Exhibit 99.1
Exhibit 99.1
STRATEGIES & STRENGTHS
First Quarter 2004
Investor Presentation
Forward-looking Statements and Risk Factors
This presentation, like many written and oral communications presented by the Company and its authorized officers, may contain certain forward-looking statements regarding its prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of said safe harbor provisions.
Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words “plan,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or other similar expressions. The Company’s ability to predict results or the actual effects of its plans and strategies, including its merger with Roslyn Bancorp, is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.
The following factors, among others, could cause the actual results of the merger to differ materially from the expectations stated in this presentation: the ability to successfully integrate the companies following the merger, including the retention of key personnel; the ability to effect the proposed restructuring; the ability to fully realize the expected cost savings and revenues; and the ability to realize the expected cost savings and revenues on a timely basis.
Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in general economic conditions; interest rates, deposit flows, loan demand, real estate values, competition, and demand for financial services and loan, deposit, and investment products in the Company’s local markets; changes in the quality or composition of the loan or investment portfolios; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; war or terrorist activities; and other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the Company’s operations, pricing, and services.
The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
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Our Mission
Our primary goal is the creation of shareholder value.
The mission of New York Community Bancorp, Inc. is to create shareholder value by consistently delivering the thrift industry’s top financial performance, and by providing those who live and work in the New York metro region with easy access to the full range of financial products and services they seek.
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Strengths: Market Leader
We are a leading lender, depository, and revenue producer in the NY metro region.
The leading producer of multi-family loans in New York City, with a portfolio of $7.8 billion at 3/31/04 (a)
The second largest thrift depository in the New York metro region, with 141 locations and deposits of $10.0 billion at 3/31/04 (a)(b)
The leading supermarket banking franchise in the New York metro region, with 52 in-store branches (a)
Ranked within the top 3% of U.S. thrifts generating income from investment product sales (c)
(a) SNL DataSource
(b) NY metro region includes Queens, Staten Island, Brooklyn, Nassau, and Suffolk counties.
(c) Singer’s Annuity and Funds Report
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Strengths: Industry Leader
We lead the industry in total returns to shareholders and financial performance.
10-Year Total Return (a)
#1 among all publicly traded thrifts
#12 among all public companies
5-Year Total Return (a)
#1 among all publicly traded thrifts
Financial Performance (b)
Top-performing large thrift in the U.S. since 1998
Efficiency (c)
3rd most efficient bank holding company in the U.S.
(a) Wall Street Journal, 3/8/04
(b) ThriftINVESTOR, 5/03
(c) American Banker, 2/25/04
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Strength: Balance Sheet
With assets of $26.5 billion, we are the nation’s 4th largest thrift.
(dollars in billions)
Linked-
At Quarter 5-Year 10-Year
3/31/04 Increase CAGR CAGR
Total assets $ 26.5 13.0% 71.9% 37.9%
Total loans 10.9 20.0(a)(b) 48.0 29.7
Multi-family loans 7.8 23.2(a) 43.3 32.8
Core deposits 6.1 2.9 74.4 29.4
Stockholders’ equity 3.4 18.4 88.1 32.9
Tangible stockholders’
equity 1.4 101.4 56.6 21.2
(a) Annualized growth rate.
(b) Excludes $130 million of loans sold in 1Q ‘04.
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Strength: Income Statement
We have been ranked the nation’s top-performing large thrift for the past 5 years. (a)
(in millions, except per share data)
Y-O-Y 5-Year 10-Year
1Q 2004 Increase CAGR CAGR
Net Interest Income $ 213.5 97.2% 66.7% 31.7%
Other Operating Income 37.5 41.8 126.4 56.4
Earnings 130.0 93.0 73.6 40.9
Cash Earnings (b) 160.6 122.1 70.1 40.6
Diluted EPS 0.48 29.7 34.3 28.2
Diluted Cash EPS (b) 0.59 47.5 31.5 28.0
(a) May 2003 ThriftINVESTOR
(b) Please see reconciliation to GAAP earnings on page 28, #1.
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Strategies: Multi-family Lending Niche
We have a profitable, efficient, and risk-averse lending niche.
Strategy
Rent-controlled / rent-stabilized buildings generate stable cash flow
5-year fixed / 5-year adjustable term
Pre-payment penalties: 5-4-3-2-1 points
Average loan at 3/31/04: $2.5 mn
Average LTV ratio at 3/31/04: 57.4%
Expected weighted average life at 3/31/04: 3.3 years
Results
Produces higher term yields than alternative 1-4 year assets
Is more efficient to produce and service
Is more resilient against economic stress
Reduces interest rate risk
Reduces credit risk (no net charge-offs since 1987)
Enhances asset quality
Increases earnings
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Strength: Multi-family Lending Niche
We are the leading producer of multi-family loans for portfolio in New York City.
