Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q3 2008 Earnings Presentation
37 slides from Flagstar Bank, N.a's earnings presentation, Nov 6, 2008
Slide 1: Third Quarter 2008 Investor Presentation
Exhibit 99.1 Third Quarter 2008 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 LitigationReform 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-loo
Slide 3: We are a leading financial institution in the competitive Metro New York/New Jersey region
We are a leading financial institution in the competitive Metro New York/New Jersey region. With a market cap of $5.8 billion: • We are the 21st largest bank holding company in the nation and the 5th largest headquartered in New York State. (a) With assets of $32.1 billion: • We operate the 3rd larg
Slide 4: 3rd Quarter 2008 Performance Highlights
3rd Quarter 2008 Performance Highlights
Slide 5: Our 3Q 2008 performance featured several favorable trends
Our 3Q 2008 performance featured several favorable trends. Operating Earnings Growth: • Operating earnings rose $9.7 million, or 12.9%, linked-quarter and $13.6 million, or 19.1%, year-over-year. (a) • Diluted operating earnings per share rose to $0.25 in the quarter from $0.23 in the trailing and y
Slide 6: Our balance sheet was highlighted by solid loan growth, asset quality, and capital strength
Our balance sheet was highlighted by solid loan growth, continued asset quality, and continued capital strength. Loan Growth: • Loan originations totaled $1.4 billion in the quarter, boosting the year-to-date volume to $4.4 billion. • Multi-family loan originations totaled $855.4 million in the quar
Slide 7: The expansion of our net interest margin has been driven by loan growth and lower funding costs
The expansion of our net interest margin has been driven by loan growth and a reduction in our funding costs. Linked-quarter Increase Y-O-Y Increase (dollars in thousands) 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 (Decrease) (Decrease) Average balance of loans $18,979,750 $19,766,367 $20,244,263 $20,4
Slide 8: The strength of our capital position has enabled us to pay a strong dividend
The strength of our capital position has enabled us to pay a strong dividend. Both of our bank subsidiaries are well capitalized institutions: 9/30/08 Community Bank Commercial Bank Leverage capital ratio 7.49% 11.20% Tier 1 risk-based capital ratio 11.17 14.69 Total risk-based capital ratio 11.64 1
Slide 9: We remain well positioned to capitalize on opportunities in the current market
We remain well positioned to capitalize on opportunities presented in the current market. We have maintained our record of asset quality by maintaining our primary focus on multi-family lending on rent-regulated buildings and by adhering to our conservative underwriting standards. Competition for mu
Slide 10: We have a consistent business model that focuses on building value
We have a consistent business model that focuses on building value while building the Company. The origination of multi-family loans: • We have originated $23.2 billion of multi-family loans since January 2000, including $2.5 billion in 2007 and $2.3 billion in the first nine months of 2008. The mai
Slide 11: Our Business Model: Multi-family Lending
Our Business Model: Multi-family Lending
Slide 12: Multi-family loans have grown at a CAGR of 31.9% since 12/31/99
Multi-family loans have grown at a CAGR of 31.9% since 12/31/99. (in millions) Portfolio statistics at 9/30/08: % of total loans = 70.6% Average principal balance = $3.8 Multi-family Loan Portfolio million Average loan-to-value ratio = 62.4% $15,180 Expected weighted average life = $14,529 3.6 years
Slide 13: Our multi-family loans feature a unique refinancing cycle
Our multi-family loans feature a unique refinancing cycle. NYB Rent Roll / Refinances Loan Borrower Income Stream Based on Higher Increases Uses Funds Income Stream, to Improve over the Increasing Short Term the Property Loan Size and (3–5 years) Term Yield NYB NYB Originates Rent Roll / Borrower In
Slide 14: Our commercial real estate loans feature the same structure as multi-family loans
Our commercial real estate loans feature the same structure as our multi-family loans. (in millions) Portfolio statistics at 9/30/08: % of total loans = 19.8% Average principal balance = $2.4 Commercial Real Estate Loan Portfolio million Average loan-to-value ratio = 55.4% Expected weighted average
Slide 15: Our Business Model: Asset Quality
Our Business Model: Asset Quality
Slide 16: The quality of our loan portfolio has been distinctively solid
The quality of our loan portfolio has been distinctively solid. Non-performing Loans / Total Loans SNL Bank & Thrift Index (a) NYB (a) SNL Financial Page 16
Slide 17: We continue to be distinguished by our low level of charge-offs
We continue to be distinguished by our low level of charge-offs. Net Charge-offs / Average Loans 1.67% 0.77% 0.67% 0.57% 0.54% 0.49% 0.00% 0.002% 0.000% 0.002% 0.002% 0.005% 2003 2004 2005 2006 2007 3Q 2008 NYB Charge-offs: -- $236,000 $21,000 $420,000 $431,000 $1.1 million SNL Bank & Thrift Index (
Slide 18: Our Business Model: Efficiency
Our Business Model: Efficiency
Slide 19: Our operating efficiency ratio was 38.01% in 3Q 2008
