Flagstar Financial (FLG) 8-K Regulation FD Disclosure

Second Quarter 2006

Investor Presentation

Exhibit  99.1

*

*

*

*

*

* * * *

2

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

27A

of

the

Securities

Act

of

1933,

as

amended,

and

Section

21E

of

the

Securities

Exchange

Act

of

1934,

as

amended.

We

intend

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

are

including

this

statement

for

purposes

of

said

safe

harbor

provisions.

Forward-looking

statements,

which

are

based

on

certain

assumptions

and

describe

our

future

plans,

strategies,

and

expectations,

are

generally

identified

by

use

of

the

words

“anticipate,”

“believe,”

“estimate,”

“expect,”

“intend,”

“plan,”

“project,”

“seek,”

“strive,”

“try,”

or

future

or

conditional

verbs

such

as

“will,”

“would,”

“should,���

“could,”

“may,”

or

similar

expressions.

Our

ability

to

predict

results

or

the

actual

effects

of

our

plans

or

strategies

is

inherently

uncertain.

Accordingly,

actual

results

may

differ

materially

from

anticipated

results.

There

are

a

number

of

factors,

many

of

which

are

beyond

our

control,

that

could

cause

actual

conditions,

events,

or

results

to

differ

significantly

from

those

described

in

our

forward-looking

statements.

These

factors

include,

but

are

not

limited

to,

general

economic

conditions

and

trends,

either

nationally

or

locally

in

some

or

all

of

the

areas

in

which

we

and

our

customers

conduct

our

respective

businesses;

conditions

in

the

securities

markets

or

the

banking

industry;

changes

in

interest

rates,

which

may

affect

our

net

income,

future

cash

flows,

or

the

market

value

of

our

assets;

changes

in

deposit

flows,

and

in

the

demand

for

deposit,

loan,

and

investment

products

and

other

financial

services

in

the

markets

we

serve;

changes

in

the

financial

or

operating

performance

of

our

customers’

businesses;

changes

in

real

estate

values,

which

could

impact

the

quality

of

the

assets

securing

the

loans

in

our

portfolio;

changes

in

the

quality

or

composition

of

our

loan

or

investment

portfolios;

changes

in

competitive

pressures

among

financial

institutions

or

from

non-financial

institutions;

changes

in

our

customer

base;

our

ability

to

successfully

integrate

any

assets,

liabilities,

customers,

systems,

and

management

personnel

we

may

acquire

into

our

operations,

and

our

ability

to

realize

related

revenue

synergies

and

cost

savings

within

expected

time

frames;

potential

exposure

to

unknown

or

contingent

liabilities

of

companies

targeted

for

acquisition;

our

ability

to

retain

key

members

of

management;

our

timely

development

of

new

lines

of

business

and

competitive

products

or

services

within

existing

lines

of

business

in

a

changing

environment,

and

the

acceptance

of

such

products

or

services

by

our

customers;

any

interruption

or

breach

of

security

resulting

in

failures

or

disruptions

in

customer

account

management,

general

ledger,

deposit,

loan,

or

other

systems;

the

outcome

of

pending

or

threatened

litigation,

or

of

other

matters

before

regulatory

agencies,

or

of

matters

resulting

from

regulatory

exams,

whether

currently

existing

or

commencing

in

the

future;

environmental

conditions

that

exist

or

may

exist

on

properties

owned

by,

leased

by,

or

mortgaged

to

the

Company;

changes

in

estimates

of

future

reserve

requirements

based

upon

the

periodic

review

thereof

under

relevant

regulatory

and

accounting

requirements;

changes

in

banking,

securities,

tax,

environmental,

and

insurance

laws,

regulations,

and

policies,

and

the

ability

to

comply

with

such

changes

in

a

timely

manner;

changes

in

accounting

principles,

policies,

practices,

or

guidelines;

changes

in

legislation

and

regulation;

operational

issues

stemming

from,

and/or

capital

spending

necessitated

by,

the

potential

need

to

adapt

to

industry

changes

in

information

technology

systems,

on

which

we

are

highly

dependent;

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,

and

geopolitical

factors

affecting

our

operations,

pricing,

and

services. 

Additionally,

the

timing

and

occurrence

or

non-occurrence

of

events

may

be

subject

to

circumstances

beyond

our

control.

Readers

are

cautioned

not

to

place

undue

reliance

on

these

forward-looking

statements,

which

speak

only

as

of

the

date

of

this

presentation.

Except

as

may

be

required

by

applicable

law

or

regulation,

the

Company

disclaims

any

obligation

to

update

any

forward-looking

statements.

Forward-looking Statements and Associated Risk Factors

3

We are a leading financial institution in the competitive New York

metropolitan region.

(a)

SNL DataSource

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

leading

producer

of

multi-family

loans

for

portfolio

in

New

York

City.

(a)

With total deposits of $13.6 billion at 6/30/06:

We

operate

the

ninth

largest

thrift

depository

in

the

nation

and

the

third

largest

in

New York State.

