Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Citigroup Financial Services Conference 2006
26 slides from Flagstar Bank, N.a's conference presentation, Feb 1, 2006
Slide 1: Fourth Quarter 2005 Investor Presentation
Exhibit 99.1 Fourth Quarter 2005 Investor Presentation Citigroup Financial Services Conference February 1, 2006
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 its authorized officers, may contain certain forward-looking statements regarding the Company’s prospective performance and strategies within the meaning
Slide 3: We are a leading financial institution in the NY Metro region
We are a leading financial institution in the NY Metro region. At 12/31/05, we had consolidated assets of $26.3 billion, consolidated deposits of $12.1 billion, and 152 banking offices. We are ranked the sixth most efficient bank holding company in the U.S. (a) We operate the fifth largest thrift in
Slide 4: We are focused on producing a solid financial performance
We are focused on producing a solid financial performance. 2005 Goals: Achievements: Increasing our share of the multi- Multi-family loans are up 31% year-over- family lending market year Maintaining the quality of our assets NPAs = 0.11% of total assets at 12/31/05 Maintaining our efficiency 2005 o
Slide 5: Increasing Our Share of the Multi-family Lending Market
Increasing Our Share of the Multi-family Lending Market Multi-family loans rose 31% in 2005. (in millions) Multi-family Loan Portfolio At 12/31/05 $12,857 % of total loans: 75.5% $9,842 Average principal balance: $3.6 million $7,368 Average loan-to-value: 61.1% $3,255 $4,494 Expected weighted averag
Slide 6: Maintaining the Quality of Our Assets
Maintaining the Quality of Our Assets We have a consistent record of solid asset quality. NPAs/Total Assets 0.52% 0.43% 0.37% 0.32% 0.22% 0.21% 0.15% 0.12% 0.11% 12/31/03 12/31/04 12/31/05 U.S. Thrifts (a) N.Y. State Thrifts (a) NYB (a) SNL DataSource 6
Slide 7: Maintaining Our Efficiency
Maintaining Our Efficiency 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% (a) 28.86% 23.59%(a) 21.46% (a) 2003 2004 2005 U.S. Thrifts (b) N.Y. State Thrifts (b) NYB (a) Operating efficiency ratio. Please
Slide 8: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet We have significantly enhanced our asset and liability mix since repositioning the balance sheet in 2Q 2004. 12/31/05 3/31/04 % Change (dollars in billions) Total securities $ 5.6 $12.1 53.5% Total loans 17.0 10.9 56.0 Multi-family loans 12.9 7.8 64.9 Wholesale borrow
Slide 9: Exceeding Our Historical Capital Levels
Exceeding Our Historical Capital Levels We are a well capitalized institution. 12/31/05 Company Capital Measures: Tangible stockholders’ equity $1.3 bn (a) Tangible stockholders’ equity/tangible assets, excluding the net unrealized loss on securities 5.41% (a)(b) Leverage capital ratio 8.27 (c) Tier
Slide 10: Increasing Loans and Reducing Securities
Increasing Loans and Reducing Securities We have been deploying the cash flows from securities into loan production. (in millions) $18,350 $17,027 $13,396 $12,119 Loans $10,919 Securities $7,081 $5,637 $5,672 (c) % of Total Assets: 41.2% 45.7% 55.7% 29.5% 64.8% 21.4% 65.8% 20.3% 3/31/04 12/31/04 12/
Slide 11: Increasing Deposits
Increasing Deposits We have been expanding and diversifying our deposit base. (in millions) $13,929 $11,869 $12,105 Deposits $10,027 $10,402 $9,717 Wholesale Borrowings $9,335 $9,189 (c) (a)(b) 3/31/04 12/31/04 12/31/05 Pro Forma (a) Pro forma for the acquisition of ABNY (b) ABNY data as of 9/30/05
Slide 12: Increasing Deposits
Increasing Deposits We have grown deposits organically by emphasizing convenience, service, selection, and community involvement. Convenience Service 96% of deposits have branch access 24-hour on-line banking 68 or more hours per week 24-hour bank-by-phone 27% of deposits have branch access 24-hour
Slide 13: Expanding Through M&A
Expanding Through M&A We now have two bank subsidiaries – New York Community Bank and New York Commercial Bank. New York Community Bancorp, Inc. New York Community Bank New York Commercial Bank Queens County Richmond County Roslyn Atlantic Bank Savings Bank Savings Bank Savings Bank of New York Roos