(in millions)
Loan Originations
Multi-family Loan Originations All Other Loan Originations
1993 1998 1999 2000 2001 2002 2003 1Q ‘03 1Q ‘04
Total $ 196 $ 487 $ 677 $ 616 $ 1,150 $ 2,560 $ 4,330 $ 771 $ 1,071
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Strength: Multi-family Lending Niche
The multi-family loan portfolio is expected to grow 23% in 2004.
(in millions)
Loans Outstanding (a)
Multi-family Loans Outstanding All Other Loans Outstanding
12/31/93 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 3/31/04 Total $791 $1,611 $3,636 $5,405 $5,489 $10,499 $10,917
(a) Excludes net deferred loan origination fees and costs.
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Strategies: Community Banking
We emphasize convenience and exceptional customer service.
Hours: Weekend, extended evening, and early-bird hours
Products & services: A full-service menu of traditional banking products and services, complemented by an extensive range of alternative investment products
Multiple service channels: Traditional and in-store branches; bank online, by phone, or by mail
Easy access: Walk-up windows, drive-up bays, ATMs Staffing:
Over 400 licensed retail personnel in addition to a fully commissioned sales force
Technology: State-of-the-art ATMs and online real time processing on an IP frame
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Strength: Community Banking
Our structure recognizes and capitalizes on the brand equity of our divisional banks.
Division
Market Traditional In-store
Served Branches Branches Total
Queens 25 8 33
Long Island 33 27 61(a)
Staten Island 17 5 23(b)
Brooklyn 4 5 9
Westchester & Other NYC - 6 6
Hudson County, NJ 4 - 4
Essex & Union Counties, NJ 4 1 5
87 52 141(b)
Bronx.
(a) Includes one traditional branch in the Bronx. (b) Includes a customer convenience center.
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Strategies: Deposit Mix
Earnings growth has been supported by our low-cost mix of deposits.
Strategy
Emphasize core deposits
Offer alternative investment products
Run off higher cost CDs
Results
Reduces funding costs
Provides cross-selling opportunities
Discourages hot money deposits
Enhances net interest income and margin
Generates fee income
Increases earnings
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Strength: Deposit Mix
We are the second largest thrift depository in our market.
(in billions)
Deposit Mix
Core Deposits CDs
Total Deposits: $0.8 $1.1 $1.1 $3.3 $5.4 $5.3 $10.3 $10.0 Core / Total Deposits: 56.5% 34.4% 38.8% 42.5% 55.8% 62.9% 57.8% 61.2% Loans / Total Deposits: 94.2% 135.7% 150.0% 111.6% 99.2% 104.3% 101.7% 108.9%
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Strategies: Risk Management
Our risk-averse nature is reflected in our strategic mix of assets and liabilities.
Strategy
Emphasize multi-family lending in
NYC
Originate subdivision construction
loans on Long Island
Redeploy liquidity from securities
into loans
Originate 1-4 family and consumer
loans on a conduit basis
Emphasize core deposits
Offer third-party investment
products
Run off higher cost CDs
Results
Reduces interest rate risk
Reduces credit risk
Reduces extension risk
Contains expenses
Enhances consistency of net interest margin
Increases earnings
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Strength: Risk Management
Our balance sheet structure has shielded our margin from interest rate volatility.
5-year U.S. Treasury CMT Range: 2.78%—6.36%
3-month LIBOR Range: 1.11%—6.40%
NYB net interest margin Range: 3.33%—4.31%
12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 03/31/04
3.79% 3.33% 3.59% 4.31% 3.94% 4.00% NYB NIM
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Strength: Risk Management
The quality of our assets reflects our underwriting standards.
No net charge-offs against the allowance for loan losses for 38 consecutive quarters
NPAs to total assets equaled 0.11% at 3/31/04
The allowance for loan losses equaled 263.79% of NPLs at 3/31/04
Acquired lenders with a long history of successful residential construction and subdivision lending
No losses on any local-market multi-family loans in more than two decades
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Strategies: Cost Containment
Efficiency is a key component of our financial performance.
Strategy
Emphasis on multi-family lending
Above-average deposits per traditional branch ($110 mn at 3/31/04) (a)
Franchise expansion through M & A
Cost-effective de novo branch expansion
Hub & spoke approach to in-store branching
Profitable third-party alliances
Results
Reduces compensation and benefits expense
Reduces general and administrative expense
Reduces occupancy and equipment expense
Increases fee and other income
Increases earnings
(a) Excludes three recent de novo branches
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Strength: Efficiency
Our 1Q ‘04 efficiency ratio improved 325 bp on a linked-quarter basis to 18.70%.
