one-to-four family loans. • Acquired through our AmTrust Bank transaction in December 2009 History • Established as a subsidiary of New York Community Bank in April 2010 • We rank among the top15 aggregators of o
Slide 26: Mortgage banking and prepayment penalty income contribute to ROTA stability
In a declining interest rate environment, mortgage banking income and prepayment penalty income have contributed to the stability of our ROTA. (dollars in millions) 1.34% 1.29% 1.27% 1.24% 1.36% Return on Average Tangible Assets (a) 1.23% $32.0 $17.5 $28.9 Prepayment Penalty Income $19.6 $12.1 $58.3
Slide 27: Mortgage banking generated 58.4% of non-interest income in 1H 2012
Our mortgage banking operation generated 58.4% of non- interest income and 12.5% of total revenues in 1H 2012. At or for the 3 months ended 6/30/12: (in millions) 1-4 family loans funded in 2Q 2012 = $2.6 billion % sold to GSEs = 98% Average FICO = 770 Funded 1-4 Family Average loan-to-value ratio =
Slide 28: Efficiency
Efficiency
Slide 29: Our efficiency is driven by several factors
Our efficiency is driven by several factors. Franchise expansion has largely stemmed from mergers and acquisitions; we generally Efficiency Ratio do not engage in de novo branch development. 65.92% Multi-family and commercial real estate 65.78% lending are both broker-driven, with the borrower payin
Slide 30: Growth through Acquisitions
Growth through Acquisitions
Slide 31: We completed 10 acquisitions between 2000 and 2010
We completed 10 acquisitions between 2000 and 2010. 1. Nov. 2000 2. July 2001 3. Oct. 2003 4. Dec. 2005 5. April 2006 Haven Bancorp Richmond Roslyn Bancorp, Long Island Atlantic Bank of (HAVN) County Financial Inc. (RSLN) Financial Corp. New York Corp. (RCBK) (LICB) (ABNY) Assets: Assets: Assets: As
Slide 32: 11th transaction: $2.2 billion of deposits assumed from Aurora Bank
We completed our 11th transaction on 6/28/12 with the assumption of $2.2 billion of deposits from Aurora Bank. 11. June 2012 Aurora Bank FSB Assets: $0 Deposits: $2.2 billion Branches: 0 Payment Received: $24.0 million Page 32 New York Community Bancorp, Inc.
Slide 33: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition- driven. (in millions) Deposits w/ Aurora w/ AmTrust w/ Desert Hills $2,344 CDs $1,768 $1,852 $2,190 NOW, MMAs, and Savings w/ Demand deposits PFSB, Doral, w/ ABNY & SYNF $12,800 w/ LICB $11,494 w/ RSLN $12,122 $12,711 $1,348 $906 $1,195 CAGRs $720 $4,
Slide 34: Acquisitions funded organic growth of our loan portfolio
Acquisitions have provided much of the funding for the organic growth of our loan portfolio. After After Desert Hills AmTrust (in millions) Loans Outstanding $3,516 $3,753 After $4,298 $1,059 Held-For-InvestmentLoans PFSB, $5,016 $1,037 $1,149 After Doral, & $1,244 Multi-Family $1,207 SYNF ABNY $1,4
Slide 35: Total Return on Investment
Total Return on Investment
Slide 36: Quarterly cash dividends and total return on investment
Our quarterly cash dividends are a significant component of our commitment to building value for our investors. Total Return on Investment 3,843% SNL U.S. Bank and Thrift Index NYB (a) 2,885 % 2,921% 2,754% 2,670% 2,479 % 2,059 % CAGR since IPO: 28.6% 717% 614% 444% 244% 213% 209% 245% 211% 168% 11/
Slide 37: For More Information
For More Information Visit our web site: 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 8/13/12 Page 37 New York Community Bancorp, Inc.
Slide 38: 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 39: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Average tangible assets and average tangible stockholders’ equity are non-GAAP financial measures. The following table presents reconciliations of these non-GAAP measures with the related GAAP measures for the three months ended March 31, June
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