For the quarter ended December 2024, Flagstar Financial (FLG) reported revenue of $625 million, down 29.5% over the same period last year. EPS came in at -$0.34, compared to -$0.81 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $590.72 million, representing a surprise of +5.80%. The company delivered an EPS surprise of +32.00%, with the consensus EPS estimate being -$0.50.While investors scrutinize revenue and earnings changes year-over-year and how they compare wit ...

Flagstar Financial (FLG) came out with a quarterly loss of $0.34 per share versus the Zacks Consensus Estimate of a loss of $0.50. This compares to loss of $0.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 32%. A quarter ago, it was expected that this bank holding company would post a loss of $0.40 per share when it actually produced a loss of $0.69, delivering a surprise of -72.50%.Over the last four quarters, the company ...

Fourth Quarter 2024 Results January 30, 2025 Cautionary Statement Forward-Looking Information This earnings presentation and the associated conference call may include forward‐looking statements by the Company and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding (a) revenues, earnings, loan production, asset quality, liquidity position, capital levels, risk analysis, divestitures, acquisitions, and other material transactions, among other matte ...

• CAPITAL POSITION CONTINUES TO STRENGTHEN AS CET1 RATIO INCREASES TO 11.9%, TOP QUARTILE OF PEER GROUP • ONGOING IMPROVEMENT IN FUNDING MIX AS WHOLESALE BORROWINGS AND HIGH-COST DEPOSITS DECLINE • CONTINUED DEPOSIT GROWTH IN RETAIL CHANNEL AND IN THE PRIVATE BANK, BOTH UP 3% SEQUENTIALLY • PROVISION FOR CREDIT LOSSES DECLINED 55% • COMMERCIAL REAL ESTATE EXPOSURE CONTINUES TO DECLINE DUE TO STRONG PAYOFF ACTIVITY AND LOAN SALES Flagstar Financial, Inc. Reports Fourth Quarter and Full-Year 2024 Results Hick ...

CAPITAL POSITION CONTINUES TO STRENGTHEN AS CET1 RATIO INCREASES TO 11.9%, TOP QUARTILE OF PEER GROUP ONGOING IMPROVEMENT IN FUNDING MIX AS WHOLESALE BORROWINGS AND HIGH-COST DEPOSITS DECLINE CONTINUED DEPOSIT GROWTH IN RETAIL CHANNEL AND IN THE PRIVATE BANK, BOTH UP 3% SEQUENTIALLY PROVISION FOR CREDIT LOSSES DECLINED 55% COMMERCIAL REAL ESTATE EXPOSURE CONTINUES TO DECLINE DUE TO STRONG PAYOFF ACTIVITY AND LOAN SALES Fourth Quarter 2024 Summary Asset Quality Loans, Deposits, and Funding ...

Company Overview - Flagstar Financial Inc (FLG) is a small-cap bank with a market capitalization of approximately $4 billion [2] - The company's share price has declined in line with broader market trends over the past period [2] Investment Research Approach - The Value Portfolio employs a fact-based research strategy for building retirement portfolios [4] - Research methodology includes analysis of 10Ks, analyst commentary, market reports, and investor presentations [4] - The portfolio manager invests real capital in recommended stocks [4] Retirement Investment Services - The Retirement Forum offers actionable investment ideas and macroeconomic outlooks [3] - Services include a high-yield safe retirement portfolio designed to maximize capital and income [3] - The platform conducts comprehensive market searches to identify return-maximizing opportunities [3]

HICKSVILLE, N.Y., Dec. 13, 2024 /PRNewswire/ -- Flagstar Financial, Inc. (NYSE: FLG) (the "Company"), today announced the appointment of Lee Smith as Senior Executive Vice President and Chief Financial Officer (CFO), effective December 27, 2024. The appointment follows the decision of current CFO Craig Gifford to step down to reengage in personal endeavors outside of the banking industry. Gifford will remain with the Bank through March 31, 2025, and work closely with Smith during the transition period, ensu ...

