Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q1 2013 Earnings Presentation
40 slides from Flagstar Bank, N.a's earnings presentation, May 1, 2013
Slide 1: First Quarter 2013 Investor Presentation
Exhibit 99.1 First 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. and our authorized officers, may contain certain forward-lo
Slide 3: NYCB ranks among the top 25 bank holding companies in the United States
New York Community Bancorp ranks among the top 25 bank holding companies in the United States. Multi-Family Total Return Assets Deposits Market Cap Loans on Investment $44.5 billion $25.5 billion $19.2 billion $5.9 billion 3,436% With assets of With deposits of With a portfolio of With a market cap
Slide 4: Growth-through-acquisition strategy: 275 locations in five states
Largely reflecting our growth-through-acquisition strategy, we currently have 275 locations in five states. Metro New York New Jersey Ohio 121 Community Bank Branches 51 Community Bank Branches 28 Community Bank Branches 35 Commercial Bank Branches Florida Arizona 26 Community Bank Branches 14 Commu
Slide 5: 1st Quarter 2013 Performance Highlights
* * * * * * * 1st Quarter 2013 Performance Highlights
Slide 6: We generated solid earnings in 1Q 2013
We generated solid earnings in 1Q 2013. (dollars in thousands, except per share data) PERFORMANCE HIGHLIGHTS 1Q 2013 GAAP Earnings Cash Earnings (a) Strong Profitability Measures: Earnings $118,675 $128,569 EPS $0.27 $0.29 Return on average tangible assets (b) 1.19% 1.26% Return on average tangible
Slide 7: Our 3/31/13 balance sheet reflects continued strength
Our 3/31/13 balance sheet reflects continued strength. PERFORMANCE HIGHLIGHTS: 3/31/13 12/31/12 Loans, net / total assets 71.4% 71.5% Securities / total assets 12.3 11.1 Deposits / total assets 57.2 56.4 Core deposits / total deposits 66.0 63.3 Wholesale borrowings / total assets 28.8 29.6 New York
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 3/31/13 12/31/12 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) 0.69% 1.53% 0.96% 2.2
Slide 9: We continue to maintain a strong capital position
We continue to maintain a strong capital position. (dollars in billions) 3/31/13 12/31/12 Tangible stockholders’ equity / tangible assets excluding accumulated other comprehensive loss, net of tax (a) 7.75% 7.79% Tangible stockholders’ equity (a) $3.2 $3.2 3/31/13 12/31/12 Community Bank Commercial
Slide 10: A Successful Business Model
* * * * * * * A Successful Business Model
Slide 11: Our business model focuses 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 acquiring our Our efficiency rat
Slide 12: Multi-Family Loan Production
* * * * * * * Multi-Family Loan Production
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: 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 3/31/13 % of non-covered loans held for investment = 68.4% Average principal balance = $4.2 million Expected weighted average life = 2.9 years 1Q 2013 o
Slide 15: Commercial real estate loans feature the same structure as multi-family
Our commercial real estate loans feature the same structure as our multi-family loans. (in millions) PORTFOLIO STATISTICS COMMERCIAL REAL ESTATE AT 3/31/13 LOAN PORTFOLIO % of non-covered loans held for investment = 26.8% Average principal balance = $4.7 million Expected weighted average life = 3.4
Slide 16: Asset Quality
* * * * * * * Asset Quality
Slide 17: Asset quality has improved dramatically since the 3/31/10 peak of non-performance
The quality of our assets has improved dramatically since the peak of non-performance at 3/31/10. Y-O-Y IMPROVEMENT at 3/31/13 NPLs / Total Loans: 46 bp NPAs / Total Assets: 29 bp Non-Performing Loans (a)(b) / Total Loans (a) Non-Performing Assets (c) / Total Assets (c) (a) Non-performing loans and
Slide 18: Low net charge-offs in downward credit cycles
We havebeendistinguished by ourlowlevelof net charge-offsin downwardcreditcycles, quarterswith no losseson assetsgeneratedbythe Company.(a) andby52 consecutive NET CHARGE-OFFS / AVERAGE LOANS Last Credit Cycle Current Credit Cycle 2.84% 2.89% 1.78% 1.63% 1.50% 1.28% 1.25% 1.17% 0.91% 0.54% 0.35% 0.2
Slide 19: 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 4.17% 4.00% 4.05% 3.56% 3.41% 2.91% 2.83% 2.71% 2.63% 2.60% 2.48% 2.47% 2.35% 2.10% 2.22% 1.46% 1.51% 1.53% 1.28% 0.96% 0.69% 0.51% 12/31/89
