Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2005 Earnings Presentation
29 slides from Flagstar Bank, N.a's earnings presentation, Apr 29, 2005
Slide 1: First Quarter 2005 Investor Presentation
First Quarter 2005 Investor Presentation
Slide 2: Forward-looking Statements and Associated Risk Factors
Forward-looking Statements and Associated Risk Factors This filing, like other written and oral communications presented by the Company and its authorized officers, may contain certain forward-looking statements regarding the Company’s prospective performance and strategies within the meaning of Sec
Slide 3: We are a leading financial institution in the NY Metro region
We are a leading financial institution in the NY Metro region. The leading producer of multi-family loans in New York City, with a portfolio of $10.9 billion at 3/31/05 (a) The third largest thrift depository in the New York metro region, with 143 locations and deposits of $10.6 billion (a) Ranked a
Slide 4: We are focused on producing a solid financial performance
We are focused on producing a solid financial performance. 2005 Goals: Increasing our share of the multi-family lending market Complementing our asset mix with CRE and construction loans Maintaining the quality of our assets Maintaining our efficiency Strengthening our balance sheet Reducing securit
Slide 5: Increasing Our Share of the Multi-family Lending Market
Increasing Our Share of the Multi-family Lending Market We are the leading producer of multi-family loans for portfolio in NYC. (in millions) Multi-family Loan Originations All Other Loan Originations $74 $359 $501 $947 $1,830 $393 $542 $791 $2,059 $3,383 $4,210 $1,377 1Q 2005 Total: $616 $1,150 $2,
Slide 6: Highly profitable, efficient, and resilient lending niche
Increasing Our Share of the Multi-family Lending Market We have a highly profitable, efficient, and resilient lending niche. Niche: Rent-controlled and -stabilized buildings in NYC 5-year fixed / 5-year adjustable rates Pre-payment penalties: 5-4-3-2-1 points in years 1 through 5 Loan structure enha
Slide 7: Multi-family loans grew at an annualized rate of 43%
Increasing Our Share of the Multi-family Lending Market In 1Q 2005, our multi-family loans grew at an annualized rate of 43%. (in millions) Multi-family Loan Portfolio 235% $3,255 $4,494 $7,368 $9,842 $10,890 12/31/01 12/31/02 12/31/03 12/31/04 3/31/05 At 3/31/05 % of total loans: 75.0% Average prin
Slide 8: Our unique refinancing cycle has supported earnings growth
Increasing Our Share of the Multi-family Lending Market Our unique refinancing cycle has supported the growth of our earnings. NYB Originates Multi-Family Loan Based on Current Income Stream Produced by the Property Borrower Uses Funds to Improve the Property Rent Roll / Income Stream Increases over
Slide 9: Complementing Our Asset Mix with CRE Loans
Complementing Our Asset Mix with CRE Loans Our CRE loans feature a structure similar to that of our multi-family loans. Niche: Office and mixed-use buildings in NYC National credit retail shopping centers in NYC and Long Island 5-year fixed / 5-year adjustable rates Pre-payment penalties: 5-4-3-2-1
Slide 10: CRE loans grew at an annualized rate of 22%
Complementing Our Asset Mix with CRE Loans In 1Q 2005, our CRE loans grew at an annualized rate of 22%. (in millions) Commercial Real Estate Loan Portfolio 302% $562 $533 $1,445 $2,141 $2,261 12/31/01 12/31/02 12/31/03 12/31/04 3/31/05 At 3/31/05 % of total loans: 15.6% Average principal balance: $2
Slide 11: Complementing Our Asset Mix with Construction Loans
Complementing Our Asset Mix with Construction Loans We lend to 9 of the top 10 developers on Long Island. Niche: Residential unit subdivisions on Long Island Floating rate tied to prime Bulk of proceeds distributed upon signed contract of sale No losses in more than a decade
Slide 12: Construction loans grew at an annualized rate of 10%
Complementing Our Asset Mix with Construction Loans In 1Q 2005, our construction loans grew at an annualized rate of 10%. (in millions) Construction Loan Portfolio 443% $152 $117 $644 $804 $825 12/31/01 12/31/02 12/31/03 12/31/04 3/31/05 At 3/31/05 % of total loans: 5.7% Average principal balance: $
Slide 13: Maintaining Asset Quality: stringent credit and underwriting standards
Maintaining Asset Quality The quality of our assets reflects our stringent credit and underwriting standards. Conservative LTV ratios Minimum debt coverage ratio: 120% Mortgage and Real Estate Committee approves all loans Director and executive officer inspect all properties over $3 million Board of
Slide 14: Our loan portfolio is structured to reduce credit risk
Maintaining Asset Quality Our loan portfolio is structured to reduce credit risk. NPAs = 0.14% of total assets at 3/31/05 NPLs = 0.23% of total loans at 3/31/05 NCOs = 0.0001% of average loans in 1Q 2005 Allowance for loan losses = 236.03% of NPLs No losses on local-market multi-family loans in 20+
Slide 15: Our record of asset quality ranks among the industry's best
Maintaining Asset Quality Our record of asset quality ranks among the industry’s best. NPAs + Loans 90 or More Days Past Due/Total Assets 0.47% 0.22% 0.14% 12/31/04 3/31/05 NPLs/Total Loans 0.54% 0.31% 0.23% 12/31/04 3/31/05 NCOs/Average Loans 0.19% 0.18% 0.0001% 12/31/04 3/31/05 U.S. Thrifts (a) N.
