Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2006 Earnings Presentation
23 slides from Flagstar Bank, N.a's earnings presentation, May 4, 2006
Slide 1: First Quarter 2006 Investor Presentation
EXHIBIT 99.1 First Quarter 2006 Investor Presentation
Slide 2: Forward-looking Statements and Associated Risk Factors
Forward-looking Statements and Associated Risk Factors This presentation, like other written and oral communications presented by the Company and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section
Slide 3: We are a leading financial institution in the competitive New York metropolitan region
We are a leading financial institution in the competitive New York metropolitan region. With total assets of $29.8 billion at 3/31/06 (a): We operate the fifth largest thrift in the nation and the largest in New York State. (b) With multi-family loans totaling $14.2 billion at 3/31/06 (a): We are th
Slide 4: Our structure has enabled us to build on strong reputations of our merger partners
Our structure has enabled us to build on the strong reputations that were established by our largest merger partners over the course of many decades. 4
Slide 5: We serve 600,000 customers through 2 subsidiaries, 8 divisions, and 166 locations
We serve 600,000 customers through 2 subsidiaries, 8 divisions, and 166 in locations New York City, Long Island, Westchester County, and northern New Jersey. 5
Slide 6: We compete by providing convenience, service, and selection
Wecompetebyprovidingourcustomers withconvenience, service,andselection, andby maintaining a strongpresencein thecommunities weserve. Convenience 24-Hour Service 96% of thrift deposits have branch On-line banking access 68 or more hours per week Bank-by-phone 28% of thrift deposits have branch Premie
Slide 7: The foundation for our success is a consistent business model
The foundation for our success is a consistent business model that has on building value while, at the same time, building the focused bank. The origination of multi-family loans on rent-regulated buildings: - $17.0 billion of multi-family loans originated in the current decade, including $4.7 billi
Slide 8: Multi-family loans have grown at a CAGR of 45.3% since 12/31/00
Multi-family loans have grown at a CAGR of 45.3% since 12/31/00. (in millions) (a) Multi-family Loan Portfolio At 3/31/06 $13,849 % of total loans: 76.3% $12,854 Average principal balance: $3.7 million $9,839 $7,368 Average loan-to-value ratio: 64.0% $4,494 Expected weighted average life: 3.6 years
Slide 9: Our multi-family lending niche is highly profitable, efficient, and resilient
Our multi-family lending niche is highly profitable, efficient, and resilient. Niche: Primarily rent-controlled and -stabilized buildings in NYC Borrowers: Long-term property owners with a history of building cash flows, often on buildings that have been in their families for multiple generations Te
Slide 10: We have a consistent record of solid asset quality
We have a consistent record of solid asset quality. Non-performing Assets / Total Assets 0.52% 0.43% 0.37% 0.32% 0.22% 0.21% 0.15% 0.12% 0.11% 0.10% 12/31/03 12/31/04 12/31/05 3/31/06 U.S. Thrifts (a) N.Y. State Thrifts (a) NYB (a) SNL DataSource 10
Slide 11: We consistently rank among the most efficient bank holding companies
We consistently rank among the most efficient bank holding companies in the nation. Efficiency Ratio 63.98% 65.62% 62.41% 57.02% 56.58% 56.47% 34.12%(a) (a) 28.86% (a) 23.59% 21.46% (a) 2003 2004 2005 1Q 2006 U.S. Thrifts (b) N.Y. State Thrifts (b) NYB (a) Operating efficiency ratio. Please see page
Slide 12: Our efficiency has been driven by lending approach, branch expansion, and product development
Our efficiency has been driven by our approach to lending, branch expansion, and product development. Multi-family and commercial real estate lending are both broker-driven. One-to-four family loans are originated on a pass-through basis and sold shortly after closing, servicing-released. Franchise
Slide 13: Acquisitions have contributed to our loan growth over the past six years
Acquisitions have contributed to our loan growth over the past six years… (in millions) Loans Outstanding (a) w/ ABNY w/ LICB Multi-family loans: 45.8% CAGR $5,184 $4,294 Total loans: 48.9% CAGR $4,175 Multi-family Loans Outstanding All Other Loans Outstanding w/ RSLN $3,557 $3,131 $13,849 $14,204 w
Slide 14: ...and have significantly bolstered our deposit growth
…and have significantly bolstered our deposit growth. w/ ABNY $1,358 (in millions) Deposits w/ LICB $846 $860 w/ RSLN $720 $739 Total deposits: 51.0% CAGR $7,009 Core deposits: 61.5% CAGR Demand deposits: 75.8% CAGR $6,012 $6,042 $5,247 CDs $5,911 w/ RCBK NOW, MMAs, and Savings $455 $465 Demand depo
Slide 15: Our two most recent acquisitions complement our savings bank with a commercial bank
With our two most recent acquisitions, we have complemented our traditional savings bank franchise with a well-established commercial bank subsidiary. New York Community Bancorp, Inc. New York Community Bank New York Commercial Bank Checking / Savings Checking / Savings Money Market Accounts Busines
Slide 16: The Atlantic Bank acquisition will enhance our mix of assets and liabilities
The Atlantic Bank acquisition will enhance our mix of assets and liabilities. New York Atlantic Bank Community Bancorp of New York Combined, (in millions) 3/31/06 3/31/06 Pre-restructuring (a) Assets $27,137 $2,648 $29,785 Total loans 18,143 1,245 19,388 Total securities 5,397 1,203 6,600 Total depo
Slide 17: The Atlantic Bank acquisition will contribute to stabilization of our net interest margin
The Atlantic Bank acquisition will contribute to the stabilization of our net interest margin. Core deposits represented 80% of ABNY’s total deposits at 3/31/06. 27% of ABNY’s total deposits consisted of non-interest-bearing accounts. ABNY’s low-cost retail deposits will replace some of our high-cos
Slide 18: Several other factors will contribute to enhancement of our net interest margin in 2006
Several other factors will contribute to the enhancement of ourin 2006. net interest margin The acquisition of LICB: - Added $347 million of low-cost core deposits, including $100 million of non- interest-bearing accounts on 12/30/05 The restructuring of our wholesale borrowings: - Extended approxim
Slide 19: We have taken steps to enhance our interest rate risk profile
We have also taken steps to enhance our interest rate risk profile by deploying the cash flows from securities into loans. (in millions) $18,143 $17,029 $13,396 Loans $12,119 $10,919 Securities $7,081 $5,637 $5,397 % of Total Assets: 41.2% 45.7% 55.7% 29.5% 64.8% 21.4% 66.9% 19.9% 3/31/04 12/31/04 1
Slide 20: We are committed to building value by building our business in 2006
We are committed to building value by building our business 2006. in We are focused on: Enhancing our asset mix by originating commercial loans to small and mid-size businesses in our market, while growing our multi-family, construction, and commercial loan portfolios Maintaining the quality of our
Slide 21: We welcome your investment in our business and our future
We welcome your investment in our business and our future. We are a leading financial institution in the competitive New York metro region. We have a solid share of deposits and an attractive lending niche. We have an outstanding record of asset quality and a highly efficient operation. We have a de
Slide 22: 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 5/4/2006 22
Slide 23: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures The following table presents a reconciliation of the Company’s GAAP and operating efficiency ratios for the years ended December 31, 2003, 2004, and 2005 and for the three months ended March 31, 2006: For the Three Months Ended March 31, For the Years End
New York Community Bancorp — Q1 2006 Earnings Presentation on 6ix