Slide 20: Few 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 At or for the 12 Months Ended December 31, 3 Months Ended Last Credit Cycle (a) Current Credit Cycle (a) 1989 1990 1991 1992 1993 2008 2009 2010 2011 2012 3/31/13 NPLs (b)(c) / Total Loans (b) 1.4
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: FDIC-assisted loans and OREO covered by loss sharing agreements
The loans and OREO acquired in our FDIC-assisted transactions are covered by loss sharing agreements, thus mitigating credit risk. (in millions) COVERED ASSETS New York Community Bancorp, Inc. Page 22
Slide 23: Residential Mortgage Banking
* * * * * * * Residential Mortgage Banking
Slide 24: Residential mortgage banking is a leading aggregator of one-to-four family loans
Our residential mortgage banking operation is a leading aggregator of agency-conforming one-to-four family loans. • Acquired through our AmTrust Bank transaction in December 2009 History • Established as a subsidiary of New York Community Bank in April 2010 • We rank among the top 15 aggregators of
Slide 25: Mortgage banking and prepayment penalty income contribute to ROTA stability
In a declining interest rate environment, mortgage banking income and prepayment penalty income have contributed to the stability of our ROTA. (dollars in millions) (a) ROTA is a non-GAAP financial measure. Please see page 40 for additional information. New York Community Bancorp, Inc. Page 25
Slide 26: Mortgage banking generated 34.6% of non-interest income in 1Q 2013
Our mortgage banking operation generated 34.6% of non-interest income and 7.4% of total revenues in 1Q 2013. (in millions) AT OR FOR THE THREE MONTHS ENDED 3/31/13 1-4 family loans funded in 1Q 2013 = $2.4 billion % sold to GSEs = 99% FUNDED 1-4 FAMILY LOAN PRODUCTION Average FICO = 771 Average loan
Slide 27: Efficiency
* * * * * * * Efficiency
Slide 28: 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 EFFICIENCY RATIO do not engage in de novo branch development. 66.79% 66.10% Multi-family and commercial real estate 63.83% lending are both broker-driven, with the borrowe
Slide 29: Growth Through Acquisitions
* * * * * * * Growth Through Acquisitions
Slide 30: Growth from $1.9 billion to $44.5 billion in assets since first acquisition
In the 13 years since our first acquisition, we have grown from $1.9 billion in assets to $44.5 billion. Note: The number of branches indicated reflects the number of branches in our current franchise that stemmed from each transaction. New York Community Bancorp, Inc. Page 30
Slide 31: Our deposit growth has been largely acquisition-driven
Our deposit growth has been largely acquisition-driven. New York Community Bancorp, Inc. Page 31
Slide 32: Acquisitions have funded organic loan portfolio growth
Acquisitions have provided much of the funding for the organic growth of our loan portfolio. (a) Includes originations of loans held for sale of $888.5 million in 2009, $10.8 billion in 2010, $7.2 billion in 2011, $10.9 billion in 2012, and $2.4 billion in 1Q 2013. New York Community Bancorp, Inc. P
Slide 33: Total Return on Investment
* * * * * * * Total Return on Investment
Slide 34: 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 As a result of nine stock splits between 1994 and 2004, our charter shareholders have 2,700 shares of NYCB stock for each 100 shares originally purchased. (a) Bl
Slide 35: For More Information
For More Information Visit our web site: 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 5/1/13 New York Community Bancorp, Inc. Page 35
Slide 36: 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 months ended March 31, 2013. For the Three Months Ended (in thousands, except per share data) Mar
Slide 37: 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 months ended March 31, 2013. For the Three Months Ended (in thousands, except per share
Slide 38: 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 months ended March 31, 2013. For the Three Months Ended March 31, 2013 (dollars in thousands) GAAP Cash Total net interest income and non-in
Slide 39: 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 March 31, 2
Slide 40: 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, 2013;
New York Community Bancorp — Q1 2013 Earnings Presentation on 6ix