Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2015 Earnings Presentation
35 slides from Flagstar Bank, N.a's earnings presentation, May 4, 2015
Slide 1: First Quarter 2015 Investor Presentation
Exhibit 99.1 First Quarter 2015 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements and Associated Risk Factors Certain statements in this presentation, like those made in our other written and oral communications, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such f
Slide 3: We are one of the top 25 U.S. bank holding companies.
We are one of the top 25 U.S. bank holding companies. Multi-Family Total Return Assets Deposits Market Cap Loans on Investment $48.3 billion $28.9 billion $23.5 billion $7.4 billion 4,593% With assets of With deposits of With a portfolio of With a market cap From 11/23/93 $48.3 billionat $28.9billio
Slide 4: 1Q 2015 Performance Highlights
1Q 2015 Performance Highlights
Slide 5: We generated solid earnings in 1Q 2015.
We generated solid earnings in 1Q 2015. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS 1Q 2015 GAAP Earnings Cash Earnings (a) Strong Profitability Measures: Earnings $119,259 $129,004 EPS $0.27 $0.29 Return on average tangible assets (b) 1.04% 1.11% Return on average tangible
Slide 6: Our balance sheet measures reflect stability and strength.
Our balance sheet measures reflect stability and strength. Balance Sheet Asset Quality 3/31/15 At or for the Three Months Ended 3/31/15 Total loans / total assets 74.0% Non-performing loans (a) / total loans (a) 0.19% Securities / total assets 14.4% Non-performing assets (b) / total assets (b) 0.29%
Slide 7: Strategic Asset Management
From9/30/14 to 3/31/15, we managedourassetsbelowthe currentSIFIthresholdwhile maintaining our high-volume production of multi-family and CRE loans. Strategic Asset Management • Reduced securities by $495.8 million through a combination of repayments, sales, and calls • Sold loans of $1.2 billion: To
Slide 8: A Successful Business Model
A Successful Business Model
Slide 9: Our business model has consistently focused on building value for our investors.
Our business model has consistently focused on building value for our investors. Strong Credit Residential Growth Multi-Family Standards/ Efficient Mortgage through Lending Superior Asset Operation Banking Acquisitions Quality We have Net charge-offs Since January Our efficiency ratio Our assets hav
Slide 10: Multi-Family Loan Production
Multi-Family Loan Production
Slide 11: Our focus on multi-family lending on rent-regulated buildings has enabled us to distinguish ourselves
Our focus on multi-family lending on rent-regulated buildings has enabled us to distinguish ourselves from our industry peers. 60.9% of the rental housing units in New York City are subject to rent regulation and therefore feature below-market rents. (a) Rent-regulated buildings are more likely to r
Slide 12: We are a leading producer of multi-family loans for portfolio in New York City.
We are a leading producer of multi-family loans for portfolio in New York City. (in millions) MULTI-FAMILY LOAN PORTFOLIO PORTFOLIO STATISTICS AT 3/31/2015 % of non-covered loans held for $23,849 $23,468 investment = 71.1% $20,714 $18,605 $17,433 Average principal balance = $4.9 million Expected wei
Slide 13: Our commercial real estate loans feature the same structure as our multi-family loans.
Our commercial real estate loans feature the same structure as our multi-family loans. (in millions) PORTFOLIO STATISTICS COMMERCIAL REAL ESTATE AT 3/31/2015 LOAN PORTFOLIO % of non-covered loans held for $7,826 investment = 23.7% $7,637 $7,437 Average principal balance = $5.2 million $7,366 Expecte
Slide 14: Asset Quality
Asset Quality
Slide 15: We have been distinguished by our low level of net charge-offs in downward credit cycles.
We have been distinguished by our low level of net charge- offs in downward credit cycles. NET CHARGE-OFFS / AVERAGE LOANS S & L Crisis Great Recession Current Credit Cycle 2.83% 2.89% 1.50% 1.63% 1.77% 1.28% 1.17% 0.91% 1.24% 0.68% 0.76% 0.54% 0.35% 0.43% 0.38% 0.13% 0.21% 0.13% 0.00% 0.00% 0.04% 0
Slide 16: The quality of our loan portfolio continues to exceed that of our industry.
The quality of our loan portfolio continues to exceed that of our industry. (a)(b)/ TOTAL LOANS NON-PERFORMING LOANS (a) S & L Crisis Great Recession Current Credit Cycle 4.00% 4.05% 4.17% 3.41% 3.56% 2.91% 2.83% 2.71% 2.63% 2.48% 2.35% 2.47% 2.60% 2.10% 2.22% 1.46% 1.51% 1.66% 1.11% 1.28% 0.96% 0.9
Slide 17: The quality of our assets reflects the nature of our lending niche and strong underwriting
The quality of our assets reflects the nature of our lending niche and our strong underwriting standards. Risk-Averse Mix of Non- Conservative Active Board Multiple Covered Loans Held for Underwriting Involvement Appraisals Investment (at 3/31/15) • Conservative loan-to- • All loans originated for •
Slide 18: Residential Mortgage Banking
Residential Mortgage Banking
Slide 19: Our revenue mix has been enhanced since the establishment of our mortgage banking operation
Our revenue mix has been enhanced since the establishment of our mortgage banking operation in January 2010. Loans can be originated/purchased in all 50 states and the District of Columbia. Loan production is driven by our proprietary real time, web-accessible mortgage banking technology platform, w
Slide 20: Prepayment penalty income and mortgage banking income have contributed to the stability of our ROTA.
