Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2017 Earnings Presentation
32 slides from Flagstar Bank, N.a's earnings presentation, Nov 22, 2017
Slide 1: Third Quarter 2017 Investor Presentation
EXHIBIT 99.1 Third Quarter 2017 Investor Presentation
Slide 2: Cautionary Statements
Cautionary Statements 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, an
Slide 3: We rank among the largest U.S. bank holding companies
We rank among the largest U.S. bank holding companies. MULTI-FAMILY TOTAL RETURN ASSETS DEPOSITS MARKET CAP LOANS ON INVESTMENT $48.5 billion $28.9 billion $27.2 billion $6.3 billion 4,007% With assets of With deposits of With a portfolio of With a market cap From 11/23/93 $48.5 billion at $28.9 bil
Slide 4: 3Q 2017 Performance Highlights
3Q 2017 PERFORMANCE HIGHLIGHTS
Slide 5: Income Statement Highlights
Income Statement Highlights (dollars in thousands, except per share data) 3Q 2017 Strong Profitability Measures: Net income available to common shareholders $102,261 Diluted earnings per common share $0.21 Return on average assets 0.91% Return on average common stockholders’ equity 6.53 Return on av
Slide 6: Balance Sheet Highlights
Balance Sheet Highlights BALANCE SHEET ASSET QUALITY 9/30/17 At or for the Three Months Ended 9/30/17 Loans, net / total assets 77.3% Non-performing loans / total loans 0.18% Securities / total assets 6.3 Non-performing assets / total assets 0.17 Deposits / total assets 59.6 Net charge-offs / averag
Slide 7: Loans and Deposits
Loans and Deposits LOANS DEPOSITS AT 9/30/17 AT 9/30/17 Savings 17% CRE CDs 20% 30% Multi- Family Interest- 73% Bearing Checking ADC and MMA 1% 43% C&I 5% 1-4 Family Non- 1% Interest- Bearing 10% TOTAL HFI LOANS: $37.5 BN TOTAL DEPOSITS: $28.9 BN AVERAGE YIELD ON LOANS: 3.71% AVERAGE COST OF INTERES
Slide 8: Our regulatory capital ratios exceed those of our peers
Our regulatory capital ratios exceed those of our peers. NYCB PEERS RATIO AT 9/30/17 (MEDIAN AT 9/30/17) Tier 1 Risk-Based Capital 13.06% 11.51% Total Risk-Based Capital 14.59 13.17 Tier 1 Leverage 9.40 9.34 Common Equity Tier 1 11.54 10.98 Page 8
Slide 9: Looking Forward
LOOKING FORWARD
Slide 10: Levers for Future Earnings Growth
Levers for Future Earnings Growth Total non-covered loans grew nearly 3% on an annualized basis, and we expect loan growth to accelerate in the fourth quarter. Held-for-investment loan originations rose 24% from the previous quarter, including 50% growth in multi-family originations and 30% growth i
Slide 11: We continue to be encouraged by recent signs of regulatory easing
We continue to be encouraged by recent signs of regulatory easing. Qualitative stress testing for financial institutions with assets greater than $50 billion and less than $250 billion has been eliminated. The regulatory approval process for mergers resulting in the creation of a bank holding compan
Slide 12: We also are encouraged by proposed changes to the federal tax laws
We also are encouraged by proposed changes to the federal tax laws for corporations. Changes to the federal corporate tax laws would be expected to benefit our earnings in two important ways: Our current federal corporate tax rate is 35%. All other things being equal, a reduction in the federal tax
Slide 13: Our Business Model
OUR BUSINESS MODEL
Slide 14: Strategic Loan Production
STRATEGIC LOAN PRODUCTION
Slide 15: We are a leading producer of multi-family loans on non-luxury apartment buildings in NYC
We are a leading producer of multi-family loans on non- luxury apartment buildings in NYC with rent-regulated units. MULTI-FAMILY PORTFOLIO STATISTICS LOAN PORTFOLIO AT OR FOR THE 3 MONTHS ENDED (in millions) 9/30/17 $26,961 $27,162 % of non-covered loans held for $25,989 $23,849 investment = 72.4%
Slide 16: The way we lend in this market niche has distinguished our performance
The way we lend in this market niche has distinguished our performance from that of other multi-family lenders. Of the loans in our portfolio that are collateralized by multi-family buildings in the five boroughs of New York City, 88% are collateralized by buildings with rent- regulated units featur
Slide 17: Commercial real estate lending has been a logical extension of multi-family
