Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q4 2009 Earnings Presentation
50 slides from Flagstar Bank, N.a's earnings presentation, Mar 3, 2010
Slide 1: Fourth Quarter 2009 Investor Presentation
Fourth Quarter 2009 Investor Presentation Exhibit 99.1
Slide 2: Forward-looking Statements and Associated Risk Factors
New York Community Bancorp, Inc. Page 2 Forward-looking Statements and Associated Risk Factors Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 This presentation, like many written and oral communications presented by New York Community Bancorp, Inc. and our authorized
Slide 3: We rank among the nation's leading financial institutions
New York Community Bancorp, Inc. Page 3 We rank among the nation’s leading financial institutions. (a) SNL Financial as of 3/1/10 With assets of $42.2 billion at 12/31/09, we are the 22nd largest bank holding company in the nation. (a) With deposits of $22.3 billion at 12/31/09, we rank 24th among t
Slide 4: We have a consistent business model that focuses on building value
New York Community Bancorp, Inc. Page 4 We have a consistent business model that focuses on building value while building the Company. Our total return to shareholders increased at a CAGR of 34.0% from 11/23/93 to 3/1/10. Multi-family Lending Strong Credit Standards/ Superior Asset Quality Efficient
Slide 5: 4th Quarter 2009 Performance Highlights
4th Quarter 2009 Performance Highlights
Slide 6: Our 4Q 2009 performance reflects the benefit of the AmTrust transaction
New York Community Bancorp, Inc. Page 6 Our 4Q 2009 performance reflects the benefit of the AmTrust transaction. (a) Please see page 43 for a reconciliation of our GAAP and operating earnings. (b) Please see page 44 for a reconciliation of our GAAP and cash earnings. (c) Please see page 39 for a rec
Slide 7: Our 2009 performance was highlighted by margin expansion, efficiency, and earnings growth
New York Community Bancorp, Inc. Page 7 Our 2009 performance was highlighted by significant margin expansion, operating efficiency, and earnings growth. (a) Please see page 43 for a reconciliation of our GAAP and operating earnings. (b) Please see page 44 for a reconciliation of our GAAP and cash ea
Slide 8: Our asset quality measures continued to compare favorably with industry
New York Community Bancorp, Inc. Page 8 Our asset quality measures continued to compare favorably with those of our industry as a whole . (a) SNL Financial as of 3/1/10 (b) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest.
Slide 9: Net interest margin expansion driven by reduction in funding costs
New York Community Bancorp, Inc. Page 9 The expansion of our net interest margin has been driven by a reduction in our funding costs.
Slide 10: Capital measures strengthened by capital management strategies
New York Community Bancorp, Inc. Page 10 In 2009, our capital measures were strengthened by our capital management strategies. Our dividend has been a significant component of our total return to shareholders since our first year of public life. $864.9 million generated through successful common sto
Slide 11: Both of our bank subsidiaries are well capitalized institutions
New York Community Bancorp, Inc. Page 11 Both of our bank subsidiaries are well capitalized institutions.
Slide 12: Slide 12
Slide 13: Our Business Model: Growth through Acquisitions
Our Business Model: Growth through Acquisitions
Slide 14: We have completed nine acquisitions since 2000
New York Community Bancorp, Inc. Page 13 We have completed nine acquisitions since 2000. Transaction Type Savings Bank Commercial Bank Branch FDIC-assisted Note: The number of branches shown reflects the number of branches in our franchise that stemmed from each transaction.
Slide 15: The AmTrust transaction enhanced our franchise, balance sheet, and earnings capacity
New York Community Bancorp, Inc. Page 14 The AmTrust transaction enhanced our franchise, our balance sheet, and our earnings capacity.
Slide 16: The AmTrust transaction enhanced several balance sheet measures
New York Community Bancorp, Inc. Page 15 The AmTrust transaction enhanced several balance sheet measures. (a) Please see page 41 for a reconciliation of our GAAP and non-GAAP capital measures.
