Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2023 Earnings Presentation
32 slides from Flagstar Bank, N.a's earnings presentation, Oct 26, 2023
Slide 1: Third Quarter 2023 Investor Presentation
Third Quarter 2023 Investor Presentation Parent company of
Slide 2: Forward-Looking Information
23rd Quarter 2023 Forward-Looking Information This presentation may include forward-looking statements by the Company and our authorized officers pertaining to such matters as our goals, intentions, and expectations regarding revenues, earnings, loan production, asset quality, capital levels, and ac
Slide 3: Third Quarter 2023 Highlights
33rd Quarter 2023 Solid balance sheet Strong operating performance • Total assets of $111.2 billion declined $7.6 billion compared to June 30, 2023, primarily due to lower cash balances resulting from a decrease in FDIC custodial deposits • Total loans of $84.0 billion increased $0.7 billion, or 0.9
Slide 4: Third Quarter 2023 Observations
43rd Quarter 2023 Observations • Adjusted non-interest income(1) decreased $1 million, or 1%, due to: • Net loan administration income down $20 million, reflecting impact from decrease in loans being subserviced associated with Signature • Fee income, up $10 million, primarily due to a 12% increase
Slide 5: Balance sheet highlights
53rd Quarter 2023 $mm Observations Balance sheet highlights Incr (Decr)(1) Balance at September 30, 2023 Balance at June 30, 2023 $ % Cash, cash equivalents and due from banks $ 6,929 $ 15,806 $ (8,877) (56) % Securities(2) 8,736 7,796 940 12 % Loans held-for-sale 1,926 2,194 (268) (12) % Loans and
Slide 6: Deposits and loans
63rd Quarter 2023 Deposits and loans • Highlights – Deposits generated through retail and commercial channels – Non-interest bearing deposits at 30% of total deposits. Excluding $2.0 billion of custodial deposits related to the Signature transaction, non-interest bearing deposits as a percent of tot
Slide 7: Deposits by segment and uninsured
73rd Quarter 2023 Deposits by segment and uninsured Deposits by Segment Uninsured Deposits Community Banking 4.2% Custodial 10.5% Online Banking 10.5% Premier Banking 2.5% Private Client Group 27.9% Retail Banking 31.8% Wholesale 9.9% Other 2.7% Insured 58.9% Uninsured 36.3% Uninsured - Collateraliz
Slide 8: Deposit flow analysis
83rd Quarter 2023 Deposit flow analysis $88,497 $82,675 6/30/2023 Signature Custodials Wholesale Deposits Venture Capital Other 9/30/2023 Key Observations • -$3.9B Signature Custodial Deposits: Custodial deposits associated with the Signature transaction • -$1.2B Wholesale Deposits: Reflects runoff
Slide 9: Asset quality metrics
93rd Quarter 2023 Asset quality metrics Ratio NYCB S&P US BMI Banks Index Peers At September 30, 2023 At June 30, 2023 At June 30, 2023 NCOs/Average Loans 0.03% 0.14% 0.23% Cumulative losses (a) 110 bp 2,461 bp 1,405 bp NPAs/Total Assets 0.36% 0.34% 0.41% NPLs/Total Loans 0.47% 0.47% 0.62% ALLL/NPLs
Slide 10: Credit quality
103rd Quarter 2023 (a) Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired (“PCI”) loans. (b) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest. Our non-performing loans at 12/31/16, 1
Slide 11: Credit quality
113rd Quarter 2023 Credit quality 1. Refer to slide 29 for list of peers 2. Source: Company disclosures, peers results as of 9/30/2023, except for peers 8 and 9 which are as of 6/30/2023 Non-performing Loans (NPLs) as a percent of total loans held-for-investment (LHFI) favorable compared to industry
Slide 12: Credit quality
123rd Quarter 2023 Credit quality (a) The calculation of our net charge-offs to average loans excludes taxi medallion-related charge-offs of $59.6 million, $12.8 million, $10.2 million, $11.9 million, and $2 million, for 2017, 2018, 2019, 2020, 2021, and a $(6) million net recovery for 4Q22, respect
Slide 13: Regulatory capital
133rd Quarter 2023 Regulatory capital Ratio NYCB Peers At September 30, 2023 At June 30, 2023 Total Risk-Based Capital 11.98% 13.23% Tier 1 Risk-Based Capital 10.17% 11.26% Common Equity Tier 1 9.60% 10.28% Tier 1 Leverage 7.92% 8.98% → • We remain well capitalized and well above the minimum thresho
Slide 14: Capital comparison
143rd Quarter 2023 Capital comparison 1. Calculation: (CET1 + AOCI – CF Hedge in AOCI) / RWA; Exclusion of AOCI adjusted for cash flow hedges on loan portfolio 2. Peer group includes CFG, FCNC.A, FITB, HBAN, KEY, MTB, PNC, RF, TFC, USB 3. Source: Company filings (SEC or regulatory) as of June 30, 20
Slide 15: Community banking: Company overview
153rd Quarter 2023 Community banking • Flagstar Bank, N.A. is a leading regional bank with a balanced, diversified lending platform • Second-largest multi-family portfolio lender in the country and the leading multi-family portfolio lender in the New York City • Second largest mortgage warehouse len
Slide 16: Loan portfolio
163rd Quarter 2023 Total HFI Loans: $84.0 billion Loan portfolio • Majority of portfolio focused on low-risk multi-family loans on non-luxury, rent- regulated buildings - Market leader in this asset class having developed strong expertise and industry relationships over the last five decades • Avera