Efficiency Ratio
U.S. Thrifts 65.21% 63.26% 65.10% 65.10%(b)
Top 100 Thrifts 57.01% 57.34% 58.32% 58.32%(b)
NYB 30.50%(a) 25.32% 23.59%(a) 18.70%
(a) Core efficiency ratio; please see reconciliation to reported efficiency ratio on page 28, #2.
(b) 1Q ‘04 industry data not yet available.
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Strategies: Accretive Merger Transactions
We have a solid record of accretive in-market transactions.
Strategy
Acquired Haven Bancorp (HAVN) on 11/30/00
Merged with Richmond County Financial Corp. (RCBK) on 7/31/01
Merged with Roslyn Bancorp (RSLN) on 10/31/03
Results
Expanded the franchise
Increased deposit share
Increased interest-earning assets
Increased low-cost funding
Improved loan / deposit ratio
Increased earnings
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Strength: Accretive Merger Transactions
Our franchise, value, and performance have been enhanced by merger transactions.
(dollars in billions, except per share data)
w / HAVN w / RCBK w/RSLN
12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 3/31/04
No. of branches 14 86 120 110 139 140
Loan / deposit ratio 150.0 % 111.6% 99.2% 104.3% 101.7% 108.9%
Core deposits $0.4 $1.4 $3.0 $3.3 $6.0 $6.1
Total assets $1.9 $4.7 $9.2 $11.3 $23.4 $26.5
Market cap $0.57 $1.1 $2.3 $3.1 $7.3 $9.3
Price per share $6.79 $9.19 $12.86 $16.25 $28.54 $34.28(a) (a) (a) (b)
Diluted EPS $0.42 $0.47 $0.77 $1.25 $1.63 $2.17-$2.20
(a) Diluted core EPS; please see reconciliation to diluted GAAP EPS on page 29, #3.
(b) Full-year Company estimate.21
Strategies: Balance Sheet Restructuring
We are in the process of restructuring the post-RSLN balance sheet.
Strategy
Structuring the asset mix to produce
cash flows for investment in loan
production at higher yields in a rising
rate environment
Producing a record volume of loan
originations
Increasing core deposits while
reducing concentration of higher-cost
CDs
Replacing FHLB borrowings with
reverse repos with Wall Street firms at
favorable rates
Sold $130 mn of home equity loans in
1Q ‘04
Results
Reduces interest rate risk
Reduces credit risk
Reduces extension risk
Enhances net interest margin
Enhances the quality of earnings
Increases earnings
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Strength: Capital Management
We actively manage our capital.
9 stock splits in 10 years, including a 4-for-3 split on 2/17/04
11.3 million shares repurchased in 2003; 2.1 million in 1Q ‘04
5 million-share repurchases authorized on 2/26/04 and 4/20/04
90-fold increase in quarterly cash dividend since 1994, including a 122% increase over the last 6 quarters
Approximately $483 million of regulatory capital raised in 2002 and 2003
$600 million shelf registration filed in 2Q ‘03
Approximately $400 million generated through follow-on offering of 13.5 million shares of common stock in 1Q ‘04
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Strength: Performance
The Company has a solid record of earnings growth.
Diluted EPS Growth
$0.121993
$0.42 1999
$0.47(a) 2000
$0.76(a) 2001
$1.25 2002
$1.63(a) 2003
$2.17 -$2.20(b) 2004
5-YR CAGR: 40% 11-YR CAGR: 30%
(a) Diluted core EPS; please see reconciliation to diluted GAAP EPS on page 29, #3.
(b) Company estimates.
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Strength: Share Value
From 11/23/93 to 3/31/04, the value of our shares appreciated 3,586%.
(dollars in millions, except per share data)
Market Capitalization
Price per share (adjusted for 9 splits, including a 4-for-3 stock split on 2/17/04)
Annual yield produced by $1.00 per share dividend on shares purchased at this date
55%74% 5-YR CAGR: CAGR Since IPO:
$105$0.93 11/23/93 107.5%
$632 $7.44 12/31/98 13.4%
$570 $6.79 12/31/99 14.7%
$1,087 $9.19 12/31/00 10.9%
$2,329 $12.86 12/31/01 7.8%
$3,052 $16.25 12/31/02 6.2%
$7,325 $28.5412/31/03 3.5%
$9,286 $34.283/31/042.9%
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Strength: Total Returns
Each of our merger transactions has provided an opportunity for share value creation.
