Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Lehman Brothers Second Quarter 2004 Financial Services Conference
32 slides from Flagstar Bank, N.a's conference presentation, Sep 13, 2004
Slide 1: Lehman Brothers Second Quarter 2004 Financial Services Conference Investor Presentation
Exhibit 99.1 Exhibit Quarter Second Lehman Financial 99.1 Brothers Services 2004 Conference Investor Presentation September 13 - 15, 2004
Slide 2: Forward-looking Statements
This in performance such statement Forward-looking “believe,” recent Factors deposit composition Government, technological time Readers forward-looking 2 presentation, forward-looking deleveraging the flows, that are for “expect,” Company’s cautioned could of and purposes including factors loan the
Slide 3: Investment Features
Investment We Exceptional Solid A The 3 leading great highly record have capacity funding lending aof efficient financial successful Features successful asset tosources grow niche quality operation institution earnings business merger in transactions and model thecapital Metro built on NewourYork fu
Slide 4: Market Leader within the New York Metro Region
Market We The Ranked (a) (b) 4 SNL NY are second leading ametro Leader within DataSource leading largest producer supermarket region thelender, top thrift includes of 3% depository, multi-family depository banking of U.S. Queens, franchise thrifts in and loans the Kings, revenue generating New in Ri
Slide 5: Our Niche: Multi-family Loans
Multi-family Our Niche: 5-year Pre-payment L Approximately No 5 oan losses primary structure fixed Rent-controlled in /2lending penalties: Loans: 5-year decades enhances 86% of Key adjustable niche and 5-4-3-2-1 loans term Features is-stabilized highly refinance yields rates points profitable, build
Slide 6: Multi-family Loan Portfolio Key Statistics
Weof (in Multi-family 12/31/00 339% 12/31/01 12/31/02 12/31/03 6/30/04 At Average Expected 1H % 6 6/30/04 millions) 2004 are total the $8,536 principal loan-to-value: originations: $1,946 $3,255 $4,494 $7,369 weighted loans: leading Loans: Loan71.9% balance: producer Portfolio average Key $2.2 59.0%
Slide 7: Our Borrower Refinancing Cycle: Multi-family Lending
Multi-family Our Borrower Rent NYB 7 unique Roll Originates Refinances Uses / Income refinancing Lending: Funds Multi-Family Loan Stream toThe Based cycle Improve Increases Refinancing has on Loan Higher supported theBased over Property Cycle Income the on theShort Income growth Stream, Term Stream
Slide 8: Our Niche: Commercial Real Estate Loans
Commercial Our Office Niche: National 5-year Pre-payment Conservative No 8 losses CREand fixed credit loans inmixed-use /more Real penalties: credit 5-year retail areEstate than made review adjustable shopping buildings a5-4-3-2-1 Loans: decade in accordance centers rates in Key points NYCFeatures o
Slide 9: Commercial Real Estate Loan Portfolio Key Statistics
Ourof (in Commercial 12/31/00 474% 12/31/01 12/31/02 12/31/03 6/30/04 At Average Expected 1H % 9 6/30/04 millions) 2004 commercial total $1,859 principal loan-to-value: originations: $324 $562 $533 $1,445 weighted loans: Realreal 15.7% Estate balance: average estate $569 57.7% Loans: Loan $1.7 portf
Slide 10: Construction Loans
Construction We Niche: Floating Bulk No 10 losses lend ofResidential proceeds to rate in9 more of tied Loans: the to distributed than unit top various Key 10 asubdivisions decade Features developers economic upon completion on on indices Long LongIsland of Island. units with a signed contract of sal
Slide 11: Construction Loan Portfolio Key Statistics
Ourof (in Construction 12/31/00 1,176% 12/31/01 12/31/02 12/31/03 6/30/04 At Average Term: 1H % 11 6/30/04 millions) 2004 asset total 18-24 $753 principal loan-to-value: originations: $59 $152 $117 $644 mix loans: months Loans: Loan has6.3% balance: been Portfolio Key $260 52.0% enhanced Statistics
Slide 12: 1-4 Family Loans
1-4 loans The Extensive All Loans Provides 12 Family way sold we other originated menu to Loans: lend the income ofhas conduit Key fixed- byboosted with aFeatures third-party within and noour adjustable-rate credit 10 revenues days conduit riskof & closing, loans efficiency, offered service-released
Slide 13: 1-4 Family Loan Portfolio Key Statistics
Theof (in 1-4 12/31/00 53% 12/31/01 12/31/02 12/31/03 6/30/04 At Average Expected 1H % 13 6/30/04 millions) 2004 Family 1-4 total $594 family principal loan-to-value: originations: $1,267 $1,318 $266 $731 weighted loans: Loans: Loanloan 5.0% Portfolio balance: Key average portfolio $88 38.0% Statist
Slide 14: Loan Production
Loan We (in 1H Multi-family Commercial Construction 1-4 Other Total 14 millions) 2004 are Family Loan Production Loans 38currently Loan Originations Loans 88Real real Loans $2,213 260 Originations: projecting estate Estate569 $3,168 Loans 25% net loan growth in 2004.
