Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2024 Earnings Presentation
22 slides from Flagstar Bank, N.a's earnings presentation, May 1, 2024
Slide 1: Strategic Update and First Quarter 2024 Results
May 1, 2024 Strategic Update and First Quarter 2024 Results
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information This earnings release and the associated conference call may include forward‐looking statements by the Company and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding (a) revenues, earnings
Slide 3: NYCB Flagstar Will Transform Into a Fully Diversified Bank
NYCB Flagstar Will Transform Into a Fully Diversified Bank With a Strong Balance Sheet, Robust Capital Position and Meaningful Earnings Power Goal Is to Create Long-Term / Meaningful Shareholder Value 2024 Will Be a Transition Year to a More Normalized 2025 / 2026 1 2 3 4 5 Bolster Management and Bo
Slide 4: Management Team with Extensive Turnaround Expertise
Management Team with Extensive Turnaround Expertise Joseph Otting President & Chief Executive Officer, Director Joined 2024 ▪ Served as the 31st Comptroller of the Currency ▪ Former President of CIT Bank and Co-President of CIT Group ▪ Previously served as President, Chief Executive Officer, and Boa
Slide 5: Board of Directors – Best-In-Class Governance
Board of Directors – Best-In-Class Governance Joseph Otting President & Chief Executive Officer, Director Joined 2024 ▪ Served as the 31st Comptroller of the Currency ▪ Former President of CIT Bank and Co-President of CIT Group ▪ Previously served as President, Chief Executive Officer, and Board Mem
Slide 6: Operating Plan – The Path to Profitability
Short-Term Medium-Term Operating Plan – The Path to Profitability 4 Capital Accretive, Bolsters Liquidity, Improves Reserve Coverage Sale / Run-Off of Non-Strategic Assets Long-Term Reduction in NPAsFocus on Workout of Problem Loans2 Higher Yielding Assets and Relationship-Based Deposits Begin Build
Slide 7: Base Forecast Summary
Base Forecast Summary 2024 2025 2026 Q4’26 Annualized Diluted EPS ($0.50 – 0.55) $0.35 – 0.40 $0.50 – 0.60 $0.65 – 0.75 Efficiency Ratio 80 – 85% 65 – 70% 60 – 65% 55 – 60% CET1 Ratio 10.0 – 10.25% 10.5 – 11.0% 11.0 – 12.0% 11.0 – 12.0% ROAA NM 0.45 – 0.50% 0.75 – 0.85% 0.95 – 1.00% ROATCE NM 6.5 –
Slide 8: Base Forecast Summary ($ in millions)
Base Forecast Summary ($ in millions) 2024 2025 2026 Q4’26 Annualized Net Interest Income $2,400 – 2,450 $2,600 – 2,700 $2,900 – 3,100 $3,100 – 3,250 Net Interest Margin 2.2 – 2.3% 2.4 – 2.5% 2.7 – 2.8% 2.8 – 3.0% Provision for Loan Losses $750 – 800 $150 – 200 $150 – 200 $150 – 200 Noninterest Inco
Slide 9: Balance Sheet Position
NYCB Flagstar Q4’23 NYCB Flagstar Q1’24 Category IV Banks Most Recent Available $50 – 100B Asset Banks Most Recent Available TCE / TA 6.4% 6.5% 6.4% 6.7% CET1 Ratio (As Preferred Converted)(1) 9.0% 10.1% 10.4% 10.8% CET1 Ratio (Inclusive of AOCI)(1)(2) 8.4% 9.4% 8.5% 9.3% ALLL / Loans HFI 1.17% 1.48
Slide 10: In-Depth Due Diligence by NYCB Flagstar and Independent Third-Party
In-Depth Due Diligence by NYCB Flagstar and Independent Third-Party Overview of In-Depth Due Diligence / Loan Review Process ◼ Individual loan diligence process performed by NYCB Flagstar and separately by third-party ◼ Focus areas: Office, Multi-Family and non-Office CRE ─ Top 50 Office, top 250 Mu
Slide 11: Office Portfolio | Overview
