Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2005 Earnings Presentation
32 slides from Flagstar Bank, N.a's earnings presentation, Aug 22, 2005
Slide 1: Second Quarter 2005 Investor Presentation
Exhibit 99.1 Second Quarter 2005 Investor Presentation
Slide 2: Forward-looking Statements
This statements Act Litigation Forward-looking “believe,” Company’s There looking investment composition liabilities, development or regulation; governmental, acquisition and either the In As Furthermore, Readers Company 2 of addition, atransaction; securities monetary ofpresentation, the result, ot
Slide 3: Forward-looking Statements and Additional Information
Forward-looking Note: The transaction information Corp. directing Memorial Long transaction. with Additional 3 Company the Island The shareholders proposed aHighway, following request information with Information about Financial will Long Statements transaction the to be and, Suite notice the Compan
Slide 4: Leading producer of multi-family loans in New York City
We SNL The deposits the (a) (b) 4 Singer’s United are leading aDataSource of leading States $11.5 Annuity producer financial billion (c) and of multi-family at Funds institution 6/30/05 Report (a)in loans Ranked –the August/September NY in New among Metro York region… theCity, top2005 3% withof (c)a
Slide 5: Industry-leading 2004 operating performance
…with The U.S. 2004 Operating NPAs Days NCOs/Average (a) 5 Based Company’s Thrifts Performance Past +an Loans on industry-leading Due/Total ROA ROE Efficiency 2004 90 Loans 14.40 1.82% 2004 or operating Measures More Assets Ratio operating 10.41 0.00 0.93%record 0.15 21.46 0.12 earnings; NYBperforma
Slide 6: 2005 Goals
We are 2005 Increasing Complementing Reducing Maintaining Expanding 6 Goals: focused securities our through ourshare on our capital producing M&A Increasing asset of the strength mix Maintaining multi-family awith deposits solidCRE financial a lending strong and construction performance. dividend ma
Slide 7: Producing Solid Financial Performance
Producing Our 29.66% 12.62% 9.86% ROTE 1.53% 1.04% 0.82% ROTA 1H U.S. (a) 7 SNL 2005 returns Thrifts DataSource aon (a) Solid tangible N.Y. Financial State assets Thrifts Performance and (a) equity NYB are among the highest in the industry.
Slide 8: Increasing Our Share of the Multi-family Lending Market
Increasing We (in Multi-family 2000 Total: 8 millions) are 2001 $616 the Our 2002 leading $1,150 Loan Share 2003 producer Originations $2,560 of 2004 the$4,330 1H Multi-family of multi-family 2005 All$6,040 OtherLending $3,758 Loan loans Originations for Market portfolio $74 in $359 NYC.$501 $947 $1
Slide 9: Multi-family lending niche
Increasing We Niche: Longstanding 9 have Rent-controlled a highly Ourrelationships Share profitable, ofand the with -stabilized Multi-family efficient, leadingand buildings mortgage Lending resilient inMarket brokers NYC lending 5-year Represents niche. fixed /a5-year growing adjustable source of ra
Slide 10: Multi-family Loan Portfolio
Increasing (in Multi-family 267% 12/31/01 At % Average 10 of 6/30/05 millions) total $3,255 principal 12/31/02 loans: Our loans Loan $4,494 Share 76.2% balance: 12/31/03 Portfolio have $7,368 of the grown $3.4 Multi-family 12/31/04 $9,842 21% million $11,953 YTD 6/30/05 Average Lending and 40% loan-
Slide 11: Multi-family loan refinancing cycle
Increasing Our NYB Rent Borrower 11 unique Roll Originates Refinances Uses /Our Income refinancing Share Funds Multi-family Loan Stream of toBased cycle the Improve Increases Multi-family has on Loan Higher supported theBased over Property Income Lending the onthe Term thegrowth Stream, Current Mark
