Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2002 Earnings Presentation
40 slides from Flagstar Bank, N.a's earnings presentation, Nov 7, 2002
Slide 1: Third Quarter 2002 Investor Presentation
New York Community Bancorp, Inc. Measure the difference. Invest in the strength. Third Quarter 2002 Investor Presentation
Slide 2: Forward-looking Statements and Risk Factors
Forward-looking Statements and Risk Factors ‘The eesertton contains cetsinforvarooking stetements wih regardto the Compan prospective perfomance and <tretesjos wn the meaning of Secon 278 othe Secures Act ct 1903, ae amended and Sechon 21 E ofthe Secures Exchange Act of 1934, as amended. The Company
Slide 3: Measure the difference.
Measure the difference.
Slide 4: Difference: Performance
Measure the Difference: Performance Based on its 1996 - 2001 earnings, NYCB is ranked the top-performing large thrift.* 2001 2001 9 Mos. 2002 Core Ranking Industry NYCB NYCB NYCB NYCB Criteria Average Core Cash GAAP Cash ROA | 083% 165% 2.33% 2.25% 2.60% ROE | 861 18.30 25.90 19.79 22.88 Efficiency
Slide 5: Performance: ROA
Measure the Performance: ROA NYCB’s YTD ROA exceeds the industry average by 140 basis points. 0.00% 1997 1998 1999 2000 2001 YTD 2002 US. Thrifts 083% 089% 083% os 076% 085% New York Community Bancorp, Inc. 5
Slide 6: Performance: ROA
Measure the Performance: ROA NYCB’s YTD ROA exceeds the industry average by 140 basis points. 250% 2.00% 150% 100% 050% 0.00% 1998 2001 YTD 2002 US. Thrifts 0.83% 0.89% 0.83% 074% 076% 0.85% ENYCE 161% 162% 1.69% 1.56% 165% 225% New York Community Bancorp, Inc. 6
Slide 7: Performance: ROE
Measure the Performance: ROE NYCB’s YTD ROE is more than twice the industry average. 25.00% 20.00% 15.00% 10.00% 5.00%: | | 0.00%: 1997 1998 1999 00 2001 YTD 2002 US.Thifs 841% 792% 7% 740% 7.89% 378% New York Community Bancorp, Inc. q
Slide 8: Performance: ROE
Measure the Performance: ROE NYCB’s YTD ROE is more than twice the industry average. 25.00% 20.00% 15.00% 10.00% 5.00%: 0.00%: 1999 2001 YTD 2002 US. Thrifts 8.41% 7.92% 12% 740% 7.89% 8.78% ENYCE 2.95% 732% «22-99% 19.40% 78.30% 7.79% New York Community Bancorp, Inc. 8
Slide 9: Performance: Net Interest Margin
Measure the Performance: Net Interest Margin NYCB’s margin has consistently exceeded the industry average. 5.00% 400% 3.00 2.00% 1.00! 0.00% 1998 YTD 2002 US. Thrifts 348% 342% 3.40% 3.28% 3.19% 337% 2 2 New York Community Bancorp, Inc. 9
Slide 10: Performance: Net Interest Margin
Measure the Performance: Net Interest Margin NYCB’s margin has consistently exceeded the industry average. 5.00% 400% 3.00% 2.00% 100% 0.00% 1998 2001 YTD 2002 US. Thrifts 348% 3.42% 3.40% 3.28% 3.19% 337% ENYCE 445% cerEy 3.19% 333% 359% 736% New York Community Bancorp, Inc. 10
Slide 11: Performance: Efficiency Ratio
Measure the Performance: Efficiency Ratio NYCB’s YTO efficiency ratio is 3,181 basis points below the industry average. Re Ory im 0% 0% o% a 10% 0% 1997 1998 1999 2000 2001 YTD 2002 US. Thrifts 58.38% 59.84% 63.13% = 6.AN 63.38% = 60.72% New York Community Bancorp, Inc. 11
Slide 12: Performance: Efficiency Ratio
Measure the Performance: Efficiency Ratio NYCB’s YTO efficiency ratio is 3,181 basis points below the industry average. ™% Ed 2 2 Ed a Ed ‘0 2 ann 1998 2001 YTD 2002 U.S. Thrifts 98.38% 59.84% 63.13% 6AM 63.38% 60.72% 0% ENYCE 41.86% 365% —-2995% 30.20% 35.03% 28.91% New York Community Bancorp, Inc.
