Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2014 Earnings Presentation
34 slides from Flagstar Bank, N.a's earnings presentation, May 5, 2014
Slide 1: First Quarter 2014 Investor Presentation
Exhibit 99.1 First Quarter 2014 Investor Presentation
Slide 2: Forward-Looking Statements and Associated Risk Factors
Forward-Looking Statements and Associated Risk Factors Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 This presentation, like many written and oral communications presented by New York Community Bancorp, Inc. (the “Company”) and our authorized officers, may contain ce
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 $47.6 billion $26.8 billion $21.5 billion $7.1 billion 4,131% With assets of With deposits of With a portfolio of With a market cap From 11/23/93 $47.6billionat $26.8billion
Slide 4: Growth-through-acquisition strategy, over 270 locations in five states
Largely reflecting our growth-through-acquisition strategy, we have over 270 locations in five states. Metro New York New Jersey Ohio 125 Community Bank Branches 48 Community Bank Branches 28 Community Bank Branches 30 Commercial Bank Branches Florida Arizona 27 Community Bank Branches 14 Community
Slide 5: 1st Quarter 2014 Performance Highlights
1st Quarter 2014 Performance Highlights
Slide 6: We generated solid earnings in 1Q 2014
We generated solid earnings in 1Q 2014. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS 1Q 2014 GAAP Earnings Cash Earnings (a) Strong Profitability Measures: Earnings $115,254 $125,737 EPS $0.26 $0.29 Return on average tangible assets (b) 1.05% 1.13% Return on average tangible
Slide 7: Our balance sheet measures reflect stability and strength
Our balance sheet measures reflect stability and strength. Balance Sheet Asset Quality Company Capital Bank Capital Ratios to Total Assets At or for the 3 Months Ended at 3/31/14 3/31/14 3/31/14 3/31/14 • Total loans = 71.1% • Non-performing loans (a)(b) / • Stockholders’ equity / total The Communit
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 Multi-family loans Net charge-offs Since January Our efficiency ratio Our
Slide 10: Multi-Family Loan Production
Multi-Family Loan Production
Slide 11: Our focus on multi-family lending on rent-regulated buildings distinguishes us
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: Leading producer of multi-family loans for portfolio in New York City
We are the leading producer of multi-family loans for portfolio in New York City. (in millions) MULTI-FAMILY LOAN PORTFOLIO PORTFOLIO STATISTICS AT 3/31/2014 $21,470 $20,714 % of non-covered loans held for $18,605 $16,802 $17,433 investment = 69.6% Averageprincipal balance= $4.6million Expected weig
Slide 13: Our commercial real estate loans feature the same structure as 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 3/31/2014 LOAN PORTFOLIO % of non-covered loans held for investment = 24.3% $7,437 $7,366 $7,491 $6,856 Average principal balance = $4.8 million $5,438
Slide 14: Asset Quality
Asset Quality
Slide 15: 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% 1.24% 0.91% 0.68% 0.76% 0.54% 0.50% 0.35% 0.13% 0.21% 0.04% 0.07% 0.06% 0.03% 0.13% 0
Slide 16: Our loan portfolio quality 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 4.17% 4.00% 4.05% 3.56% 3.41% 2.91% 2.83% 2.71% 2.63% 2.48% 2.47% 2.60% 2.35% 2.22% 2.10% 1.46% 1.51% 1.28% 1.11% 1.12% 1.10% 0.9
Slide 17: Asset quality reflects our lending niche and strong underwriting standards
The quality of our assets reflects the nature of our lending niche and our strong underwriting standards. Risk-Averse Mix of Conservative Active Board Multiple Non-Covered Loans Underwriting Involvement Appraisals Held for Investment (at 3/31/14) • Conservative loan-to- • All loans originated for •
Slide 18: Residential Mortgage Banking
Residential Mortgage Banking
Slide 19: Residential mortgage banking operation ranks among top 20 aggregators
Our residential mortgage banking operation currently ranks among the top 20 aggregators of one-to-four family loans in the U.S. 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 tec
Slide 20: Prepayment penalty and mortgage banking income contribute to ROTA stability
Prepayment penalty income and mortgage banking income have contributed to the stability of our ROTA. (dollars in millions) 1.34% 1.27% 1.24% 1.36% 1.29% 1.24% 1.21% Return on Average 1.29% 1.23% 1.19% 1.11% 1.12% 1.05% Tangible Assets (a) $32.0 $31.5 Prepayment Penalty Income Mortgage Banking Income
Slide 21: Efficiency
Efficiency
Slide 22: Our efficiency is driven by several factors
Our efficiency is driven by several factors. Franchise expansion has largely stemmed EFFICIENCY RATIO from mergers and acquisitions; we generally do not engage in de novo branch development. 67.13% 66.61% 66.96% 65.98% Multi-family and CRE lending are both broker-driven, with the borrower paying fee
Slide 23: Growth Through Acquisitions
Growth Through Acquisitions
Slide 24: Since our first acquisition, we have grown from $1.9 billion to $47.6 billion
Since our first acquisition, we have grown from $1.9 billion in assets to $47.6 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: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition-driven. DEPOSITS (in millions) w/ Aurora w/ w/ Desert $2,445 AmTrust Hills $2,271 $2,759 CDs $1,870 $1,933 NOW, MMAs, and Savings Demand deposits w/ PFSB, Doral, & w/ ABNY SYNF $12,998 $16,458 $17,374 w/ LICB $11,494 $12,122 w/ RSLN $1,265 $1,423 $906
Slide 26: Acquisitions have funded organic growth of our loan portfolio
Acquisitions have provided much of the funding for the organic growth of our loan portfolio. LOANS OUTSTANDING After Aurora After (in millions) After Desert Hills AmTrust $2,695 $2,789 $266 $3,284 $307 $1,907 $1,758 After $1,204 PFSB, $4,298 $1,243 Held-for-Investment Loans Doral, & $5,016 After SYN
Slide 27: Total Return on Investment
Total Return on Investment
Slide 28: Quarterly cash dividends are a significant component of building value
Our quarterly cash dividends are a significant component of our commitment to building value for our investors. TOTAL RETURN ON INVESTMENT 4,265% 4,131% 3,843% SNL U.S. Bank and Thrift Index NYCB (a) 3,069% 2,754% 2,670% 2,059% CAGR since IPO: 28.0% 717% 393% 415% 244% 213% 209% 245% 260% 168% 11/23
Slide 29: 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 5/5/14 New York Community Bancorp, Inc. Page 29
Slide 30: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and cash earnings for the three months ended March 31, 2014. For the Three Months Ended (in thousands, except per share data) Mar
Slide 31: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and cash earnings measures for the three months ended March 31, 2014. For the Three Months Ended (in thousands) March 31, 2014 Av
Slide 32: Reconciliations of GAAP and Cash Efficiency Ratios
Reconciliations of GAAP and Cash Efficiency Ratios The following table presents a reconciliation of the Company’s GAAP and cash efficiency ratios for the three months ended March 31, 2014. For the Three Months Ended March 31, 2014 (dollars in thousands) GAAP Cash Total net interest income and non-in
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 and average tangible stockholders’ equity are non-GAAP financial measures. The following table presents reconciliations of these non-GAAP measures with the related GAAP measures for the three months ended March 31, 2014,
New York Community Bancorp — Q1 2014 Earnings Presentation on 6ix