Slide 17: The AmTrust transaction reinforced our position as a leading financial institution
New York Community Bancorp, Inc. Page 16 The AmTrust transaction reinforced our position as a leading financial institution. DEPOSITS ASSETS MARKET CAPITALIZATION (in thousands) Rank Company Total Deposits Bank of America Corporation $991,611,000 JPMorgan Chase & Co. 938,367,000 Citigroup Inc. 835,9
Slide 18: The transaction has improved our funding model
New York Community Bancorp, Inc. Page 17 The transaction has improved our funding model. 9/30/09 12/31/09 Total liabilities: $28.5 billion Total liabilities: $36.8 billion (in millions) Total Deposits $14,468 Total Deposits $22,316 Deposits/Assets: 44.0% Deposits/Assets: 52.9%
Slide 19: Multi-family loans continue to be our principal asset
New York Community Bancorp, Inc. Page 18 Multi-family loans continue to be our principal asset. 9/30/09 12/31/09 Total loans: $23.0 billion Total loans: $28.3 billion (in millions) Covered loans/Total loans: 17.7% Covered loans/Total loans: 0%
Slide 20: Our franchise enables us to compete effectively in Metro New York
New York Community Bancorp, Inc. Page 19 The expansion of our franchise has enabled us to compete very effectively in the Metro New York market. SUFFOLK COUNTY, NY ESSEX COUNTY, NJ NASSAU COUNTY, NY QUEENS COUNTY, NY RICHMOND COUNTY, NY (dollars in thousands) Source: SNL Financial Rank Institution D
Slide 21: Strong presence in Florida, Ohio, and Arizona
New York Community Bancorp, Inc. Page 20 BROWARD, FL MARICOPA COUNTY, AZ The AmTrust transaction provided us with a strong presence in Florida, Ohio, and Arizona. CUYAHOGA, OH PALM BEACH, FL Rank Institution Deposits Market Share Bank of America Corp. $ 9,235,515 24.93% Wells Fargo & Co. 6,975,220 1
Slide 22: Two subsidiary banks and eight local divisions
New York Community Bancorp, Inc. Page 21 We now operate our branches through two subsidiary banks and eight local divisions. Community Bank Divisions Commercial Bank Division
Slide 23: 276 locations in five states
New York Community Bancorp, Inc. Page 22 Largely reflecting our acquisition strategy, we currently have 276 locations in five states.
Slide 24: Our Business Model: Multi-family Loan Production
Our Business Model: Multi-family Loan Production
Slide 25: Multi-family Loan Portfolio
New York Community Bancorp, Inc. Page 24 Multi-family Loan Portfolio Multi-family loans have grown at a CAGR of 28.6% since 12/31/99. (in millions)
Slide 26: Commercial Real Estate Loan Portfolio
New York Community Bancorp, Inc. Page 25 Commercial Real Estate Loan Portfolio Our commercial real estate loans feature the same structure as our multi-family loans. (in millions)
Slide 27: Our Business Model: Asset Quality
Our Business Model: Asset Quality
Slide 28: Net Charge-offs / Average Loans
New York Community Bancorp, Inc. Page 27 Net Charge-offs / Average Loans Both historically and currently, we have been distinguished by our low level of net charge-offs. NYB Net Charge-offs: $22,000 $222,000 $458,000 $6.1 million $431,000 $29.9 million NYB SNL Bank and Thrift Index (a) (a) SNL Finan
Slide 29: Non-performing Loans / Total Loans
New York Community Bancorp, Inc. Page 28 The quality of our loan portfolio continues to exceed that of our industry as it has in the past. Non-performing Loans / Total Loans (a) (a) Non-performing loans are defined as non-accrual loans and loans 90 days or more past due but still accruing interest.
Slide 30: Net Charge-offs / Average Loan Loss Allowance
New York Community Bancorp, Inc. Page 29 Net Charge-offs / Average Loan Loss Allowance Historically and currently, our charge-offs represent a smaller percentage of our loan loss allowance compared to our industry peers. (a) SNL Financial as of 3/1/10 NYB SNL Bank and Thrift Index (a) Last Credit Cy
Slide 31: Few non-performing loans have resulted in charge-offs
New York Community Bancorp, Inc. Page 30 Historically and currently, few of our non-performing loans have resulted in charge-offs. NYB At or for the Twelve Months Ended December 31, Last Credit Cycle Current Credit Cycle 1990 1991 1992 2007 2008 2009 SNL BANK & THRIFT INDEX (b) NPLs / Total Loans (a
Slide 32: Asset quality reflects multi-family niche and strong underwriting
New York Community Bancorp, Inc. Page 31 The quality of our assets reflects the nature of our multi-family lending niche and our strong underwriting standards.
