Flagstar Bank, N.A. · NYSE:FLG
Flagstar Bank, N.A — New York Community Bancorp — Q1 2007 Earnings Presentation
35 slides from Flagstar Bank, N.A's earnings presentation, May 9, 2007
Slide 1: First Quarter 2007 Investor Presentation
Exhibit 99.1 First Quarter 2007 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: We are a leading financial institution in the competitive New York metropolitan region
We are a leading financial institution in the competitive New York metropolitan region. With assets of approximately $30.8 billion: (a)(b) - We operate the 4th largest thrift in the nation and the largest in New York State. (c) With a portfolio of approximately $14.3 billion: (d) - We are the leadin
Slide 4: Multi-bank holding company with two bank subsidiaries operating nine divisional banks
We are structured as a multi-bank holding company with two bank subsidiaries operating nine divisional banks. Community Commercial Bank Bank Divisions Division 4
Slide 5: Our Market
* * * * * * * * Our Market 5
Slide 6: Acquisition of branches from Doral Bank, FSB expands New York City footprint
With the acquisition of 11 branches from Doral Bank, FSB, we will expand our footprint in New York City. New York Community Bank New York Commercial Bank Branches to be acquired from Doral Bank, FSB by New York Commercial Bank 6
Slide 7: With Doral, 198 locations serving Metro New York
With Doral, we will have 198 locations serving consumers and businesses throughout Metro New York. Community Commercial Bank Bank Customer Traditional In-store Convenience Traditional Market Served Branches Branches Centers Branches Total Queens 26 7 1 11(a) 45(a) Nassau 23 10 -- 2 35 Suffolk 9 14 1
Slide 8: Our branch network features a convenient mix of locations
Our branch network features a convenient mix of traditional & in-store and urban & suburban locations. 8
Slide 9: We compete very effectively against New York's money center banks
We compete very effectively against New York’s money center banks. (dollars in thousands) STATEN ISLAND, NY NASSAU COUNTY, NY QUEENS COUNTY, NY (a) Market Market Market Rank Institution Deposits Share Rank Institution Deposits Share Rank Institution Deposits Share 1 Sovereign Bancorp Inc. $2,491,607
Slide 10: 1st Quarter 2007 Performance Highlights
* * * * * * * * * 1st Quarter 2007 Performance Highlights 10
Slide 11: Our 1Q 2007 performance was highlighted by improved operating metrics
Our 1Q 2007 performance was highlighted by improved operating metrics. Operating Earnings Growth: - Our operating EPS rose $0.01on a linked-quarter basis, the first sequential improvement since 3Q 2004. (a) Margin Expansion: - Our net interest margin rose five basis points linked-quarter and four ba
Slide 12: Net interest margin remained stable in 2006 and improved in 1Q 2007
Notwithstanding the inversion of the yield curve, our net interest margin remained stable in 2006 and improved in 1Q 2007. 1Q 2007 Linked-quarter (dollars in thousands) 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 Increase Average yield on loans 5.81% 5.85% 5.94% 6.08% 6.14% 6 bp Average yield on assets
Slide 13: We continue to rank among the most efficient bank holding companies
We continue to rank among the most efficient bank holding companies in the nation. Efficiency Ratio 75.02% 66.03% 67.45% 64.53% 64.81% 62.44% 62.54% 63.07% 62.40% 40.73% 37.59% 31.16% 30.20% 30.50% 28.86% 25.32% 23.59% 21.46% 1999 2000 2001 2002 2003 2004 2005 2006 1Q 2007 U.S. Thrifts (a) NYB (b) (
Slide 14: Our longstanding record of asset quality was extended in 1Q 2007
Our longstanding record of asset quality was extended in 1Q 2007. Non-performing Assets / Total Assets 0.78% 0.62% 0.60% 0.52% 0.49% 0.49% 0.47% 0.44% 0.43% 0.19% 0.19% 0.17% 0.15% 0.15% 0.12% 0.11% 0.08% 0.09% 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 3/31/07 U.S. Thri
Slide 15: Tangible capital facilitates payment of a strong quarterly cash dividend
The strength of our tangible capital continues to facilitate the payment of a strong quarterly cash dividend. Both of our bank subsidiaries are well capitalized institutions: 3/31/07 Community Bank Commercial Bank Leverage capital ratio 7.46% 10.73% Our tangible capital measures grew on a linked-qua
Slide 16: Our Business Model
* * * * * * * * * * Our Business Model 16
Slide 17: The foundation for our success is a consistent business model
The foundation for our success is a consistent business model that has focused on building value while building the Company. The origination of multi-family loans: - $19.0 billion of multi-family loans originated since January 2000, including $2.8 billion in 2006 and $657 million in 1Q 2007 The main
Slide 18: Our multi-family lending niche is profitable, efficient, and resilient
Our multi-family lending niche is profitable, efficient, and resilient. Niche: Primarily rent-controlled and -stabilized buildings in NYC Borrowers: Long-term property owners with a history of building cash flows, often on buildings that have been in their families for multiple generations Term: Yea
Slide 19: Multi-family loans secured by rent-regulated buildings in Manhattan & Brooklyn
The majority of our multi-family loans are secured by rent-regulated buildings in Manhattan & Brooklyn. 19
Slide 20: Multi-family loans have grown at a CAGR of 38.4% since 12/31/99
Multi-family loans have grown at a CAGR of 38.4% since 12/31/99. (in millions) Multi-family Loan Portfolio (a) At 3/31/07 $14,529 $14,232 $12,854 % of total loans: 73.8% $9,839 Average principal balance: $3.6 million $7,368 Average loan-to-value ratio: 63.8% $4,494 Expected weighted average life: 3.
