Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2003 Earnings Presentation
30 slides from Flagstar Bank, N.a's earnings presentation, Apr 28, 2003
Slide 1: New York Community Bancorp, Inc. First Quarter 2003 Investor Presentation
New York Community Bancorp, Inc. Measure the difference. Invest in the strength. First Quarter 2003 Investor Presentation
Slide 2: Forward-looking Statements and Risk Factors
N y GQ Forward-looking Statements and Risk Factors This presentation contains certain forward-looking statements with regard to the Company's praspective performance and strategies within the meaning of Section 274 of the Securities Act of 1933, as amended, and Section 21€ of the Secures Exchange Ac
Slide 3: Data sources and notes on core earnings
Measure the difference. Industry data — SNL DataSource NYCB data — Company reports NYCB 2000 and 2001 data based on core earrings. Please see foctnote 1 in the Appendix on page 28. The graphs and tables on pages 4,5,6,8, 16, and 25 cf this presentation reflect the Company's cash or core earrings for
Slide 4: Difference: Performance
Measure the Difference: Performance NYCB has been ranked the nation’s top-performing large thrift for the past 5 year 2002 3 Mos. 2003 Ranking Industry — NYCB NYCB NYCB = -NYCB Criteria Average GAAP Cash?) GAAP Cash?) ROA 0.87% 2.29% | 2.59% 2.24% | 240% ROE 9.07 19.95 22.60 20.22 21.69 Efficiency r
Slide 5: Performance: ROA
Measure the Performance: ROA NYCB’s 2002 ROA exceeded the industry average by 142 basis points. 250% 2.00% 150% 100%] a! 050% 0.00% 1998 1999 2000) 2001") 2002 1003 U.S. Thrifts 0.89% 0.83% 071% 0.69% 0.87% NA mNYCB 1.62% 1.69% 1.56% 1.65% 2.29% 2.24% NYB | ou New York Community Bancorp, Inc. 5 NYSE
Slide 6: Performance: ROE
Measure the Performance: ROE NYCB’s 2002 ROE exceeded the industry average by 1,088 basis points. 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 1998 1999 2000 2001 2002 1003 U.S. Thrifts 7.92% 112% 7.40% 7.89% 9.07% NA MNYCB 732% 22.99% 19.40% 18.30% 19.95% 2.22% NYB 1m NYSE New York Community Bancorp, In
Slide 7: Performance: Net Interest Margin
Measure the Performance: Net Interest Margin NYCB’s margin has consistently exceeded the industry average. 500% 400% nal a (* 3.00% 2.00% 100% 0.00% 1998 1999 2000 2001 2002 1003 U.S. Thrifts 3.42% 3.40% 3.28% 3.19% 3.39% NA @NYCB 424% 3.79% 3.33% 3.59% 431% 47h nye | aa New York Community Bancorp,
Slide 8: Performance: Efficiency Ratio
Measure the Performance: Efficiency Ratio NYCB consistently ranks among the nation’s most efficient thrifts. 70.00% 60.00% a 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1998 1999 2001 2002 1003 U.S. Thrifts 59.84% 63.13% 65.72% 66.42% 62.67% NA @NYCB 36.51% 29.95% 30.20% 35.03%) 25.32% 25.19% nye | aa
Slide 9: Quality: NPAs/Total Assets
Measure the Quality: NPAs/Total Assets Exceptional asset quality has been a hallmark of NYCB throughout its public life. 0.80% 0.60% 0.40% 0.20% 0.00% sp 41231198 12731199 12/34/00 4273101 123102 3731103 U.S. Thrifts 0.64% 0.52% 0.53% 0.67% 0.71% NA mNYCB 0.38% OAT% 0.49% 0.19% 0.15% 0.12% Nye fod N
Slide 10: Quality: NPLs/Total Loans
Measure the Quality: NPLs/Total Loans NYCB’s asset quality reflects the strong performance of its multi-family loans. 100% —_ - 080% | at 0.60% cr i 040% 020% J 000% 127198 128199 128100 128101 128102 38103 U.S. Thrifts 0.76% 0.62% 0.61% 0.81% 0.83% WA mNYCB 0.41% 0.19% 0.25% 0.32% 0.30% 0.26% NyB .
