Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2010 Earnings Presentation
44 slides from Flagstar Bank, N.a's earnings presentation, Nov 1, 2010
Slide 1: Third Quarter 2010 Investor Presentation
Third Quarter 2010 Investor Presentation Exhibit 99.1 * * * * * * * *
Slide 2: Forward-looking Statements and Associated Risk Factors
New York Community Bancorp, Inc. Page 2 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
Slide 3: We rank among the top bank holding companies in the U.S.
New York Community Bancorp, Inc. Page 3 We rank among the top 25 bank holding companies in the U.S. With assets of $41.7 billion at 9/30/10, we are the 22nd largest bank holding company in the nation. With deposits of $22.2 billion at 9/30/10 and branches in Metro New York, New Jersey, Ohio, Florida
Slide 4: We have a consistent business model that focuses on building value
New York Community Bancorp, Inc. Page 4 We have a consistent business model that focuses on building value while building the Company. Our total return to shareholders increased at a CAGR of 33.1% from 11/23/93 to 10/26/10. Multi-family Lending Strong Credit Standards/ Superior Asset Quality Efficie
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Slide 6: 3rd Quarter 2010 Performance Highlights
3rd Quarter 2010 Performance Highlights * * * *
Slide 7: Our 3Q 2010 performance reflects the merits of our business model
New York Community Bancorp, Inc. Page 6 Our 3Q 2010 performance reflects the merits of our business model. (a) Please see page 36 for a reconciliation of our GAAP and operating earnings. (b) Please see page 37 for a reconciliation of our GAAP and operating non-interest income and our GAAP and operat
Slide 8: Our balance sheet has been strengthened over the past nine months
New York Community Bancorp, Inc. Page 7 Our balance sheet has been strengthened over the past nine months.
Slide 9: Our asset quality measures continued to compare favorably with industry
New York Community Bancorp, Inc. Page 8 Our asset quality measures continued to compare favorably with those of our industry as a whole . (a) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest. (b) Non-performing loans exclude covered
Slide 10: Our capital strength reflects the growth of our earnings
New York Community Bancorp, Inc. Page 9 Our capital strength reflects the growth of our earnings and our ability to access the capital markets. Our dividend has been a significant component of our total return to shareholders since our first year of public life. In October 2010, we declared our 27th
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Slide 12: Our Business Model: Growth through Acquisitions
Our Business Model: Growth through Acquisitions * * * *
Slide 13: We have completed acquisitions since 2000
New York Community Bancorp, Inc. Page 11 We have completed 10 acquisitions since 2000. Note: The number of branches indicated reflects the number of branches in our current franchise that stemmed from each transaction. Transaction Type: Savings Bank Commercial Bank Branch FDIC
Slide 14: As a result of our acquisitions, we rank among the top 25 financial institutions
New York Community Bancorp, Inc. Page 12 As a result of our acquisitions, we rank among the top 25 financial institutions in the nation. DEPOSITS ASSETS MARKET CAPITALIZATION (in thousands) Rank Company Total Deposits Bank of America Corporation $977,322,000 JPMorgan Chase & Co. 903,138,000 Citigrou
Slide 15: We currently have 277 locations in five states
New York Community Bancorp, Inc. Page 13 Largely reflecting our acquisition strategy, we currently have 277 locations in five states. Metro New York 157 Branches Ohio 29 Branches New Jersey 52 Branches Florida 25 Branches Arizona 14 Branches
Slide 16: Our FDIC-assisted AmTrust transaction has enhanced our franchise
New York Community Bancorp, Inc. Page 14 Our FDIC-assisted AmTrust transaction has enhanced our franchise, our balance sheet, and our earnings capacity. AmTrust Transaction Franchise Expansion: Added 29 branches in Ohio, 25 in Florida, and 11 in Arizona Improved Funding Mix: Provided deposits of $8.
Slide 17: Our FDIC-assisted Desert Hills transaction strengthened our Arizona franchise
New York Community Bancorp, Inc. Page 15 Our FDIC-assisted Desert Hills transaction strengthened our franchise in Arizona, as well as our efficiency and product mix. Desert Hills Transaction Franchise Expansion: Added six more branches to our Arizona franchise and increased our deposit market share
Slide 18: We have a meaningful share of deposits in several markets
New York Community Bancorp, Inc. Page 16 We have a meaningful share of deposits in several of the markets we serve.