Our operating efficiency ratio was 38.01%(a) in 3Q 2008, well (b) below the SNL Bank and Thrift Index efficiency ratio of 64.61%. 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
Slide 20: Our Business Model: Growth through Acquisitions
Our Business Model: Growth through Acquisitions
Slide 21: We have completed eight acquisitions since 2000
We have completed eight acquisitions since 2000. 1 April 1859 3 Nov. 1993 5 July 2001 7 Dec. 2005 9 April 2007 11 Oct. 2007 Queens County Public trading Merger-of- We acquire We acquire We acquire Savings Bank, of New York equals with Long Island PennFed Synergy forebear of Community Richmond Financ
Slide 22: Our balance sheet reflects growth through acquisition and organic loan growth
Our balance sheet reflects the benefits of our growth-through- acquisition strategy and the organic growth of our loan portfolio. w/ PFSB, Doral, & w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY SYNF (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 12/31/06 12/31/07 9/30/08 Number of bran
Slide 23: We convert cash flows from acquired assets into securities and then loans
We typically convert the cash flows from the post-merger sale of acquired assets into securities and then into loans. $21,512 $20,363 $19,653 w/ PFSB, (dollars in millions) w/ ABNY Doral, & SYNF $17,029 Loans w/ LICB Securities $13,396 $10,499 $9,500 w/ RSLN $7,081 $5,744 $6,087 $5,637 $4,926 % of T
Slide 24: We have 162 locations in New York and 54 in New Jersey
Largely reflecting our acquisition strategy, we currently have 162 locations in New York and 54 in New Jersey. Our Franchise New York Community Bank Traditional branches 124 In-store branches 46 Campus branches 5 Customer convenience centers 3 Subtotal 178 New York Commercial Bank Traditional branch
Slide 25: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition- driven. w/ PFSB, Doral, & SYNF (in millions) Deposits w/ ABNY w/ LICB $1,140 $1,273 CDs w/ RSLN $1,123 $846 NOW, MMAs, and Savings Demand deposits $720 $739 $6,030 $4,971 $5,551 $6,012 Total deposits: 34.3% CAGR w/ RCBK Core deposits: 38.4% CAGR $5,24
Slide 26: Our franchise lets us compete against the region's money center banks
The expansion of our franchise has enabled us to compete very effectively against the region’s money center banks. (dollars in thousands) RICHMOND COUNTY, NY NASSAU COUNTY, NY QUEENS COUNTY, NY Market Market Market Rank Institution Deposits Share Rank Institution Deposits Share Rank Institution Depo
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 loan growth has been organic. w/ PFSB, (in millions) Loans Outstanding Doral, & SYNF w/ ABNY w/ LICB Multi-family Loans Outstanding $6,332 $5,124 $6,308 All Other Loans Outstanding $4,175 w/ RSLN Multi-family lo
Slide 28: Total Return on Investment
Total Return on Investment
Slide 29: Our business model has created significant value for our shareholders
Our business model has created significant value for our shareholders over time. Total Return on Investment SNL Bank & Thrift Index (a) NYB (b) Annual yield produced by $1.00 per share dividend on shares purchased at the date indicated: 107.5% 14.7% 6.2% 5.7% 6.0% As a result of nine stock splits in
Slide 30: We are committed to building value for our investors
We are committed to building value for our investors. Our Goals Improve Our Performance Metrics: • Continue to expand our net interest margin • Maintain a strong level of operating efficiency • Increase our revenues through the cross-sale of products and services • Grow our operating earnings Streng
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 11/6/2008 Page 31
Slide 32: 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 33: 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
Slide 34: Reconciliation of GAAP and Non-GAAP Earnings
Reconciliation of GAAP and Non-GAAP Earnings The following table presents a reconciliation of the Company’s GAAP and operating earnings for the three months ended September 30, 2008, June 30, 2008, and September 30, 2007: For the Three Months Ended September 30, June 30, September 30, (in thousands,
Slide 35: Reconciliation of Net Interest Income and Adjusted Net Interest Income
Reconciliation of Net Interest Income and Adjusted Net Interest Income The following table presents an analysis of the Company’s net interest income on a GAAP basis for the three months ended September 30 and June 30, 2008. Please see the following page for an analysis of the Company’s net interest
Slide 36: Reconciliation of Net Interest Income and Adjusted Net Interest Income
Reconciliation of Net Interest Income and Adjusted Net Interest Income The following table presents an analysis of the Company’s second quarter 2008 net interest income as if the aforementioned $39.6 million debt repositioning charge had not been recorded in interest expense. Although such adjusted
Slide 37: Reconciliation of GAAP and Operating Efficiency Ratios
Reconciliation of GAAP and Operating Efficiency Ratios The following table presents a reconciliation of the Company’s GAAP and operating efficiency ratios for the three months ended September 30, 2008: For the Three Months Ended September 30, 2008 (dollars in thousands) GAAP Operating Total net inte
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