Slide 33: NPLs represent a small percentage of our loan portfolio
New York Community Bancorp, Inc. Page 32 While NPLs have increased in the wake of the economic crisis, they represent a small percentage of our loan portfolio. Loan Type Non-Performing Loans as a Percent of Total Loans at December 31, 2009 Multi-family 1.38% Commercial real estate 0.25 Acquisition,
Slide 34: Our Business Model: Efficiency
Our Business Model: Efficiency
Slide 35: Operating efficiency ratio of 36.16% in 2009
New York Community Bancorp, Inc. Page 34 Our operating efficiency ratio was 36.16% (a) in 2009, well below the SNL Bank and Thrift Index efficiency ratio of 56.91%. (b) (a) Please see pages 39 and 40 for a reconciliation of our GAAP and operating efficiency ratios. (b) SNL Financial as of 3/1/10 NYB
Slide 36: Total Return on Investment
Total Return on Investment
Slide 37: Total Return on Investment
New York Community Bancorp, Inc. Page 36 Total Return on Investment Notwithstanding the decline in the capital markets, our business model has created significant value for our shareholders over time. NYB (b) (a) SNL Financial (b) Bloomberg As a result of nine stock splits in a span of 10 years, our
Slide 38: We are committed to building value for our investors: Our Goals
New York Community Bancorp, Inc. Page 37 We are committed to building value for our investors. Our Goals
Slide 39: For More Information
New York Community Bancorp, Inc. Page 38 For More Information 3/3/2010
Slide 40: Reconciliation of GAAP and Operating Efficiency Ratios
New York Community Bancorp, Inc. Page 39 Reconciliation of GAAP and Operating Efficiency Ratios For the Three Months Ended For the Twelve Months Ended December 31, 2009 December 31, 2008 December 31, 2009 (dollars in thousands) GAAP Operating GAAP Operating GAAP Operating Total net interest income a
Slide 41: Reconciliation of GAAP and Operating Efficiency Ratios
New York Community Bancorp, Inc. Page 40 Reconciliation of GAAP and Operating Efficiency Ratios The following table presents reconciliations of the Company’s GAAP and operating efficiency ratios for the years ended December 31, 1999, 2000, 2001, 2003, 2004, 2005, 2006, 2007, and 2008. For the year e
Slide 42: Reconciliation of GAAP and Non-GAAP Capital Measures
New York Community Bancorp, Inc. Page 41 Reconciliation of GAAP and Non-GAAP Capital Measures Dec. 31, Sept. 30, December 31, (dollars in thousands) 2009 2009 2008 2007 2006 2005 2004 Total stockholders’ equity $ 5,366,902 $ 4,340,539 $ 4,219,246 $ 4,182,313 $ 3,689,837 $ 3,324,877 $ 3,186,414 Less:
Slide 43: Reconciliation of GAAP and Non-GAAP Capital Measures
New York Community Bancorp, Inc. Page 42 Reconciliation of GAAP and Non-GAAP Capital Measures December 31, (dollars in thousands ) 2003 2002 2001 2000 1999 Total stockholders’ equity $ 2,868,657 $1,323,512 $ 983,134 $ 307,410 $137,141 Less: Goodwill (1,918,353) (624,518) (614,653) (118,070) -- Core
Slide 44: Reconciliation of GAAP and Operating Earnings
New York Community Bancorp, Inc. Page 43 Reconciliation of GAAP and Operating Earnings The following table presents reconciliations of the Company’s GAAP and operating earnings for the three and twelve months ended December 31, 2008 and 2009: For the Three Months Ended For the Twelve Months Ended De
Slide 45: Reconciliation of GAAP and Cash Earnings
New York Community Bancorp, Inc. Page 44 Reconciliation of GAAP and Cash Earnings (in thousands, except per share data) For the Three Months Ended For the Twelve Months Ended Dec. 31, 2009 Dec. 31, 2009 Dec. 31, 2008 GAAP Earnings $154,936 $102,232 $398,646 Additional contributions to tangible stock
Slide 46: Appendix
Appendix
Slide 47: Financial performance reflects growth-through-acquisition strategy
New York Community Bancorp, Inc. Page 46 Our financial performance reflects the merits of our growth-through-acquisition strategy. (a) (b) Please see pages 41 and 42 for reconciliations of our GAAP and non-GAAP capital. Loans acquired in the AmTrust transaction are covered by a loss sharing agreemen
Slide 48: Financial performance reflects growth-through-acquisition strategy (cont'd)
New York Community Bancorp, Inc. Page 47 Our financial performance reflects the merits of our growth-through-acquisition strategy (cont’d). (a) Please see pages 39 and 40 for reconciliations of our GAAP and operating efficiency ratios. (b) From 11/23/93 to the date indicated (c) Bloomberg
Slide 49: Deposits
New York Community Bancorp, Inc. Page 48 Deposits Our deposit growth has been largely acquisition- driven. Total deposits: 35.3% CAGR Core deposits: 41.0% CAGR Demand deposits: 46.1% CAGR (in millions) CDs NOW, MMAs, and Savings Demand deposits Total Deposits: $10,457 $12,168 $12,694 $13,236 $14,376
Slide 50: Loans Outstanding
New York Community Bancorp, Inc. Page 49 Loans Outstanding While acquisitions have contributed to the growth of our loan portfolio, the bulk of our loan growth has been organic. (in millions) Non-covered Loans Multi-family Loans Outstanding All Other Loans Outstanding Covered Loans Multi-family loan
New York Community Bancorp — Q4 2009 Earnings Presentation on 6ix