Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q4 2012 Earnings Presentation
41 slides from Flagstar Bank, N.a's earnings presentation, Feb 4, 2013
Slide 1: Fourth Quarter 2012 Investor Presentation
Exhibit 99.1 Fourth 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 bank holding companies in the United States
New York Community Bancorp ranks among the top 25 bank holding companies in the United States. Multi-Family Total Return Assets Deposits Market Cap Loans on Investment $44.1 billion $24.9 billion $18.6 billion $5.8 billion 3,069% With assets of With deposits of With a portfolio of With a market cap
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: 4Q and Full-Year 2012 Performance Highlights
4Q and Full-Year 2012 Performance Highlights
Slide 6: We generated solid earnings in 2012
We generated solid earnings in 2012. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS GAAP Earnings Cash Earnings (a) 2012 2011 2012 2011 Strong Profitability Measures: Earnings $501,106 $480,037 $542,022 $535,288 EPS $1.13 $1.09 $1.24 $1.23 Return on average tangible assets (b)
Slide 7: Our performance was equally solid in 4Q 2012
Our performance was equally solid in 4Q 2012. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS GAAP Earnings Cash Earnings (a) 4Q 2012 4Q 2011 4Q 2012 4Q 2011 Strong Profitability Measures: Earnings $122,843 $117,652 $133,009 $127,211 EPS $0.28 $0.27 $0.30 $0.29 Return on average
Slide 8: Our 12/31/12 balance sheet reflects continued strength
Our 12/31/12 balance sheet reflects continued strength. PERFORMANCE HIGHLIGHTS: 12/31/12 12/31/11 Loans, net / total assets 71.5% 71.7% Securities / total assets 11.1 10.8 Deposits / total assets 56.4 53.1 Core deposits / total deposits 63.3 67.0 Wholesale borrowings / total assets 29.6 32.0 New Yor
Slide 9: 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 12/31/12 12/31/11 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) 0.96% 1.66% 1.28% 2.60
Slide 10: We continue to maintain a strong capital position
We continue to maintain a strong capital position. (dollars in billions) 12/31/12 12/31/11 Tangible stockholders’ equity / tangible assets excluding accumulated other comprehensive loss, net of tax(a) 7.79% 7.95% Tangible stockholders’ equity(a) $3.2 $3.1 12/31/12 12/31/11 Community Bank Commercial
Slide 11: A Successful Business Model
A Successful Business Model
Slide 12: Our business model has focused on building value for 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 acquiring our Our efficiency rat
Slide 13: Multi-Family Loan Production
Multi-Family Loan Production
Slide 14: 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 15: 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 12/31/12 $18,605 $17,433 $16,736 $16,802 % of non-covered loans held for investment $15,726 = 68.2% Average principal balance = $4.1 million Expected we
Slide 16: Commercial real estate loans feature the same structure
Our commercial real estate loans feature the same structure as our multi-family loans. (in millions) PORTFOLIO STATISTICS COMMERCIAL REAL ESTATE AT 12/31/12 LOAN PORTFOLIO % of non-covered loans held for investment = 27.3% $7,437 $6,856 Average principal balance = $4.6 million $5,438 Expected weight
Slide 17: Asset Quality
Asset Quality
Slide 18: Asset quality has improved since the peak of non-performance
The quality of our assets has improved dramatically since the peak of non-performance at 3/31/10. Y-O-Y IMPROVEMENT at 12/31/12 NPLs / Total Loans: 19 bp 3.14% NPAs / Total Assets: 22 bp 2.63% 2.00% 1.77% 1.28% 1.07% 0.96% 0.71% 3/31/10 12/31/10 12/31/11 12/31/12 Non-Performing Loans (a)(b) / Total
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(a)Company. NET CHARGE-OFFS / AVERAGE LOANS Last Credit Cycle Current Credit Cycle 2.84% 2.89% 1.78% 1.63% 1.50% 1.28% 1.25% 1.17% 0.91% 0
Slide 20: 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) Last Credit Cycle Current Credit Cycle 4.17% 4.00% 4.05% 3.56% 3.41% 2.91% 2.83% 2.71% 2.63% 2.60% 2.48% 2.47% 2.35% 2.10% 1.66% 1.46% 1.51% 1.28% 0.96% 0.51% 12/31/89 12/31/90 12
