Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2007 Earnings Presentation
32 slides from Flagstar Bank, N.a's earnings presentation, Nov 7, 2007
Slide 1: Third Quarter 2007 Investor Presentation
Exhibit 99.1 * * * * * * * Third Quarter 2007 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-
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 in excess of $30.0 billion: - We operate the 6th largest thrift in the nation and the largest in New York State. (a) With a portfolio of $13.6 billion: - We are the leading producer of multi-famil
Slide 4: 3rd Quarter 2007 Performance Highlights
* * * * * * * * * **************** 3rd Quarter 2007 Performance Highlights 4
Slide 5: Our 3Q 2007 performance featured strong operating metrics
Our 3Q 2007 performance featured strong operating metrics. Operating Earnings Growth: - Our operating EPS were consistent with the trailing-quarter level and were up $0.02 from the year-earlier amount. (a) Margin Expansion: - Our net interest margin dropped 3 basis points linked-quarter but rose 17
Slide 6: Our net interest margin has reflected improvement in a challenging yield curve environment
Our net interest margin has reflected improvement in a challenging yield curve environment. 9 Mos. 2007 9 Mos. 9 Mos. Y-O-Y (dollars in thousands) 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 3Q 2007 2006 2007 Increase Average yield on loans 5.81% 5.85% 5.94% 6.08% 6.14% 6.44% 6.37% 5.87% 6.32% 4
Slide 7: The strength of our capital position has enabled us to pay a strong dividend
The strength of our capital position has enabled us to pay a strong dividend. Both of our bank subsidiaries are well capitalized institutions: 9/30/07 Community Bank Commercial Bank Leverage capital ratio 8.05% 11.35% Our tangible capital measures grew year-over-year: (dollars in billions) 9/30/06 9
Slide 8: In the second and third quarters of 2007, we took a series of actions
In the second and third quarters of 2007, we took a series of actions, each one providing specific benefits. Date Action Benefit Expanded the Community Bank franchise; increased deposits; 4/2/07 Acquired PennFed Financial Services, Inc. provided opportunity to reposition the balance sheet Redeemed H
Slide 9: We are well positioned to capitalize on opportunities presented in the current market
We are well positioned to capitalize on opportunities presented in the current market. We have no subprime or Alt-A mortgages in our loan or securities portfolios. Refinancing activity is likely to increase as more of our multi-family loans approach their contractual repricing dates. Competition for
Slide 10: Our Business Model
* * * * * * * * ********************* Our Business Model 10
Slide 11: We have a consistent business model that focuses on building value while building the Company
We have a consistent business model that focuses on building value while building the Company. The growth of our business through accretive mergers and acquisitions: • November 30, 2000: Haven Bancorp, Inc. (HAVN) • July 31, 2001: Richmond County Financial Corp. (RCBK) • October 31, 2003: Roslyn Ban
Slide 12: Our balance sheet reflects the benefits of our growth-through-acquisition strategy
Our balance sheet reflectsthe benefits of our growth-through- acquisition strategy and the organic growth of our loan portfolio. w/ PFSB & Pro Forma w/ w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY Doral SYNF (b)(c) (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 12/31/06 9/30/07 9/30/0
Slide 13: Our business model calls for the cash flows from the sale of acquired assets to be converted into securities and then into loans
Our business model calls for the cash flows from the sale of acquired assets to be converted into securities and then into loans. w/ ABNY w/ PFSB $19,653 & Doral $19,001 (dollars in millions) w/ LICB $17,029 $13,396 $12,119 Loans w/ RSLN $10,919 Securities $10,499 $9,500 $7,081 w/ RCBK $5,489 $5,637
Slide 14: Since repositioning our balance sheet in June 2004, we have completed five transactions
Since repositioning our balance sheet in June 2004, we have completed five transactions with other in-market (a) banks. (dollars in millions) Total Assets Acquired $7,058 Commercial Bank Assets 3,834 Savings Institution Assets 3,224 Total Deposits Acquired $4,779 Commercial Bank Deposits 2,600 Savin
Slide 15: With the acquisition of SYNF on 10/1/07, we now have 218 locations
With the acquisition of SYNF on 10/1/07, we now have 165 locations in New York and 53 in New Jersey. The NYCB Franchise New York Community Bank Traditional branches 125 In-store branches 47 Campus branches 5 Customer convenience centers 3 Subtotal 180 New York Commercial Bank Traditional branches 38
