Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Q2 2007 Earnings Presentation
35 slides from Flagstar Bank, N.a's earnings presentation, Aug 9, 2007
Slide 1: Second Quarter 2007 Investor Presentation
Exhibit 99.1 Second Quarter 2007 Investor Presentation
Slide 2: Forward-looking statements
This presentation, like many written and oral communications presented by New York Community Bancorp, Inc. and our authorized officers, may contain certain forward-looking ‘statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933
Slide 3: Other Required Legal Disclosures
Other Required Legal Disclosures This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities. New York Community Bancorp, Inc. has filed a registration statement containing a proxy statement/prospectus, and other relevant documents concerning the propos
Slide 4: 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 assets of approximately $31.0 billion: (a)(b) - We operate the 5th largest thrift in the nation and the largest in New York State. (c) With a portfolio of approximately $13.6 billion: (b)(d) - We are the lea
Slide 5: 2nd Quarter 2007 Performance Highlights
2nd Quarter 2007 Performance Highlights 5
Slide 6: Our 2Q 2007 performance was highlighted by improved operating metrics
Our 2Q 2007 performance was highlighted by improved operating metrics. Operating Earnings Growth: - Our operating EPS rose $0.01on a linked-quarter basis. (a) Margin Expansion: - Our net interest margin rose 12 basis points linked-quarter and 15 basis points year- over-year. Higher Average Yield on
Slide 7: Our net interest margin has reflected improvement in a challenging yield curve environment
Our net interest margin has reflected improvement in a challenging yield curve environment. 2Q 2007 Linked-quarter Increase (dollars in thousands) 1Q 2006 2Q 2006 3Q 2006 4Q 2006 1Q 2007 2Q 2007 (Decrease) Average yield on loans 5.81% 5.85% 5.94% 6.08% 6.14% 6.44% 30 bp Average yield on interest-ear
Slide 8: The strength of our capital position has enabled us to pay a strong dividend
The strength of our capital position has enabled us to pay a strong dividend. Both of our bank subsidiaries are well capitalized institutions: 6/30/07 Community Bank Commercial Bank Leverage capital ratio 7.73% 11.21% Our tangible capital measures grew year-over-year: (dollars in billions) 6/30/06 6
Slide 9: In the second and third quarters of 2007, we took a series of actions
In the second and third quarters of 2007, we took a series of actions, each one providing specific benefits. Date Action Benefit Expanded the Community Bank franchise; increased deposits; 4/2/07 Acquired PennFed Financial Services, Inc. provided opportunity to reposition the balance sheet 4/2/07 Red
Slide 10: Our Business Model
Our Business Model 10
Slide 11: We have a consistent business model focused on building value while building the Company
We have a consistent business model that is focused on building value while building the Company. The growth of our business through accretive mergers and acquisitions: - Completed • November 30, 2000: Haven Bancorp, Inc. (HAVN) • July 31, 2001: Richmond County Financial Corp. (RCBK) • October 31, 2
Slide 12: Our balance sheet reflects the benefits of our growth-through-acquisition strategy
Our balance sheet reflectsthe benefits of our growth-through- acquisition strategy and the organic growth of our loan portfolio. Pro Forma w/ Doral & w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY w/ PFSB SYNF (b)(c)(d) (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 12/31/06 6/30/07 6/3
Slide 13: Each of our acquisitions has contributed to the achievement of several key goals
Each of our acquisitions has contributed to the achievement of several key goals. HAVN RCBK RSLN LICB ABNY PFSB SYNF Immediately accretive to GAAP and cash earnings Strengthens our deposit market share in existing markets Extends our geographic footprint within the Metro New York region Provides cos
Slide 14: Cash flows from sale of acquired assets converted into securities and then loans
Our business model calls for the cash flows from the sale of acquired assets to be converted into securities and then into loans. w/ ABNY w/ PFSB $19,653 $18,918 (dollars in millions) w/ LICB $17,029 $13,396 $12,119 Loans w/ RSLN $10,919 Securities $10,499 $9,500 $7,081 w/ RCBK $5,489 $5,637 $5,692
Slide 15: Since repositioning our balance sheet in June 2004, we have completed four acquisitions
Since repositioning our balance sheet in June 2004, we have completed four acquisitions and announced one(a) other. (dollars in millions) Total Assets Acquired $7,090 Commercial Bank Assets 3,340 Savings Institution Assets 3,750 Total Deposits Acquired $4,870 Commercial Bank Deposits 2,223 Savings I
Slide 16: Transaction-driven expansion enables us to compete against New York's money center banks
The transaction-driven expansion of our franchise has enabled us to compete very effectively against New York’s money center banks. (dollars in thousands) RICHMOND COUNTY, NY NASSAU COUNTY, NY QUEENSCOUNTY, NY (a) Market Market Market Rank Institution Deposits Share Rank Institution Deposits Share R
Slide 17: Our acquisition of SYNF will provide an established franchise with 20 branches
Our acquisition of SYNF will provide us with an established franchise with 20 branches, and solid measures of asset quality (a) and capital. Balance Sheet Highlights: (b) Assets $932 million Loans $736 million Deposits $599 million Core deposits $259 million Asset Quality Measures: (b) Non-performin
Slide 18: Upon completion of the SYNF acquisition, we will have locations in New York and New Jersey