Slide 21: The quality of our assets reflects strong credit and underwriting standards
The quality of our assets reflects our strong credit and underwriting standards. Conservative loan-to-value (“LTV”) ratios Minimum debt coverage ratio: 120% All loans approved by the Mortgage and Real Estate Committee or the Credit Committee (a majority of the Board of Directors) Director and execut
Slide 22: Our efficiency has been driven by our approach to lending and branch expansion
Our efficiency has been driven by our approach to lending, product development, and branch expansion. Multi-family and commercial real estate lending are both broker-driven, without cost to the Company. One-to-four family loans are originated on a pass-through basis and sold shortly after closing, s
Slide 23: Acquisitions have strengthened and enhanced the quality of our balance sheet
Acquisitions have strengthened and enhanced the quality of our balance sheet. Pro Forma w/ PFSB w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY and Doral (b)(c)(d) (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 12/31/06 3/31/07 Number of branches 14 86 120 139 152 166 198 Multi-family lo
Slide 24: Our acquisitions have contributed to the achievement of several key goals
In addition, our acquisitions have contributed to the achievement of several key goals. HAVN RCBK RSLN LICB ABNY PFSB Immediately accretive to GAAP and cash earnings Strengthens our deposit market share in existing markets Extends our geographic footprint within the Metro New York region Provides co
Slide 25: Cash flows from sale of acquired assets converted into securities and loans
Cash flows from the sale of acquired assets have been converted into securities and then into loans. w/ ABNY $19,653 $19,287 (dollars in millions) w/ LICB $17,029 $13,396 $12,119 Loans w/ RSLN $10,919 Securities $10,499 $9,500 $7,081 w/ RCBK $5,405 $5,489 $5,637 $4,926 $4,742 w/ HAVN $4,652 $3,636 $
Slide 26: Additional funding has stemmed from acquired deposits
Additional funding has stemmed from acquired deposits. Pro Forma w/ PFSB & Doral (a) (in millions) Deposits $1,384 w/ ABNY w/ LICB $1,123 $846 w/ RSLN Total deposits: 43.0% CAGR $720 $739 $5,675 Core deposits: 47.7% CAGR Demand deposits: 63.0% CAGR $5,551 $6,012 CDs $5,247 $5,911 NOW, MMAs, and Savi
Slide 27: The bulk of our loan growth has been organic
While acquisitions have contributed to the growth of our loan portfolio, the bulk of our growth has been organic. Pro Forma w/ PFSB & Doral (b)(c) w/ ABNY (in millions) Loans Outstanding (a) w/ LICB $6,933 $5,124 $4,175 Multi-family loans: 38.5% CAGR Total loans: 42.7% CAGR w/ RSLN $3,557 Multi-fami
Slide 28: LICB and ABNY provided an established commercial bank platform
Our acquisitions of LICB and ABNY provided us with an established commercial bank platform. LICB ABNY Enhanced our asset mix with C&I loans to small and mid-size businesses Added commercial lending expertise to our management team Diversified our depositor/borrower base Provided the opportunity to c
Slide 29: The expansion of our franchise is progressing on schedule
The expansion of our franchise is progressing on schedule. PennFed: - Completed the transaction on April 2, 2007. - Sold or securitized $1.4 billion of PennFed’s one-to-four family loans on April 30, 2007. - Sold the related securities in May. - Conversion of PennFed’s systems to New York Community
Slide 30: We are committed to building value in 2007
We are committed to building value in 2007. Our Goals Enhance our asset mix by originating C&I loans to small and mid-size businesses in our market, while growing our multi-family, construction, and commercial real estate loan portfolios Maintain the quality of our assets by adhering to our traditio
Slide 31: For More Information
For More Information Log onto our web site: www.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 5/9/2007 31
Slide 32: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures The following table presents a reconciliation of the Company’s GAAP and operating earnings for the three months ended December 31, 2006 and March 31, 2007. For the Three Months Ended March 31, December 31, (in thousands, except per share data) 2007 2006 G
Slide 33: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures The following table presents reconciliations of the Company’s GAAP and operating efficiency ratios for the years ended December 31, 1999, 2000, 2001, 2003, 2004, 2005, and 2006. For the year ended December 31, 2002 and the three months ended March 31, 200
Slide 34: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation of GAAP and Non-GAAP Capital Measures The following table presents reconciliations of the Company’s stockholders’ equity, tangible stockholders’ equity, and adjusted tangible stockholders’ equity; total assets, tangible assets, and adjusted tangible assets; and the related capital mea
Slide 35: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation of GAAP and Non-GAAP Capital Measures The following table presents a reconciliation of the Company’s stockholders’ equity, tangible stockholders’ equity, and adjusted tangible stockholders’ equity; total assets, tangible assets, and adjusted tangible assets; and the related capital me
New York Community Bancorp — Q1 2007 Earnings Presentation on 6ix