Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2006 Earnings Presentation
20 slides from Flagstar Bank, N.a's earnings presentation, Aug 3, 2006
Slide 1: Second Quarter 2006 Investor Presentation
Exhibit 99.1 * * * * * * * * * Second Quarter 2006 Investor Presentation
Slide 2: Forward-looking Statements and Associated Risk Factors
Forward-looking Statements and Associated Risk Factors This presentation, like other written and oral communications presented by the Company and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section
Slide 3: We are a leading financial institution in the competitive New York metropolitan region
We are a leading financial institution in the competitive New York metropolitan region. With total assets of $28.7 billion at 6/30/06: We operate the fifth largest thrift in the nation and the largest in New York State. (a) With multi-family loans totaling $14.5 billion at 6/30/06: We are the leadin
Slide 4: We serve 600,000 customers through subsidiaries, divisions, and 166 locations
We serve 600,000 customers through 2 subsidiaries, 8 divisions, and 166 locations in New York City, Long Island, Westchester County, and northern New Jersey. 4
Slide 5: We compete by providing convenience, service, and selection
Wecompetebyprovidingourcustomers withconvenience, service,andselection, and by maintaining a strong presence in the communities we serve. Convenience 24-Hour Service 96% of thrift deposits have branch On-line banking access 68 or more hours per week Bank-by-phone 27% of thrift deposits have branch P
Slide 6: The foundation for our success is a consistent business model
The foundation for our success is a consistent business model that has focused on building value while, at the same time, building the Company. The origination of multi-family loans: - $17.5 billion of multi-family loans originated in the current decade, including $4.7 billion in 2005 and $1.9 billi
Slide 7: Multi-family loans have grown at a CAGR of 44.1% since 12/31/00
Multi-family loans have grown at a CAGR of 44.1% since 12/31/00. (in millions) Multi-family Loan Portfolio (a) At 6/30/06 $14,524 % of total loans: 74.7% $12,854 Average principal balance: $3.6 million $9,839 $7,368 Average loan-to-value ratio: 63.9% $4,494 Expected weighted average life: 3.7 years
Slide 8: Our multi-family lending niche is highly profitable, efficient, and resilient
Our multi-family lending niche is highly profitable, efficient, and resilient. Niche: Primarily rent-controlled and -stabilized buildings in NYC Borrowers: Long-term property owners with a history of building cash flows, often on buildings that have been in their families for multiple generations Te
Slide 9: We have a consistent record of solid asset quality
We have a consistent record of solid asset quality. Non-performing Assets / Total Assets 0.52% 0.43% 0.41% 0.37% 0.32% 0.22% 0.21% 0.22% 0.15% 0.12% 0.11% 0.11% 12/31/03 12/31/04 12/31/05 3/31/06 6/30/06 U.S. Thrifts (a) N.Y. State Thrifts (a) NYB (a) SNL DataSource 9
Slide 10: We consistently rank among the most efficient bank holding companies in the nation
We consistently rank among the most efficient bank holding companies in the nation. Efficiency Ratio 65.62% 66.54% 63.98% 62.41% 60.73% 57.02% 56.58% 56.47% 35.30%(a) 28.86%(a) 23.59%(a) 21.46%(a) 2003 2004 2005 1Q 2006 1H 2006 U.S. Thrifts (b) N.Y. State Thrifts (b) NYB (a) Operating efficiency rat
Slide 11: Our efficiency has been driven by our approach to lending, branch expansion, and product development
Our efficiency has been driven by our approach to lending, branch expansion, and product development. Multi-family and commercial real estate lending are both broker-driven. One-to-four family loans are originated on a pass-through basis and sold shortly after closing, servicing-released. Franchise
Slide 12: Acquisitions have contributed to our loan growth over the past six years
Acquisitions have contributed to our loan growth over the past six years… (in millions) Loans Outstanding (a) w/ ABNY w/ LICB $4,924 Multi-family loans: 44.2% CAGR $4,175 Total loans: 46.7% CAGR Multi-family Loans Outstanding w/ RSLN $3,557 All Other Loans Outstanding $3,131 $14,524 w/ RCBK $12,854
Slide 13: …and have significantly bolstered our deposit growth
…and have significantly bolstered our deposit growth. w/ ABNY (in millions) Deposits $1,331 w/ LICB $846 w/ RSLN $720 $739 Total deposits: 47.8% CAGR $6,042 Core deposits: 55.5% CAGR Demand deposits: 71.5% CAGR $6,012 $5,247 CDs $5,911 w/ RCBK NOW, MMAs, and Savings $455 $465 Demand deposits w/ HAVN
Slide 14: Our commercial bank acquisitions have contributed to an improvement in our net interest margin
Our commercial bank acquisitions have contributed to an improvement in our net interest margin. The acquisition of LICB: - Added $347 million of low-cost core deposits, including $100 million of non-interest-bearing accounts on 12/30/05 The acquisition of ABNY: - Added $1.4 billion of low-cost core
Slide 15: We have taken steps to enhance our interest rate risk profile
We have also taken steps to enhance our interest rate risk profile by deploying the cash flows from securities into loans. (in millions) $19,448 $17,029 Loans Securities $13,396 $12,119 $10,919 $7,081 $5,637 $5,307 % of Total Assets: 41.2% 45.7% 55.7% 29.5% 64.8% 21.4% 67.7% 18.5% 3/31/04 12/31/04 1
Slide 16: The integration of Atlantic Bank is progressing on schedule
The integration of Atlantic Bank is progressing on schedule. 2Q 2006: - Sold $1.2 billion of securities acquired in the LICB and ABNY transactions and used the proceeds to reduce our higher-cost sources of funds - Completed the consolidation of our back-office operations 3Q 2006: - Established new e
Slide 17: We are committed to building value by building our business in 2006
We are committed to building value by building our business in 2006. We are focused on: Enhancing our asset mix by originating commercial loans to small and mid-size businesses in our market, while growing our multi-family, construction, and commercial loan portfolios Maintaining the quality of our
Slide 18: We welcome your investment in our business and our future
We welcome your investment in our business and our future. We are a leading financial institution in the competitive New York metro region. We have a solid share of deposits and an attractive lending niche. We have an outstanding record of asset quality and a highly efficient operation. We have a de
Slide 19: For More Information
For More Information Log onto our web site: www.myNYCB.com E-mail requests to: ir@myNYCB.com Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 8/3/2006 19
Slide 20: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures The following table presents a reconciliation of the Company’s GAAP and operating efficiency ratios for the years ended December 31, 2003, 2004, and 2005 and for the six months ended June 30, 2006: For the Six Months Ended June 30, For the Years Ended Dec
New York Community Bancorp — Q2 2006 Earnings Presentation on 6ix