(a)

With

the

acquisitions

of

Long

Island

Financial

Corp.

in

December

2005

and

Atlantic

Bank of New York in April 2006:

We operate the 14th largest commercial bank in our market and the 17th largest in

New York State.

(a)

4

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.

5

We

compete

by

providing

our

customers

with

convenience,

service,

and

selection,

and by maintaining a strong presence in the communities we serve.

Convenience

96% of thrift deposits have branch

access 68 or more hours per week

27% of thrift deposits have branch

access 80 hours per week

24-Hour Service

On-line banking

Bank-by-phone

Premier Banking Group 

197 ATMs (of 233)

Extensive Product Selection

Traditional banking products

Card services

Alternative investment products

Loan services

Community Involvement & Support

Foundation grants have totaled $42.2

million to date

Directors and executive officers serve

on over 30 non-profit boards

26 languages spoken in our branches

6

The foundation for our success is a consistent business model that has

focused on building value while, at the same time, building the Company.

(a)

Please see page 20 for a reconciliation of our GAAP and operating efficiency ratios.

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 billion in 1H 2006

The

maintenance

of

stringent

credit

standards,

resulting

in

a

consistent

record

of

solid

asset

quality:

-

No

net

charge-offs

for

40

consecutive

quarters

(4Q

1994

-

3Q

2004)

-

Charge-offs

of

$21,000

in

2005

and

$153,000

in

1H

2006

–

all

on

acquired

assets

The

efficient

operation

of

our

Company

and

our

branch

network:

-

Operating

efficiency

ratio

of

28.86%

in

2005

and

35.30%

in

1H

2006

(a)

The

growth

of

our

business

through

accretive

merger

transactions:

-

November 2000:

Haven Bancorp, Inc.

-

July 2001:

Richmond County Financial Corp.

-

October 2003:

Roslyn Bancorp, Inc.

-

December 2005:

Long Island Financial Corp.

-

April 2006:

Atlantic Bank of New York

7

% of total loans:  74.7%

Average principal balance:  $3.6 million

Average loan-to-value ratio:  63.9%

Expected

weighted

average

life:

3.7

years

1H 06 originations:  $1.9 billion

% of total loans originated in 1H 06: 64.6%

At 6/30/06

$1,946

$3,255

$4,494

$7,368

$9,839

$12,854

$14,524

12/31/00

12/31/01

12/31/02

12/31/03

12/31/04

12/31/05

6/30/06

Multi-family Loan Portfolio

(a)

(in millions)

Multi-family loans have grown at a CAGR of 44.1% since 12/31/00.

(a)

Amounts exclude net deferred loan origination fees and costs.

8

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

Term:  

Years 1 –

5:   Fixed at 150 bp

above the 5-year CMT

Years 6 –

10: Monthly adjustable rate 250 bp

above prime, or fixed

rate 275 bp

above the 5-year CMT plus 1 point

Prepayment

Range from 5 points to 1 point in years 1 through 5; recorded

penalties:

as interest income (top and bottom line enhancements) or fee

income (enhances bottom line)

Efficiency:

Less costly to originate and service than 1-to-4 family loans

Quality:

No losses in our niche for more than 25 years

9

(a)

SNL DataSource

0.52%

0.43%

0.37%

0.41%

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

U.S. Thrifts

(a)

N.Y. State Thrifts

(a)

NYB

Non-performing Assets / Total Assets

We have a consistent record of solid asset quality.

3/31/06

6/30/06

10

63.98%

65.62%

62.41%

66.54%

57.02%

56.58%

56.47%

60.73%

21.46%

(a)

23.59%

(a)

28.86%

(a)

35.30%

(a)

2003

2004

2005

Efficiency Ratio

U.S. Thrifts

(b)

N.Y. State Thrifts

(b)

NYB

(a)

Operating efficiency ratio.  Please see page 20 for a reconciliation of our GAAP and operating efficiency ratios.

(b)

SNL DataSource

We consistently rank among the most efficient bank holding

companies in the nation.

1Q 2006

1H 2006

11

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 expansion has largely stemmed from mergers and acquisitions.

46 of our 166 branches are located in-store.

Products and services are frequently developed by third-party providers and the

sale of these products generates additional revenues.

12

$1,348

$1,946

$3,255

$4,494

$7,368

$9,839

$12,854

$14,524

$1,690

$2,150

$995

$3,131

$3,557

$4,175

$4,924

$263

12/31/99

12/31/00

12/31/01

12/31/02

12/31/03

12/31/04

12/31/05

6/30/06

(in millions)

Multi-family Loans Outstanding

All Other Loans Outstanding

(a)

Amounts exclude net deferred loan origination fees and costs.

