Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Bear Stearns SMid-Cap Investor Conference 2006
27 slides from Flagstar Bank, N.a's conference presentation, Nov 14, 2006
Slide 1: Bear Stearns SMid-Cap Investor Conference
Exhibit 99.1 Bear Stearns SMid-Cap Investor Conference November 14, 2006
Slide 2: Forward-looking Statements and Associated Risk Factors
Forward-looking Statements and Associated Risk Factors Safe Harbor Provisions of the Private Litigation Reform Act of 1995 This presentation, like other written and oral communications presented by New York Community Bancorp, Inc. and its authorized officers, may be forward-looking statements within
Slide 3: Other Required Legal Disclosures
Other Required Legal Disclosures This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities. New York Community Bancorp, Inc. will file a registration statement containing a proxy statement/prospectus, and other relevant documents concerning the propos
Slide 4: We are a leading financial institution in the competitive New York metropolitan region
We are a leading financial institution in the competitive New York metropolitan region. With total assets of $28.9 billion at 9/30/06: We operate the fourth largest thrift in the nation and the largest in New York State. (a) With multi-family loans totaling $14.7 billion at 9/30/06: We are the leadi
Slide 5: The foundation for our success is a consistent business model
The foundation for our success is a consistent business model that has focused on building value while, at the same time, building the Company. The origination of multi-family loans: - $18.0 billion of multi-family loans originated in the current decade, including $4.7 billion in 2005 and $2.4 billi
Slide 6: Our multi-family lending niche is profitable, efficient, and resilient
Our multi-family lending niche is profitable, efficient, and resilient. Niche: Primarily rent-controlled and -stabilized buildings in NYC Borrowers: Long-term property owners with a history of building cash flows, often on buildings that have been in their families for multiple generations Term: Yea
Slide 7: Multi-family loans have grown at a CAGR of 42.5% since 12/31/99
Multi-family loans have grown at a CAGR of 42.5% since 12/31/99. (in millions) Multi-family Loan Portfolio (a) At 9/30/06 $14,700 $12,854 % of total loans: 74.4% $9,839 Average principal balance: $3.6 million $7,368 Average loan-to-value ratio: 63.7% $4,494 Expected weighted average life: 3.8 years
Slide 8: Cash flows from sale of acquired assets converted into securities and then loans
Cash flows from the sale of acquired assets have been converted into securities and then into loans. $19,757 (in millions) $17,029 $13,396 $12,119 Loans $10,919 Securities $10,499 $9,500 $7,081 $5,405 $5,489 $5,637 $5,209 $4,652 $3,636 $2,578 $1,611 $526 $197 % of Total Assets: 84.3% 10.4% 77.2% 11.
Slide 9: We have a consistent record of solid asset quality
We have a consistent record of solid asset quality. Non-performing Assets / Total Assets 0.78% 0.62% 0.60% 0.52% 0.49% 0.44% 0.43% 0.41% 0.19% 0.19% 0.17% 0.15% 0.15% 0.12% 0.11% 0.12% 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 9/30/06 U.S. Thrifts (a) NYB (a) SNL DataSource 9
Slide 10: We consistently rank among the most efficient bank holding companies
We consistently rank among the most efficient bank holding companies in the nation. Efficiency Ratio 64.53% 66.03% 64.81% 65.51% 62.44% 62.54% 63.07% 62.40% 37.08% 30.20% 30.50% 28.74% 28.86% 25.32% 23.59% 21.46% 1999 2000 2001 2002 2003 2004 2005 9 Mos. 2006 U.S. Thrifts (a) NYB (b) (a) SNL DataSou
Slide 11: Our efficiency has been driven by lending, product development, and branch expansion
Our efficiency has been driven by our approach to lending, product development, and branch expansion. Multi-family and commercial real estate lending are both broker-driven without cost to the Company. One-to-four family loans are originated on a pass-through basis and sold shortly after closing, se
Slide 12: Much of our growth has been acquisition-driven
Much of our growth has been acquisition-driven. w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY Pro Forma (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 9/30/06 w/ PFSB (b) Number of branches 14 86 120 139 152 166 190 Multi-family loans $1.3 $1.9 $3.3 $ 7.4 $12.9 $14.7 $14.7 (c) Total lo
Slide 13: Acquisitions have contributed to our loan growth
Acquisitions have contributed to our loan growth over the past six years… w/ PFSB (b)(c) (in millions) Loans Outstanding (a) w/ ABNY w/ LICB $6,750 $5,057 Multi-family loans: 42.5% CAGR $4,175 Total loans: 46.8% CAGR Multi-family Loans Outstanding w/ RSLN $3,557 All Other Loans Outstanding $3,131 $1
Slide 14: ...and have significantly bolstered the growth of our deposits