Slide 16: Maintaining Efficiency
Maintaining Efficiency Efficiency is a key component of our financial performance. Emphasis on multi-family lending Franchise expansion through M & A HAVN: 56 branches RCBK: 26 branches RSLN: 39 branches Above-average deposits per traditional branch Hub & spoke approach to in-store branching 89 trad
Slide 17: We consistently rank among the most efficient thrifts
Maintaining Efficiency We consistently rank among the most efficient thrifts in the nation. 61.75% 57.68% 25.32% 62.95% 57.28% 23.59%(a) 64.04% 57.40% 21.46%(a) 28.83% 26.54% 4Q 04 1Q 05 U.S. Thrifts (b) N.Y. State Thrifts (b) NYB (a) Operating efficiency ratio. Please see page 28 for a reconciliati
Slide 18: Strengthening Our Balance Sheet: asset and liability mix
Strengthening Our Balance Sheet In 1Q 2005, we continued to enhance our asset and liability mix. Y-O-Y (dollars in billions) 3/31/05 3/31/04 % Change Multi-family loans $10.9 $7.8 39.7% Total loans 14.5 10.9 33.0 Total securities 6.6 12.1 (45.5) Core deposits 6.9 6.1 11.8 Total deposits 10.6 10.0 5.
Slide 19: Deploying cash flows from securities into loan production
Strengthening Our Balance Sheet We are deploying the cash flows from securities into loan production. (in millions) Loans Securities $10,919 $12,119 $14,524 $6,601 3/31/04 3/31/05
Slide 20: Reducing Securities
Reducing Securities We reduced our securities portfolio 45.5% in the 12 months ended 3/31/05. (in millions) $763 $211 $1,904 $1,651 $7,529 $2,712 $1,923 $2,027 3/31/04 3/31/05 Total: $12,119 $6,601 Securities / Assets: 45.7% 26.8% Debt & Equity Securities Available for Sale Other Securities Held to
Slide 21: Increasing the significance of deposits in funding mix
Increasing Deposits We are increasing the significance of deposits within our funding mix. (in millions) $11,869 $10,027 $9,614 $10,588 3/31/04 3/31/05 Deposits Wholesale Borrowings
Slide 22: Core deposits rose 11.8%
Increasing Deposits Core deposits rose 11.8% in the 12 months ended 3/31/05. (in millions) Deposits $2,408 $1,949 $4,362 $3,753 $3,719 $3,043 $3,307 $5,967 $6,649 $6,869 12/31/01 12/31/02 12/31/03 12/31/04 3/31/05 Total: $5,451 $5,256 $10,329 $10,402 $10,588 Core Deposits CDs Core deposits = 65% of
Slide 23: Initiatives to increase and diversify our deposit base
Increasing Deposits We are engaged in several initiatives to increase and diversify our deposit base. Completed Initiated an incentive compensation plan for branch personnel Created a Private Banking Group to attract borrowers’ deposits Obtained Business Development District status for Corona, Queen
Slide 24: Maintaining Our Capital Strength
Maintaining Our Capital Strength We are a well capitalized institution. 3/31/05 Company Capital Measures: Tangible stockholders’ equity $1.18 bn Tangible equity/tangible assets 5.21% Tangible equity/tangible assets, excluding net unrealized losses on securities 5.45 Bank Capital Measures: Leverage r
Slide 25: Producing a Solid Financial Performance
Producing a Solid Financial Performance Our 1Q 2005 earnings reflect a linked-quarter increase in fee income and a linked-quarter reduction in operating expenses. 3 Months Ended (dollars in millions, except per share data) March 31, 2005 Net interest income $158.8 Non-interest income 32.0 Non-intere
Slide 26: Returns on tangible assets and equity among the highest
Producing a Solid Financial Performance Our returns on tangible assets and equity are among the highest in the industry. ROTA 0.77% 0.98% 1.55% 1.64% 1Q 2005 ROTE 9.50% 12.01% 31.65% 32.20% 1Q 2005 U.S. Thrifts (a) N.Y. State Thrifts (a) NYB (a) SNL DataSource
Slide 27: Maintaining a Strong Dividend
Maintaining a Strong Dividend Our dividend yield currently exceeds 5%. Annual Dividend (a) 300% $0.25 $0.30 $0.43 $0.66 $0.96 $1.00 1Q 2005 (annualized) (a) Adjusted to reflect 3-for-2 stock splits on 3/29/01 and 9/20/01 and 4-for-3 stock splits on 5/21/03 and 2/17/04.
Slide 28: Reconciliation of GAAP and Operating Earnings
Reconciliation of GAAP and Operating Earnings The following table presents a reconciliation of the Company’s GAAP and operating earnings for the twelve months ended December 31, 2003 and 2004. There is no reconciliation presented for 2002 as the Company’s GAAP and operating earnings were identical d
Slide 29: 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: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 4/29/05
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