Slide 16: Each of our merger transactions has contributed to deposit growth
Each of our merger transactions has contributed to deposit growth. Pro Forma (a)(b) w/ PFSB w/ SYNF (in millions) Deposits & Doral w/ ABNY $1,610 w/ LICB $1,544 $1,123 $846 w/ RSLN Total deposits: 39.4% CAGR $720 $739 Core deposits: 44.4% CAGR $5,589 Demand deposits: 61.1% CAGR $5,405 $5,551 $6,012
Slide 17: The transaction-driven expansion of our franchise has enabled us to compete against money center banks
The transaction-driven 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 Ra
Slide 18: While acquisitions have contributed to loan growth, 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. Pro Forma w/ ABNY w/ PFSB w/ SYNF (a)(b) (in millions) Loans Outstanding & Doral w/ LICB $5,124 $5,361 $6,011 $4,175 Multi-family loans: 34.9% CAGR Total loans: 38.1% CAGR $3,557 w/
Slide 19: Multi-family loans have grown at a CAGR of 34.8% since 12/31/99
Multi-family loans have grown at a CAGR of 34.8% since 12/31/99. (in millions) Portfolio statistics at 9/30/07: Multi-family Loan Portfolio - % of total loans = 71.8% - Average principal balance = $3.5 million $14,529 $13,640 - Average loan-to-value ratio = 63.4% $12,854 - Expected weighted average
Slide 20: The quality of our assets has been consistently solid
The quality of our assets has been consistently solid. Non-performing Assets / Total Assets 0.75% 0.65% 0.66% 0.60% 0.60% 0.56% 0.51% 0.48% 0.43% 0.19% 0.19% 0.17% 0.15% 0.15% 0.12% 0.11% 0.08% 0.07% 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 9/30/07 U.S. Banks & Thrifts
Slide 21: Charge-offs equaled 0.001% of average loans in the first nine months of 2007
Charge-offs equaled 0.001% of average loans in the first nine months of 2007. Net Charge-offs / Average Loans 0.30% 0.29% 0.27% 0.24% 0.22% 0.22% 0.20% 0.15% 0.15% 0.00% 0.00% 0.00% 0.00% 0.00% 0.002% 0.000% 0.002% 0.001% 1999 2000 2001 2002 2003 2004 2005 2006 9 Mos. 2007 NYB Net Charge-offs: -- --
Slide 22: The quality of our assets reflects our strong credit and underwriting standards
The quality of our assets reflects our strong credit and underwriting standards. Conservative loan-to-value (“LTV”) ratios Minimum debt coverage ratio: 120% All loans approved by the Mortgage and Real Estate Committee or the Credit Committee (a majority of the Board of Directors) Director and execut
Slide 23: We continue to rank among the most efficient bank holding companies in the nation
We continue to rank among the most efficient bank holding companies in the nation. Efficiency Ratio 67.69% 65.04% 63.76% 65.12% 63.83% 64.44% 64.69% 64.85% 63.43% 40.42% 37.59% 31.16% 30.20% 30.50% 28.86% 25.32% 23.59% 21.46% 1999 2000 2001 2002 2003 2004 2005 2006 9 Mos. 2007 U.S. Banks & Thrifts(a
Slide 24: Our efficiency has been driven by our approach to 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, s
Slide 25: Our business model has created significant value for our shareholders over time
Our business model has created significant value for our shareholders over time. 3,089% 2,479% Total return from 11/23/93 through the date noted, assuming dividends were CAGR since IPO = reinvested 40.8% Cumulative cash return provided by dividends on shares purchased at the date indicated through 9
Slide 26: We continue to be committed to building value while building the Company
We continue to be committed to building value while building the Company. Our Goals Demonstrate our capacity to execute accretive merger transactions while enhancing the value of our franchise Utilize the cash flows from the sale of securities and 1-4 family loans to originate higher- yielding asset
Slide 27: 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 11/6/2007 27
Slide 28: 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 earnings for the three months ended September 30 and June 30, 2007. For the three months ended September 30, 2006, the Company’s GAAP and operating earnings were the same. F
Slide 29: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures 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, and 2006. For the year ended December 31, 2002, the Company’s GAAP and operating effici
Slide 30: 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 three and nine months ended September 30, 2007. For the Three Months Ended For the Nine Months Ended September 30, 2007 September 30, 2007 (dollars
Slide 31: 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 32: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation of GAAP and Non-GAAP Capital Measures The following table presents a reconciliation 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 me
New York Community Bancorp — Q3 2007 Earnings Presentation on 6ix