Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2011 Earnings Presentation
40 slides from Flagstar Bank, N.a's earnings presentation, Nov 2, 2011
Slide 1: Third Quarter 2011 Investor Presentation
Exhibit 99.1 Third Quarter 2011 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 $42.0 billion at 9/30/11, we are currently the 21st Assets largest bank holding company in the nation.(a) With deposits of $22.8 billion at 9/30/11 and 275 branches in Deposits Metro New Yor
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 157 Branches 51 Branches 28 Branches Florida Arizona 25 Branches 14 Branches Page 4 New York Community Bancorp, Inc.
Slide 5: Performance ranked first among U.S. thrifts
Our performance for the 12 months ended 3/31/11 ranked first among U.S. thrifts with assets $2 billion, in SNL’s annual performance ranking. (a) Rank on Specific Profitability Measures Return on Average Total Return on Tangible Assets Total Overall Average Common Efficiency (in millions) Score (b) R
Slide 6: 3rd Quarter 2011 Performance Highlights
3rd Quarter 2011 Performance Highlights
Slide 7: Our 3Q 2011 performance reflected solid earnings
Our 3Q 2011 performance reflected solid earnings. (dollars in thousands, except per share data) 3Q 2011 Performance Highlights GAAP OPERATING(a) Solid Profitability Measures: Earnings $119,750 $117,098 EPS $0.27 $0.27 Return on average tangible assets (b) 1.27% 1.25% Return on average tangible stock
Slide 8: Our 9/30/11 balance sheet reflects continued strength
Our 9/30/11 balance sheet reflects continued strength. Performance Highlights: 9/30/10 6/30/11 9/30/11 Loans, net / total assets 70.2% 71.0% 71.1% Securities / total assets 11.3 14.0 12.3 Deposits / total assets 53.3 53.7 54.2 Core deposits / total deposits 63.1 66.8 66.9 Wholesale borrowings / tota
Slide 9: Asset quality measures compare favorably with industry
Our asset quality measures continue to compare favorably with those of our industry as a whole. At or for the Three Months Ended 9/30/11 SNL U.S. Bank and Asset Quality: NYB Thrift Index Non-performing loans (a) / total loans 1.44% 3.86% Non-performing assets (b) / total assets 1.24 2.65 Net charge-
Slide 10: Capital growth has been supported by our earnings
Capital growth has been supported by our earnings. Y-O-Y (dollars in billions) 9/30/10 6/30/11 9/30/11 Increase Tangible equity / tangible assets excluding accumulated other comprehensive loss, net of tax (a) 7.66% 8.15% 7.92% 26 bp Tangible equity / tangible assets (a) 7.58% 8.03% 7.80% 22 bp Tangi
Slide 11: A Successful Business Model
A Successful Business Model
Slide 12: Our business model has consistently focused on building value
Our business model has consistently focused on building value while building the Company. Growth through We completed ten acquisitions from 2000 to 2010, including seven “traditional” merger transactions, two FDIC-assisted transactions, and Acquisitions the purchase of a branch network. Multi-family
Slide 13: Growth through Acquisitions
Growth through Acquisitions
Slide 14: We have completed 10 acquisitions since 2000
We have completed 10 acquisitions since 2000. 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: Assets:
Slide 15: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition- driven. w/ AmTrust w/ Desert Hills (in millions) DEPOSITS $1,768 $1,852 $2,737 CDs w/ PFSB, NOW, MMAs, and Savings Doral, & Demand deposits SYNF $11,494 w/ ABNY w/ LICB $12,122 $12,487 w/ RSLN $1,348 $906 $1,195 $720 $4,975 CAGRs $5,554 w/ RCBK $6,015
Slide 16: Acquisitions have provided funding for organic loan growth
Acquisitions have provided much of the funding for the organic growth of our loan portfolio. After After Desert Hills AmTrust (in millions) LOANS OUTSTANDING $3,873 After $4,298 Held-For-Investment Loans PFSB, $5,016 $1,005 Doral, & After $1,207 $1,290 Multi-family SYNF ABNY $1,467 $1,654 CRE After
Slide 17: Multi-Family Loan Production
Multi-Family Loan Production
Slide 18: Leading producer of multi-family loans in New York City
For more than 40 years, we have been a leading producer of multi-family loans on apartment buildings in New York City, most of which feature below-market rents. Page 18 New York Community Bancorp, Inc.
