Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2009 Earnings Presentation
41 slides from Flagstar Bank, N.a's earnings presentation, Oct 29, 2009
Slide 1: Third Quarter 2009 Investor Presentation
Exhibit 99.1 Third Quarter 2009 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 LitigationReform 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-loo
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. With assets of $32.9 billion at 9/30/09, we are the 24th largest bank holding company in the nation and operate the 2nd largest public thrift. (a) With a portfolio of $16.5 billion at 9/30/09, we are a leadin
Slide 4: 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 31.5% between our IPO and 9/30/09. (a) SNL Financial (b) Please see pages 36 and 37 for a reconciliation of our GAAP and opera
Slide 5: 3rd Quarter 2009 Performance Highlights
3rd Quarter 2009 Performance Highlights
Slide 6: In 3Q 2009, we generated strong performance metrics
In 3Q 2009, we generated strong performance metrics. (dollars in thousands, except per share data) Y-O-Y Performance Highlights: 3Q 2009 3Q 2008 Change GAAP: Earnings $98,573 $58,064 69.8% EPS $0.28 $0.17 64.7% Operating: Earnings (a) $90,215 $84,779 6.4% EPS (a) $0.26 $0.25 4.0% Cash: Earnings (b)
Slide 7: Our asset quality measures continued to exceed those of our industry as a whole
Our asset quality measures continued to exceed those of our industry as a whole. At or for the Three Months Ended 9/30/09 Asset Quality: NYB SNL Bank & Thrift Index (a) Net charge-offs / average loans 0.03% 0.81% Non-performing loans / total loans (b) 2.00% 4.13% Non-performing assets / total assets
Slide 8: The expansion of our net interest margin has been driven by a reduction in our funding costs
The expansion of our net interest margin has been driven by a reduction in our funding costs. Linked-quarter Y-O-Y Increase Increase (dollars in thousands) 3Q 2008 2Q 2009 3Q 2009 (Decrease) (Decrease) Average balance of loans $21,032,989 $22,382,786 $22,763,695 1.7% 8.2% Average yield on loans 6.02
Slide 9: We have maintained a strong capital position
We have maintained a strong capital position. Both of our bank subsidiaries are well capitalized institutions: 9/30/09 Community Bank Commercial Bank Leverage capital ratio 7.41% 10.84% We continue to maintain strong tangible capital measures: (dollars in billions) 12/31/08 6/30/09 9/30/09 Tangible
Slide 10: Our Business Model: Multi-family Loan Production
Our Business Model: Multi-family Loan Production
Slide 11: Multi-family loans have grown at a CAGR of 29.3% since 12/31/99
Multi-family loans have grown at a CAGR of 29.3% since 12/31/99. (in millions) Multi-family Loan Portfolio $16,473 $15,726 $14,529 $14,055 $12,854 $9,839 $1,348 12/31/99 12/31/04 12/31/0512/31/0612/31/0712/31/0812/31/09 Page 11 New York Community Bancorp, Inc.
Slide 12: 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. (in millions) Commercial Real Estate Loan Portfolio $4,873 $4,551 $3,826 $3,114 $2,888 $2,141 $96 12/31/99 12/31/0412/31/0512/31/0612/31/0712/31/089/30/09 Page 12 New York Community Bancorp, Inc.
Slide 13: Our Business Model: Asset Quality
Our Business Model: Asset Quality
Slide 14: 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 2.43% 1.63% 1.50% 1.28% 1.17% 0.68% 0.04% 0.07% 0.03% 0.09% 0.00% 0.00% 1990 1991 1992 2007 2008 9 Mos. 2009 NYB Net Charge-offs: $22,000 $222,000 $458,000 $431,000 $6.1 million $20.7 million SNL Ban
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. (a) Non-performing Loans / Total Loans 4.05% 4.13% 4.00% 3.41% 2.83% 2.71% 2.48% 2.10% 2.00% 1.45% 0.51% 0.11% 12/31/90 12/31/91 12/31/92 12/31/07 12/31/08 9/30/09 SNL Bank and Thrift Index (b) NYB (a) Non-performing l
Slide 16: Our charge-offs typically represent a smaller percentage of our loan loss allowance
Our charge-offs typically represent a smaller percentage of our loan loss allowance compared to our industry peers. Net Charge-offs / Average Loan Loss Allowance SNL Bank and Thrift Index (a) NYB (a) SNL Financial as of 10/26/09 Page 16 New York Community Bancorp, Inc.
Slide 17: Historically, few of our non-performing loans have resulted in charge-offs
Historically, few of our non-performing loans have resulted in charge-offs. At or for the Twelve Months Ended December 31, At or for the Nine Months Ended 1990 1991 1992 2007 2008 September 30, 2009 NPLs / Total Loans (a) 2.48% 2.10% 2.83% 0.11% 0.51% 2.00% NCOs / Average Loans 0.00% 0.04% 0.07% 0.0
Slide 18: The quality of our assets reflects our multi-family lending niche and strong underwriting
The quality of our assets reflects the nature of our multi-family lending niche and our strong underwriting standards. Page 18 New York Community Bancorp, Inc.
