Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2012 Earnings Presentation
38 slides from Flagstar Bank, N.a's earnings presentation, May 2, 2012
Slide 1: First Quarter 2012 Investor Presentation
Exhibit 99.1 First Quarter 2012 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 $43.0 billion at 3/31/12, we are currently the Assets 21st largest bank holding company in the nation.(a) With deposits of $22.9 billion at 3/31/12 and 276 branches in Deposits Metro New Yor
Slide 4: Growth-through-acquisition strategy, 276 locations in five states
Largely reflecting our growth-through-acquisition strategy, we currently have 276 locations in five states. Metro New York New Jersey Ohio 123 Community Bank Branches 51 Community Bank Branches 28 Community Bank Branches 34 Commercial Bank Branches Florida Arizona 26 Community Bank Branches 14 Commu
Slide 5: 1st Quarter 2012 Performance Highlights
1st Quarter 2012 Performance Highlights
Slide 6: We generated solid earnings in 1Q 2012
We generated solid earnings in 1Q 2012. (dollars in thousands, except per share data) Performance Highlights 1Q 2012 GAAP Operating (a) Solid Profitability Measures: Earnings $118,253 $117,810 EPS $0.27 $0.27 Return on average tangible assets (b) 1.24% 1.23% Return on average tangible stockholders’
Slide 7: Our 3/31/12 balance sheet reflects continued strength
Our 3/31/12 balance sheet reflects continued strength. Performance Highlights: 12/31/11 3/31/12 Loans, net / total assets 71.7% 71.0% Securities / total assets 10.8 11.3 Deposits / total assets 53.0 53.3 Core deposits / total deposits 66.9 67.3 Wholesale borrowings / total assets 32.0 32.0 Page 7 Ne
Slide 8: Our asset quality measures compare favorably with our industry
Our asset quality measures continue to compare favorably with those of our industry as a whole. At or for the Three Months Ended 3/31/12 12/31/11 SNL U.S. Bank SNL U.S. Bank and Thrift and Thrift Asset Quality: NYB Index NYB Index Non-performing loans (a)(b) / total loans (a) 1.15% 2.25% 1.28% 2.60%
Slide 9: We continue to maintain a strong capital position
We continue to maintain a strong capital position. (dollars in billions) 12/31/11 3/31/12 Tangible equity / tangible assets excluding accumulated other comprehensive loss, net of tax (a) 7.95% 7.79% Tangible equity / tangible assets (a) 7.78% 7.64% Tangible stockholders’ equity (a) $3.1 $3.1 12/31/1
Slide 10: A Successful Business Model
A Successful Business Model
Slide 11: Our business model has consistently focused on building value
Our business model has consistently focused on building value. Multi-family loans represented $17.8 billion, or 66.9%, of total Multi-Family Lending loans held for investment at 3/31/12. Strong Credit Standards/ Net charge-offs represented 0.05% of average loans in 1Q 2012, reflecting linked-quarter
Slide 12: Multi-Family Loan Production
Multi-Family Loan Production
Slide 13: Our focus on multi-family lending on rent-regulated buildings
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 14: Our multi-family and CRE loans feature the same structure
Our multi-family and commercial real estate loans feature the same structure. Terms: • Years 1-5: Fixed rate tied to the FHLB-NY 5-year fixed advance rate plus a spread • Years 6-10: • Option 1 – Annually adjustable rate at a spread above prime; or • Option 2 – Fixed rate at a spread above the fixed
Slide 15: Leading producer of multi-family loans for portfolio in New York City
We are the leading producer of multi-family loans for portfolio in New York City. (in millions) Multi-Family Loan Portfolio $17,433 $17,769 $16,736 $16,802 $15,726 Portfolio Statistics at 3/31/12: • % of loans held for investment = 66.9% • Average principal balance = $4.1 million • Expected weighted
Slide 16: Our CRE loans are typically collateralized by office, retail and mixed-use
Our CRE loans are typically collateralized by office buildings, retail centers, mixed-use buildings, and multi-tenanted light industrial properties. (in millions) Commercial Real Estate Loan Portfolio $7,578 $6,856 Portfolio Statistics at 3/31/12: $5,438 • % of loans held for investment = 28.5% $4,9
Slide 17: Asset Quality
Asset Quality
Slide 18: The quality of our assets has improved dramatically since 12/31/10
