Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2010 Earnings Presentation
43 slides from Flagstar Bank, N.a's earnings presentation, Aug 3, 2010
Slide 1: Second Quarter 2010 Investor Presentation
Second Quarter 2010 Investor Presentation Exhibit 99.1 * * * * * * * * * * * * * * * * * * * * * * * *
Slide 2: Forward-looking Statements and Associated Risk Factors
New York Community Bancorp, Inc. Page 2 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
Slide 3: We rank among the top bank holding companies in the U.S.
New York Community Bancorp, Inc. Page 3 We rank among the top 25 bank holding companies in the U.S. (a) SNL Financial as of 7/29/10 With assets of $42.0 billion at 6/30/10, we are the 23rd largest bank holding company in the nation. (a) With deposits of $22.4 billion at 6/30/10 and branches in Metro
Slide 4: We have a consistent business model that focuses on building value
New York Community Bancorp, Inc. Page 4 We have a consistent business model that focuses on building value while building the Company. Our total return to shareholders increased at a CAGR of 33.8% from 11/23/93 to 7/29/10. Multi-family Lending Strong Credit Standards/ Superior Asset Quality Efficien
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Slide 6: 2nd Quarter 2010 Performance Highlights
2nd Quarter 2010 Performance Highlights * * * * * * * * * * * * * * * *
Slide 7: Our 2Q 2010 performance reflects the merits of our business model
New York Community Bancorp, Inc. Page 6 Our 2Q 2010 performance reflects the merits of our business model. (a) Please see page 36 for a reconciliation of our GAAP and operating earnings. (b) Please see page 34 for a reconciliation of our GAAP and operating efficiency ratios. (dollars in thousands, e
Slide 8: Our balance sheet was also enhanced in 2Q 2010
New York Community Bancorp, Inc. Page 7 Our balance sheet was also enhanced in 2Q 2010.
Slide 9: Our asset quality measures continued to compare favorably with industry
New York Community Bancorp, Inc. Page 8 Our asset quality measures continued to compare favorably with those of our industry as a whole . (a) SNL Financial as of 7/29/10 (b) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest. (c) Non-
Slide 10: Our capital strength reflects the growth of our earnings
New York Community Bancorp, Inc. Page 9 Our capital strength reflects the growth of our earnings and our ability to access the capital markets. Our dividend has been a significant component of our total return to shareholders since our first year of public life. In July 2010, we declared our 26th co
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Slide 12: Our Business Model: Growth through Acquisitions
Our Business Model: Growth through Acquisitions * * * * * * * * * * * * * * * *
Slide 13: We have completed acquisitions since 2000
New York Community Bancorp, Inc. Page 11 We have completed 10 acquisitions since 2000. Note: The number of branches indicated reflects the number of branches in our current franchise that stemmed from each transaction. Transaction Type: Savings Bank Commercial Bank Branch FDIC
Slide 14: We rank among the top 25 financial institutions in the nation
New York Community Bancorp, Inc. Page 12 As a result of our acquisitions, we rank among the top 25 financial institutions in the nation. DEPOSITS ASSETS MARKET CAPITALIZATION (in thousands) Rank Company Total Deposits Bank of America Corporation $974,467,000 JPMorgan Chase & Co. 887,805,000 Wells Fa
Slide 15: We currently have 278 locations in five states
New York Community Bancorp, Inc. Page 13 Largely reflecting our acquisition strategy, we currently have 278 locations in five states. Metro New York 158 Branches Ohio 29 Branches New Jersey 52 Branches Florida 25 Branches Arizona 14 Branches
Slide 16: FDIC-assisted transactions have enhanced our franchise and earnings capacity
New York Community Bancorp, Inc. Page 14 FDIC-assisted transactions have enhanced our franchise, our balance sheet, and our earnings capacity. AmTrust Bank Desert Hills Bank Franchise Expansion: Added 29 branches in Ohio, 25 in Florida, and 11 in Arizona Added three more branches to our franchise in
Slide 17: We have a meaningful share of deposits in several markets
New York Community Bancorp, Inc. Page 15 We have a meaningful share of deposits in several of the markets we serve. (a) (a) SNL Financial
Slide 18: Our deposit growth has been largely acquisition-driven
New York Community Bancorp, Inc. Page 16 Deposits Our deposit growth has been largely acquisition- driven. Total deposits: 33.4% CAGR Core deposits: 39.2% CAGR Demand deposits: 43.0% CAGR (in millions) CDs NOW, MMAs, and Savings Demand deposits Total Deposits: $12,168 $12,694 $13,236 $14,376 $22,316
Slide 19: Loans Outstanding
New York Community Bancorp, Inc. Page 17 Loans Outstanding While acquisitions have contributed to the growth of our loan portfolio, the bulk of our loan growth has been organic. (in millions) Non-Covered Loan Portfolio Multi-family CRE All Other Loans (includes loans held for sale) Covered Loan Port
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Slide 21: Our Business Model: Multi-family Loan Production
Our Business Model: Multi-family Loan Production * * * * * * * * * * * * * * * *
Slide 22: Multi-family Loan Portfolio
