Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2004 Earnings Presentation
27 slides from Flagstar Bank, N.a's earnings presentation, Apr 23, 2004
Slide 1: A Portrait of Strength: First Quarter 2004
A PORTRAIT First Quarter 2004 OF STRENGTH Investor Presentation April 23, 2004
Slide 2: Forward-looking statements
ThisCompany performance such statement Forward-looking “believe,” merger following realize Factors flows, composition Government, technological The 2 following presentation, forward-looking loan the with that for the “expect,” expected demand, could Roslyn of and purposes including merger, factors f
Slide 3: Our Mission
Our The in 3 themission Mission primary New York of goal New metro is the York region creation Community with of shareholder easyBancorp, access value. toInc. theisfull to range create of shareholder financial products value byand consistently services they delivering seek. the thrift industry’s top
Slide 4: Market Leader
Market We The Ranked (a) (b) (c) 4 SNL Singer’s NY are largest second leading ametro Leader within DataSource leading thrift largest Annuity producer supermarket region thelender, depository top thrift and includes of 3% depository, multi-family depository Funds banking ofinU.S. Queens, Nassau Repor
Slide 5: First Quarter 2004 Highlights
FirstPlease Our Multi-family Loan The Industry-leading Net Cash (a) 5 interest income pipeline capital, Quarter earnings originations see income margin exceeded net currently 2004 loans reconciliation grew income, efficiency totaled Highlights grew was rose 122% expectations, exceeds 4.00%, and 24%
Slide 6: Our Balance Sheet
OurQuarter With (dollars At Linked- 3/31/04 Total Multi-family Core Stockholders’ Tangible equity Market (a) (b) 6 Annualized Excludes Balance deposits assets loans 1.4 cap in Increase stockholders’ 101.4 billions) 5-Year 10.9 9.3 of $Sheet $130 loans 26.5 6.1 equity $26.5 growth 197.2 20.0(a)(b) 56
Slide 7: Income Statement
Income We (in Y-O-Y 1Q Net Other Earnings Cash Diluted (a) (b) 7 May millions, Please 2004 have Interest Earnings Operating 5-Year Statement EPS Cash 2003 been Increase 130.0 seeIncome except 0.48 EPS ThriftINVESTOR reconciliation ranked 10-Year (b) 93.0 Income 29.7 CAGR 160.6 (b) per $73.6 the 0.59
Slide 8: Multi-family Lending
Multi-family We Rent-controlled 5-year Pre-payment Average Expected 8 have fixed loan LTV aweighted profitable, /penalties: Lending at 5-year ratio 3/31/04 / rent-stabilized at average adjustable 3/31/04: efficient, 5-4-3-2-1 : $2.5 life57.4% mn and term at buildings points 3/31/04: risk-averse gene
Slide 9: Multi-family Loan Originations
We millions) (in Loan Multi-family 36% 1993 Total 9 are 55% 1998 $Originations the 19610-YR 1999 leading $ Loan Lending 4872000 CAGR: $producer Originations 677 2001 $ 5-YR 616 2002 of$multi-family All CAGR: 1,150 2003 Other $1Q 2,560 Loan ‘03 loans $1Q Originations 4,330 for ‘04 portfolio $ 771 $ 1
Slide 10: Multi-family Loans Outstanding
TheExcludes (in Loans Multi-family 29% 12/31/93 Total (a) 10 millions) multi-family CAGR: $Outstanding 791 12/31/99 $net Lending Loans 1,611 deferred loan 12/31/00 (a) $Outstanding 3,636 portfolio loan $12/31/01 5,405 origination isAll expected $Other 12/31/02 5,489 fees Loans to $ 10,499 grow and 1
Slide 11: Deposit Mix
We billions) (in Deposit 29% 74% 12/31/93 Total Core Loans 11 are 10-YR 5-YR /Deposits Deposits: /Total the Total Mix 12/31/98 2nd CAGR: Deposits: CAGR: Deposits: CDs largest $0.812/31/99 $1.1 56.5% thrift 94.2% $1.1depository 12/31/00 34.4% $3.3 135.7% $5.4 38.8% 12/31/01 150.0% in$5.3 our 42.5% $1
Slide 12: Risk Management: Balance Sheet Structure
Riskbalance Our 5-year 3-month NYB 12/31/99 3.79% 12 Management net U.S. 3.33% LIBOR 12/31/00 interest Treasury sheet 3.59% Range: margin structure 12/31/01 4.31% CMT 1.11%—6.40% Range: Range: has 3.94% 12/31/02 shielded 3.33%—4.31% 2.78%—6.36% 4.00% 12/31/03 our NYB margin 03/31/04 NIMfrom interest
Slide 13: Risk Management: Asset Quality
Risklosses NPAs The Acquired No 13 net quality allowance Management tocharge-offs total lenders onofany assets our forlocal-market with assets loan against equaled alosses long reflects the0.11% history equaled allowance multi-family ouratunderwriting of3/31/04 263.79% successful forloans loanofloss
Slide 14: Our Core Efficiency Ratio
OurCore Efficiency 2001 U.S. Top NYB (a) (b) 14 1Q 100 1Q Thrifts 2002 30.50%(a) ‘04 ‘04 Thrifts efficiency Ratio industry 2003 efficiency 65.21% 57.01% 1Q 25.32% ratio; data ‘04 63.26% ratio 57.34% not 23.59%(a) please improved yet 65.10% see available. 58.32% reconciliation 18.70% 65.10%(b) 32558.
