Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — New York Community Bancorp — Investor Presentation (August 2016)
35 slides from Flagstar Bank, N.a's investor presentation, Aug 23, 2016
Slide 1: Second Quarter 2016 Investor Presentation
Second Quarter 2016 Investor Presentation Exhibit 99.1
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information This presentation may include forward‐looking statements by the Company and our authorized officers pertaining to such matters as our goals, intentions, and expectations regarding revenues, earnings, loan production, asset quality, capital levels, an
Slide 3: Pro forma rankings with Astoria
Pro forma assets, deposits, and multi-family loans are based on our balances and Astoria’s at 6/30/16 and include purchase accounting adjustments. Data from SNL Financial is as of 6/30/15. Our pro forma market cap was calculated by multiplying our closing price at 6/30/16 by the sum of our outstandi
Slide 4: The Core Components of our Business Model
The Core Components of our Business Model
Slide 5: Multi-Family Loan Production
Multi-Family Loan Production
Slide 6: Multi-Family Loan Portfolio Statistics
NYCB Portfolio Statistics at or for the 3 Mos. Ended 6/30/16 % of non-covered loans held for investment = 72.7% Average principal balance = $5.4 million Weighted average life = 2.8 years % of our multi-family loans located in Metro New York = 79.6% % of HFI loan originations = 60.9% Multi-Family Loa
Slide 7: Multi-family lending niche in New York City
→ Of the loans in our portfolio that are collateralized by multi-family buildings in the five boroughs of New York City, 88% are collateralized by buildings with rent-regulated units featuring below-market rents. → Rent-regulated buildings are more likely to retain their tenants – and, therefore, th
Slide 8: Asset Quality
Asset Quality
Slide 9: Non-Performing Loans / Total Loans across credit cycles
S & L Crisis Great Recession Current Credit Cycle Non-Performing Loans(a)(b)/ Total Loans(a) Non-performing loans and total loans exclude covered loans and non-covered purchased credit-impaired (“PCI”) loans. Non-performing loans are defined as non-accrual loans and loans 90 days or more past due bu
Slide 10: Net Charge-Offs / Average Loans
S & L Crisis Net Charge-Offs/ Average Loans 5-Year Total NYCB: 17 bp SNL U.S. Bank and Thrift Index: 540 bp 4-Year Total NYCB: 37 bp SNL U.S. Bank and Thrift Index: 803 bp Great Recession Current Credit Cycle 5.5-Year Total NYCB: 52 bp SNL U.S. Bank and Thrift Index: 523 bp Few of our non-performing
Slide 11: Conservative Underwriting
Conservative Underwriting Conservative loan-to-value ratios Conservative debt service coverage ratios: 120% for multi-family loans and 130% for CRE loans Multi-family and CRE loans are based on the lower of economic or market value. Active Board Involvement All loans originated for portfolio are pre
Slide 12: Efficiency
Efficiency
Slide 13: Factors Driving Our Efficiency
Factors Driving Our Efficiency Multi-family and CRE lending are both broker-driven, with the borrower paying fees to the mortgage brokerage firm. Products and services are typically developed by third-party providers and the sale of these products generates additional revenues. Franchise expansion h
Slide 14: Residential Mortgage Banking
Residential Mortgage Banking
Slide 15: Residential Mortgage Banking Features and Benefits
Features Loans can be originated/purchased in all 50 states and the District of Columbia. Loan production is driven by our proprietary real time, web-accessible mortgage banking technology platform, which securely controls the lending process while mitigating business and regulatory risks. We have a
Slide 16: Growth Through Acquisitions
Growth Through Acquisitions
Slide 17: Astoria merger benefits: earnings and balance sheet
Significantly Increases our Earnings ~ 20% pro forma earnings accretion (a) ~ 15.5% return on average tangible common equity (ROATCE) Expected cost saves (~ 50% of Astoria’s non-interest expense) maintain our longstanding record of efficiency Expands our margin Increases our revenue stream Significa
Slide 18: Deposit growth through acquisitions
(in millions) Deposits w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY w/ PFSB, Doral, & SYNF w/ AmTrust w/ Desert Hills w/ Astoria Total Deposits: $3,268 $5,472 $10,360 $12,168 $12,764 $13,311 $22,418 $21,890 $24,878 $28,427 $28,883 $37,866 Total Branches: 86 120 139 152 166 217 276 276 275 258 256 344 CDs
Slide 19: Astoria and NYCB branch overlap
Note: Data from SNL Financial is as of 6/30/15. Long Island Brooklyn Queens Westchester Astoria NYCB % of Astoria branches near an NYCB branch The Astoria merger is expected to boost our market share in Nassau and Suffolk Counties, Queens, and Brooklyn.
