Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2008 Earnings Presentation
33 slides from Flagstar Bank, N.a's earnings presentation, May 2, 2008
Slide 1: First Quarter 2008 Investor Presentation
Exhibit 99.1 First Quarter 2008 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: 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 $30.9 billion: We operate the 6th largest thrift in the nation and the largest in New York State. (a) With a portfolio of $14.2 billion: We are a leading producer of multi-family loans for port
Slide 4: 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: Since 12/31/99, we have acquired five community banks, two commercial banks, and one branch network, expanding our franchise from 14 t
Slide 5: 1st Quarter 2008 Performance Highlights
1st Quarter 2008 Performance Highlights
Slide 6: Our 1Q 2008 performance featured several year-over-year improvements
Our 1Q 2008 performance featured several year-over- year improvements. Earnings Earnings rose 11.7% year-over-year to $72.4 million; cash earnings rose Growth 16.1% year-over-year to $81.7 million. Revenue Net interest income rose 10.4% year-over-year to $161.5 million; non-interest Growth income ro
Slide 7: Our net interest margin has been stable in a challenging rate environment
Our net interest margin has been stable in a challenging rate environment. Y-O-Y Y-O-Y Increase Increase (dollars in thousands) 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 (Decrease) 2006 2007 (Decrease) Average yield on loans 6.14% 6.44% 6.37% 6.12% 6.19% 5 bp 5.92% 6.27% 35 bp Average yield on interes
Slide 8: 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: 3/31/08 Community Bank Commercial Bank Leverage capital ratio 7.47% 10.19% The Company’s tangible capital measures continue to be strong: (dollars in billion
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. We have maintained our record of asset quality by maintaining our primary focus on multi-family lending on rent-regulated buildings and
Slide 10: Our Business Model: Growth through Acquisitions
Our Business Model: Growth through Acquisitions
Slide 11: We have completed eight acquisitions since 2000, including three in the last year
We have completed eight acquisitions since 2000, including three in the last year. 1 April 1859 3 Nov. 1993 5 July 2001 7 Dec. 2005 9 April 2007 11 Oct. 2007 Queens County Public trading Merger-of- We acquire We acquire We acquire Savings Bank, of New York equals with Long Island PennFed Synergy for
Slide 12: Our balance sheet reflects the benefits of our growth-through-acquisition strategy
Our balance sheet reflects the benefits of our growth-through- acquisition strategy and the organic growth of our loan portfolio. w/ PFSB, Doral, & w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY SYNF (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 12/31/06 12/31/07 3/31/08 Number of bran
Slide 13: Cash flows from post-merger sale of acquired assets are converted into securities and then loans
The cash flows from the post-merger sale of acquired assets are typically converted into securities and then into loans. $20,363 $20,510 $19,653 w/ PFSB, (dollars in millions) w/ ABNY Doral, & SYNF $17,029 Loans w/ LICB Securities $13,396 $10,499 $9,500 w/ RSLN $7,081 $5,637 $5,744 $5,715 $4,926 % o
Slide 14: We currently have 164 locations in New York and 53 in New Jersey
We currently have 164 locations in New York and 53 in New Jersey. The NYCB Franchise New York Community Bank Traditional branches 125 In-store branches 46 Campus branches 5 Customer convenience centers 3 Subtotal 179 New York Commercial Bank Traditional branches 38 Total locations 217 New York Commu
Slide 15: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition- driven. w/ PFSB, Doral, & SYNF (in millions) Deposits w/ ABNY w/ LICB $1,248 $1,273 w/ RSLN $1,123 CDs $846 NOW, MMAs, and Savings Demand deposits $720 $739 $4,971 $5,342 $5,551 $6,012 Total deposits: 35.9% CAGR w/ RCBK $5,247 $5,911 Core deposits: 39
Slide 16: The expansion of our franchise has enabled us to compete against 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 17: 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. w/ PFSB, (in millions) Loans Outstanding Doral, & SYNF w/ ABNY w/ LICB Multi-family Loans Outstanding $6,308 $6,324 $5,124 All Other Loans Outstanding $4,175 w/ RSLN $3,557 Multi-fa
Slide 18: Our Business Model: Multi-family Lending
Our Business Model: Multi-family Lending
Slide 19: Multi-family loans have grown at a CAGR of 33.0% since 12/31/99
Multi-family loans have grown at a CAGR of 33.0% since 12/31/99. (in millions) Portfolio statistics at 3/31/08: % of total loans = 69.2% Multi-family Loan Portfolio Average principal balance = $3.5 million $14,529 Average loan-to-value ratio = 63.1% $14,055$14,186 Expected weighted average life = 3.
