Flagstar Bank, N.A. · NYSE:FLG
Flagstar Bank, N.A — New York Community Bancorp — Q4 2006 Earnings Presentation
30 slides from Flagstar Bank, N.A's earnings presentation, Jan 29, 2007
Slide 1: Fourth Quarter 2006 Investor Presentation
Exhibit 99.1 **** **** **** **** **** **** **** **** **** **** **** **** **** Fourth Quarter 2006 **** Investor Presentation **** January 29, 2007 ****
Slide 2: Forward-looking Statements and Associated Risk Factors
Forward-looking Statements and Associated Risk Factors Safe Harbor Provisions of the Private Litigation Reform Act of 1995 This presentation, like other written and oral communications presented by New York Community Bancorp, Inc. and its authorized officers, may be forward-looking statements within
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 with the U.S. Securities and Exchange Commission (the “SEC”) which has not yet become effec
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 $28.5 billion at 12/31/06: - We operate the 5th largest thrift in the nation and the largest in New York State. (a) With a portfolio of $14.5 billion: - We are the leading producer of multi-family
Slide 5: Multi-bank holding company with two bank subsidiaries operating nine divisional banks
We are structured as a multi-bank holding company with two bank subsidiaries operating nine divisional banks. Community Commercial Bank Bank Divisions Division (a) (a) Pending approval of PFSB’s shareholders and the customary regulatory agencies. 5
Slide 6: With the acquisition of PFSB, we will extend our geographic footprint in New Jersey
With the acquisition of PFSB, we will extend our geographic footprint in New Jersey. (a) Westchester Suffolk Manhattan Nassau Bronx Essex Hudson Queens Union Brooklyn Middlesex Staten Island Monmouth New York Community Bank New York Commercial Bank Ocean PennFed (a) Pending approval of PFSB’s shareh
Slide 7: With PFSB, we will have 190 branches serving Metro New York
With PFSB, we will have 190 branches serving consumers and businesses throughout Metro New York. Community Commercial Bank Branches Bank Branches Market Served Traditional In-store Traditional Total Queens 26 7 5 39(a) Nassau 23 10 3 36 Suffolk 9 14 9 33(a) Staten Island 17 5 -- 23(a) Brooklyn 4 4 3
Slide 8: We compete very effectively against New York's money center banks
We compete very effectively against New York’s money center banks. (dollars in thousands) STATEN ISLAND, NY NASSAU, NY QUEENS, NY Market Market Market Rank Institution Branches Deposits Share Rank Institution Branches Deposits Share Rank Institution Branches Deposits Share 1 Sovereign Bancorp Inc. 2
Slide 9: 4th Quarter 2006 Highlights
* * * * * * * *************** *************** *************** 4th Quarter 2006 Highlights *************** 9
Slide 10: Net interest margin remained stable despite inverted yield curve
While the yield curve inverted over the course of 2006, our net interest margin remained stable. 4Q 2006 Linked-quarter (dollars in thousands) 1Q 2006 2Q 2006 3Q 2006 4Q 2006 Increase Average yield on loans 5.81% 5.85% 5.94% 6.08% 14 bp Average yield on assets 5.56 5.62 5.74 5.86 12 bp Prepayment pe
Slide 11: Our longstanding record of asset quality was extended in 4Q 2006
Our longstanding record of asset quality was extended in 4Q 2006. NPAs / Total Assets NPLs / Total Loans NCOs / Avg. Loans 0.40% 0.43% 0.15% 0.15% 0.39% 0.26% 0.08% 0.11% 0.00% 12/31/06 12/31/06 2006 U.S. Banks & Thrifts (a) NY State Banks & Thrifts (a) NYB (a) SNL DataSource 11
Slide 12: We consistently rank among the most efficient bank holding companies
We consistently rank among the most efficient bank holding companies in the nation. Efficiency Ratio 61.31% 58.23% 61.01% 56.99% 37.59% 39.12% 2006 4Q 2006 U.S. Banks & Thrifts (a) NY State Banks & Thrifts (a) NYB (b) (a) SNL DataSource (b) Operating efficiency ratio. Please see page 29 for a reconc
Slide 13: Tangible capital has facilitated a strong quarterly cash dividend
The strength of our tangible capital has facilitated the payment of a strong quarterly cash dividend. Both of our bank subsidiaries are well capitalized institutions: 12/31/06 Community Bank Commercial Bank Leverage capital ratio 7.10% 10.01% Our tangible capital measures grew on a linked-quarter ba
Slide 14: Our Business Model