Slide 12: Complementing Our Niche: CRE loans
Complementing Our Office Niche: National 5-year Pre-payment 12 CREand fixed credit loans mixed-use /penalties: 5-year retail feature Our adjustable Asset shopping buildings a5-4-3-2-1 structure Mixcenters rates with inpoints similar NYCCRE ininNYC to Loans years thatand 1ofthrough Long our multi-fam
Slide 13: Commercial Real Estate Loan Portfolio
Complementing CRE (in Commercial 346% 12/31/01 At % Average 13 of 6/30/05 millions) total loans $562 principal 12/31/02 loans: have $533 Realgrown Our 16.0% $1,445 Estate balance: 12/31/03 Asset 17% Loan $2,141 Mix $2.5 12/31/04 YTD Portfolio with million $2,509 andCRE 6/30/05 35% Average Loans year
Slide 14: Construction Loans niche
Complementing We Niche: Bulk 14 lend ofResidential proceeds to 9 of the Our distributed unit top Asset 10 subdivisions developers Mix upon with receipt on Construction onLong Long of signed Island Island. Loans contract Floatingofrate sale tied Notolosses primein more than a decade
Slide 15: Construction Loan Portfolio
Complementing (in Construction 463% 12/31/01 At % Average 15 of 6/30/05 millions) total $152 principal 12/31/02 loans: $117 loans LoanOur 5.4% $644 balance: 12/31/03 Portfolio have Asset $804 grown Mix $3.5 12/31/04 $855 6% with million YTD Construction 6/30/05 Average and 14%loan-to-value: Loans ye
Slide 16: Maintaining the Quality of Our Assets: Conservative Underwriting
Maintaining The Conservative Minimum Mortgage loans the 16 lower quality overof and debt $10 of economic Asset LTV Real our million coverage assets Quality ratios Estate or Allratio: reflects market Committee properties 120% our value stringent appraised (aConstruction majority credit byofindependen
Slide 17: Maintaining Our Asset Quality
Maintaining Our NPAs Allowance No 17 losses loan = 0.17% portfolio on for Asset residential loan of total is Quality losses structured assets unit = 184.22% subdivision at to 6/30/05 reduce of NPLs NPLs construction credit=atrisk. 0.27% 6/30/05 loans ofNo total inlosses 10+ loans years onatlocal-mar
Slide 18: Maintaining Our Efficiency: Emphasis on Franchise
Maintaining Efficiency Emphasis HAVN: Above-average 101 Profitable 1-4 Insurance (a) 18 Upon family traditional 54acquisition and on income-producing is loans branches Efficiency amulti-family investment key branches deposits component RCBK: of LICB per (a) products lending 49 traditional 26 third-p
Slide 19: Maintaining Efficiency Ratio
Maintaining We Efficiency 2002 27.03% 58.15% 64.01% 21.46%(a) 57.40% 64.04% 23.59%(a) 57.28% 62.95% 25.32% 57.68% 61.75% U.S. (a) 19 Operating consistently Thrifts 2003 Ratio 2004 (b) Efficiency efficiency N.Y. rank 1H 2005 State among ratio. Thrifts the Please most (b) see NYB efficient slide no. t
Slide 20: Strengthening Our Balance Sheet
Strengthening We (dollars Multi-family Total Core Wholesale 20 have deposits loans securities insignificantly billions) borrowings $15.7 loans 7.4 11.5 Our 6.0$10.9 6.1 Balance 12.0 10.0 12.1 6/30/05 19.9 enhanced 9.3 43.6% 7.8 15.1 (50.6) 11.9 Sheet 3/31/04 53.3(22.0) our % asset Change and liabili
Slide 21: Loans and securities as share of total assets
Strengthening We (in Loans % 3/31/04 21 of millions) are Total Securities deploying 6/30/04 Assets: Our 3/31/05 $10,919 the 41.2% Balance cash 6/30/05 45.7% $12,119 flows Sheet49.3% from $11,877 securities 35.1% $8,464 59.0% into $14,524 loan 26.8% production. $6,601 62.3%$15,684 23.7% $5,983
Slide 22: Increasing significance of deposits in funding mix