Slide 15: Asset Quality
Asset Our 39 NPLs NPAs Excluding No Allowance 15 consecutive losses loan Quality: = 0.19% 0.14% portfolio on an forresidential local-market $11.0 loan Key of quarters loans, total isStatistics losses million structured assets without unit net, = multi-family loan 348.62% subdivision atat6/30/04 to 6
Slide 16: Funding: Deposits Key Statistics
Funding: We (in 12/31/00 347% 12/31/01 12/31/02 12/31/03 6/30/04 (a) Core Average Number Market Nassau Queens Richmond 16 Queens, millions) are Deposits deposits the share County: County: $6,177 of deposits $1,383 $3,043 $3,307 $5,967 Key County: second account Kings, in = Statistics core 62% #2 #2
Slide 17: Funding: Transitioning from Wholesale to Retail
Funding: We (in 6/30/04 Wholesale 2Q Reduced 3Q Established Initiated Brought Introduced 17 millions) 2004 are transitioning $9,924 deposit gift incentive-based wholesale Growth Borrowings new regional campaign $10,016 checking rates Strategy borrowings from manager inDeposits line campaign /asaving
Slide 18: Funding: Our Market Footprint and Branch Network
Funding: Our Market Division Traditional In-store Queens Total Long Staten Brooklyn Westchester Hudson Essex 87 (a) (b) 18 52 Includes footprint Island 142 & Island Served 25 Branches County, Union Our 48Branches 5one a33 & 33 17 9has Branch customer Other 27 Counties, traditional 5NJ expanded 23(b)
Slide 19: Funding: Cash Flows from Securities
Funding: Cash (in 1H Interest Flat + 19200 millions) 2004 $1,931 flows bpRate Projected $1,931 Cash from $950 Scenario: Flows $800 securities $1,330 2H $950 2004will Projected be redeployed 2005 into loan production in 1H 2004 & 2005.
Slide 20: Efficiency
Efficiency 2000 U.S. (a) (c) Sources Emphasis Above-average Franchise Cost-effective Hub Profitable 20 SNL Excludes & Thrifts 2001 spoke of industry expansion on third-party is Ratio Efficiency 2002 (a) amulti-family approach de $157.2 key 65.72% deposits 2003 data. novo component through alliances
Slide 21: Successful Merger Transactions
Successful We Merger Acquired Merged Mergers Features: Systems Immediately Post-merger 21 haveTransactions: with completed integrated aHaven solid Merger balance accretive Richmond Roslyn record Bancorp Transactions: within within sheet Bancorp to ofCounty earnings (HAVN) successful 3restructuring 4
Slide 22: Earnings Capacity: Historical Performance
Earnings From (in 1998 1,087% 1999 2000 2001 2002 2003 92% 1H (a) (b) Please 22 Please thousands) Excludes 2003 2004(b) $26,944 $30,164 $31,822 $121,312 $229,230 $319,695 1998 see$139,120 Capacity: see reconciliation to $267,657 an reconciliation 2003, after-tax Historical the Company to repositioni
Slide 23: Earnings Capacity: Profitability Measures and Outlook
Excluding (dollars Earnings Repositioning Other Non-interest Income Net Additional Profitability Diluted ROA ROE Efficiency Cash (a) (c) 23 Assumes Excludes interest income 16.63 earnings ROA ROE efficiency 2.04% operating tax EPS Cash inExcluding Capacity: thousands) the ratio 19.04 contributions 2
Slide 24: Appendix
Appendix
Slide 25: Assets at 6/30/04
We millions) Assets (in Available-for-Sale Held-to-Maturity Multi-family Loans: Commercial Construction 1-4 Available-for-sale Securities: Held-to-maturity Total 25 have Family Assets Loans Securities better &$11,877 at Real real Loans $8,536 753 Other 6/30/04 positioned $8,464 estate 4,530 Securiti
Slide 26: Investment Securities
Investment (dollars Debt Mortgage-backed At Carrying Total 26 June & available held Equity in 30, Value to millions) Securities 2004 maturity Securities for Estimated & and sale -related $4,530 -related $3,934 Available Held Book Securities 5.46% securities Securities 4.55% toYield Maturity for Sale
Slide 27: Available-for-Sale Securities
Available-for-Sale The (dollars At Carrying Available-for-sale Mortgage-backed Private Agency Total 27 June estimated available-for-sale label in 30, CMOs Value thousands) 2004 CMOs average 641,591 Estimated securities mortgage-backed Securities 1,299,158 life mortgage-backed 4.29 Book of$1,660,003
Slide 28: Core Deposits
Deposits (in Core NOW Deposits: Savings CDs Non-interest-bearing Total 28 millions) 3,839 deposits Deposits &2,846 MMArepresented $10,016 $2,594 737 62% of total deposits at 6/30/04.
Slide 29: Interest Rate Risk Profile
WeJune At Interest 1-year 3-year 5-year Net +200 -200 (a) 29 In have Interest basis basis addition Gap: Rate 30, significantly points points 2004 Income 0.20% 6.40% 18.15% Risk Sensitivity to aover over Profile flattening Simulation improved 12 12Gap: months: months: yield (a): our 0.03 (2.44)% curv
Slide 30: Reconciliation of GAAP Earnings to Core Earnings
Reconciliation for 2003 Gain Curtailment Early Merger-related Total Core The For Six June (in Adjustments Repositioning Income Net Basic Diluted 30 thousands, 1998 Months the income following 30, on earnings 2001 adjustments retirement core earnings Years tax core earnings sales 2004 orearnings 2000
Slide 31: Reconciliation of GAAP Earnings to Cash Earnings
Reconciliation The 2004 For Six June (in Additional Associated Dividends Amortization Total Adjustments Net Income Cash Basic Diluted 31 thousands, Months the income loss following 30, repositioning earnings additional cash tax cash on 2004 on earnings contributions tax benefit sales $172,778 Ended
Slide 32: For More Information
For More The Log E-mail Call Write 615 Westbury, 32 9/13/04 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”.