Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q4 2013 Earnings Presentation
38 slides from Flagstar Bank, N.a's earnings presentation, Jan 31, 2014
Slide 1: Fourth Quarter 2013 Investor Presentation
Exhibit 99.1 Fourth Quarter 2013 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 Litigation Reform Act of 1995 This presentation, like many written and oral communications presented by New York Community Bancorp, Inc. (the “Company”) and our authorized officers, may contain ce
Slide 3: In our first 20 years, we have evolved into one of the top 25 bank holding companies
In our first 20 years, we have evolved into one of the top 25 bank holding companies in the United States. Multi-Family Total Return Assets Deposits Market Cap Loans on Investment $46.7 billion $25.7 billion $20.7 billion $7.4 billion 4,265% In our first 20 years We recorded Reflecting our From 12/3
Slide 4: Growth-through-acquisition strategy, over 270 locations in five states
Largely reflecting our growth-through-acquisition strategy, we have over 270 locations in five states. Metro New York New Jersey Ohio 125 Community Bank Branches 49 Community Bank Branches 28 Community Bank Branches 30 Commercial Bank Branches Florida Arizona 27 Community Bank Branches 14 Community
Slide 5: 4Q and Full-Year 2013 Performance Highlights
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Slide 6: We generated solid earnings in 4Q and full-year 2013
We generated solid earnings in 4Q and full-year 2013. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS 4Q 2013 Earnings 2013 Earnings GAAP Cash(a) GAAP Cash(a) Strong Profitability Measures: Earnings $120,155 $129,736 $475,547 $515,270 EPS $0.27 $0.30 $1.08 $1.17 Return on averag
Slide 7: Our 12/31/2013 balance sheet reflects continued strength
Our 12/31/2013 balance sheet reflects continued strength. PERFORMANCE HIGHLIGHTS: 12/31/2013 Total loans / total assets 70.5% Securities / total assets 17.0 Deposits / total assets 55.0 Core deposits / total deposits 73.0 Wholesale borrowings / total assets 31.6 Stockholders‘ equity / total assets 1
Slide 8: Our asset quality measures compare favorably with our industry
Our asset quality measures continue to compare favorably with those of our industry as a whole. At or for the Three Months Ended 12/31/2013 12/31/2012 SNL U.S. SNL U.S. Bank and Bank and ASSET QUALITY: NYCB Thrift Index NYCB Thrift Index Non-performing loans (a)(b) / total loans (a) 0.35% 1.19% 0.96
Slide 9: Our bank subsidiaries exceed well capitalized requirements
Our bank subsidiaries continue to exceed the requirements for classification as well capitalized institutions. 12/31/2013 12/31/2012 New York New York New York New York Community Bank Commercial Bank Community Bank Commercial Bank Leverage capital ratio 7.86% 11.49% 8.33% 11.59% Tier 1 risk-based ca
Slide 10: A Successful Business Model
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Slide 11: Our business model has focused on building value for our investors
Our business model has consistently focused on building value for our investors. Strong Credit Residential Growth Multi-Family Standards/ Efficient Mortgage through Lending Superior Asset Operation Banking Acquisitions Quality Multi-family loans Net charge-offs Since January Our efficiency ratio Acq
Slide 12: Multi-Family Loan Production
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Slide 13: Our focus on multi-family lending on rent-regulated buildings distinguishes us
Our focus on multi-family lending on rent-regulated buildings has enabled us to distinguish ourselves from our industry peers. 60.9% of the rental housing units in New York City are subject to rent regulation and therefore feature below-market rents. (a) Rent-regulated buildings are more likely to r
Slide 14: We are the leading producer of multi-family loans for portfolio in New York City
We are the leading producer of multi-family loans for portfolio in New York City. (in millions) MULTI-FAMILY LOAN PORTFOLIO PORTFOLIO STATISTICS AT 12/31/2013 % of non-covered loans held for investment = 69.4% Average principal balance =million $4.5 Expected weighted average lifeyears = 2.9 4Q 2013
Slide 15: 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 COMMERCIAL REAL ESTATE AT 12/31/2013 LOAN PORTFOLIO % of non-covered loans held for investment = 24.7% Average principal balance = $4.7 million Expected weighted average lifeyear
Slide 16: Asset Quality
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Slide 17: The quality of our assets has improved dramatically since the 2010 peak
The quality of our assets has improved dramatically since the peak of non-performance at 3/31/2010. Y-O-Y IMPROVEMENT at 12/31/2013 NPLs / Total Loans: 61 bp NPAs / Total Assets: 31 bp Non-Performing Loans (a)(b) / Total Loans (a) Non-Performing Assets (c) / Total Assets (c) (a) Non-performing loans
Slide 18: Low net charge-offs in downward credit cycles
We have been distinguished by our low level of net charge- offs in downward credit cycles. NET CHARGE-OFFS / AVERAGE LOANS Last Credit Cycle Current Credit Cycle 5-Year Total 6 -Year Total NYCB: 17 bp NYCB: 90 bp SNL U.S. Bank and Thrift Index: 540 bp SNL U.S. Bank and Thrift Index: 1,106 bp SNL U.S
Slide 19: Our loan portfolio quality continues to exceed that of our industry
The quality of our loan portfolio continues to exceed that of our industry. (a)(b)/ TOTAL LOANS NON-PERFORMING LOANS (a) Last Credit Cycle Current Credit Cycle SNL U.S. Bank and Thrift Index NYCB (a) Non-performing loans and total loans exclude covered loans. (b) Non-performing loans are defined as
