Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Investor Presentation (March 2003)
29 slides from Flagstar Bank, N.a's investor presentation, Mar 5, 2003
Slide 1: New York Community Bancorp, Inc. Full-year 2002 Investor Presentation
New York Community Bancorp, Inc. Measure the dtfference. Invest in the strength. Full-year 2002 Investor Presentation
Slide 2: Forward-looking Statements and Risk Factors
N y GQ Forward-looking Statements and Risk Factors This presentation contains certain forward-looking statements with regard to the Company'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 Ac
Slide 3: Measure the difference.
Measure the difference. * Industry data SNL DataSource + NYCB data — Company reports + NYCB 2000 and 2001 data based on core earrings, wtich exclude certsin non-recurring charges stemming from the Company's merger transactions and certain gains stemming from the sale of Securities, Bankovmed propert
Slide 4: Measure the Difference: Performance
Measure the Difference: Performance Ny Y Ch 995 — 206 earnings, NYCB is nked the top-perfor ing large thrift.* 2001 2001 2002 Core Ranking Industry NYCB =-NYCB Industry NYCB NYCB Criteria Average Core Cash Average GAAP Cash ROA 0.83% 165% | 2.33% 0.90% 2.29% | 2.59% ROE 8.61 18.30 25.90 9.44 19.95 2
Slide 5: Measure the Performance: ROA
ly Measure the Performance: ROA ie NYCB’s 2002 ROA exceeds the industry average by 139 basis points. 2.50% 2.00% 150% 1.00% 0.50% 0.00% 1997 1998 1999 2000 2001 2002 U.S. Thrifts 0.83% 0.89% 0.83% 0.74% 0.76% 0.90% MNYCB 161% 1.62% 1.69% 1.56% 165% 2.29% NYB 1s om New York Community Bancorp, Inc. 5
Slide 6: Measure the Performance: ROE
Measure the Performance: ROE ie NYCB’s 2002 ROE is more than twice the industry average. 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% + 1997 1998 1999 2001 2002 U.S. Thrifts 8.41% 7.92% 772% 7.40% 7.89% 9.44% @NYCB 12.95% 17.32% 22.99% 19.40% 18.30% 19.95% nye ona New York Community Bancorp, Inc. 6 NYSE
Slide 7: Measure the Performance: Net Interest Margin
Nv . GQ Measure the Performance: Net Interest Margin NYCB’s margin has consistently exceeded the industry average. 5.00% 400% 3.00% 200% 100% 0.00% 1997 1998 1999 2000 2001 2002 U.S. Thrifts 3.48% 3.42% 3.40% 3.28% 3.19% 3.39% @NYCB 445% 4.24% 3.79% 3.33% 3.59% 431% nye . ona New York Community Banc
Slide 8: Measure the Performance: Efficiency Ratio
Measure the Performance: Efficiency Ratio NYCB’s 2002 efficiency ratio is 3,655 basis points below the industry average. 70.00% 60.00% aT i 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% + 1997 1998 1999 2001 2002 U.S. Thrifts 58.38% 59.84% 63.13% 62.44% 63.38% 61.87% @NYCB 41.86% 36.51% 29.95% 30.20% 35.
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. 020% 050% ial 040% 020% 0.00% 128197 128198 123199 128100 128101 128102 U.S. Thrifts 0.66% 0.54% 0.45% 0.47% 0.61% 0.62% mNYCB 054% 038% O1T% 0.19% 0.19% 0.15% NyB . Fol New York
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. 1.00% 080% “ -_ 060% : " 040% 020% 000% 2au97 = 12818128189 28tMO ttm 1281002 U.S. Thrifts 0.87% 0.76% 0.62% 0.61% 081% 0.88% ENYCE 0.55% 041% 0.19% 0.25% 0.32% 0.30% NyB . am New Yo
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. 0.20% 0.15% 0.10% 0.05% 0.00% + 1997 1998 1999 2000 2001 2002 U.S. Thrifts 0.14% 0.14% 0.14% 0.14% 0.18% 0.18% @NYCB 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% nye . ona New York Community B
Slide 12: Invest in the strength.
Invest in the strength.