Slide 17: Multi-Family portfolio
173rd Quarter 2023 Multi-Family Portfolio Statistics for the three months ended September 30, 2023 • We are a leading indirect multi-family, rent regulated lender in the New York Metro Region. Multi-family loans have been our primary lending focus for the past five decades • 45% of loans held-for-in
Slide 18: Commercial real estate & ADC portfolio
183rd Quarter 2023 • Diversified property types which are primarily income- producing in the normal course of business • For additional information on Office, see slide 19 • For additional information on Homebuilder see slide 20 Commercial Real Estate and ADC ($bn) Commercial real estate & ADC Portf
Slide 19: Office portfolio characteristics
193rd Quarter 2023 Office portfolio characteristics Portfolio Profile Portfolio by location Manhattan 55% Queens; 7% PA; 5% NJ; 5% MI; 5% Nassau County-NY; 4% DC; 3% Suffolk County-NY; 3% Other; 13% UPB by contractual maturity year ($MM) $10 $311 $238 $325 $243 $285 $372 $1,623 2023 2024 2025 2026 2
Slide 20: Home builder loan commitments
203rd Quarter 2023 Home builder loan commitments(1) ($mm) ● National relationship-based lending platform launched in 1Q16 - Attractive asset class with good spreads (~375 bps) - Meaningful cross-sell opportunities including warehouse loans, commercial deposits and purchase originations ● Flagstar is
Slide 21: Commercial and industrial portfolio
213rd Quarter 2023 Commercial & Industrial ($bn) Commercial and industrial portfolio Industry Breakdown NBV Specialty Finance $ 6.3 Asset Finance 6.2 Warehouse 5.6 MSR 2.0 Financial & Insurance 1.3 Other 3.0 Total C&I $ 24.4 Specialty F inance 26% Asset F inance 26% Warehouse 23% MSR 8% F inancial &
Slide 22: Warehouse lending
223rd Quarter 2023 Warehouse loan commitments ($bn) Warehouse lending Lenders ranked by commitments ($mm) Source: Inside Mortgage Finance Report published on July 2023 with balances as of 6/30/2023. ● National relationship-based lending platform ● Attractive asset class with good spreads and low cre
Slide 23: Appendix
Appendix
Slide 24: Securities and funding composition
243rd Quarter 2023 Securities and funding composition • 2.53% cost of funds including non-interest bearing deposits • Significant capacity given eligibility of multi-family loans Total Funding: $97.3 billion • Entire portfolio is available for sale • Consists primarily of GSE-related securities • Ov
Slide 25: Mortgage banking
253rd Quarter 2023 Closings by mortgage type ($bn) Net gain on loan sales – revenue and margin Fallout-adjusted locks by channel ($bn) Closings by purpose ($bn) Mortgage banking $5 $20 $25 $26 0.56% 0.76% 0.51% 0.59% Gain on loan sale ($mm) Gain on sale margin (HFS) December 2022 1Q23 2Q23 3Q23 $0.7
Slide 26: Servicing portfolio
263rd Quarter 2023 154 7 35 Servicing portfolio MSR portfolio characteristics (% UPB) MSR portfolio statistics Net return (loss) on mortgage servicing rights ($mm) By Vintage 2023 10% 2022 23% 2021 29% 2020 22% 2020 & prior 16% By Investor F reddie 24% Fannie 57% GNMA 18% Private 1% Measure ($mm) 03
Slide 27: Balance sheet purchase accounting marks
273rd Quarter 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Loans and Leases (1) Beginning balance - unamortized fair value mark $ 1,004 $ 1,118 $ 461 $ — Additions — — 698 479 Less: accretion and other (2) 101 114 41 18 Ending Balance $ 903 $ 1,004 $ 1,118 $ 461 Core deposi
Slide 28: 2023 Guidance
28 Guidance(1) 1. See cautionary statements on slide 2. Provision for Credit Losses • Q4-23 NIM estimated to be between 3.00% to 3.10% Non-interest income • Q4-23 Gain on Sale revenue of $16 million to $20 million • Net return on MSR is 8% - 10% • Loan administration income estimated at $15 million
Slide 29: Peer group
293rd Quarter 2023 Peer group Peer Ticker Citizens Financial CFG Comerica CMA Fifth Third Bancorp FITB First Citizens Bancshares FCNC.A First Horizon Corporation FHN Huntington Bancshares Incorporated HBAN KeyCorp KEY M&T Bank Corporation MTB Regions Financial Corporation RF Synovus Financial Corpor
Slide 30: Adjusted net income and diluted earnings per share
303rd Quarter 2023 Adjusted net income and diluted earnings per share Three Months Ended September 30, 2023 Three Months Ended June 30, 2023 Three Months Ended September 30, 2022 Net income - GAAP $ 207 $ 413 $ 152 Merger-related and restructuring expenses, net of tax (1) 67 81 3 Bargain purchase ga
Slide 31: Reconciliations of GAAP and non-GAAP measures
313rd Quarter 2023 Reconciliations of GAAP and non-GAAP measures $mm Non-GAAP Ratio Reconciliations Three months ended September 30, 2023 Three months ended June 30, 2023 Three months ended September 30, 2022 Total Stockholders’ Equity $ 10,993 $ 11,060 $ 6,746 Less: Goodwill and other intangible as
Slide 32: Investor Relations contact
323rd Quarter 2023 Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: Investor Relations New York Community Bancorp, Inc. 102 Duffy Avenue Hicksville, NY 11801 For more information
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