Slide 15: Community Banking Division and Branches
Community Our Market Division Queens Long Staten Brooklyn Westchester Hudson Essex 86 (a) (b) 15 52 Includes structure Island 140(b) & Island Traditional 24 County, Union Served 485one Banking a33 & 32 17 9recognizes customer Other 27 Counties, traditional 5Branches NJ23(b) 61(a) In-store 4NYC - 4co
Slide 16: Accretive Merger Transactions
Accretive We 2002 Haven 11.8%-16.5% Richmond Earnings Original 2004 Completed Roslyn 16 have 2002 2004 Bancorp, Bancorp, Actual Revised successfully Accretion Merger County Projection 129.4% Inc. Inc. Transactions Financial (HAVN) (RSLN) completed ResultsCorp. Projection 11/30/00 10/31/03 three (RCB
Slide 17: Our Accretive Merger Transactions
Accretive Our (dollars w 12/31/99 No. Loan Core Total Market Price Diluted (a) 17 / Diluted (a) HAVN of franchise, deposits assets /per (a) branches deposit cap EPS in12/31/00 share (b) Merger billions, wcore $$/0.57 1.9 $value, ratio 0.42 RCBK $0.4 EPS; 14 6.79 $Transactions $12/31/01 except 86 4.7
Slide 18: Balance Sheet Restructuring
Balance We Structuring Producing Increasing Replacing Sold 18 are $130 inSheet the FHLB mn acore the record process of Restructuring asset deposits home borrowings volume mix ofequity restructuring while to of produce with loans loan reducing reverse originations in cash the 1Q concentration post-RS
Slide 19: Capital Management
Capital We 9 11.3 5 90-fold $600 Approximately 19stock million-share actively million million splits Management increase manage shares shelf in $400 $483 repurchases 10 in registration quarterly years, repurchased our million capital. including authorized cash offiled generated regulatory individend
Slide 20: Diluted EPS Performance
We Diluted Performance Diluted 5-YR (a) (b) 20 Company areCAGR: currently EPScore Growth estimates. 40% EPS; projecting 11-YR please CAGR: asee 33%-35% reconciliation 30% increase toin diluted 2004 GAAP diluted EPS EPS.on page 26, #3.
Slide 21: Factors Driving 2004 Earnings Growth
Several Performance Higher The 21 continued net other factors interest operating suspension are expected income, income, ofreflecting to our drive reflecting loanearnings aloss record the provision full-year growth volumeContinuation inof benefit 2004. loan production, of the of Roslyn our industry-
Slide 22: Share Price Performance and Market Capitalization
ShareCAGR From (dollars Market Price Annual 74% 55% 11/23/93 107.5% 22 5-YR per 11/23/93 Value Capitalization yield in 13.4% 12/31/98 share millions, CAGR: Since produced 14.7% to (adjusted 3/31/04, 12/31/99 IPO: except 10.9% byfor $1.00 the per 12/31/00 97.8% value splits, share per6.2% of share da
Slide 23: Total Returns Since Merger Announcements
Total Each Increase Date Bank HAVN RCBK RSLN (a) (b) 23 Compares of of Returns Announcement June March June Merger our in 27, merger 27, NYB’s 27,Total 2003 2000 2001 transactions 68 thru Return closing $0.25 776% 278 613/31/04(a) per 278 1,287% Quarterly price share hasofprovided Dividend(b) divide
Slide 24: Total Returns Since IPO
FromCAGR Total Price Annual 46% 65% 11/23/93 107.5% 24 5-YR Returns return per 11/23/93 yield 13.4% 12/31/98 share CAGR: from since produced 14.7% to (adjusted 11/23/93 3/31/04, IPO: 12/31/99 10.9% byfor $1.00 the through 12/31/00 97.8% total splits, per6.2% the return share including 12/31/01 date
Slide 25: Reconciliation of GAAP to Non-GAAP Earnings
Reconciliation Appendix 1. earnings GAAP For Months March 2004 (in Net Add Associated Dividends Amortization Total Cash Basic Diluted 2. property Bank 25 The On thousands, the income back: 2003 earnings additional Division cash aCompany 31, earnings Three reported cash Ended from per March on earnin
Slide 26: Reconciliation of Core Earnings
Reconciliation Appendix 3. on net $22.8 amount in For 2003 (in Net Adjustments Gain Curtailment Early Merger-related Total Income Core Basic Diluted 26 As an the thousands, gain the income on earnings after-tax 2002 adjustments calculated retirement core million, sale Years tax includes core of sale
Slide 27: For More Information
For More The Log E-mail Call Write 615 Westbury, 27 4/23/04 Merrick Company onto Investor to: requests New our Information: NYAvenue Relations web York 11590 trades to:site: ir@myNYCB.com Community onwww.myNYCB.com at: the(516) NYSE Bancorp, 683-4420 under the Inc.symbol “NYB”.
New York Community Bancorp — Q1 2004 Earnings Presentation on 6ix