11.0% 10.6% 10.3% 8.0% 5.6% 5.4% 5.0% 4.0% 3.7% 3.7% 2.7% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Office Portfolio | Overview ◼ Total Office portfolio: $3.1 Billion ◼ Q1’24 Office portfolio ALLL: 10.33% ◼ Top 50 Office loans were reviewed ─ In-depth due diligence proce
Slide 12: Multi-Family Portfolio | Overview
Total Multi-Family Portfolio Profile Highlights Multi-Family Portfolio | Overview Note 1: Northeast Multi-Family peers include banks with disclosed Multi-Family ALLL ratios (BHLB, DCOM, FFIC, FLIC and PFS). Data as of 3/31/2024 for FFIC, as of 12/31/2023 for BHLB, DCOM, FLIC and PFS. Note 2: Exclude
Slide 13: Non-Office CRE Portfolio | Overview
Retail 25% Home Builder 24%C&D 16% Industrial 8% CRE Other 27% Non-Office CRE Portfolio | Overview ◼ Total Non-Office CRE portfolio: $7.4 Billion(1) ◼ Q1’24 Non-Office CRE portfolio ALLL: 1.52% ◼ Top 50 Non-Office CRE loans were reviewed ─ In-depth due diligence process performed on 24% of the portf
Slide 14: Allowance for Loan Losses by Portfolio
12/31/2023 3/31/2024 ($ in millions) Allowance ALLL % Allowance ALLL % Change in ALLL% Multi-Family $307 0.82% $469 1.27% 45bps CRE $361 3.54% $428 4.27% 73bps Office (ex. Owner-Occupied) $279 8.60% $323 10.33% 173bps Non-Office CRE (incl. Owner-Occupied) $82 1.18% $105 1.52% 35bps Construction & De
Slide 15: Deposits | Overview
Insured 84% Uninsured 16% Industry Balance ($B) 3/31/2024 Noninterest-Bearing Demand $17.7 Interest-Bearing Demand $14.2 Money Markets $8.0 Savings $8.2 Retail CDs $20.4 Jumbo CDs $6.4 Total Deposits $74.9 Deposits | Overview 84% Insured and Collateralized Deposits(1)Well Diversified Deposit Base ◼
Slide 16: Liquidity Sources vs. Uninsured Deposits
$15.5 $12.4 $13.1 $28.6 $12.4 Liquidity Net Uninsured Deposits Liquidity Sources vs. Uninsured Deposits 16 Cash $16.2 ▪ Total liquidity of $28.6 billion which far exceeds uninsured and uncollateralized deposits, with a coverage ratio of 231% ▪ Cash held on balance sheet of $15.5 billion ▪ $13.1 bill
Slide 17: Q1 2024 Financial Highlights
($ in millions) NYCB Flagstar 3/31/24 Net Interest Income $624 Noninterest Income $130 Noninterest Expense(1) $621 Provision for Loan Losses $315 Net Income / (Loss) to Common Shareholders ($335) Diluted Earnings / (Loss) per Common Share ($0.45) Dividends Per Share $0.01 ROAA NM ROATCE NM Net Inter
Slide 18: Concluding Statements
Concluding Statements Investment Opportunity ◼ Pro-forma for the capital raise, NYCB currently trades at approximately 0.42x of fully converted tangible book value, compared to 1.48x for Category IV banks and 1.35x for banks with assets between $50 - $100 billion ◼ Q1’24 TBV Per Share (As Preferred
Slide 19: Appendix
Appendix 18
Slide 20: Reconciliations of GAAP and Non-GAAP Measures
Adjusted Allowance Coverage Ratio 12/31/2023 3/31/2024 Allowance for loan and lease losses ("ALLL") $992 $1,215 Warehouse and government guaranteed loan reserves 7 10 Adjusted ALLL (A) 985 1,205 Total loans and leases held-for-investment 84,619 82,326 Warehouse and government guaranteed loans 6,134
Slide 21: Peer Groups
Category IV Banks Ticker Citizens Financial CFG Fifth Third Bancorp FITB First Citizens Banc. FCNC.A Huntington Banc. HBAN KeyCorp KEY M&T Bank MTB Regions Financial RF Banks with $50B - $100B in Assets Ticker Columbia Banking System COLB Comerica CMA Cullen/Frost Bankers CFR East West Bancorp EWBC
Slide 22: For More Information
Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: Investor Relations New York Community Bancorp, Inc. 102 Duffy Avenue Hicksville, NY 11801 For More Information 21
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