Slide 14: Expanding Through M&A
Expanding Through M&A Our new commercial banking platform complements our traditional community banking platform. New York Community Bancorp, Inc. New York Community Bank New York Commercial Bank Checking/Savings Checking/Savings Money Market Accounts Business CDs CDs Payroll Processing IRAs $afePay
Slide 15: Expanding Through M&A
Expanding Through M&A Our commercial bank subsidiary will be expanded with the acquisition of Atlantic Bank of New York. Long Island Atlantic Bank of Commercial Bank New York (in millions) 12/31/05 9/30/05 (a) Assets $609 $2,917 Total loans 253 1,323 Total securities 235 1,335 Total deposits 426 1,8
Slide 16: Expanding Through M&A
Expanding Through M&A We expect to have 168 branches serving the New York Metro region upon completion of the ABNY acquisition. New York Community Bank New York Commercial Bank Total Queens 34 5 39 Staten Island 23 -- 23 Brooklyn 8 3 11 Manhattan 1 5 6 The Bronx 2 -- 2 Long Island 59 12 71 Westchest
Slide 17: Expanding Through M&A
Expanding Through M&A Like the LICB acquisition, the acquisition of ABNY is expected to enhance our earnings, our asset mix, and our deposit growth. LICB ABNY Immediately accretive to GAAP and cash earnings Enhances our asset mix with C&I loans to small and mid-size businesses Cash flows from securi
Slide 18: Expanding Through M&A
Expanding Through M&A Acquisitions have contributed to our loan growth over the past six years… w/ ABNY (in millions) Loans Outstanding (a) w/ LICB $5,131 $4,174 Multi-family loans: 46.3% CAGR Total loans: 50.0% CAGR $3,557 $13,219 w/ RSLN $12,853 Multi-family Loans Outstanding All Other Loans Outst
Slide 19: Expanding Through M&A
Expanding Through M&A …and have significantly bolstered our deposit growth. w/ ABNY (in millions) Deposits $1,378 w/ LICB $846 w/ RSLN $720 $739 Total deposits: 53.2% CAGR Core deposits: 64.6% CAGR $6,933 Demand deposits: 80.4% CAGR $6,012 $5,247 CDs $5,911 w/ RCBK NOW, MMAs, and Savings $455 $465 D
Slide 20: Expanding Through M&A
Expanding Through M&A The ABNY acquisition will further accelerate our balance sheet repositioning. (dollars in millions) Assets Core Deposits (c) $27,901 $8,311 Commercial $26,284 8% Banking Business Commercial 22% Banking $6,858 Business 92% 78% $1,453 $2,917 (a) (b) (c) (a) (b) NYB ABNY Pro Forma
Slide 21: Maintaining a Strong Dividend
Maintaining a Strong Dividend We are committed to maintaining a strong dividend. $1.00 $1.00 $0.96 Annual Dividend (a) $0.66 $0.43 $0.30 $0.25 $0.25 $0.17 $0.10 $0.06 $0.011 $0.017 (b) (c) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Since 1994, we have increased our dividend 89-
Slide 22: We are focused on the future
We are focused on the future. 2006 Goals: Complete the acquisition of ABNY Integrate the systems of LICB and ABNY Augment the New York Community Bank and New York Commercial Bank franchises Enhance the Company's asset mix with commercial loans to small and mid-size businesses while expanding our mul
Slide 23: 2006 Goals
2006 Goals The following factors are expected to contribute to margin stabilization in 2006: The acquisition of LICB: - Added $347 million of low-cost core deposits, including $100 million of non-interest- bearing accounts at 12/31/05 The acquisition of Atlantic Bank: - Will add approximately $1.5 b
Slide 24: We are focused on the future
We are focused on the future. We look forward to extending our record of loan and deposit growth in 2006. CAGR (a) Loan Growth Total loans 50.0% Multi-family loans 46.3 Deposit Growth Total deposits 53.2 Core deposits 64.6 Demand deposits 80.4 (a) 12/31/99 – 12/31/05 (pro forma for the acquisition o
Slide 25: For More Information
For More Information The Company trades on the NYSE under the symbol “NYB”. 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 2/1/2006 25
Slide 26: 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: For the Years Ended December 31, 2005 2004 2003 (dollars in thousands) GAAP Operating GAAP Operating
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