Upon completion of the SYNF acquisition, we will have 165 locations in New York and 53 in New Jersey. The NYCB Franchise New York Community Bank Traditional branches 110 In-store branches 46 Customer convenience centers 3 Subtotal 159 New York Commercial Bank Traditional branches 38 NYB SYNF Total l
Slide 19: The SYNF transaction will strengthen our market share in central New Jersey
The SYNF transaction will strengthen our market share in central New Jersey. (dollars in thousands) UNION COUNTY, NJ MIDDLESEX COUNTY, NJ Market Market Rank Institution Deposits Share Rank Institution Deposits Share 1 Wachovia Corp. $ 4,723,323 31.82% 1 Wachovia Corp. $ 2,955,615 16.80% 2 Bank of Am
Slide 20: Each of our merger transactions has contributed to deposit growth
Each of our merger transactions has contributed to deposit growth. Pro Forma w/ Doral & SYNF (a)(b)(c) (in millions) Deposits w/ PFSB $1,282 w/ ABNY $1,189 w/ LICB $1,123 $846 w/ RSLN Total deposits: 41.8% CAGR $5,991 Core deposits: 46.4% CAGR $720 $739 $5,699 Demand deposits: 58.8% CAGR $5,551 $6,0
Slide 21: Acquisitions have contributed to loan growth, but the bulk has been organic
While acquisitions have contributed to the growth of our loan portfolio, the bulk of our loan growth has been organic. Pro Forma w/ Doral & SYNF (a)(b)(c) w/ ABNY (in millions) Loans Outstanding w/ PFSB w/ LICB $5,124 $6,245 $5,379 $4,175 Multi-family loans: 36.1% CAGR Total loans: 39.8% CAGR $3,557
Slide 22: Multi-family loans have grown at a CAGR of 36.0% since 12/31/99
Notwithstanding the Y-T-D shrinkage of our portfolio, multi- family loans have grown at a CAGR of 36.0% since 12/31/99. (in millions) Portfolio statistics at 6/30/07: Multi-family Loan Portfolio - % of total loans = 71.6% - Average principal balance = $3.4 million $14,529 $13,539 - Average loan-to-v
Slide 23: Our multi-family lending niche is profitable, efficient, and resilient
Our multi-family lending niche is 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 Term: Yea
Slide 24: We have maintained a record of solid asset quality
We have maintained record a of solid asset quality. Non-performing Assets / Total Assets 0.78% 0.62% 0.62% 0.60% 0.52% 0.49% 0.47% 0.44% 0.43% 0.19% 0.19% 0.17% 0.15% 0.15% 0.12% 0.11% 0.08% 0.05% 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 6/30/07 U.S. Thrifts (a) NYB (a
Slide 25: The quality of our assets reflects our strong credit and underwriting standards
The quality of our assets reflects our strong credit and underwriting standards. Conservative loan-to-value (“LTV”) ratios Minimum debt coverage ratio: 120% All loans approved by the Mortgage and Real Estate Committee or the Credit Committee (a majority of the Board of Directors) Director and execut
Slide 26: We continue to rank among the most efficient bank holding companies in the nation
We continue to rank among the most efficient bank holding companies in the nation. Efficiency Ratio 75.34% 66.03% 67.45% 64.53% 64.81% 62.44% 62.54% 63.07% 62.40% 40.60% 37.59% 31.16% 30.20% 30.50% 28.86% 25.32% 23.59% 21.46% 1999 2000 2001 2002 2003 2004 2005 2006 1H 2007 U.S. Thrifts (a) NYB (b) (
Slide 27: Our efficiency has been driven by our approach to lending, product development, and branch expansion
Our efficiency has been driven by our approach to lending, product development, and branch expansion. Multi-family and commercial real estate lending are both broker-driven, without cost to the Company. One-to-four family loans are originated on a pass-through basis and sold shortly after closing, s
Slide 28: Our Goals
Our Goals = Utilize the cash flows from the sale of securities and 1-4 family loans to originate higher- yielding assets and/or reduce our higher-cost funding sources = Maintain the quality of our assets by adhering to our traditional credit standards = Continue to improve our net interest margin =
Slide 29: 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 8/9/2007 29
Slide 30: Footnotes
Footnotes Page 4 (a) Includes assets of approximately $485 million that were acquired on 7/26/07 in our branch transaction with Doral Bank, FSB (“Doral”) and assets of approximately $932 million that are expected to be acquired in our pending acquisition of Synergy Financial Group, Inc. (“SYNF”). (b
Slide 31: 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 earnings for the three months ended June 30 and March 31, 2007. For the Three Months Ended June 30, March 31, (in thousands, except per share data) 2007 2007 GAAP Earnings $
Slide 32: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures 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, and 2006. For the year ended December 31, 2002, the Company’s GAAP and operating effici
Slide 33: 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 three and six months ended June 30, 2007. For the Three Months Ended For the Six Months Ended June 30, 2007 June 30, 2007 (dollars in thousands) GA
Slide 34: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation of GAAP and Non-GAAP Capital Measures The following table presents reconciliations of the Company’s stockholders’ equity, tangible stockholders’ equity, and adjusted tangible stockholders’ equity; total assets, tangible assets, and adjusted tangible assets; and the related capital mea
Slide 35: Reconciliation of GAAP and Non-GAAP Capital Measures
Reconciliation of GAAP and Non-GAAP Capital Measures The following table presents a reconciliation of the Company’s stockholders’ equity, tangible stockholders’ equity, and adjusted tangible stockholders’ equity; total assets, tangible assets, and adjusted tangible assets; and the related capital me
New York Community Bancorp — Q2 2007 Earnings Presentation on 6ix