New York Community Bancorp, Inc. Page 19 Multi-family Loan Portfolio Multi-family loans have grown at a CAGR of 27.2% since 12/31/99. (in millions)
Slide 23: Commercial Real Estate Loan Portfolio
New York Community Bancorp, Inc. Page 20 Commercial Real Estate Loan Portfolio Our commercial real estate loans feature the same structure as our multi-family loans. (in millions)
Slide 24: Mortgage Banking Production
New York Community Bancorp, Inc. Page 21 Mortgage Banking Production As a result of our acquisition of AmTrust’s mortgage banking operation, we have become a leading aggregator of Fannie Mae/Freddie Mac conforming one- to four-family residential loans. (in millions) 1H 2010 Total: $3.44 billion
Slide 25: Covered loans under FDIC loss sharing agreements
New York Community Bancorp, Inc. Page 22 All of the loans acquired in the AmTrust and Desert Hills acquisitions are covered by loss sharing agreements with the FDIC. Covered Loans 6/30/10 (in millions) Total covered loans: $4.6 billion 1-4 Family $4,153.0 Other Loans $473.6 (a) Includes covered OREO
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Slide 27: Our Business Model: Asset Quality
Our Business Model: Asset Quality * * * * * * * * * * * * * * * *
Slide 28: Net Charge-offs / Average Loans
New York Community Bancorp, Inc. Page 24 Net Charge-offs / Average Loans Both historically and currently, we have been distinguished by our low level of net charge-offs. NYB Net Charge-offs: $22,000 $222,000 $458,000 $6.1 million $431,000 $29.9 million NYB SNL Bank and Thrift Index (a) (a) SNL Finan
Slide 29: Non-performing Loans / Total Loans
New York Community Bancorp, Inc. Page 25 The quality of our loan portfolio continues to exceed that of our industry, as it has in the past. Non-performing Loans / Total Loans (a) (a) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest.
Slide 30: Net Charge-offs / Average Loan Loss Allowance
New York Community Bancorp, Inc. Page 26 Net Charge-offs / Average Loan Loss Allowance As in the past, our charge-offs represent a smaller percentage of our loan loss allowance compared to our industry peers. (a) SNL Financial as of 7/29/10 Last Credit Cycle Current Credit Cycle NYB SNL Bank and Thr
Slide 31: Few non-performing loans have resulted in charge-offs
New York Community Bancorp, Inc. Page 27 Historically and currently, few of our non-performing loans have resulted in charge-offs. At or for the 12 Months Ended December 31, At or for the 3 Months Ended Last Credit Cycle Current Credit Cycle 1990 1991 1992 2007 2008 2009 6/30/2010 NPLs / Total Loans
Slide 32: Asset quality reflects our multi-family niche and underwriting standards
New York Community Bancorp, Inc. Page 28 The quality of our assets reflects the nature of our multi-family lending niche and our strong underwriting standards.
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Slide 34: Our Business Model: Efficiency
Our Business Model: Efficiency * * * * * * * * * * * * * * * *
Slide 35: Our operating efficiency ratio was 36.56% in 2Q 2010
New York Community Bancorp, Inc. Page 30 Our operating efficiency ratio was 36.56% (a) in 2Q 2010, well below the SNL Bank and Thrift Index efficiency ratio of 59.75%. (b) (a) Please see pages 34 and 35 for a reconciliation of our GAAP and operating efficiency ratios. (b) SNL Financial as of 7/29/10
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Slide 37: Total Return on Investment
Total Return on Investment * * * * * * * * * * * * * * * *
Slide 38: We are committed to building value for our investors
New York Community Bancorp, Inc. Page 32 Total Return on Investment We are committed to building value for our investors. NYB (b) CAGR since IPO = 33.8% (a) SNL Financial (b) Bloomberg As a result of nine stock splits in a span of 10 years, our charter shareholders have 2,700 shares of NYB stock for
Slide 39: For More Information
New York Community Bancorp, Inc. Page 33 For More Information 8/3/2010
Slide 40: Reconciliation of GAAP and Operating Efficiency Ratios
New York Community Bancorp, Inc. Page 34 Reconciliation of GAAP and Operating Efficiency Ratios For the Three Months Ended June 30, 2010 March 31, 2010 June 30, 2009 (dollars in thousands) GAAP Operating GAAP Operating GAAP Operating Total net interest income and non-interest income $374,614 $374,61
Slide 41: Reconciliation of GAAP and Operating Efficiency Ratios
New York Community Bancorp, Inc. Page 35 Reconciliation 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, 2005, 2006, 2007, 2008, and 2009. For the Years Ended December 31, 2009
Slide 42: Reconciliation of GAAP and Operating Earnings
New York Community Bancorp, Inc. Page 36 Reconciliation of GAAP and Operating Earnings The following table presents reconciliations of the Company’s GAAP and operating earnings for the three months ended June 30, 2010, March 31, 2010, and June 30, 2009: For the Three Months Ended June 30, March 31,
Slide 43: Reconciliation of GAAP and Non-GAAP Capital Measures
New York Community Bancorp, Inc. Page 37 Reconciliation of GAAP and Non-GAAP Capital Measures June 30, March 31, June 30, (dollars in thousands) 2010 2010 2009 Total stockholders’ equity $ 5,446,434 $ 5,413,461 $ 4,210,666 Less: Goodwill (2,436,327) (2,436,401) (2,436,401) Core deposit intangibles (
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