Slide 13: Measure the Strength: Balance Sheet
Measure the Strength: Balance Sheet The balance sheet has nefited from M&A, restructuring, and leveraged growth. Improvement Since 12/31/02 12/31/01 12/31/00 Total assets $11.3bn T 23% T 140% Multi-family loans $4.5bn 38% 131% Mortgage originations $2.6bn 122% 315% Stockholders’ equity $1.3bn 35% 33
Slide 14: Measure the Strength: Earnings
Measure the Strength: Earnings NYCB’s 2002 earnil y a 78% Y-O-Y rise in core revenues. Improvement Since 2002 2004 2000 Diluted EPS $2.22 T cay F 171% Diluted Cash EPS $2.52 32% 89% Net interest income $373.3mn 81% 41% Core other operating income* $84.8mn 66% 941% ROA 2.29% 64 bp* 73bp* Spread 4.12%
Slide 15: Strength: Market Leader
Strength: Market Leader NYCB is a leading lender, depository, and producer of revenues. The leading producer of multi-family loans for portfolio in New York City The second largest thrift depository in Queens and Staten Island* MARKET The fifth largest thrift depository in New York City* LEADER The
Slide 16: Strength: Multi-family Market Niche
Strength: Multi-family Market Niche NYCB is the #1 muiti-family lender for portfolio in NYC. $2,800 $2,400 $2,000 $1,600 $1200 (atlars in mitions) $800 $400 $0 1997 1998 1999 2000 2001 2002 All Other Mortgage Originations $342 $424 $734 $743 $3588 $503.1 Multifamily Loan Originations $4189 $4098 = $
Slide 17: Rent-controlled / Rent-stabilized buildings
Rent-controlled / Rent-stabilized buildings 5-year fixed / 5-year adjustable term ‘Average term to maturity: 4 years APROFITABLE, Average loan: $1.9 million EFFICIENT, & RISK-AVERSE Average LTV ratio: 58% LOAN Stabilized cash flow PORTFOLIO Pre-payment penalties: 5.4-3-2-1 points No net charge-offs
Slide 18: Strength: Risk-averse Loan Portfolio
Strength: Risk-averse Loan Portfolio The structure of NYCB’s loan portfolio provides insulation against credit risk. 960005 aaa $5,0007 |.4-aramy [Stain #4000 € = $9000: = §2,000- #1000 to Tae 72a “aa “aati at famityLoans(@h) $138.4 1987 tone en Teta Loan) He05 fees S57 $642" ‘verge Weld eos 75% 778
Slide 19: Strength: Deposit Mix
Strength: Deposit Mix The rise in core deposits has contributed to the growth in net interest income. (allars in milions) 12131199 12131100 12/31/01 12131102 sare $1989 $900 $9907 YY $1,874 $2,408 see Core Deposits Ne cbs Coresfotal Deposits 38.8% 42.5% 55.8% 62.9% Total Deposits $4.1 Bn $3.3 Bn* $5
Slide 20: Strength: Interest Rate Risk Management
Nv Y Strength: Interest Rate Risk Management GS NYCB’s margin has provided a cushion against interest rate volatility. 7.00% 7-~ 6.00% +-- ‘Syear U.S. Treasury yield 5.00% +-~ Range: 2.74% - 6.34% --3.-month LIBOR 4.00% 4 -- Range: 1.38% - 6.40% |-m-NYCB net interest margin 3.00% +-- Range: 3.33% -
Slide 21: Strength: M&A Strategy
Strength: M&A Strategy Ny 'Y Ch NYCB’s transactions have been highly accretive to earnings. Haven Richmond NYCB ances Bancorp County 2002 Results Announcement Date: June 2000 March 2001 - Completed Date: November 2000 July 2004 8 Announced Transaction Value: $196 $802 = Assets ‘Deposits: $2,966 / $2
Slide 22: Strength: Efficiency
Ny . C Strength: Efficiency ‘BI The consistent from several sources. f NYCB’s operation 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 Sale of thi
Slide 23: Strength: Revenue Generation
Strength: Revenue Generation Core other operating income represented 19% of 2002 core revenues. (ola in milions) $848 Core other operating income* Net interest income AS $510 $2058 $68.9 p $73.4 p 1999 2000 2001 2002 Total Core Total Core Total Core Total Core Revenues: $71.4] | Revenues: $81.2| | R
Slide 24: Strength: Third-party Product Sales
Strength: Third-party Product Sales NYCB is in the top 3% of thrifts generating income from investment product sales.* (dollars in miions) GROSS SALES GROSS REVENUES $169.2 $10.6 $123.3 $72 2001 2002 2001 2002 *Singer's Annuity and Funds Report ~30 2002 New York Community Bancorp, Inc. 24
Slide 25: Strength: Capital Management
Strength: Capital Management GS 7 stock splits in 9 years, including 2 in 2001 5 million shares authorized for repurchase in 4Q 02 61 fold increase in quarterly cash dividend, Including a 25% increase in both 2Q 02 and 1Q 03 CAPITAL MANAGEMENT $400 million shelf registration filed in 2Q 02 STRATEGIE
Slide 26: Strength: Earnings Capacity
Strength: Earnings Capacity NYCB projects 20% diluted EPS growth in 2003. CAGR Diluted Cash EPS: 25.55% Diluted EPS: 33.03% $0.82 $0.48 t T T T T T i 1997 1998 1999 2000 2001 2002 2003 Company Estimates NYB a New York Community Bancorp, Inc. 26
Slide 27: Strength: 2003 Projections
Ny Y Strength: 2003 Projections BE Several factors are currently ex; ted to support diluted EPS growth in 2003. ~ 15% asset growth ~ 20% multi-family loan growth T ret interest income REVENUE AND T fee income EXPENSE PROJECTIONS No loan loss provisions ~30% efficiency ratio ~32% - 33% effective tax
Slide 28: Strength: Shareholder Value Creation
Strength: Shareholder Value Creation GS The value of NYCB’s shares has appreciated 1,673% since 11/23/93. (allars in milions, except share data) Market capitalization Price per share (adjusted for 7 spits) 232 1D Annual yield produced by current dividend on shares purchased at this date $1,087 geo |
Slide 29: For more information:
For more information: ‘ades on the NYSE der the symbol + 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 zee NYB a New York Community Banco
New York Community Bancorp — Investor Presentation (March 2003) on 6ix