Commercial real estate lending has been a logical extension of our emphasis on multi-family loans. COMMERCIAL REAL ESTATE PORTFOLIO STATISTICS LOAN PORTFOLIO AT OR FOR THE 3 MONTHS ENDED (in millions) 9/30/17 $7,860 $7,727 % of non-covered loans held for $7,366 $7,637 $7,553 investment = 20.1% Avera
Slide 18: The launch of our specialty finance business provided another lending niche
The launch of our specialty finance business provided us with another high-quality lending niche. LOAN TYPES Syndicated asset-based (ABLs) and dealer floor- SPECIALTY FINANCE plan (DFPLs) loans Equipment loan and lease financing (EF) LOAN AND LEASE PORTFOLIO CLIENT CHARACTERISTICS (in millions) Larg
Slide 19: Asset Quality
ASSET QUALITY
Slide 20: The quality of our assets reflects our lending niche and strong underwriting
The quality of our assets reflects the nature of our lending niche and our strong underwriting standards. Conservative loan-to-value ratios CONSERVATIVE Conservative debt service coverage ratios: 120% for multi-family loans and 130% for CRE UNDERWRITING loans Multi-family and CRE loans are based on
Slide 21: Our asset quality in down credit cycles has distinguished us from peers
Our asset quality in down credit cycles has consistently distinguished us from our industry peers. NON-PERFORMING LOANS(a)(b) / TOTAL LOANS(a) (c) S & L CRISIS GREAT RECESSION CURRENT CREDIT CYCLE 3.01% 2.63% 4.00% 4.05% 2.47% 2.30% 3.41% 2.91% 1.86% 1.86% 2.83% 2.48% 2.35% 1.39% 2.10% 1.28% 1.46% 1
Slide 22: Few of our non-performing loans have resulted in actual losses
Few of our non-performing loans have resulted in actual losses. NET CHARGE-OFFS / AVERAGE LOANS (a) S & L CRISIS GREAT RECESSION CURRENT CREDIT CYCLE 1.63% 1.39% 1.50% 1.28% 0.88% 0.90% 1.17% 0.91% 0.55% 0.54% 0.35% 0.32% 0.21% 0.18% 0.15% 0.19% 0.24% 0.13% 0.13% 0.00% 0.00% 0.04% 0.07% 0.06% 0.03%
Slide 23: Efficiency
EFFICIENCY
Slide 24: Efficiency has been another Company hallmark
Efficiency has been another Company hallmark. HISTORICAL DRIVERS OF EFFICIENCY RATIO (a) OUR EFFICIENCY Multi-family and CRE lending are both broker- 53.91% driven, with the borrower paying fees to the 50.87% mortgage brokerage firm. Products and services are typically developed by third-party provi
Slide 25: Our efficiency ratio has increased significantly since the enactment of Dodd-Frank
Our efficiency ratio has increased significantly since the enactment of Dodd-Frank. PREPARING FOR SIFI STATUS Following the enactment of the Dodd-Frank Act, we began allocating significant resources towards SIFI preparedness. The degree to which we have already leveraged the cost of SIFI compliance
Slide 26: Growth Through Acquisitions
GROWTH THROUGH ACQUISITIONS
Slide 27: We have a long history of earnings-accretive transactions
We have a long history of earnings-accretive transactions. 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 York (ABNY) (RCBK) (LICB) Assets: Assets: Ass
Slide 28: The benefits of our business model are reflected in our total return
The benefits of our business model are reflected in our total return over the course of our public life. TOTAL RETURN ON INVESTMENT 4,682% 4,784% 4,265% 4,319% Peer Group 4,007% 3,843% (a) NYCB 3,069% 2,754% 2,670% 2,059% CAGR since IPO: 23.2% 717% 722% 748% 459% 492% 530% 306% 286% 231% 299% 203% 1
Slide 29: For More Information
For More Information VISIT OUR WEBSITE : 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 Page 29 11/22/17
Slide 30: Appendix
APPENDIX
Slide 31: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures While average stockholders’ equity, average assets, return on average assets, and return on average stockholders’ equity are financial measures that are recorded in accordance with U.S. generally accepted accounting principles ("GAAP"), average tangible
Slide 32: Peer Group
Peer Group PEER TICKER BankUnited, Inc. BKU Comerica Incorporated CMA F.N.B. Corporation FITB Fifth Third Bancorp FNB Huntington Bancshares Incorporated HBAN Investors Bancorp, Inc. ISBC M&T Bank Corporation MTB Bank of the Ozarks OZRK People's United Financial, Inc. PBCT Signature Bank SBNY Sterlin
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