Increase in Date of Merger Total Return Quarterly Cash Bank Announcement thru 3/31/04(a) Dividend(b)
HAVN June 27, 2000 776% 1,287%
RCBK March 27, 2001 278 278
RSLN June 27, 2003 68 61
(a) Compares NYB’s closing price of $34.28 on 3/31/04 to the acquiree’s closing price preceding the merger announcement; assumes dividends have been reinvested.(b) Compares NYB’s $0.25 per share dividend to the acquiree’s pre-merger dividend.
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Strength: Total Returns
From 11/23/93 to 3/31/04, the total return to our charter investors was 4,609%.
Total return from 11/23/93 through the date noted, assuming dividends were reinvested
Price per share (adjusted for 9 splits, including a 4-for-3 stock split on 2/17/04)
Annual yield produced by $1.00 per share dividend on shares purchased at this date
Total Returns
65%46% 5-YR CAGR:
CAGR since IPO:
28% $0.93 11/23/93 107.5%
770% $7.44 12/31/98 13.4%
718% $6.79 12/31/99 14.7%
1,057% $9.19 12/31/00 10.9%
1,600% $12.8612/31/01 7.8%
2,051% $16.2512/31/02 6.2%
3,794% $28.5412/31/03 3.5%
4,609% $34.283/31/042.9%
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Appendix
Reconciliation of GAAP and Non-GAAP Measures
1. The Company calculated its diluted cash earnings per share for 1Q 2004 by adding back to the quarter’s net income non-cash items totaling $30.5 million. The Company calculated its diluted cash earnings per share for 1Q 2003 by adding back to the quarter’s net income non-cash items totaling $4.9 million. Please see the table below for a reconciliation of the Company’s diluted cash and GAAP earnings for the respective periods.
For the Three Months Ended For the Three Months Ended
March 31, March 31,
2004 2003
(in thousands, except per share data)
Net income $ 130,023 $ 67,368
Add back:
Amortization and appreciation of stock-related benefit plans 3,290 1,711
Associated tax benefits 23,315 807
Dividends on unallocated ESOP shares 1,064 901
Amortization of core deposit intangible and goodwill 2,860 1,500
Total additional contributions to tangible stockholders’ equity 30,529
Cash earnings $ 160,552 $
Basic cash earnings per share $ 0.62
Diluted cash earnings per share $
2. On a reported basis, the Company’s 2001 and 2003 efficiency ratios were 38.04% and 26.83% respectively. Its 2001 core efficiency ratio excluded a gain of $1.5 million on the sale of Bank-owned property from other operating income and a $22.8 million merger-related charge from operating expenses. Its 2003 core efficiency ratio excluded a gain of $37.6 million on the sale of its South Jersey Bank Division from other operating income and a merger-related charge of $20.4 million from operating expenses.
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Appendix
Reconciliation of GAAP and Non-GAAP Measures
3. As calculated in accordance with GAAP, the Company’s 2000, 2001, and 2003 diluted earnings per share were $0.32, $0.75, and $1.65, respectively. The 2003 amount includes a $37.6 million gain on the sale of the Company’s South Jersey Bank Division, recorded in other operating income, and a merger-related charge of $20.4 million, recorded in operating expenses, resulting in an after-tax net gain of $3.7 million, or $0.02 per diluted share. The 2001 amount includes a $1.5 million gain on the sale of Bank-owned property, recorded in other operating income; a merger-related charge of $22.8 million, recorded in operating expenses; and a $3.0 million charge recorded in income tax expense, resulting in an after-tax net charge of $16.8 million, or $0.12 per diluted share. The 2000 amount includes a $13.5 million gain on the sale of Bank-owned property, recorded in other operating income, and a merger-related charge of $24.8 million, recorded in operating expenses, resulting in an after-tax net charge of $7.3 million, or $0.09 per diluted share. Please see the table below for a reconciliation of the Company’s diluted core and GAAP earnings for the respective periods.
For the Years Ended December 31,
2003 2002 2001 2000
(in thousands, except per share data)
Net income $323,371 $229,230 $104,467 $24,477 Adjustments to net income: Gain on sales of Bank-owned property (37,613) — (1,500) (13,500) Merger-related expenses 20,423 — 22,800 24,800 Income tax expense adjustment — — 3,000 —Total adjustments to net income
(17,190) — 24,300 11,300 Income tax expense (benefit) on adjustments 13,514 — (7,455) (3,955) Core earnings $319,695 $229,230 $121,312 $31,822 Basic core earnings per share $1.68 $1.27 $0.89 $0.42 Diluted core earnings per share $1.63 $1.25 $0.87 $0.41
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For More Information:
The Company trades on the NYSE under the symbol “NYB”.
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
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