Slide 20: Deposit market share in the NY MSA
Boosts our deposit market share in Metro New York from 7% to10% Infusion of low-cost core deposits enhances our funding mix Expands our customer base and opportunities to increase non-interest revenues Potential improvement in deposit pricing power due to increased scale The Astoria merger is expect
Slide 21: Enhanced asset and funding mix
The Astoria merger is expected to enhance our asset and funding mix. NYCB Astoria Pro Forma (a) Total HFI Loans: $38.7 bn Yield on Loans: 3.79% NYCB Astoria Pro Forma (a) Total Deposits: $28.9 bn Cost of I-B Deposits: 0.63% Total HFI Loans: $10.8 bn Yield on Loans: 3.47% Total HFI Loans: $49.4 bn Yi
Slide 22: Held-for-Investment Loan Portfolio
Held-for-Investment Loan Portfolio(a) After HAVN After RCBK After RSLN After LICB After ABNY After PFSB, Doral, & SYNF After AmTrust After Desert Hills HFI Loans Outstanding: $3,636 $5,405 $10,499 $17,029 $19,653 $20,363 $23,377 $23,707 $27,285 $35,763 $36,801 $47,544 HFI Originations: $616 $1,150 $
Slide 23: Track record of post-merger integrations
* The Astoria merger was announced in October 2015. All other mergers on this page were completed in the months and years indicated. The number of branches indicated for our earlier transactions is the number of branches in our current franchise that stemmed from each. Transaction Type: Savings Bank
Slide 24: Preparing for SIFI Status
Following enactment of the Dodd-Frank Act, we began allocating significant resources towards SIFI preparedness. The degree to which we have already leveraged the cost of SIFI compliance is reflected in the ~ 800-basis point increase in our efficiency ratio since the enactment of Dodd-Frank. The merg
Slide 25: Dividends and share repurchases
As we continue to grow, we would expect our total payout ratio to be more consistent with the total payout ratio for our SIFI peers. Dividends Approved in 2015 Share Repurchases Approved in 2015
Slide 26: 2Q 2016 Performance Highlights
2Q 2016 Performance Highlights
Slide 27: 2Q 2016 profitability measures
(dollars in thousands, except per share data) ROTA and ROTE are non-GAAP financial measures. Please see page 35 for additional information. Our 2Q 2016 performance reflected the benefit of the strategic debt repositioning we completed in 4Q 2015. 2Q 2016 2Q 2015 Strong Profitability Measures: Earnin
Slide 28: Strategic Asset Management
From 9/30/14 to 6/30/16, we managed our assets below the current SIFI threshold while maintaining our high-volume production of multi-family and CRE loans. Strategic Asset Management Total Assets 9/30/14 $48.7 Billion Reduced securities by $3.5 billion through a combination of repayments, sales, and
Slide 29: Balance sheet measures reflect stability and strength
Non-performing loans and total loans exclude covered loans and non-covered PCI loans. Non-performing assets and total assets exclude covered loans, covered OREO, and non-covered PCI loans. Our balance sheet measures reflect stability and strength. Company Capital 6/30/16 Stockholders’ equity / total
Slide 30: Total Return on Investment
Total Return on Investment
Slide 31: Total return since IPO
CAGR since IPO: 25.2% Bloomberg 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. SNL U.S. Bank and Thrift Index NYCB (a) Our commitment to building value for our inv
Slide 32: For More Information
8/23/16 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. 615 Merrick Avenue Westbury, NY 11590 For More Information
Slide 33: Reconciliations of GAAP and Non-GAAP Financial Measures
Reconciliations of GAAP and Non-GAAP Financial Measures
Slide 34: Efficiency ratio definition
The efficiency ratio is a measure of profitability reported by U.S. banks to convey the degree to which the pre-tax revenues they generate during a period are utilized to cover the cost of their compensation and benefits, occupancy and equipment, and general and administrative (“G&A") expenses (toge
Slide 35: Tangible equity and asset return measures
While average stockholders’ equity, average assets, return on average assets, and return on average stockholders’ equity are financial measures that are recorded in accordance with U.S. generally accepted accounting principles (“GAAP”), average tangible stockholders’ equity, average tangible assets,
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