Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2012 Earnings Presentation
41 slides from Flagstar Bank, N.a's earnings presentation, Nov 5, 2012
Slide 1: Third Quarter 2012 Investor Presentation
EXHIBIT 99.1 Third Quarter 2012 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. and our authorized officers, may contain certain forward-lo
Slide 3: New York Community Bancorp ranks among the top 25 bank holding companies
New York Community Bancorp ranks among the top 25 bank holding companies in the United States. Assets With assets of $44.1 billion at 9/30/12, we are currently the 20th largest bank holding company in the nation.(a) With deposits of $24.5 billion at 9/30/12 and 274 branches in Deposits Metro New Yor
Slide 4: Growth-through-acquisition strategy: 274 locations in five states
Largely reflecting our growth-through-acquisition strategy, we currently have 274 locations in five states. Metro New York New Jersey Ohio 121 Community Bank Branches 51 Community Bank Branches 28 Community Bank Branches 34 Commercial Bank Branches Florida Arizona 26 Community Bank Branches 14 Commu
Slide 5: 3rd Quarter 2012 Performance Highlights
3rd Quarter 2012 Performance Highlights
Slide 6: We generated solid earnings in 3Q 2012
We generated solid earnings in 3Q 2012. (dollars in thousands, except per share data) Performance Highlights GAAP Earnings Cash Earnings(a) 3Q 2011 3Q 2012 3Q 2011 3Q 2012 Strong Profitability Measures: Earnings $119,750 $128,798 $130,244 $139,168 EPS $0.27 $0.29 $0.30 $0.32 Return on average tangib
Slide 7: Our 9/30/12 balance sheet reflects continued strength
Our 9/30/12 balance sheet reflects continued strength. Performance Highlights: 12/31/11 9/30/12 Loans, net / total assets 71.7% 70.9% Securities / total assets 10.8 11.7 Deposits / total assets 53.0 55.6 Core deposits / total deposits 66.9 62.9 Wholesale borrowings / total assets 32.0 29.9 Page 7 Ne
Slide 8: Our asset quality measures compare favorably with our industry
Our asset quality measures continue to compare favorably with those of our industry as a whole. At or for the Three Months Ended 12/31/11 9/30/12 SNL U.S. SNL U.S. Bank and Bank and Asset Quality: NYB Thrift Index NYB Thrift Index Non-performing loans (a)(b) / total loans (a) 1.28% 2.60% 0.92% 1.81%
Slide 9: We continue to maintain a strong capital position
We continue to maintain a strong capital position. (dollars in billions) 12/31/11 9/30/12 Tangible stockholders’ equity / tangible assets excluding accumulated other comprehensive loss, net of tax (a) 7.95% 7.74% Tangible stockholders’ equity / tangible assets (a) 7.78% 7.62% Tangible stockholders’
Slide 10: A Successful Business Model
A Successful Business Model
Slide 11: Our business model has consistently focused on building value
Our business model has consistently focused on building value. Multi-Family Lending Multi-family loans represented $18.5 billion, or 68.9%, of total loans held for investment at 9/30/12. Strong Credit Standards/ Net charge-offs represented 0.12% of average loans in the first nine months of 2012, ref
Slide 12: Multi-Family Loan Production
Multi-Family Loan Production
Slide 13: Our focus on multi-family lending on rent-regulated buildings
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 14: 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 $18,475 $17,433 $16,736 $16,802 $15,726 Portfolio Statistics at 9/30/12: • % of loans held for investment = 68.9% • Average principal balance = $4.4 million • Expected weighted
Slide 15: Multi-family and CRE loans feature the same structure
Our multi-family and commercial real estate loans feature the same structure. Terms: • Years 1-5: Fixed rate tied to the FHLB-NY 5-year fixed advance rate plus a spread • Years 6-10: • Option 1 – Annually adjustable rate at a spread above prime; or • Option 2 – Fixed rate at a spread above the fixed
Slide 16: Our CRE loans are typically collateralized by office buildings, retail centers
Our CRE loans are typically collateralized by office buildings, retail centers, mixed-use buildings, and multi-tenanted light industrial properties. (in millions) Commercial Real Estate Loan Portfolio $7,193 $6,856 Portfolio Statistics at 9/30/12: $5,438 • % of loans held for investment = 26.8% $4,9
Slide 17: Asset Quality
Asset Quality
Slide 18: The quality of our assets has improved dramatically since 12/31/10
The quality of our assets has improved dramatically since 12/31/10. Y-O-Y IMPROVEMENT at 9/30/12 NPLs / Total Loans: 74 bp 2.63% 2.57% NPAs / Total Assets: 66 bp 2.05% 1.77% 1.76% 1.66% 1.53% 1.37% 1.28% 1.07% 1.15% 0.93% 0.95% 0.92% 0.75% 0.71% 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 3/31/12 6/30
Slide 19: Low net charge-offs in downward credit cycles
We have been distinguished by our low level of net charge-offs in downward credit cycles, and by 52 consecutive quarters with no losses on assets generated by the Company. (a) Net Charge-Offs / Average Loans Last Credit Cycle Current Credit Cycle 2.84% 2.89% 1.77% 1.63% 1.50% 1.28% 1.17% 0.98% 0.91%
Slide 20: Our loan portfolio quality continues to exceed our industry