Slide 13: Quality: NPAs/Total Assets
080% 050% 040% 020% 0.00% 1997 1998 US. Thifs 0.66% 054% 1999 2000 2001 YTD 2002 049% 047% ost% 0.65% New York Community Bancorp, Inc. 13
Slide 14: Quality: NPAs/Total Assets
Measure the Quality: NPAs/Total Assets Exceptional asset quality has been a hallmark of NYCB throughout its public life. 080% - Vahl 1998 2001 YTD 2002 US. Thrifts 0.66% 0.54% 0.49% 047% ost% 0.65% ENYCE 054% 0.38% 017% 0.19% 0.19% one New York Community Bancorp, Inc. 14
Slide 15: Quality: NPLs/Total Loans
Measure the Quality: NPLs/Total Loans NYCB’s asset quality reflects the fully-performing status of its multi-family loans. 100% 050% 050% 040% 020% 0.00% 1998 2000 2001 YTD 2002 US. Thrifts 087% 076% 082% 061% 081% 084% New York Community Bancorp, Inc. 18
Slide 16: Quality: NPLs/Total Loans
Measure the Quality: NPLs/Total Loans NYCB’s asset quality reflects the fully-performing status of its multi-family loans. 100% 050% 050% 040% 020% 0.00% 1998 2001 YTD 2002 US. Thrifts 087% 076% 0.82% 0.61% ost% 0.84% ENYCE 62% 04a 020% 025% 03% 021% New York Community Bancorp, Inc. 16
Slide 17: Quality: NCOs/Average Loans
Measure the Quality: NCOs/Average Loans The absence of any net charge-offs attests to NYCB’s underwriting standards. 020% 010% 0.00% 1997 1998 1999 2000 2001 YTD 2002 US. Thrifts 0.14% 0.4% 0.4% 0.14% 0.18% 0.15% New York Community Bancorp, Inc. 17
Slide 18: Quality: NCOs/Average Loans
Measure the Quality: NCOs/Average Loans The absence of any net charge-offs attests to NYCB’s underwriting standards. 020% 010% | 0.00% 1997 1998 1999 2000 2001 YTD 2002 US. Thrifts 0.14% 0.4% 04% 0.145% 0.18% 0.15% ENYCE 0.00% 0.00% 0.00% 0.00% ‘0.00% 0.00% New York Community Bancorp, Inc. 18
Slide 19: Value: Total Returns
Measure the Value: Total Returns NYCB consistently generates above-average shareholder returns. 250.00% 200.0% N.Y. Peers * 150.00% 99.02% 100,00% P 74808 50.00% 1276% 177% oon LP p. YTD One-Year 3-Year 5-Year "NY. Pate: AF, OCOM, GPT. ICBC, NFO, RELY, S18 New York Community Bancorp, Inc. 19
Slide 20: Value: Total Returns
Measure the Value: Total Returns NYCB consistently generates above-average shareholder returns. 250.00% 200.00% 10.00% 100.00% 50.00% ary 2458% 0.00% YTD ‘One-Year 3-Year S-Year "NY. Pate: AF, OCOM, GPT. ICBC, NFO, RELY, S18 New York Community Bancorp, Inc. 20
Slide 21: Invest in the strength.
Invest in the strength.
Slide 22: Multi-family Market Niche
Strength: Multi-family Market Niche NYCB is the #1 multi-family lender for portfolio in NYC. $2.00: $1 600: $4200 (Golarsin nitions) $800 400. ‘9 Mos. 1997 1998 199920002001 Sh AllOther Mortgage Originations $342 __—$424__—$734__—$743_——$3588 $3985 = Mukifamily Loan Originations $4189 $4098 $6034 —«
Slide 23: Multi-family Lending Strategy
Strength: Multi-family Lending Strategy The strength of NYCB’s performance reflects its emphasis on multi-family lending. Rent-controlled / Rent-stabilized buildings 5-year fixed f 5-year adjustable term Average term to maturity: 4 years A PROFITABLE, Average loan: $1.7 million EFFICIENT, & RISK-AVE
Slide 24: sis
a sis F ss000: Esme Sa ssi 0a or ao ‘35002 Se ee New York Community Bancorp, Inc. 24
Slide 25: The Franchise
Strength: The Franchise New York Community Bancorp, Inc. 25
Slide 26: Deposit Mix
Strength: Deposit Mix The rise in core deposits has contributed to the growth in net interest income. 12/31/99 12/31/00 12/31/01 9/30/02 = = ined: deponteaoqutein Be Richmond County tancacton. "Red the vette of 15 ner ranches New York Community Bancorp, Inc. 26
Slide 27: Interest Rate Risk Management
Strength: Interest Rate Risk Management NYCB’s margin has provided a cushion against changes in interest rates. a0 200 — ‘year U.S. Treasury yield sont LBOR o 3 S. NYCE neinterest acpi = 100 p= z -m0 = a0 00 1998 4999 2000 20019 tos. 2002 4205 3.195 3.33 3.59% 4.36% NYCB Niet New York Community Banc
Slide 28: M&A Strategy
Strength: M&A Strategy NYCB’s transactions have been highly accretive to earnings. Haven Richmond wYCB atic Bancorp County 2002 Resuits ‘Announcement Date: June 2000 ‘arch 2001 “ Completed Date: November 2000 July 2001 i ‘Announced Transaction Value $198 se02 : ‘Assets /Deposits: $2,966 $2,151" $9,2