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 12 Months Ended December 31, LastCreditCycle(a) CurrentCreditCycle(a) 1989 1990 1991 1992 1993 2008 2009 2010 2011 2012 NPLs (b)(c) / Total Loans (b) 1.46% 2.48% 2.10% 2.83% 1.51% 0.51% 2.47% 2.63
Slide 22: Asset quality reflects our lending niche and 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 • Conservative loan-to- • All loans originated for • All propertie
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 12/31/12 Other OREO Loans Other $62.4 OREO OREO $309.7 Loans Other $71.4 Other $45.1 $423.3 Loans Loans $386.6 $3
Slide 24: Residential Mortgage Banking
Residential Mortgage Banking
Slide 25: Residential mortgage banking operation aggregates agency-conforming 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
In a declining interest rate environment, mortgage banking income and prepayment penalty income have contributed to the stability of our ROTA. (dollars in millions) 1.34% 1.29% 1.27% 1.24% 1.36% 1.29% 1.24% 1.23% Return on Average Tangible Assets (a) $32.0 $31.5 Prepayment Penalty Income Mortgage Ba
Slide 27: Mortgage banking generated 60.1% of non-interest income in 2012
Our mortgage banking operation generated 60.1% of non-interest income and 12.3% of total revenues in 2012. (in millions) AT OR FOR THE TWELVE MONTHS ENDED 12/31/12 1-4 family loans funded in 2012 = $10.9 billion % sold to GSEs = 99% FUNDED 1-4 FAMILY LOAN PRODUCTION Average FICO = 771 Average loan-t
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 EFFICIENCY RATIO from mergers and acquisitions; we generally do not engage in de novo branch development. 66.79% 66.46% Multi-family and commercial real estate lending are both broker-driven, with the 59.24% borrowe
Slide 30: Growth Through Acquisitions
Growth Through Acquisitions
Slide 31: Growth from $1.9 billion in assets to $44.1 billion since first acquisition
In the 12 years since our first acquisition, we have grown from $1.9 billion in assets to $44.1 billion. Transaction Type: Savings Bank Commercial Bank Branch FDIC Deposit Note: The number of branches indicated reflects the number of branches in our current franchise that stemmed from each transacti
Slide 32: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition-driven. DEPOSITS (in millions) w/ Aurora w/ AmTrust w/ Desert Hills $2,759 CDs $1,870 $2,242 $1,933 NOW, MMAs, and Savings Demand deposits w/ PFSB, Doral, & SYNF $12,998 w/ ABNY w/ LICB $11,494 $12,122 $12,711 w/ RSLN $1,423 $1,265 $906 $720 $4,975 $5,
Slide 33: Acquisitions funded much of organic loan portfolio growth
Acquisitions have provided much of the funding for the organic growth of our loan portfolio. After Aurora After After Desert Hills LOANS OUTSTANDING AmTrust (in millions) $3,284 $3,753 $1,204 After $4,298 $1,243 PFSB, $5,016 $1,037 Doral, & $1,244 After $1,207 SYNF Held-for-Investment Loans ABNY $1,
Slide 34: Total Return on Investment
Total Return on Investment
Slide 35: Quarterly cash dividends and total return on investment
Our quarterly cash dividends are a significant component of our commitment to building value for our investors. TOTAL RETURN ON INVESTMENT 3,843% 3,069% SNL U.S. Bank and Thrift Index 2,885% NYB (a) 2,754% 2,670% 2,479% 2,059% CAGR since IPO: 28.0% 717% 614% 444% 244% 213% 209% 245% 260% 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 2/4/13 New York Community Bancorp, Inc. Page 36
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 and twelve months ended December 31, 2011 and December 31, 2012. For the Three Months For the Twe
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 measures for the three and twelve months ended December 31, 2011 and December 31, 2012. For the Three Months En
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 and twelve months ended December 31, 2011 and December 31, 2012. For the Three Months Ended December 31, For the Twelve Months Ended December
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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