Slide 20: Our multi-family loans feature a unique refinancing cycle
Our multi-family loans feature a unique refinancing cycle. NYB Rent Roll / Refinances Loan Income Stream Borrower Based on Higher Increases Uses Funds Income Stream, over the to Improve Increasing Short Term the Property Loan Size and (3–5 years) Term Yield NYB NYB Originates Rent Roll / Borrower In
Slide 21: 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) Portfolio statistics at 3/31/08: % of total loans = 19.1% Commercial Real Estate Loan Portfolio Average principal balance = $2.1 million Average loan-to-value ratio = 56.0% $3,826 $3,909 Expected wei
Slide 22: Our Business Model: Asset Quality
Our Business Model: Asset Quality
Slide 23: The quality of our assets has been distinctively solid
The quality of our assets has been distinctively solid. Non-performing Assets / Total Assets 1.24% 1.00% 0.60% 0.51% 0.48% 0.44% 0.15% 0.12% 0.11% 0.08% 0.07% 0.07% 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 3/31/08 SNL Bank & Thrift Index (a) NYB (a) SNL DataSource Page 23
Slide 24: None of our charge-offs have been mortgage-related
None of our charge-offs have been mortgage-related. Net Charge-offs / Average Loans 0.38% 0.27% 0.24% 0.20% 0.15% 0.15% 0.00% 0.002% 0.000% 0.002% 0.002% 0.002% 2003 2004 2005 2006 2007 1Q 2008 NYB Charge-offs: -- $236,000 $21,000 $420,000 $431,000 $396,000 SNL Bank & Thrift Index (a) NYB (a) SNL Da
Slide 25: Asset quality reflects our multi-family niche and strong underwriting standards
The quality of our assets reflects the nature of our multi- family lending niche and our strong underwriting standards. Conservative loan-to-value (“LTV”) ratios Minimum debt coverage ratio: 120%, except CRE loans (generally 130%) All loans approved by the Mortgage and Real Estate Committee or the C
Slide 26: Our Business Model: Efficiency
Our Business Model: Efficiency
Slide 27: Our efficiency ratio was 41.49% in 1Q 2008
Our efficiency ratio was 41.49% in 1Q 2008, well below the 67.48% average for the SNL Bank and Thrift Index. 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 cl
Slide 28: Our business model has created significant value for our shareholders over time
Our business model has created significant value for our shareholders over time. Total Return on Investment 3,039% 2,885% 2,479% CAGR since IPO = 38.9% SNL Bank & Thrift Index (a) NYB(b) 717% 615% 462% 434% 240% 11/23/93 12/31/99 12/31/06 12/31/07 3/31/08 Cumulative cash return provided by dividends
Slide 29: Our shares have provided significant returns relative to our peers
Our shares have provided significant returns to investors relative to our peers. Total Return on Investment Through 3/31/08 NY & NJ Banks & SNL Bank & Thrift Thrifts (a) Index (a) NYB (b) Since 12/31/07 (12)% (9)% 5% Since 12/31/06 (34)% (31)% 22% Since 12/31/99 7% 43 % 284% Since our IPO (11/23/93)
Slide 30: We are committed to building value for our investors
We are committed to building value for our investors. Our Goals Improve Our Performance Metrics: Continue to expand our net interest margin Maintain a strong level of operating efficiency Increase our revenues through the cross-sale of products and services Grow our operating earnings Strengthen Our
Slide 31: 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 5/2/2008 Page 31
Slide 32: 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 33: 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 — Q1 2008 Earnings Presentation on 6ix