Increasing We (in Wholesale Deposits 3/31/04 22 millions) are increasing 6/30/04 Deposits Borrowings $11,869 3/31/05 the $10,027 significance 6/30/05 $9,924 of deposits $10,016 within $9,614our $10,588 funding $9,259 mix. $11,538
Slide 23: Increasing Total Deposits
Increasing Total (in 117% Deposits 12/31/01 Total: Core County: (a) 23 SNL millions) Deposits deposits $2,408 $5,451 DataSource #2 12/31/02 Deposits thrift, $1,949 $5,256 =have CDs 64%#5 12/31/03 grown bank $4,362 $10,329 of total Nassau 11% 12/31/04 $3,753 deposits $10,402 YTD County: $4,172 and 6/
Slide 24: Deposit initiatives
Increasing We Created State to municipal businesses 24 Bank 55,000 have andaengaged City residents Private deposits Deposits Implementing deposits Banking infrom Established several Established towns aGroup program initiatives and a depository tocities aattract tonationwide to service increase throu
Slide 25: Expanding Through M&A: LICB
Expanding LICB (dollars Assets Total Core Non-interest-bearing 25 deposits loans securities is$539.7 in a small, millions) Through 250.0 337.6 415.9 255.5 but 6/30/05 M&A attractive, deposits 112.4 full-service commercial bank serving Long Island and Brooklyn.
Slide 26: Transaction Features
Expanding We Transaction Features: Expected Required (a) 26 Based expectapprovals: cost earnings on to Through value: NYB acquire savings: accretion: $69.8 closing M&A LICB LICB $4.0 million price shareholders in million $0.01—$0.02 theof or4th $18.36 $42.60 pre-tax quarter andon per per (approximat
Slide 27: Established commercial banking franchise
Expanding The Established Core Cash 27 teamLICB deposits flowsacquisition Through from commercial represented LICB M&A will securities banking 81% be immediately offranchise portfolio total deposits accelerates accretive to fund at 6/30/05 loan toour our production commercial Non-interest-bearing GA
Slide 28: New York Commercial Bank subsidiary structure
Expanding New Queens Richmond Roslyn Long Roosevelt CFS Ironbound First 28 Bank Savings York Island Savings County Savings Community Commercial Bank County Through Commercial Bank Savings Bank Savings Bank ofM&A New Bancorp, Bank Bank Bank Bank Bank Jersey will Inc.operate as a separate subsidiary o
Slide 29: Company Capital Strength
Maintaining We Company 6/30/05 Tangible unrealized Bank Leverage Tier Total 29 are 1risk-based Capital risk-based a well stockholders’ equity/tangible ratio Capital losses Our Measures: capitalized 8.47% capital Capital capital on Measures: securities equity ratio ratio assets assets, Strength insti
Slide 30: Maintaining Our Strong Annual Dividend
Maintaining Our Annual 300% 2000 (a) (annualized) 30 Adjusted dividend 2001 $0.25 Dividend 2002 $0.30 atoyield Strong reflect 2003 (a) $0.43 currently Dividend 3-for-2 2004 $0.66 1H exceeds stock $0.96 2005splits 5%. $1.00on 3/29/01 and 9/20/01 and 4-for-3 stock splits on 5/21/03 and 2/17/04.
Slide 31: For More Information
For More The Log 615 31 Merrick Company onto our Information Avenue web trades site: Westbury, onwww.myNYCB.com the NYSE NY under 11590theE-mail symbolrequests “NYB”.to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc.
Slide 32: Reconciliation of GAAP and Operating Earnings
Reconciliation The For (in Net Adjustments Other-than-temporary Balance Gain Merger-related Total Income Operating Basic Diluted 32 8/22/05 thousands, the income following on adjustments operating Years tax operating sales sheet earnings effect $355,086 to Ended of repositioning except table of expe
New York Community Bancorp — Q2 2005 Earnings Presentation on 6ix