Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2004 Earnings Presentation
30 slides from Flagstar Bank, N.a's earnings presentation, May 10, 2004
Slide 1: First Quarter 2004 Investor Presentation: Strategies & Strengths
Exhibit 99.1 Exhibit STRATEGIES First Investor Quarter 99.1 Presentation 2004 & STRENGTHS
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: Strengths: We are a leading thrift franchise in the New York metro region
Strengths: We The Ranked (a) (b) (c) 4 SNL Singer’s NY are second leading ametro within DataSource leading Market largest Annuity producer supermarket region thelender, Leader top thrift and includes of 3% depository, multi-family depository Funds banking of U.S. Queens, Report franchise thrifts in
Slide 5: Strengths: Top-performing thrift and financial performance leader
Strengths: We 10-Year #12 5-Year #1 Financial Top-performing Efficiency 3rd (a) (b) (c) 5 among American Wall ThriftINVESTOR, lead most among Total Total Street the efficient Performance all Industry (c) all industry Return publicly Banker, Return public Journal, large bank Leader (a) in (a) compani
Slide 6: Strength: With $26.5 billion in assets, we are the 4th largest thrift
Strength: With (dollars At Linked- 3/31/04 Total Multi-family Core Stockholders’ Tangible equity (a) (b) 6 Quarter Annualized Excludes deposits assets loans 1.4 in Increase stockholders’ Balance 101.4 billions) 5-Year 10.9 of $$130 loans 26.5 6.1 equity $26.5 growth 20.0(a)(b) 56.6 CAGR 2.9 Sheet 10
Slide 7: Strength: We have been ranked the nation's top-performing large thrift
Strength: We (in Y-O-Y 1Q Net Other Earnings Cash Diluted (a) (b) 7 May millions, Please 2004 have Interest Earnings Operating 5-Year EPS Cash 2003 been Increase 130.0 Income see Income except 0.48 EPS ThriftINVESTOR reconciliation ranked 10-Year (b) 93.0 Income Statement 29.7 CAGR 160.6 (b) per $73
Slide 8: Strategies: We focus on multi-family lending
Strategies: We Rent-controlled Strategy 5-year Pre-payment Average Expected Produces Results Is Reduces Enhances Increases 8 more have fixed efficient resilient loan LTV interest credit ahigher earnings weighted asset profitable, Multi-family /penalties: at 5-year ratio risk quality 3/31/04: /term a
Slide 9: Strength: We are the leading producer of multi-family loans in New York City
Strength: We (in Loan Multi-family 1993 Total 9 millions) are 1998 $Originations the 196Multi-family 1999 leading $ Loan 4872000 $producer Originations 677 2001 Lending $ 616 2002 of$multi-family Niche All 1,150 2003 Other $1Q 2,560 Loan ‘03 loans $1Q Originations 4,330 for ‘04 portfolio $ 771 $ 1,0
Slide 10: Strength: The multi-family loan portfolio is expected to grow
Strength: The (in Loans Multi-family 12/31/93 (a) 10 Excludes millions) multi-family Outstanding 12/31/99 Multi-family net Loans deferred loan 12/31/00 (a) Outstanding portfolio Lending loan 12/31/01 origination is Niche All expected Other 12/31/02 fees Loans to grow and 12/31/03 Outstanding costs.
Slide 11: Strategies: We emphasize service and convenience
Strategies: We Hours: Products Multiple Easy Over Technology: 11 emphasize access: 400 Weekend, service & licensed Community services: State-of-the-art Walk-up convenience channels: extended retail Awindows, full-service Banking personnel Traditional evening, and ATMs exceptional drive-up in menu an
Slide 12: Our Market
Strength: Our Market Division Served Queens Long Staten Brooklyn Westchester Hudson Essex 87 (a) Bronx. 12 52 Includes structure Island 141(b) & Island Branches Traditional 25 County, Union Community 485one 33 &33 17 9recognizes Other 27 Counties, traditional 5NJ Branches 23(b) 61(a) In-store 4NYC -
Slide 13: Strategies: Earnings Emphasize Low-Cost Deposit Mix
Strategies: Earnings Emphasize Strategy Offer Run Reduces Results Provides Discourages Enhances Generates Increases 13 off alternative higher funding cross-selling growth earnings net fee Deposit core hot interest income cost deposits money investment has costs Mix CDs been income opportunities depo
Slide 14: Strength: We are the second largest thrift depository in our market
Strength: We (in Deposit Core Total 104.3% 14 billions) are Deposits Deposits: the 101.7% Mix Deposit second CDs $0.8 108.9% Mix largest $1.1 $1.1 thrift$3.3 depository $5.4 $5.3 in our $10.3 market. $10.0 Core / Total Deposits: 56.5% 34.4% 38.8% 42.5% 55.8% 62.9% 57.8% 61.2% Loans / Total Deposits:
Slide 15: Strategies: Our risk-averse strategic mix of assets and liabilities
Strategies: Our Strategy NYC Redeploy into Originate loans Emphasize Offer Run products Results Reduces Contains Enhances Increases 15 risk-averse loans off on third-party higher aLong interest credit extension expenses earnings subdivision 1-4 consistency liquidity conduit Risk multi-family core fa
Slide 16: Strength: Our Risk Management has shielded our margin from rate volatility
