Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Investor Presentation (May 2003)
33 slides from Flagstar Bank, N.a's investor presentation, May 28, 2003
Slide 1: New York Community Bancorp, Inc. First Quarter 2003 Investor Presentation
New York Community Bancorp, Inc. Measure the difference . Invest in the strength . First Quarter 2003 Investor Presentation May 2003
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 Company's prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
Slide 3: Measure the difference
Measure the difference . Industry data - SNL DataSource as of 5/14/03 NYCB data - Company reports NYCB 2000 and 2001 data based on core earnings. Please see footnote 1 in the Appendix on page 30. The graphs and tables on pages 4, 5, 6, 8, 16, and 26 of this presentation reflect the Company's cash or
Slide 4: Measure the Difference: Performance
ROA ROE Efficiency ratio NPAs/Total assets NCOs/Average loans May 2003 ThriftINVESTOR SNL DataSource Ranking Criteria % 2.59 22.60 25.50 0.15 0.00 NYCB Cash (2) % 2.29 19.95 25.32 0.15 0.00 NYCB GAAP * ** Measure the Difference: Performance NYCB has been ranked the nation's top-performing large thri
Slide 5: Measure the Performance: ROA
Measure the Performance: ROA NYCB's 1Q 2003 ROA exceeded the industry average by 129 basis points. U.S. Thrifts 0.89% 0.83% 0.71% 0.69% 0.87% NYCB 1.62% 1.69% 1.56% 1.65% 2.29% 2.24% (3) (3) 0.95%
Slide 6: Measure the Performance: ROE
Measure the Performance: ROE U.S. Thrifts NYCB 7.92% 17.32% 7.72% 22.99% 7.40% 19.40% 7.89% 18.30% 9.07% 19.95% 10.08% 20.22% (4) (4) NYCB's 1Q 2003 ROE exceeded the industry average by 1,014 basis points.
Slide 7: Measure the Performance: Net Interest Margin
Measure the Performance: Net Interest Margin NYCB's margin has consistently exceeded the industry average. U.S. Thrifts 3.42% 3.40% 3.28% 3.19% 3.39% NYCB 4.24% 3.79% 3.33% 3.59% 4.31% 4.17% 3.35%
Slide 8: NYCB consistently ranks among the nation's most efficient thrifts
NYCB consistently ranks among the nation's most efficient thrifts. Measure the Performance: Efficiency Ratio NYCB U.S. Thrifts 59.84% 63.13% 65.72% 66.42% 62.67% 36.51% 29.95% 30.20% 35.03% 25.32% 25.19% (5) (5) 61.81%
Slide 9: Measure the Quality: NPAs/Total Assets
Measure the Quality: NPAs/Total Assets Exceptional asset quality has been a hallmark of NYCB throughout its public life. U.S. Thrifts 0.64% 0.52% 0.53% 0.67% 0.70% NYCB 0.38% 0.17% 0.19% 0.19% 0.15% 0.12% 0.62%
Slide 10: Measure the Quality: NPLs/Total Loans
Measure the Quality: NPLs/Total Loans NYCB's asset quality reflects the strong performance of its multi-family loans. U.S. Thrifts 0.76% 0.62% 0.61% 0.81% 0.83% NYCB 0.41% 0.19% 0.25% 0.32% 0.30% 0.26% 0.76%
Slide 11: Measure the Quality: NCOs/Average Loans
Measure the Quality: NCOs/Average Loans The absence of any net charge-offs attests to NYCB's underwriting standards. U.S. Thrifts 0.14% 0.14% 0.14% 0.18% 0.19% NYCB 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.19%
Slide 12: Invest in the strength
Invest in the strength .
Slide 13: Strength: Industry Leader
Strength : Industry Leader #1 Top-performing Large Thrift in the U.S. (for the 5th consecutive year) #1 Best-performing Company - Total Returns (Savings & Loans) #4 Most Efficient Bank Holding Company Among the Largest 500 ThriftINVESTOR May 2003 The Wall Street Journal March 10, 2003 American Banke
Slide 14: Strength: Market Leader
Strength : Market Leader NYCB is a leading lender, depository, and producer of revenues. SNL DataSource Singer's Annuity and Funds Report * ** MARKET LEADER The leading producer of multi-family loans for portfolio in New York City The second largest thrift depository in Queens and Staten Island* The
Slide 15: Measure the Strength: Balance Sheet
Total assets Multi-family loans Mortgage originations Core deposits Stockholders' equity Tangible stockholders' equity (6) 1-4 family loans NPAs / Total assets Measure the Strength: Balance Sheet The balance sheet has benefited from M&A, restructuring, and leveraged growth. % % % % % % % bp Improvem
Slide 16: Measure the Strength: Earnings
Measure the Strength: Earnings NYCB's 1Q 2003 earnings rose 45% year-over-year. Diluted EPS † Net interest income Other operating income ROA Spread Margin Efficiency ratio $0.50 $108.3 $26.4 2.24 4.03 4.17 25.19 mn mn % % % % %* (1) % % bp* (3) bp bp bp* (5) 1Q 2003 $1.67 $373.3 $101.8 2.29 4.12 4.3
Slide 17: Strength: Multi-family Market Niche
Strength: Multi-family Market Niche NYCB is the #1 multi-family lender for portfolio in NYC.