Prepayment penalty income and mortgage banking income have contributed to the stability of our ROTA. (dollars in millions) Return on Average 1.24% 1.36% 1.29% 1.24% 1.19% 1.21% 1.11% 1.12% 1.14% 1.05% 1.06% 1.06% 1.04% Tangible Assets (a) $32.0 $31.5 $39.3 Prepayment Penalty Income $17.5 $44.4 Mortg
Slide 21: Efficiency
Efficiency
Slide 22: Our efficiency is driven by several factors.
Our efficiency is driven by several factors. Multi-family and CRE lending are both broker- EFFICIENCY RATIO driven, with the borrower paying fees to the mortgage brokerage firm. 67.12% 66.59% 65.93% Products and services are typically developed by 65.41% 62.52% third-party providers and the sale of
Slide 23: Growth Through Acquisitions
Growth Through Acquisitions
Slide 24: Since our first acquisition, we have grown from $1.9 billion in assets to $48.3 billion.
Since our first acquisition, we have grown from $1.9 billion in assets to $48.3 billion. 1. Nov. 2000 2. July 2001 3. Oct. 2003 4. Dec. 2005 5. April 2006 Haven Bancorp Richmond County Roslyn Bancorp, Long Island Atlantic Bank of (HAVN) Financial Corp. Inc. (RSLN) Financial Corp. New York (ABNY) (RC
Slide 25: From 2000 to 2012, our deposit growth was largely acquisition-driven.
From 2000 to 2012, our deposit growth was largely acquisition-driven. DEPOSITS (in millions) w/ Aurora $2,307 $2,755 w/ w/ Desert CDs AmTrust Hills $2,271 NOW, MMAs, and Savings $2,759 Demand deposits $1,870 $1,933 w/ PFSB, Doral, & SYNF $19,601 $20,328 w/ LICB w/ ABNY $12,998 $16,458 $11,494 $12,12
Slide 26: From 2000 to 2012, acquisitions provided much of the funding for the organic growth of our loan portfolio.
From 2000 to 2012, acquisitions provided much of the funding for the organic growth of our loan portfolio. After LOANS OUTSTANDING After Aurora $2,429 $2,341 (in millions) Desert $379 $351 After Hills $2,789 $1,539 $1,719 AmTrust $3,284 $307 $1,758 $1,204 $7,637 $7,826 Held-for-Investment Loans Afte
Slide 27: Total Return on Investment
Total Return on Investment
Slide 28: Our quarterly cash dividends are a significant component of our commitment to building value
Our quarterly cash dividends are a significant component of our commitment to building value for our investors. TOTAL RETURN ON INVESTMENT 4,593% 4,265% 4,319% 3,843% SNL U.S. Bank and Thrift Index NYCB (a) 3,069% 2,754% 2,670% 2,059% CAGR since IPO: 27.1% 717% 393% 450% 436% 244% 213% 209% 245% 260
Slide 29: Appendix
Appendix
Slide 30: Reconciliations of GAAP Earnings and Non-GAAP Cash Earnings
Reconciliations of GAAP Earnings and Non-GAAP Cash Earnings Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and non-GAAP cash earnings for the three months ended March 31, 2015. For the Three Months Ended (in thousands, except per sh
Slide 31: Reconciliations of GAAP Earnings and Non-GAAP Cash Earnings
Reconciliations of GAAP Earnings and Non-GAAP Cash Earnings Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and non-GAAP cash profitability measures for the three months ended March 31, 2015. For the Three Months Ended (in thousands)
Slide 32: Reconciliations of Efficiency and Cash Efficiency Ratios
Reconciliations of Efficiency and Cash Efficiency Ratios The following table presents a reconciliation of the Company’s efficiency and cash efficiency ratios for the three months ended March 31, 2015. For the Three Months Ended March 31, 2015 (dollars in thousands) GAAP Cash Total net interest incom
Slide 33: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Tangible and adjusted tangible stockholders’ equity and tangible and adjusted tangible assets are non-GAAP financial measures. The following table presents reconciliations of these non-GAAP measures with the related GAAP measures at March 31, 2
Slide 34: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Average tangible assets is a non-GAAP financial measure. The following table presents a reconciliation of this non-GAAP measure with the related GAAP measure for the three months ended March 31, 2015; December 31, September 30, June 30, and Mar
Slide 35: For More Information
For More Information Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at:(516) 683-4420 Investor Relations New York Community Bancorp, Inc. Write to: 615 Merrick Avenue Westbury, NY 11590 New York Community Bancorp, Inc. 1Q 2015 5/4/15 35
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