…and have significantly bolstered the growth of our deposits. w/ PFSB (a) (in millions) Deposits w/ ABNY $1,245 $1,170 w/ LICB $846 Total deposits: 48.1% CAGR w/ RSLN $6,463 Core deposits: 54.0% CAGR $720 $739 $5,943 Demand deposits: 66.4% CAGR $6,012 CDs w/ RCBK $5,247 $5,911 NOW, MMAs, and Savings
Slide 15: The PFSB transaction is consistent with our growth-through-acquisition strategy
The PFSB transaction is consistent with our proven growth- through-acquisition strategy. HAVN RCBK RSLN LICB ABNY PFSB (a) Immediately accretive to GAAP and cash earnings Strengthens our deposit market share in existing markets Extends our geographic footprint within the Metro New York region Provid
Slide 16: The acquisition of PFSB is expected to be completed on or about March 31, 2007
The acquisition of PFSB is expected to be completed on or about March 31, 2007. (a) Purchase Price per Share $19.50 (b) Transaction Value $260 million Form of Consideration 100% NYB Common Stock Exchange Ratio Fixed at 1.222 NYB shares for each PFSB share Transaction Structure Tax-free exchange Esti
Slide 17: The PFSB acquisition is expected to enhance our franchise, balance sheet, and earnings
The PFSB acquisition is expected to enhance our franchise, our balance sheet, and our earnings… Expected to be immediately accretive to our GAAP and cash earnings Attractive Transaction Pricing Double-digit internal rate of return without assumed revenue enhancements from balance sheet repositioning
Slide 18: ...while providing opportunities for future revenue growth
…while providing opportunities for future revenue growth. PFSB’s current efficiency ratio is 62.2% compared to 40.7% for NYB Significant Cost Estimated cost savings of approximately 40% of PFSB’s pre-tax operating Savings and expenses to be fully realized in 2007 Revenue Enhancement Expected sale of
Slide 19: The PFSB transaction is attractively priced
The PFSB transaction is attractively priced. Comparable NYB-PFSB Bank and Thrift Transactions (a) Price / LTM Earnings 21.7x 24.0x Price / 2007 Projected EPS (b) 20.0 20.6 Price / 2007 Projected EPS + Cost Savings (c) 14.0 -- Price / 2007 Projected EPS + Balance Sheet Repositioning Synergy (d) 11.8
Slide 20: With PFSB, we will extend our geographic footprint in New Jersey
With the acquisition of PFSB, we will extend our geographic footprint in New Jersey and strengthen our market share. Bronx Westchester Hudson Manhattan Essex Union Suffolk Richmond Kings NYB Nassau Middlesex PFSB Queens PFSB Deposits by County (a) County Branches Deposits ($B) Essex 13 $0.90 Monmout
Slide 21: Recent commercial bank acquisitions have supported our net interest margin
Our recent commercial bank acquisitions have supported our net interest margin in a challenging yield curve environment. The acquisition of LICB: - Added $347 million of low-cost core deposits, including $100 million of non- interest-bearing accounts on 12/30/05 The acquisition of ABNY: - Added $1.4
Slide 22: The integration of Atlantic Bank is progressing on schedule
The integration of Atlantic Bank is progressing on schedule. 2Q 2006: - Sold $1.2 billion of securities acquired in the LICB and ABNY transactions and used the proceeds to reduce our higher-cost sources of funds - Completed the consolidation of our back-office operations 3Q 2006: - Established new e
Slide 23: We are committed to building value by building our business
We are committed to building value by building our business. We are focused on: Enhancing our asset mix by originating commercial loans to small and mid-size businesses in our market, while growing our multi-family, construction, and commercial real estate loan portfolios Maintaining the quality of
Slide 24: For More Information
For More Information Log onto our web site: www.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 11/14/2006 24
Slide 25: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures The following table presents a reconciliation of the Company’s GAAP and operating efficiency ratios for the nine months ended September 30, 2006: For the Nine Months Ended September 30, 2006 (dollars in thousands) GAAP Operating Total net interest income
Slide 26: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures The following table presents a reconciliation of the Company’s GAAP and operating efficiency ratios for the years ended December 31, 1999, 2000, 2001, 2003, 2004, and 2005. For the year ended December 31, 2002, the Company’s GAAP and operating efficiency
Slide 27: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures The following table presents a reconciliation of the Company’s stockholders’ equity, tangible stockholders’ equity, and adjusted stockholders’ equity; total assets, tangible assets, and adjusted tangible assets; and the related capital measures at Decembe
New York Community Bancorp — Bear Stearns SMid-Cap Investor Conference 2006 on 6ix