Slide 18: Strength: 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 refi: 4 years Average loan: $2.0 million Average LTV ratio: 58% Stabilized cash
Slide 19: Strength: Risk-averse Loan Portfolio
Strength: Risk-averse Loan Portfolio The structure of NYCB's loan portfolio provides insulation against credit risk. * ** *** Includes loans acquired in the Haven transaction. Includes loans acquired in the Richmond County transaction. Reflects the securitization of 1-4 family loans totaling $572.5
Slide 20: Strength: Investment Strategy
Total securities available for sale Estimated weighted average yield Strength: Investment Strategy NYCB's securities portfolio is a source of cash flows for loan production. (dollars in millions) Available-for-Sale Securities at March 31, 2003 Mortgage-backed and -related securities Capital trust no
Slide 21: Strength: Deposit Mix
Core/Total Deposits Total Deposits Average Cost 42.5% $3.3 Bn* 4.14% 55.8% $5.5 Bn** 3.41% 62.9% $5.3 Bn*** 1.83% Strength: Deposit Mix 12/31/01 12/31/00 12/31/02 Core deposits have grown 144% since 12/31/00. (dollars in millions) 65.0% $5.2 Bn 1.44% 3/31/03 Includes deposits acquired in the Haven t
Slide 22: Strength: Interest Rate Risk Management
Strength: Interest Rate Risk Management NYCB's margin has provided a cushion against interest rate volatility. 4.24% 3.79% 3.33% 3.59% 4.31% NYCB NIM 4.17%
Slide 23: Strength: 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 Hub & spoke approach to in-store branching Profitable conduit relationships Sale of third-
Slide 24: Strength: Revenue Generation
Strength: Revenue Generation Total Revenues $71.4 Other operating income represented 20% of 1Q 2003 revenues. (dollars in millions) Total Revenues $94.7 Total Revenues $296.4 Total Revenues $475.1 Total Revenues $134.7 Total Revenues $71.1 Other operating income Net interest income
Slide 25: Strength: Capital Management
Strength: Capital Management NYCB actively manages its capital. CAPITAL MANAGEMENT STRATEGIES 8 stock splits in 9 years, including a 4-for-3 split on 5/21/03 $147.5 million, net, generated in 2Q 02 secondary offering 4.3 million shares repurchased in 2002; 1.1 million in 1Q 03 57-fold increase in qu
Slide 26: Strength: Earnings Capacity
Strength: Earnings Capacity NYCB projects 20% - 24% diluted EPS growth in 2003. Diluted GAAP EPS* Diluted Cash EPS* (7) CAGR: 35.20% Co. Estimates (1) (1) Diluted GAAP and diluted cash EPS have been adjusted to reflect a 4-for-3 stock split on 5/21/03 and 3-for-2 stock splits on 3/29/01 and 9/20/01.
Slide 27: Strength: 2003 Projections
Strength: 2003 Projections Several factors are currently expected to support diluted EPS growth in 2003. REVENUE AND EXPENSE PROJECTIONS ~ 15% asset growth ~ 20% net multi-family loan growth net interest income other operating income < 30% efficiency ratio No loan loss provisions ~ 32% - 33% effecti
Slide 28: Strength: Shareholder Value Creation
Market capitalization Price per share (adjusted for 8 splits including a 4-for-3 stock split on 5/21/03) Annual yield produced by $0.84 per share dividend on shares purchased at this date Strength: Shareholder Value Creation (dollars in millions, except share data) 67.74% 42.86% 28.67% 17.95% 9.33%
Slide 29: NYCB has provided significant returns to its shareholders
NYCB has provided significant returns to its shareholders. Strength: Returns to Shareholders % Appreciation Share Price Dividend 2,050 5,700 NYCB – November 23, 1993 Haven – June 27, 2000* Richmond County – March 27, 2001* % % Reflects appreciation in the price per share and the quarterly cash divid
Slide 30: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Appendix 1. As calculated in accordance with GAAP, the Company's 2000 and 2001 diluted earnings per share were $0.42 and $1.01, respectively. The 2000 amount reflected a gain of $13.5 million recorded in other operating income and a charge of $24.8 millio
Slide 31: Reconciliation of Stockholders' Equity and Tangible Stockholders' Equity
(dollars in thousands) Average stockholders' equity Subtract: Goodwill Core deposit intangible Average tangible stockholders' equity Net income Return on average stockholders' equity Return on average tangible stockholders' equity (dollars in thousands) Average stockholders' equity Subtract: Goodwil
Slide 32: Cash Earnings Reconciliation
Appendix (in thousands, except per share data) Net income Add back: Amortization and appreciation of stock-related benefit plans Associated tax benefits Dividends on unallocated ESOP shares Amortization of core deposit intangible and goodwill Total additional contributions to tangible stockholder's
Slide 33: For more information:
For more information: The Company trades on the NYSE under the symbol " NYB " . Log onto our web site: www.myNYCB.com E-mail requests to: iangarola@myNYCB.com Call Investor Relations at: (516) 683-4420 New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 Write to: 5/27/03
New York Community Bancorp — Investor Presentation (May 2003) on 6ix