Slide 19: Focus on rent-regulated multi-family lending distinguishes us
Our focus on multi-family lending on rent-regulated buildings has enabled us to distinguish ourselves from our industry peers. 64.2% 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 20: Multi-family loans represented 68.7% of held-for-investment loans
At 9/30/11, multi-family loans represented 68.7% of total held-for-investment loans. Portfolio statistics at 9/30/11: (in millions) • % of loans held for investment = 68.7% • Average principal balance = $4.1 million Multi-Family Loan Portfolio • Average loan-to-value ratio at origination = 54.8% • E
Slide 21: Commercial real estate loans feature the same structure
Our commercial real estate loans feature the same structure as our multi-family loans. Portfolio statistics at 9/30/11: (in millions) • % of loans held for investment = 26.2% • Average principal balance = $3.7 million Commercial Real Estate Loan Portfolio • Average loan-to-value ratio at origination
Slide 22: Asset Quality
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Slide 23: Low level of net charge-offs
Both historically and currently, we have been distinguished by our low level of net charge-offs. Net Charge-Offs / Average Loans Last Credit Cycle Current Credit Cycle 2.85% 2.89% 1.63% 1.50% 1.28% (a) 1.23% 1.17% 0.91% 0.68% (a) 0.21% 0.27% 0.04% 0.07% 0.06% 0.13% 0.00% 0.00% 0.03% 1990 1991 1992 1
Slide 24: Loan portfolio quality exceeds that of our industry
The quality of our loan portfolio continues to exceed that of our industry, as it has in the past. Non-Performing Loans (a) / Total Loans Last Credit Cycle Current Credit Cycle 4.84% 4.41% 4.00% 4.05% 3.86% 3.41% 2.83% 2.71% 2.48% 2.10% 2.35% (b) 2.23% (b) 2.04% 1.51% 1.45% 1.44% (b) 0.51% 0.11% 12/
Slide 25: Few 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, 3 Months Ended Last Credit Cycle Current Credit Cycle 1990 1991 1992 1993 2007 2008 2009 2010 9/30/11 (b) (b) (b) NPLs(a) / Total Loans 2.48% 2.10% 2.83%
Slide 26: Asset quality reflects 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 27: Acquired loans covered by FDIC loss sharing agreements
All the loans acquired in the AmTrust and Desert Hills transactions are covered by FDIC loss sharing agreements, thus mitigating credit risk. (in millions) Covered Assets Covered Assets 9/30/10 9/30/11 OREO OREO $52.3 $84.1 1-4 Family 1-4 Family $4,012.9 $3,503.7 Other Loans Other Loans $450.5 $369.
Slide 28: Residential Mortgage Banking
Residential Mortgage Banking
Slide 29: Residential mortgage banking platform aggregates one-to-four family loans
Our residential mortgage banking platform is a leading aggregator of agency-conforming one-to-four family loans. (in millions) Statistics at or for 9/30/11: • New 1-4 family loan registrations in 3Q 2011 = $4.3 billion • % sold to GSEs = 98% Funded 1-4 Family • Average FICO = 771 Loan Production • A
Slide 30: Efficiency
Ds | Efficiency | as
Slide 31: Operating efficiency ratio of 41.65% in 3Q 2011
Our operating efficiency ratio was 41.65% in 3Q 2011, well below the SNL U.S. Bank and Thrift Index efficiency ratio of 62.04%. EFFICIENCY RATIO 62.56% 62.04% 60.65% 59.25% 59.21% 56.91% 41.65% 41.18% 37.59% 38.89% 36.16% 35.88% NYB Rank Among Public #15 #16 #9 #7 #5 #8 Banks and Thrifts SNL U.S. Ba
Slide 32: 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 do not engage in de novo branch development. Multi-family and commercial real estate lending are both broker-driven, with the borrower paying fees to the mortgage brokerag
Slide 33: Total Return on Investment
| Total Return on Investment|
Slide 34: We are committed to building value for our investors
We are committed to building value for our investors. TOTAL RETURN ON INVESTMENT 3,843% SNL U.S. Bank and Thrift Index NYB (a) 2,885% 2,754% 2,479% 2,513% 2,059% CAGR since IPO: 28.8% 717% 614% 444% 244% 213% 209% 245% 140% 11/23/93 12/31/99 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 9/30/11 As a
Slide 35: For More Information
For More Information Log onto our web site: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Investor Relations Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 11/2/2011 Page 35 New York Community Bancorp, Inc.
Slide 36: Reconciliation of GAAP and Operating Earnings
Reconciliation of GAAP and Operating Earnings Operating earnings are non-GAAP financial measures. The following table presents a reconciliation of the Company’s GAAP and operating earnings for the three months ended September 30, 2011. For the Three Months Ended (in thousands, except per share data)
Slide 37: 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 September 30, 2011. For the Three Months Ended September 30, 2011 (dollars in thousands) GAAP Operating Total non-inte
Slide 38: Reconciliations of GAAP and Operating Efficiency Ratios
Reconciliations 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, 2006, 2007, 2008, 2009, and 2010. For the Years Ended December 31, 2010 2009 2008 2007 2006 (dollars in thousand
Slide 39: Reconciliations of GAAP and Non-GAAP Capital Measures
Reconciliations of GAAP and Non-GAAP Capital Measures Tangible and adjusted tangible stockholders’ equity and tangible and adjusted tangible assets are non-GAAP capital measures. The following table presents reconciliations of our GAAP and non-GAAP capital measures at September 30, 2011, June 30, 20
Slide 40: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation of GAAP and Non-GAAP Capital Measures Average tangible stockholders’ equity and average tangible assets are non-GAAP financial measures. The following table presents reconciliations of these non-GAAP measures with our GAAP measures for the three months ended September 30, 2011. For th
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