Slide 19: Deposits: growth has been largely acquisition-driven
New York Community Bancorp, Inc. Page 17 Deposits Our deposit growth has been largely acquisition- driven. Total deposits: 32.4% CAGR Core deposits: 38.3% CAGR Demand deposits: 43.4% CAGR (in millions) CDs NOW, MMAs, and Savings Demand deposits Total Deposits: $12,168 $12,694 $13,236 $14,376 $22,316
Slide 20: Loans Outstanding
New York Community Bancorp, Inc. Page 18 Loans Outstanding While acquisitions have contributed to the growth of our loan portfolio, the bulk of our loan growth has been organic. (in millions) Non-Covered Loan Portfolio Multi-family CRE All Other Loans (includes loans held for sale) Covered Loan Port
Slide 21: Leading aggregator of agency-conforming one- to four-family residential loans
New York Community Bancorp, Inc. Page 19 As a result of our acquisition of AmTrust’s mortgage banking operation, we have become a leading aggregator of agency-conforming one- to four- family residential loans. Funded 1-4 Family Loan Production Page 19 New York Community Bancorp, Inc. YTD Total: $6.9
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Slide 23: Our Business Model: Multi-family Loan Production
Our Business Model: Multi-family Loan Production * * * *
Slide 24: Multi-family Loan Portfolio
New York Community Bancorp, Inc. Page 21 Multi-family Loan Portfolio Multi-family loans have grown at a CAGR of 26.5% since 12/31/99. (in millions)
Slide 25: Commercial Real Estate Loan Portfolio
New York Community Bancorp, Inc. Page 22 Commercial Real Estate Loan Portfolio Our commercial real estate loans feature the same structure as our multi-family loans. (in millions)
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Slide 27: Our Business Model: Asset Quality
Our Business Model: Asset Quality * * * * * *
Slide 28: We have been distinguished by our low level of net charge-offs
New York Community Bancorp, Inc. Page 24 Both historically and currently, we have been distinguished by our low level of net charge-offs. Net Charge-offs / Average Loans NYB SNL Bank and Thrift Index 48-Month Total NYB: 0.17% SNL Bank and Thrift Index: 4.86% 45-Month Total NYB: 0.32% SNL Bank and Th
Slide 29: The quality of our loan portfolio continues to exceed that of our industry
New York Community Bancorp, Inc. Page 25 The quality of our loan portfolio continues to exceed that of our industry, as it has in the past. Non-performing Loans / Total Loans (a) NYB SNL Bank and Thrift Index (a) Non-performing loans are defined as non-accrual loans and loans 90 days or more past du
Slide 30: Few of our non-performing loans have resulted in charge-offs
New York Community Bancorp, Inc. Page 26 Historically and currently, few of our non-performing loans have resulted in charge-offs. At or for the 12 Months Ended December 31, At or for the 3 Months Ended Last Credit Cycle Current Credit Cycle 1990 1991 1992 1993 2007 2008 2009 9/30/2010 (a) Non-perfo
Slide 31: The quality of our assets reflects our multi-family lending niche
New York Community Bancorp, Inc. Page 27 The quality of our assets reflects the nature of our multi-family lending niche and our strong underwriting standards.
Slide 32: Loans acquired in AmTrust and Desert Hills are covered by FDIC loss sharing
New York Community Bancorp, Inc. Page 28 All the loans acquired in the AmTrust and Desert Hills transactions are covered by FDIC loss sharing agreements, thus mitigating credit risk. Covered Assets 9/30/10 (in millions) Total covered assets: $4.5 billion 1-4 Family $4,012.7 Other Loans $461.0 (a) In
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Slide 34: Our Business Model: Efficiency
Our Business Model: Efficiency * * * * * *
Slide 35: Our operating efficiency ratio was 36.12% in 3Q 2010
New York Community Bancorp, Inc. Page 30 Our operating efficiency ratio was 36.12% in 3Q 2010, well below the SNL Bank and Thrift Index efficiency ratio of 59.44%. (a) Please see pages 34 and 35 for a reconciliation of our GAAP and operating efficiency ratios. NYB (a) SNL Bank and Thrift Index NYB R
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Slide 37: Total Return on Investment
Total Return on Investment * * * * * *
Slide 38: Total Return on Investment
New York Community Bancorp, Inc. Page 32 Total Return on Investment We are committed to building value for our investors. NYB (b) (a) SNL Financial (b) Bloomberg As a result of nine stock splits in a span of 10 years, our charter shareholders have 2,700 shares of NYB stock for each 100 shares origin
Slide 39: For More Information
New York Community Bancorp, Inc. Page 33 For More Information 11/1/2010
Slide 40: Reconciliation of GAAP and Operating Efficiency Ratios
New York Community Bancorp, Inc. Page 34 Reconciliation of GAAP and Operating Efficiency Ratios For the Three Months Ended September 30, 2010 June 30, 2010 September 30, 2009 (dollars in thousands) GAAP Operating GAAP Operating GAAP Operating Total non-interest income and net interest income $393,29
Slide 41: Reconciliation of GAAP and Operating Efficiency Ratios
New York Community Bancorp, Inc. Page 35 Reconciliation of GAAP and Operating Efficiency Ratios The following table presents reconciliations of the Company’s GAAP and operating efficiency ratios for the years ended December 31, 2005, 2006, 2007, 2008, and 2009. For the Years Ended December 31, 2009
Slide 42: Reconciliation of GAAP and Operating Earnings
New York Community Bancorp, Inc. Page 36 Reconciliation of GAAP and Operating Earnings The following table presents reconciliations of the Company’s GAAP and operating earnings for the three months ended September 30, 2010, June 30, 2010, and September 30, 2009. For the Three Months Ended September
Slide 43: Reconciliation of GAAP and Operating Non-Interest Income and Revenues
New York Community Bancorp, Inc. Page 37 Reconciliation of GAAP and Operating Non-Interest Income and GAAP and Operating Revenues The following table presents reconciliations of the Company’s GAAP and operating non-interest income and its GAAP and operating revenues for the three months ended Septem
Slide 44: Reconciliation of GAAP and Non-GAAP Capital Measures
New York Community Bancorp, Inc. Page 38 Reconciliation of GAAP and Non-GAAP Capital Measures September 30, June 30, September 30, (dollars in thousands) 2010 2010 2009 Total stockholders’ equity $ 5,495,298 $ 5,446,434 $ 4,340,539 Less: Goodwill (2,436,325) (2,436,327) (2,436,401) Core deposit inta
New York Community Bancorp — Q3 2010 Earnings Presentation on 6ix