Slide 11: Quality: NCOs/Average Loans
Measure the Quality: NCOs/Average Loans The absence of any net charge-offs attests to NYCB’s underwriting standards. 0.20% 0.15% a 0.10% 0.05% 0.00% 1998 1999 2000 2001 2002 1003 U.S. Thrifts 0.14% 0.14% 0.14% 0.18% 0.19% NA @NYCB 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% nye | aa New York Community Banco
Slide 12: Invest in the strength.
Invest in the strength.
Slide 13: Industry Leader
Strength: Industry Leader GQ #1 Top-performing Large Thrift in the U.S. ThriftINVESTOR (for the 5th consecutive year) May 2003 #1 Best performing Company — Total Returns The Wall Street Journal (Savings & Loans) March 10, 2003 #4 Most Efficient Bank Holding Company ‘American Banker Among the Largest
Slide 14: Market Leader
Strength: Market Leader NYCB fender, depos: of revenues. The leading producer of multi-family loans for portfolio in New York City The second largest thrift depository In Queens and Staten Island” The fifth largest thrift depository in New York City” The leading supermarket banking franchise in the
Slide 15: Balance Sheet
Measure the Strength: Balance Sheet The balance sheet has benefited from M&A, restructuring, and leveraged growth. Improvement 3/31/03 12/31/02 Since 12/31/01 Total assets $12.0bn $11.3bn T 23% Multi-family loans $4.8bn $4.5bn 38% Mortgage originations $771.1mn $2.6bn 123% Core deposits $3.4bn $3.3b
Slide 16: Earnings
Measure the Strength: Earnings NYCB’s 1@ 2003 earnings rose 45% year-over-year. Y-0-Y Y-0-Y 1Q 2003 Improvement 2002 Improvement Diluted EPS $0.66 T 40% $222 T cayxn Net interest income $108.3mn 30% $373.3mn 81% Other operating income $26.4mn 34% $101.8mn 12% ROA 2.24% 24bp 2.29% 64bp*) Spread 4.03%
Slide 17: Multi-family Market Niche
Strength: Multi-family Market Niche NYCB is the #1 muiti-family lender for portfolio in NYC. $2,800 $2,400 $2,000 $1,600 $1200 (otters in mitions) $800 $400 $0 1998 1999 2000 2001 2002 10.03 All Other Mortgage Originations $42.4 $734 $743 $3588 $5008 $115.8 = Multifamily Loan Originations $4098 = $6
Slide 18: Strength: Multi-family Lending Strategy
Nv Y Strength: Multi-family Lending Strategy ie nding Rent-controlled / Rent-stabilized buildings B-year fixed | 6-year adjustable term Average term to maturity: 4 years APROFITABLE, Average loan: $2.0 million EFFICIENT, & RISK-AVERSE Average LTV ratio: 58% LOAN Stabilized cash flow BORTEOLIO Pre-pa
Slide 19: Risk-averse Loan Portfolio
Strength: Risk-averse Loan Portfolio The structure of NYCB’s loan portfolio provides insulation against credit risk. (allars in milions) 2255, sae 1305 ss 2, a ss $1,287 wee, ae $533 595 26100 201 ‘is 2102 ews 191103 $17 or ‘sa 18 $152, =“ fe geo | | $40 ate TotalLoans —$3,636* $5,405"* $5,489" $5,7
Slide 20: Deposit Mix
Strength: Deposit Mix Core deposits have grown steadily over the past four years. (allars in milions) 12131100 12131101 12131102 3/31103 Hee we on ene CY WW oO 4 Corefotal Deposits 42.5% 559% 029% o50% Total Deposits $3.3 Bn* $5.5 Bn** $5.3 Bn*** $6.2Bn iverage Cost 410% Sat 1a 1a Jind dpe calla ¥ l
Slide 21: Interest Rate Risk Management