The quality of our loan portfolio continues to exceed that of our industry. Non-Performing Loans (a)(b) / Total Loans (a) Last Credit Cycle Current Credit Cycle SNL U.S. Bank and Thrift Index NYB (a) Non-performing loans and total loans exclude covered loans. (b) Non-performing loans are defined as
Slide 21: Few non-performing loans have resulted in charge-offs
Historically and currently, few of our non-performing loans have resulted in charge-offs. At or for the At or for the 12 Months Ended December 31, 9 Months Ended Last Credit Cycle (a) Current Credit Cycle (a) 1989 1990 1991 1992 1993 2008 2009 2010 2011 9/30/2012 NPLs (b)(c) / Total Loans (b) 1.46%
Slide 22: Asset quality reflects our multi-family niche and strong underwriting
The quality of our assets reflects the nature of our multi-family lending niche and our strong underwriting standards. CONSERVATIVE UNDERWRITING ACTIVE BOARD INVOLVEMENT • Conservative loan-to-value ratios • All loans originated for portfolio are approved by the Mortgage or Credit Committee (a major
Slide 23: FDIC-assisted loans and OREO covered by loss sharing agreements
The loans and OREO acquired in our FDIC-assisted transactions are covered by loss sharing agreements, thus mitigating credit risk. (in millions) Covered Assets 12/31/09 12/31/10 12/31/11 9/30/12 Other OREO Loans Other $62.4 OREO OREO $309.7 Loans Other $71.4 Other $50.4 $423.3 Loans Loans $386.6 $33
Slide 24: Residential Mortgage Banking
Residential Mortgage Banking
Slide 25: Our residential mortgage banking operation is a leading aggregator of loans
Our residential mortgage banking operation is a leading aggregator of agency-conforming one-to-four family loans. • Acquired through our AmTrust Bank transaction in December 2009 History • Established as a subsidiary of New York Community Bank in April 2010 • We rank among the top 15 aggregators of
Slide 26: Mortgage banking and prepayment penalty income support ROTA stability
In a declining interest rate environment, mortgage banking income and prepayment penalty income have contributed to the stability of our ROTA. (dollars in millions) Return on Average Tangible Assets (a) Prepayment Penalty Income Mortgage Banking Income Total: Average 10-Year Treasury Rate 1Q 2011 2Q
Slide 27: Mortgage banking generated 60.4% of non-interest income
Our mortgage banking operation generated 60.4% of non-interest income and 13.1% of total revenues in the first nine months of 2012. At or for the 3 months ended 9/30/12: (in millions) • 1-4 family loans funded in 3Q 2012 = $2.9 billion • % sold to GSEs = 98% • Average FICO = 770 Funded 1-4 Family •
Slide 28: Efficiency
Efficiency
Slide 29: Our efficiency is driven by several factors
Our efficiency is driven by several factors. Franchise expansion has largely stemmed from mergers and acquisitions; we generally do not engage in de novo branch Efficiency Ratio development. Multi-family and commercial real estate 65.92% 64.54% lending are both broker-driven, with the borrower payin
Slide 30: Growth through Acquisitions
Growth through Acquisitions
Slide 31: Grown from $1.9 billion in assets to $44.1 billion through acquisitions
In the 12 years since our first acquisition, we have grown from $1.9 billion in assets to $44.1 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
Slide 32: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition- driven. (in millions) Deposits w/ Aurora w/ AmTrust w/ Desert Hills $2,495 CDs $1,768 $1,852 $2,190 NOW, MMAs, and Savings w/ Demand deposits PFSB, Doral, w/ ABNY & SYNF $12,936 w/ LICB $11,494 $12,122 $12,711 w/ RSLN $1,195 $1,348 $906 CAGRs $720 $4,
Slide 33: Acquisitions funded organic growth of our loan portfolio
Acquisitions have provided much of the funding for the organic growth of our loan portfolio. After After Aurora After Desert Hills AmTrust (in millions) Loans Outstanding $3,753 $3,401 $4,298 $1,212 After Held-For-Investment Loans PFSB, $5,016 $1,037 $1,153 Doral, & $1,244 After $1,207 Multi-Family
Slide 34: Total Return on Investment
Total Return on Investment
Slide 35: 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 3,843% 3,260% SNL U.S. Bank and Thrift Index NYB (a) 2,885% 2,754% 2,670% 2,479% 2,059% CAGR since IPO: 28.9% 717% 614% 444% 244% 213% 209% 245% 239% 168% 11/23/
Slide 36: For More Information
For More Information Visit our web site: 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 11/5/12 Page 36 New York Community Bancorp, Inc.
Slide 37: 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 September 30, 2011 and September 30, 2012. For the Three Months Ended September 30,
Slide 38: 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 September 30, 2011 and September 30, 2012. For the Three Months Ended September 30,
Slide 39: Reconciliations of GAAP and Cash Efficiency Ratios
Reconciliations of GAAP and Cash Efficiency Ratios The following table presents reconciliations of the Company’s GAAP and cash efficiency ratios for the three months ended September 30, 2011 and September 30, 2012. For the Three Months Ended September 30, 2011 2012 (dollars in thousands) GAAP Cash G
Slide 40: 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 December 31
Slide 41: 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, June
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