* * * * * * * ********************* ********************* ********************* Our Business Model ********************* 14
Slide 15: 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: - $18.4 billion of multi-family loans originated in the current decade, including $2.8 billion in 2006 The maintenanc
Slide 16: 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 17: Multi-family loans have grown at a CAGR of 40.4% since 12/31/99
Multi-family loans have grown at a CAGR of 40.4% since 12/31/99. (in millions) Multi-family Loan Portfolio (a) At 12/31/06 $14,529 $12,854 % of total loans: 73.9% $9,839 Average principal balance: $3.6 million $7,368 Average loan-to-value ratio: 64.0% $4,494 Expected weighted average life: 3.8 years
Slide 18: Asset quality reflects 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 19: Efficiency driven by 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 20: Acquisitions have strengthened and enhanced the quality of our balance sheet
Acquisitions have strengthened and enhanced the quality of our balance sheet. w/ HAVN w/ RCBK w/ RSLN w/ LICB w/ ABNY Pro Forma (dollars in billions) 12/31/99 12/31/00 12/31/01 12/31/03 12/31/05 12/31/06 w/ PFSB (b)(c) Number of branches 14 86 120 139 152 166 190 Multi-family loans $1.3 $1.9 $3.3 $
Slide 21: Our acquisitions have contributed to the achievement of several key goals
In addition, our acquisitions have contributed to the achievement of several key goals. HAVN RCBK RSLN LICB ABNY PFSB (a) 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 Provide
Slide 22: Cash flows from sale of acquired assets converted into securities and then loans
Cash flows from the sale of acquired assets have been converted into securities and then into loans. w/ ABNY $19,653 (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 $5,405 $5,489 $5,637 $4,926 w/ HAVN $4,652 $3,636 $2,578 $1,611 $5
Slide 23: Additional funding has stemmed from acquired deposits
Additional funding has stemmed from acquired deposits. w/ PFSB (a)(b) $1,198 (in millions) Deposits w/ ABNY w/ LICB $1,123 $846 w/ RSLN $720 $739 $6,071 Total deposits: 44.5% CAGR Core deposits: 50.4% CAGR $5,551 Demand deposits: 62.5% CAGR $6,012 $5,247 CDs $5,911 w/ RCBK NOW, MMAs, and Savings $45
Slide 24: Bulk of loan growth has been organic
While acquisitions have contributed to the growth of our loan portfolio, the bulk of our growth has been organic. w/ PFSB (b)(c) w/ ABNY (in millions) Loans Outstanding (a) w/ LICB $6,817 $5,124 $4,175 Multi-family loans: 40.5% CAGR Total loans: 44.7% CAGR w/ RSLN $3,557 Multi-family Loans Outstandi
Slide 25: LICB and ABNY acquisitions provided an established commercial bank platform
Our acquisitions of LICB and ABNY provided us with an established commercial bank platform. LICB ABNY Enhanced our asset mix with C&I loans to small and mid-size businesses Added commercial lending expertise to our management team Diversified our depositor/borrower base Provided opportunities to cro
Slide 26: Rolling out our sales & service initiative to enhance revenues
We are in the process of rolling out our sales & service initiative to enhance our revenues. 4Q 2006: - New York Commercial Bank’s data processing systems were upgraded. - ABNY’s data processing systems were integrated with New York Commercial Bank’s. 1Q 2007: - We have started to introduce certain
Slide 27: We are committed to building value in 2007
We are committed to building value in 2007. Our Goals Enhance our asset mix by originating C&I loans to small and mid-size businesses in our market, while growing our multi-family, construction, and commercial real estate loan portfolios Maintain the quality of our assets by adhering to our traditio
Slide 28: For More Information
For More Information Log onto our web site: www.myNYCB.com E-mail requests to: [email protected] Call Investor Relations at: (516) 683-4420 Write to: New York Community Bancorp, Inc. 615 Merrick Avenue Westbury, NY 11590 1/29/2007 28
Slide 29: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures The following tables present reconciliations of the Company’s GAAP and operating efficiency ratios for the three and twelve months ended December 31, 2006. For the three months ended September 30, 2006, the Company’s efficiency ratio was the same on a GAA
Slide 30: 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 — Q4 2006 Earnings Presentation on 6ix