Strength: Interest Rate Risk Management NYCB’s margin has provided a cushion against interest rate volatility. 7.00% 6.00% ‘Syear U.S. Treasury yield 5.00% Range: 2.74% - 6.34% -s-3-month LIBOR 4.00% Range: 1.28% - 6.40% |-@-NYCB net interest margin 3.00% Range: 3.33% - 4.31% 2.00% 1.00% 0.00% 12ati
Slide 22: Efficiency
Strength: Efficiency The consistent effi of NYCB’s operations stems from several sour Emphasis on multi-family lending Franchise expansion through M&A. De novo branch expansion at turn-key locations. EFFICIENCY Hub & spoke approach to in-store branching Profitable conduit relationships Sale of third
Slide 23: Revenue Generation
Strength: Revenue Generation Other operating income represented 20% of 1@ 2003 revenues. (doles in miions) $101.8 Giher operating come Net interest income $3733 $908 $2058 $21.6 $2.6 $25 $26.4 $1083 a $08.9 p $73.4 1998 1999 2000 2001 2002 1Q03 Tefal Revenues | [Total Reverves || Tota Revenues] [Tot
Slide 24: Capital Management Strategies
Strength: Capital Management ie 8 stock splits in 9 years, including a 4-for3 split declared on 4/22/03 43 million shares repurchased in 2002; 1.1 million in 1Q 03 CAPITAL 56-fold increase in quarterly cash dividend, MANAGEMENT including a 40% increase in 2003 to date STRATEGIES $1475 million, net,
Slide 25: Earnings Capacity
Strength: Earnings Capacity NYCB projects 20% - 24% diluted EPS growth in 2003. Diluted GAAP EPS* Diluted Cash EPS*®) $2.67-2.75 Bes 1.84 fen ast) 1.33 ‘ ‘Hos Gos2") CAGR: 35.2086 ps ‘a0 1998 1999-2000 2001-2002, 2003. 1998 1999 2000 20012002 Company Estimates = Diluted GAAP and Cash EPS have nof be
Slide 26: Strength: 2003 Projections
Ny Y Strength: 2003 Projections GB Several factors are currently expected to support diluted EPS growth in 2003. ~ 15% asset growth ~ 20% net multi-family loan growth [net interest income REVENUE AND [other operating income EXPENSE PROJECTIONS No loan loss provisions < 30% efficiency ratio ~32% - 33
Slide 27: Shareholder Value Creation
Strength: Shareholder Value Creation The value of NYCB’s shares has appreciated 1,952% since 11/23/93. (allars in milions, except share data) Market capitalization Price per share (adjusted for 7 spits) $3,052 1D Annual yield produced by $1.12 pershare dividend on shares purchased at this date $2328
Slide 28: Appendix
Appendix Reconciliation of GAAP, cash, and core profitability measures. 1s cabultedin cordanee wth GAAP, the Company's 2000 and 2001 diutad earings pt share were $0.66 and $1.24, espetivey. The 2000 amour Feflcted'a gan o $1.8 milion recordedin ater operaing tome and a charge of $14 3 lion recorded
Slide 29: Cash Earnings Reconciliation
Appendix N y GQ Cash Earnings Reconciliation Ge trousanss, exept per-share dla) Me ircome ad bask ‘ronzation and appresiion of stocerelted benef plans ‘ecociaedtax berets ‘iidends on unalone ESOP shares ‘Aontationofcore depast tangle and good “otal addtional contbuions to tangible stockholder’ equty
Slide 30: For more information:
For more information: The Company trades on the NYSE under the symbol + Log onto our web site: www.myNYCB.com + E-mail requests to: iangarola@myNYCB.com + Call Investor Relations at: (516) 683-4420 + Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 42103 NYB aa New Yo
New York Community Bancorp — Q1 2003 Earnings Presentation on 6ix