$5,405

$5,489

$10,499

Loans Outstanding

(a)

Multi-family loans:  44.2% CAGR

Total loans:  46.7% CAGR

$13,396

$17,029

$3,636

$1,611

$19,448

Acquisitions have contributed to our loan growth over the past

six years…

w/ HAVN

w/ RCBK

w/ RSLN

w/ ABNY

w/ LICB

Total Loans:

13

$658

$1,874

$2,408

$1,949

$4,362

$3,752

$5,247

$6,241

$378

$1,212

$2,588

$2,842

$5,247

$5,911

$6,012

$6,042

$720

$739

$846

$1,331

$40

$171

$455

$465

12/31/99

12/31/00

12/31/01

12/31/02

12/31/03

12/31/04

12/31/05

6/30/06

$3,257

$5,450

$5,256

$1,076

Total Deposits:

$10,329

$10,402

$12,105

$13,614

Total deposits:  47.8% CAGR

Core deposits:  55.5% CAGR

Demand deposits:  71.5% CAGR

CDs

NOW, MMAs, and Savings

Demand deposits

(in millions)

Deposits

…and have significantly bolstered our deposit growth.

w/ HAVN

w/ RCBK

w/ RSLN

w/ ABNY

w/ LICB

14

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 deposits, including $496 million of non-

interest-bearing accounts on 4/28/06

The post-merger repositioning of our liabilities:

-

Used the proceeds from the post-merger sale of securities to prepay $886

million of wholesale borrowings with a weighted average cost of 5.93%

-

Reduced higher-cost brokered deposits

-

Extended

$1.2

billion

of

wholesale

borrowings

to

an

average

call

date

of

2.4 years ($2.5 billion year-to-date to an average call date of 2.6 years)

Our commercial bank acquisitions have contributed to an

improvement in our net interest margin.

In 2Q 2006, our margin expanded 8 basis points to 2.22%, the first linked-quarter

improvement since 1Q 2004.

15

(in millions)

$10,919

$13,396

$17,029

$19,448

$12,119

$7,081

$5,637

$5,307

Loans

Securities

45.7%

41.2%

% of Total Assets:

3/31/04

12/31/04

12/31/05

29.5%

55.7%

21.4%

64.8%

18.5%

67.7%

6/30/06

We have also taken steps to enhance our interest rate risk

profile by deploying the cash flows from securities into loans.

16

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 executive-level position to emphasize our focus on building a sales and

service culture throughout our branch network

-

Retained key personnel to maintain lending / depository relationships with major business

customers

-

Combined our community and commercial bank Premier Banking Groups to enhance

service to existing clients and build new relationships both here and overseas

4Q 2006:

-

New York Commercial Bank’s data processing systems to be upgraded

-

ABNY’s

data processing systems to be integrated with New York Commercial Bank’s

-

Cross-sales training initiative to be launched throughout the branch network

-

Performance-driven incentive program for branch personnel to be rolled out

17

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 assets by adhering to our traditional credit

standards

Utilizing the cash flows from securities to reduce our higher-cost funding sources

Diversifying our deposit mix

Improving our net interest margin by replacing our high-cost wholesale sources

of funds with lower-cost retail deposits

Maintaining the efficiency of our operation

Maintaining the high level of customer service provided by our merger partners

Maintaining the strength of our tangible capital measures

Maintaining the payment of a strong dividend

18

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 demonstrated capacity to execute accretive merger transactions.

We have produced industry-leading performance metrics throughout our public

life.

We are committed to--and personally invested in--the Company’s future, with

nearly 20% of outstanding shares held by directors, executive management,

and our employees.

Since the third quarter of 1994, we have increased our dividend 19 times to its

current level ($1.00 per share, annualized), which is 90 times greater than the

original amount.

We welcome your investment in our business and our future.

19

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

For More Information

20

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:

(dollars in thousands)

Non-interest income:

Loss on other-than-temporary

impairment

Balance sheet repositioning charge

Gain on sale of branches

Loss on mark-to-market of interest

rate swaps

Total non-interest income

Net interest income

Total non-interest income and net

interest income

Operating expenses:

Merger-related charge

Total operating expenses

Efficiency ratio

$121,065

--

--

--

--

121,065

572,003

$693,068

$236,621

--

$236,621

34.14%

$121,065

--

--

--

--

121,065

572,003

$693,068

$236,621

(36,588)

$200,033

28.86%

$ (44,217)

--

--

--

--

(44,217)

781,257

$737,040

$193,632

--

$193,632

26.27%

$ (44,217)

8,209

157,215

--

--

121,207

781,257

$902,464

$193,632

--

$193,632

21.46%

$163,987

--

--

--

--

163,987

504,975

$668,962

$169,373

--

$169,373

25.32%

$163,987

--

--

(37,613)

--

126,374

504,975

$631,349

$169,373

(20,423)

$148,950

23.59%

GAAP

GAAP

GAAP

Operating

Operating

Operating

2005

2004

2003

For the Years Ended December 31,

Reconciliation of GAAP and Non-GAAP Measures

$  55,581

--

--

--

--

55,581

268,168

$323,749

$116,435

--

$116,435

35.96%

GAAP

Operating

$  55,581

--

--

--

6,071

61,652

268,168

$329,820

$116,435

--

$116,435

35.30%

For the Six Months

Ended June 30,

2006