Slide 19: While NPLs have increased, they represent a small percentage of our loan portfolio
While NPLs have increased in the wake of the economic crisis, they represent a small percentage of our loan portfolio. Non-Performing Loans as a Percent of Total Loans at Loan Type September 30, 2009 Multi-family 1.20% Commercial real estate 0.30 Acquisition, development, and construction 0.35 Comme
Slide 20: Our Business Model: Efficiency
Our Business Model: Efficiency
Slide 21: Our operating efficiency ratio was 35.85% in 3Q 2009
Our operating efficiency ratio was 35.85% (a) in 3Q 2009, well below the SNL Bank and Thrift Index efficiency ratio of 56.72%. (b) Efficiency Ratio 59.05% 57.76% 61.32% 63.03% 59.26% 56.72% 41.18% 38.89% 35.85% 37.59% 28.86% 21.46% 2004 2005 2006 2007 2008 3Q 2009 SNL Bank and Thrift Index (b) NYB(a
Slide 22: Our Business Model: Growth through Acquisitions
Our Business Model: Growth through Acquisitions
Slide 23: We have completed eight acquisitions since 2000
We have completed eight acquisitions since 2000. Page 23 New York Community Bancorp, Inc.
Slide 24: The decision to engage in an acquisition is driven by certain objectives
The decision to engage in an acquisition is driven by certain objectives. Earnings accretion Tangible capital accretion Maintaining our record of above-average asset quality Infusion of deposits Deployment of deposits and other cash flows into multi-family loan production and the reduction of fundin
Slide 25: Our financial performance reflects the merits of our growth-through-acquisition strategy
Our financial performance reflects the merits of our growth-through-acquisition strategy. At or for the Twelve Months Ended At or for the w/ PFSB, Nine Doral-NYC, Months w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY & SYNF Ended (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 12/31/06 1
Slide 26: Our financial performance reflects the merits of our growth-through-acquisition strategy (cont'd)
Our financial performance reflects the merits of our growth-through-acquisition strategy (cont’d). At or for the Twelve Months Ended At or for the w/ PFSB, Nine Doral-NYC, Months w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY & SYNF Ended (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 1
Slide 27: We currently have 159 locations in New York and 53 in New Jersey
Largely reflecting our acquisition strategy, we currently have 159 locations in New York and 53 in New Jersey. BRANCH LOCATIONS (#) COMMUNITY BANK COMMERCIAL BANK Queens County Savings Bank (34) New York Commercial Bank (18) Roslyn Savings Bank (56) Atlantic Bank (17) Richmond County Savings Bank (2
Slide 28: Our franchise enables us to compete against the region's 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 29: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition- driven. (in millions) Deposits $1,128 $1,131 CDs $1,348 NOW, MMAs, and Savings $1,195 $906 Demand deposits $787 $6,451 $4,975 $7,566 $5,554 $6,015 Total deposits: 30.4% CAGR Core deposits: 36.2% CAGR $5,918 Demand deposits: 40.9% CAGR $6,913 $6,797 $5
Slide 30: 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. (in millions) Loans Outstanding $6,566 $6,466 Multi-family Loans Outstanding $5,124 $6,308 All Other Loans Outstanding $4,175 $3,557 Multi-family loans: 29.3% CAGR Total loans: 31.4
Slide 31: We are considering FDIC-assisted transactions
In the current environment, we are considering FDIC-assisted transactions, which present certain unique benefits. Loss-sharing agreement significantly limits credit risk Nominal lag time between agreement and execution expedites timing of benefits and reduces risk Merger-related expenses are signifi
Slide 32: Total Return on Investment
Total Return on Investment
Slide 33: Our business model has created significant value for our shareholders over time
Notwithstanding the decline in the capital markets, our business model has created significant value for our shareholders over time. Total Return on Investment 2,885% 2,479% 2,059% 2,094% CAGR since IPO = 31.5% SNL Bank & Thrift Index (a) NYB (b) 717% 615% 462% 240% 213% 232% Annual yield produced b
Slide 34: We are committed to building value for our investors
We are committed to building value for our investors. Our Goals Page 34 New York Community Bancorp, Inc.
Slide 35: For More Information
For More Information 10/29/2009 Page 35 New York Community Bancorp, Inc.
Slide 36: 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 three months ended September 30, 2009 and 2008 and the nine months ended September 30, 2009: For the Three Months Ended For the Nine Month
Slide 37: 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, 1999, 2000, 2001, 2003, 2004, 2005, 2006, 2007, and 2008. For the year ended December 31, 2002, the Company’s GAA
Slide 38: 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 39: 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 40: Reconciliation of GAAP and Operating Earnings
Reconciliation of GAAP and Operating Earnings The following table presents a reconciliation of the Company’s GAAP and operating earnings for the three months ended September 30, 2008 and 2009: For the Three Months Ended September 30, (in thousands, except per share data) 2009 2008 GAAP Earnings $ 98
Slide 41: Reconciliation of GAAP and Cash Earnings
Reconciliation of GAAP and Cash Earnings The following table presents a reconciliation of the Company’s GAAP and cash earnings for the three months ended September 30, 2008 and 2009: For the Three Months Ended September 30, (in thousands, except per share data) 2009 2008 GAAP Earnings $ 98,573 $58,0
New York Community Bancorp — Q3 2009 Earnings Presentation on 6ix