Strength: Our 5-year 3-month NYB 12/31/99 3.79% 16 balance net U.S. 3.33% LIBOR 12/31/00 interest Risk Treasury sheet 3.59% Management 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 NIMfr
Slide 17: Strength: The quality of our assets reflects our underwriting standards
Strength: NPAs The Acquired No 17 net losses quality allowance tocharge-offs total Risk lenders onofany assets our Management 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
Slide 18: Strategies: Efficiency Emphasis
Strategies: Efficiency Emphasis Strategy Above-average Franchise Cost-effective Hub Profitable Results Reduces Increases (a) 18 Excludes & spoke compensation general occupancy fee earnings expansion on third-party is Cost three amulti-family and approach de key deposits Containment and novo other re
Slide 19: Strength: Our Efficiency Ratio
Strength: Our Efficiency U.S. Top NYB (a) (b) 19 Core 1Q 100 1Q Thrifts 30.50%(a) ‘04 ‘04 Thrifts efficiency Efficiency Ratio industry efficiency 65.21% 57.01% 25.32% ratio; data 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 20: Strategies: We have completed accretive merger transactions
Strategies: We Acquired Strategy Merged Expanded Results Improved Increased 20 havewith aHaven deposit interest-earning low-cost earnings loan the solid Accretive Richmond Roslyn franchise / record deposit Bancorp share funding Bancorp Merger ofratio County (HAVN) accretive assets Transactions (RSLN
Slide 21: Strength: Our franchise has grown through accretive merger transactions
Strength: Our (dollars w 12/31/99 No. Loan Core Total Market Price Diluted (a) (b)/ Diluted Full-year HAVN of franchise, deposits assets /per branches deposit cap EPS in12/31/00 share Accretive billions, w core $0.57 $1.9 $0.42 Company /$0.4 value, ratio RCBK $6.79 EPS; 14 $4.7 $1.1 12/31/01 $1.4 $0
Slide 22: Strategies: Structuring the post-RSLN balance sheet
Strategies: We Structuring Strategy cash production rate Producing Increasing originations reducing Replacing CDs reverse favorable Sold 1Q Results Reduces Enhances Increases 22 ‘04 are environment flows $130 in repos interest credit extension concentration earnings rates the net FHLB mn acore Balan
Slide 23: Strength: We actively manage our capital
Strength: We 9 11.3 5 90-fold $600 Approximately 23stock million-share actively million million splits increase Capital manage shares shelf in $400 $483 repurchases 10 inManagement registration quarterly years, repurchased our million capital. including authorized cash offiled generated regulatory i
Slide 24: Strength: The Company has a solid record of earnings growth
Strength: The Diluted $0.42 $0.121993 $0.47(a) $0.76(a) $1.25 $1.63(a) $2.17 5-YR (a) (b) 24 Diluted Company Company CAGR: 1999 2002 -$2.20(b) EPS 2000 2001 2003 Performance core Growth estimates. 40% has 2004 EPS; a11-YR solid please record CAGR: see reconciliation of 30% earnings growth. to dilute
Slide 25: Strength: From 11/23/93 to 3/31/04, share value appreciated
Strength: From (dollars Market Price Annual 55%74% $105$0.93 $632 $570 $1,087 $2,329 $3,052 $7,325 $9,286 25 $7.44 $6.79 per 11/23/93 $9.19 $12.86 $16.25 $28.5412/31/03 $34.283/31/042.9% Capitalization yield inshare 5-YR Share millions, 11/23/93 12/31/98 12/31/99 produced 12/31/00 12/31/01 12/31/02
Slide 26: Strength: Each merger transaction has provided an opportunity for value creation
Strength: Each Increase HAVN RCBK RSLN (a) share 26 Compares of dividend June March June our inTotal Date 27, merger 27, NYB’s 27, to Returns 2003 2000 ofthe 2001 Merger transactions acquiree’s 68 closing 776% 278 61 Total 278 1,287% price pre-merger has Return ofprovided $34.28 Quarterly dividend.
Slide 27: Strength: Total returns since IPO
Strength: From Price Annual Total 65%46% CAGR 28% 770% 718% 1,057% 1,600% 2,051% 3,794% 4,609% 27 $0.93 return Returns per 11/23/93 $7.44 $6.79 since yield $9.19 $12.8612/31/01 $16.2512/31/02 $28.5412/31/03 $34.283/31/042.9% share Total 5-YR 11/23/93 from 12/31/98 12/31/99 IPO: produced 12/31/00 to
Slide 28: Reconciliation Appendix
Reconciliation Appendix 1. earnings GAAP For March 2004 (in Net Add Associated Dividends Amortization Total Cash Basic Diluted 2. property Bank 28 The On thousands, the income back: 2003 earnings additional Division cash aCompany 31, earnings Three reported cash from per March on earnings tax $share
Slide 29: Reconciliation Appendix
Reconciliation Appendix 3. on net $22.8 amount in For 2003 (in Net Income (17,190) $0.89 29 As an the thousands, gain the income after-tax 2002 calculated million, $0.42 sale Years tax includes of —2001 $3.7 of expense $323,371 24,300 Diluted Ended the net except recorded ofmillion, in 2000 aCompany
Slide 30: For More Information
For More The Log 615 30 Merrick Company onto our Information: Avenue web trades site: Westbury, onwww.myNYCB.com the NYSE NY under 11590theE-mail symbolrequests “NYB”.to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc.
New York Community Bancorp — Q1 2004 Earnings Presentation on 6ix