Slide 20: Few of our non-performing loans have resulted in charge-offs
Historically and currently, few of our non-performing loans have resulted in charge-offs. At or for the 12 Months Ended December 31, Last Credit Cycle (a) Current Credit Cycle (a) 1989 1990 1991 1992 1993 2008 2009 2010 2011 2012 2013 NPLs (b)(c) / Total Loans (b) 1.46% 2.48% 2.10% 2.83% 1.51% 0.51%
Slide 21: Asset quality reflects our lending niche and strong underwriting standards
The quality of our assets reflects the nature of our lending niche and our strong underwriting standards. Risk-Averse Mix of Conservative Active Board Multiple Non-Covered Loans Underwriting Involvement Appraisals Held for Investment • Conservative loan-to- • All loans originated for • All propertie
Slide 22: Residential Mortgage Banking
* * * * * * * Residential Mortgage Banking
Slide 23: Our residential mortgage banking operation ranks among the top 20 aggregators
Ourresidentialmortgagebankingoperationcurrentlyranksamongthe top20 aggregators of one-to-fourfamilyloansin theU.S. Loans can be originated/purchased in all 50 states. Loan production is driven by our proprietary real time, web-accessible mortgage banking technology platform, which securely controls
Slide 24: Prepayment penalty and mortgage banking income have stabilized our ROTA
Prepayment penalty income and mortgage banking income have contributed to the stability of our ROTA. (dollars in millions) Return on Average Tangible Assets (a) Prepayment Penalty Income Mortgage Banking Income Total: Average 10-Year Treasury Rate 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2
Slide 25: Efficiency
* * * * * * * Efficiency
Slide 26: Our efficiency is driven by several factors
Our efficiency is driven by several factors. Franchise expansion has largely stemmed from mergers and acquisitions; we generally do not engage in de novo branch development. Multi-family and CRE lending are both broker-driven, with the borrower paying fees to the mortgage brokerage firm. Products an
Slide 27: Growth Through Acquisitions
* * * * * * * Growth Through Acquisitions
Slide 28: Growth from $1.9 billion to $46.7 billion in assets since our first acquisition
In the 13 years since our first acquisition, we have grown from $1.9 billion in assets to $46.7 billion. Transaction Type: Savings Bank Commercial Bank Branch FDIC Deposit Note: The number of branches indicated reflects the number of branches in our current franchise that stemmed from each transacti
Slide 29: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition-driven. DEPOSITS (in millions) w/ Aurora w/ AmTrust w/ Desert Hills CDs NOW, MMAs, and Savings Demand deposits w/ PFSB, Doral, & SYNF w/ ABNY w/ LICB w/ RSLN w/ RCBK w/ HAVN Total Deposits: $3,268 $5,472 $10,360 $12,168 $12,764 $13,311 $22,418 $21,890
Slide 30: Acquisitions have funded much of our organic loan growth
Acquisitions have provided much of the funding for the organic growth of our loan portfolio. LOANS OUTSTANDING After Aurora After After (in millions) AmTrust Desert Hills $2,789 $3,284 $307 $3,753 $1,758 $1,204 After $4,298 $1,243 PFSB, $5,016 $1,037 Held-for-Investment Loans Doral, & $1,244 $7,366
Slide 31: Total Return on Investment
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Slide 32: Quarterly cash dividends are a significant component of building value
Our quarterly cash dividends are a significant component of our commitment to building value for our investors. TOTAL RETURN ON INVESTMENT SNL U.S. Bank and Thrift Index NYCB (a) CAGR since IPO: 28.6% As a result of nine stock splits between 1994 and 2004, our charter shareholders have 2,700 shares
Slide 33: For More Information
For More Information Visit our website: ir.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at:(516) 683-4420 Investor Relations New York Community Bancorp, Inc. Write to: 615 Merrick Avenue Westbury, NY 11590 1/31/14 New York Community Bancorp, Inc. Page 33
Slide 34: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and cash earnings for the three and twelve months ended December 31, 2013. For the For the Three Months Ended Twelve Months Ended
Slide 35: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Cash earnings is a non-GAAP financial measure. The following table presents a reconciliation of the Company’s GAAP and cash earnings measures for the three and twelve months ended December 31, 2013. For the For the Three Months Ended Twelve Mon
Slide 36: Reconciliations of GAAP and Cash Efficiency Ratios
Reconciliations of GAAP and Cash Efficiency Ratios The following table presents a reconciliation of the Company’s GAAP and cash efficiency ratios for the three and twelve months ended December 31, 2013. For the For the Three Months Ended Twelve Months Ended December 31, 2013 December 31, 2013 (dolla
Slide 37: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Tangible and adjusted tangible stockholders’ equity and tangible and adjusted tangible assets are non-GAAP financial measures. The following table presents reconciliations of these non-GAAP measures with the related GAAP measures at December 31
Slide 38: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures Average tangible assets and average tangible stockholders’ equity are non-GAAP financial measures. The following table presents reconciliations of these non-GAAP measures with the related GAAP measures for the three months ended March 31, June
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