The quality of our assets has improved dramatically since 12/31/10. Y-O-Y IMPROVEMENT at 3/31/12 NPLs / Total Loans: 148 bp 2.63% 2.57% NPAs / Total Assets: 83 bp 2.05% 1.77% 1.76% 1.66% 1.53% 1.37% 1.28% 1.15% 1.07% 0.93% 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 3/31/12 Non-Performing Loans (a)(b)
Slide 19: Low net charge-offs in downward credit cycles
We have been distinguished by our low level of net charge-offs in downward credit cycles, and by 52 consecutive quarters with no losses on assets generated by the Company. (a) Net Charge-Offs / Average Loans Last Credit Cycle Current Credit Cycle 2.84% 2.89% 1.77% 1.63% 1.50% 1.28% 1.17% 0.91% 0.54%
Slide 20: Our loan portfolio quality continues to exceed that of our industry
The quality of our loan portfolio continues to exceed that of our industry. Non-Performing Loans (a)(b) / Total Loans (a) Last Credit Cycle Current Credit Cycle 4.17% 4.00% 4.05% 3.56% 3.41% 2.91% 2.83% 2.71% 2.63% 2.60% 2.48% 2.47% 2.35% 2.25% 2.10% 1.46% 1.51% 1.28% 1.15% 0.51% 12/31/89 12/31/90 1
Slide 21: Few of our 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 (a) Current Credit Cycle (a) 1989 1990 1991 1992 1993 2008 2009 2010 2011 1Q 2012 NPLs (b)(c) / Total Loans (b) 1.46% 2.
Slide 22: Asset quality reflects our 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 23: Covered loans and OREO under FDIC loss sharing agreements
The loans and OREO acquired in our FDIC-assisted transactions are covered by loss sharing agreements, thus mitigating credit risk. (in millions) Covered Assets 12/31/09 12/31/10 12/31/11 3/31/12 Other OREO Loans Other $62.4 OREO OREO $309.7 Loans Other $71.4 Other $57.7 $423.3 Loans Loans $386.6 $36
Slide 24: Residential Mortgage Banking
Residential Mortgage Banking
Slide 25: Our 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. At or for the 3 months ended 3/31/12: (in millions) • New 1-4 family loan registrations in 1Q 2012 = $3.3 billion • % sold to GSEs = 98% • Average FICO = 773 Funded 1-4 Family • Average l
Slide 26: Efficiency
Efficiency
Slide 27: Our efficiency is driven by several factors
Our efficiency is driven by several factors. Franchise expansion has largely stemmed from mergers and acquisitions; we Efficiency Ratio generally do not engage in de novo branch development. 67.93% Multi-family and commercial real estate 65.92% lending are both broker-driven, with the borrower payin
Slide 28: Growth through Acquisitions
Growth through Acquisitions
Slide 29: 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 30: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition- driven. w/ AmTrust w/ Desert Hills (in millions) Deposits $2,511 $1,768 $2,190 $1,852 CDs w/ PFSB, NOW, MMAs, and Savings Doral, w/ ABNY & SYNF Demand deposits w/ LICB $11,494 $12,122 $12,711 $12,930 w/ RSLN $1,348 $906 $1,195 $720 CAGRs $4,975 $5,554
Slide 31: Acquisitions have funded organic growth of our loan portfolio
Acquisitions have provided much of the funding for the organic growth of our loan portfolio. After After Desert Hills AmTrust (in millions) Loans Outstanding $3,753 $3,644 After $4,298 $504 Held-For-Investment Loans PFSB, $5,016 $1,037 $1,213 Doral, & $1,244 After SYNF $1,207 Multi-Family ABNY $1,65
Slide 32: Total Return on Investment
Total Return on Investment
Slide 33: Quarterly cash dividends and total return on investment
Our quarterly cash dividends are a significant component of our commitment to building value for our investors. Total Return on Investment 3,843% SNL U.S. Bank and Thrift Index 3,076% NYB (a) 2,885% 2,754% 2,670% 2,479% 2,059% CAGR since IPO: 29.4% 717% 614% 444% 244% 213% 209% 245% 244% 168% 11/23/
Slide 34: For More Information
For More Information Visit our web site: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Investor Relations New York Community Bancorp, Inc. Write to: 615 Merrick Avenue Westbury, NY 11590 4/30/12 Page 34 New York Community Bancorp, Inc.
Slide 35: 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 March 31, 2012. For the Three Months Ended (in thousands, except per share data) Mar
Slide 36: 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, 2010 and 2011, and for the three months ended March 31, 2012. For the Three Months Ended For the Years Ended Dec
Slide 37: 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 December 31, 2011 and March 31,
Slide 38: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial 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 March 31, 2012. For the
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