Slide 29: Efficiency
Strength: Efficiency The consistent efficiency of NYCB’s operations stems from several sources. Emphasis on multi-family lending Franchise expansion through M & A De novo branch expansion at turn-key locations EFFICIENCY Hub & spoke approach to in-store branching Profitable conduit relationships Sal
Slide 30: Revenue Generation
Strength: Revenue Generation Core other operating income represents 17.7% of YTD core revenues. (Golars i mitlons) $59.7 Core other operating income: Net interest income $510 sora $205.8 s y S734 y 1999 72000 2001 ‘9 Mos. 2002 Tal Core Total Core TTtal Core ‘tal Core Revenues: $71.4] | Revenues: $91
Slide 31: Third-party Product Sales
Strength: Third-party Product Sales NYCB is in the top 1% of thrifts generating income from investment product sales.* (Golars nitions) GROSS SALES GROSS REVENUES. $1465 $8.6 $92.2 $5.0 9 Mos. 2001 9 Mos. 2002 9 Mos. 2001 9 Mos. 2002 "Singer's Amity at Fut Repst-4H 2002 New York Community Bancorp, I
Slide 32: Capital Management
Strength: Capital Management NYCB actively manages its capital. 7 stock splits in 9 years, including 2 in 2001 ‘Approximately 500,000 shares repurchased per quarter 61-fold increase in quarterly cash dividend $121.3 million in trust preferred securities issued in 4Q 01 $400 million shelf registratio
Slide 33: Capital Management
Strength: Capital Management NYCB raised $268 million, net, through its BONUSES Units offering on 10/28/02. Issuer: Offering: Issue Price: Value Allocation: Coupon: Conversion Premium: Conversion Ratio: Call Protection: Maturity: New York Community Capital Trust V $240 million Cumulative Convertible
Slide 34: Capital Management
Strength: Capital Management NYCB’s capital position has been strengthened by the BONUSES™ Units offering. + Funds high quality multi-family loan production + Accretive to tangible book value + Earnings-accretive with conservative investment assumptions + Supports above-average EPS and loan growth +
Slide 35: Earnings Capacity
Strength: Earnings Capacity NYCB projects 63% diluted EPS growth in 2002, Diluted Cash EPS AS $252.62. Diluted EPS $2.16-$2.18 $0.48 r T T i" T i 1997 1998 1999 2000 2001 2002 2003 Company Estimates” “Company ecinte do at tect ean ted tereftot the poesdegeneated bythe BONUSES Unt oletg on 10202 New
Slide 36: Shareholder Value Creation
Strength: Shareholder Value Creation NYCB’s market cap has appreciated 2,760% since 11/23/93. (atria tne ent he dt) Sar ane capialzaton Price per share (agusted for 7 spits) s20 Annual its produced by current iidend en Shares purchased at hi date $007 feos | $652 [seve $906 oes Be fis22 e128 |" | “H
Slide 37: Difference: Stronger Balance Sheet
Measure the Difference: Stronger Balance Sheet The balance sheet has benefited from M&A, restructuring, and leveraged growth. Improvement Since 9/30/02 9/30/01 9/30/00 Total assets $10.0bn T 12% T 355% Multi-family loans $4.2bn 38% 164% Mortgage originations $1.9bn 111% 280% Tangible stockholders’ e
Slide 38: Difference: Stronger Earnings
Measure the Difference: Stronger Earnings NYCB’s 3Q 02 earnings growth was driven by a 62% YOY rise in core revenues. Diluted EPS Diluted Cash EPS Net interest income Core other operating income ROA Spread Margin Efficiency ratio Improvement Since 3Q02 3Q01 3.00 $0.58 T 76% £ 190% $0.61 1% 154% $98.
Slide 39: Difference: Stronger Prospects
Measure the Difference: Stronger Prospects NYCB’s record of earnings growth is expected to continue in 2003. Projected 2002 Increase Diluted EPS estimates* $2.16 - $2.18 63% Diluted Cash EPS estimates* $2.40 -$2.45 28% 2003 Diluted EPS estimates* $2.52 -$2.55 17% Diluted Cash EPS estimates* $2.68 -
Slide 40: For more information:
For more information: + Log onto our web site: www.myNYCB.com + E-mail requests to: iangarola@myNYCB.com + Call Investor Relations at: (516) 683-4420 + Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 New York Community Bancorp, Inc. 40
New York Community Bancorp — Q3 2002 Earnings Presentation on 6ix