Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2002 Earnings Presentation
30 slides from Flagstar Bank, N.a's earnings presentation, Oct 23, 2002
Slide 1: Measure the difference. Invest in the strength.
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 This presentation contains certain forward-looking statements with regard to the Campany's praspective performance and strategies within the meaning of Section 274 of the Securities Act of 1933, as amended, and Section 21 of the Secures Exchange Act of 193
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. 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1998 2000 2001 ‘YTD 2002 U.S. Thrits am 0.89% 0.83% 074% 0.76% 0.85% =NYCB 161% 1.62% 1.69% 1.56% 1.65% 2.25% New York Community Bancorp, Inc. 5
Slide 6: 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% 500% 090% 1997 1999 2000 2001 YTD 2002 U.S. Thrifts 8.41% iar 11% 7.40% 7.29% 878% =NYCB 295% Tk «99% 19.40% 18.30% 19.79% New York Community Bancorp, Inc. 6
Slide 7: Performance: Net Interest Margin
Measure the Performance: Net Interest Margin NYCB’s margin has consistently exceeded the industry average. 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 1997 1998 1999 2000 2001 ‘YTD 2002 U.S. Thrits 348% 342% 3.40% 3.20% 3.19% 337% =NYCB 445% cerry 3.19% 333% 3.59% 4.36% New York Community Bancorp, Inc. 7
Slide 8: Performance: Efficiency Ratio
Measure the Performance: Efficiency Ratio NYCB’s YTO efficiency ratio is 318 basis points below the industry average. 70% ‘hhh i 1997 1998 1999 2000 2001 US.Thiits 58.30% 59.00% 63.13% __—azaas 63.30% 60.72% 2 2 = Ed 2 Nyce 41.86% 36.51% 2995% 30.20% 35.03% 28.91% New York Community Bancorp, Inc. 8
Slide 9: Quality: NPAs/Total Assets
Measure the Quality: NPAs/Total Assets Exceptional asset quality has been a hallmark of NYCB throughout its public life. 0.80% 0.60% 0.40% 020% 0.00% 1997 1998 2000 2001 ‘YTD 2002 U.S. Thrits 066% 054% 0.45% 047% 051% 0.85% =NYCB 054% 038% 0.47% 0.19% 0.19% 0.11% New York Community Bancorp, Inc. 9
Slide 10: Quality: NPLs/Total Loans
Measure the Quality: NPLs/Total Loans NYCB’s asset quality reflects the fully-performing status of its multi-family loans. 1.00% 0.80% 0.80% 0.40% 0.20% 0.00% 1997 1998 1999 2000 2001 ‘YTD 2002 U.S. Thrits 087% 76% 0.62% o6t% 081% 0.8% =NYCB 062% 04am 0.20% 0.25% 0.33% 0.21% New York Community Banco
Slide 11: Quality: NCOs/Average Loans
Measure the Quality: NCOs/Average Loans The absence of any net charge-offs attests to NYCB’s underwriting standards. 020% 0.10% | | | 0.00% 1997 1998 2000 2001 ‘YTD 2002 US. Thrits 044% O.14% 0.4% 0.14% 0.18% 0.15% =NYCB 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% New York Community Bancorp, Inc. 11
Slide 12: Value: Total Returns
Measure the Value: Total Returns NYCB consistently generates above-average shareholder returns. ssoen One-Year 3-Year 5-Year "NY. Pate: AF, OCOM, GPT. ICBC, NFO, RELY, S18 New York Community Bancorp, Inc. 12
Slide 13: Invest in the strength.
Invest in the strength.
Slide 14: 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 15: 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 / 5-year adjustable term Average term to maturity: 4 years APROFITABLE, Average loan: $1.7 million EFFICIENT, & RISK-AVER
Slide 16: sis
$6,000: sis F ss000: Esme Sa ssi 0a or ao ‘35002 Se ee New York Community Bancorp, Inc. 16
Slide 17: The Franchise
Strength: The Franchise New York Community Bancorp, Inc. 17
Slide 18: Deposit Mix
Strength: Deposit Mix The rise in core deposits has contributed to the growth in net interest income. 12131199 12131100 12131101 9/30/02 sen Seen $19738 ee SY XS > coro Denne 20 ess ss sa0s a ain ssi a a an i Incudes deponteaoqutain Be Rihmond Count tancaton New York Community Bancorp, Inc. 18
Slide 19: 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 20: M&A Strategy
Strength: M &A Strategy NYCB’s transactions have been highly accretive to earnings. Haven Richmond Nyce Rosai Bancorp County 2002 Results ‘Announcement Date: ‘June 2000 ‘March 2004 7 Completed Date: November 2000, iy 2001 ‘Announced Transaction Value $198 se02 Assets /Deposits: $2,966 $2,151" $9,213
Slide 21: 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 22: 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 23: 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 S86 $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, In
Slide 24: 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 (48% annual return on original shares) $121.3 million in trust-preferred securities issued i
Slide 25: Earnings Capacity
Strength: Earnings Capacity NYCB projects 63% diluted EPS growth in 2002. Diluted Cash EPS Diluted EPS $2.52-$2.4 ™ $2.16-$2.18 $1.04 ere $0.74 $0.82 $0.48 i T T T T T t 1997 1998 1999 2000 2001 2002 2003 Company Estimates New York Community Bancorp, Inc. 25
Slide 26: Shareholder Value Creation
Strength: Shareholder Value Creation NYCB’s market cap has appreciated 2,831% since 11/23/93. (dollars in millions, except share data) $3,105 Price per share (adjusted for 7 splits) Fe re 11/23/93 120194 120196 128196 120197 129198 129199 12/91/00 120101 10/17/02 jas.aa%] [sn6s%| [2040%] [r202%] [ae
Slide 27: Difference: Stronger Balance Sheet
Measure the Difference: Stronger Balance Sheet The bai sheet has benefited from M&A, restructuring, and ed 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 35% 164% Mortgage originations $1.9bn 111% 280% Tangible stockholders’ equity $553.
Slide 28: Difference: Stronger Earnings
Measure the Difference: Stronger Earnings NY 2.02 se in core revenues. Improvement Since 3Q02 3Q 01 3Q.00 Diluted EPS $0.58 T zx 190% Diluted Cash EPS $0.61 1% 154% Net interest income $98.8mn 66% 506% Core other operating income $19.7mn 45% 1,415 % ROA 2.39% 83 bp* 91bp Spread 4.28% 84bp 130bp Marg
Slide 29: Difference: Stronger Prospects
Measure the Difference: Stronger Prospects NYCB’ ecord 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 - $2.7
Slide 30: 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. 30
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