Financial Performance and Net Loss - The company reported a net loss of $280 million for Q3 2024, compared to a net loss of $323 million in Q2 2024[20] - Net loss attributable to common stockholders for Q3 2024 was $289 million, or $0.79 per diluted share[20] - The company reported a net loss of $930 million for the first nine months of 2024, compared to net income of $2.6 billion for the same period in 2023[22] - Net loss for the three months ended September 30, 2024, was $280 million, compared to a net income of $207 million in the same period in 2023[174] - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $289 million, compared to a net income of $199 million in the same period in 2023[174] - Basic loss per common share for the three months ended September 30, 2024, was $(0.79), compared to earnings of $0.82 per share in the same period in 2023[174] - Total comprehensive loss for the nine months ended September 30, 2024, was $752 million, compared to a comprehensive income of $2,451 million in the same period in 2023[174] - Net loss for the nine months ended September 30, 2024 was $930 million, compared to a net income of $2.626 billion for the same period in 2023[184] - The company's net loss attributable to common stockholders for the nine months ended September 30, 2024, was $957 million[200] - The company's basic loss per common share for the nine months ended September 30, 2024, was $3.16[200] - The company's diluted loss per common share for the nine months ended September 30, 2024, was $3.16[200] - The company's net income attributable to common stockholders for the nine months ended September 30, 2023, was $2.6 billion[200] Capital and Liquidity Management - The company raised $1.05 billion in equity capital in March 2024 to address customer deposit withdrawals and stock price declines[18] - The company completed the sale of its warehouse lending portfolio (approximately $6 billion in assets) in Q3 2024, increasing capital ratios by approximately 70 basis points[19] - The company expects the mortgage sale transaction to increase the common equity Tier 1 capital ratio by approximately 60 basis points in Q4 2024[19] - The company's customer deposit base stabilized and grew substantially in Q2 and Q3 2024 after the March 2024 capital raise[18] - Cash and investment securities increased by $9.4 billion due to increased on-balance sheet liquidity and the sale of the warehouse portfolio in July 2024[37] - Total liquidity increased to $41.4 billion at September 30, 2024, up from $27.9 billion at December 31, 2023, driven by a $11.6 billion increase in cash and cash equivalents[127] - Core deposits declined by $9.7 billion from December 31, 2023, to March 7, 2024, following credit rating downgrades, but stabilized after a $1.05 billion capital raise in March 2024[128] - Customer deposits increased by over $7 billion in the second and third quarters of 2024 due to targeted deposit gathering programs and customer engagement[128] - The company's total liquidity stands at $41.4 billion, exceeding uninsured deposits by $24.8 billion[132] - The company's cash and cash equivalents balance is $23.1 billion, with total liquidity of $41.4 billion, sufficient to meet obligations through 2028[139][143] - The Parent Company holds $613 million in cash and cash equivalents as of September 30, 2024[141] - The company's capital ratios increased from December 31, 2023, driven by a $1.05 billion capital investment in Q1 2024 and a $12.5 billion reduction in risk-weighted assets due to strategic exits from non-relationship-based businesses[163] - The company's common equity tier 1 ratio as of September 30, 2024, was 10.76%, exceeding the minimum requirement of 4.50%[162] - The company's total risk-based capital ratio as of September 30, 2024, was 13.92%, exceeding the minimum requirement of 8.00%[162] - The company's leverage capital ratio as of September 30, 2024, was 7.32%, exceeding the minimum requirement of 4.00%[162] - The company maintains a liquidity buffer at least equal to the 30-day stress horizon, significantly increasing its on-balance sheet liquidity during 2024[159] - Cash and cash equivalents increased significantly from $11.475 billion in December 2023 to $23.080 billion in September 2024[173] - Total securities net of allowance for credit losses rose from $9.159 billion in December 2023 to $10.525 billion in September 2024[173] - Total deposits increased slightly from $81.526 billion in December 2023 to $83.013 billion in September 2024[173] - Borrowed funds decreased from $21.267 billion in December 2023 to $20.333 billion in September 2024[173] - Total liabilities remained relatively stable at $105.690 billion in December 2023 and $105.795 billion in September 2024[173] - Total stockholders' equity increased from $8.367 billion in December 2023 to $8.571 billion in September 2024[173] - Assets held for sale were reported at $1.631 billion in September 2024, compared to none in December 2023[173] - Certificates of deposit increased from $21.554 billion in December 2023 to $29.251 billion in September 2024[173] - Savings accounts grew from $8.773 billion in December 2023 to $13.510 billion in September 2024[173] - Net cash used in operating activities was $537 million in 2024, compared to $516 million in 2023[184] - Net cash provided by investing activities was $10.999 billion in 2024, down from $22.407 billion in 2023[184] - Net cash provided by financing activities was $1.080 billion in 2024, compared to a net cash used of $16.844 billion in 2023[184] - Cash, cash equivalents, and restricted cash increased to $23.151 billion at the end of September 2024 from $7.129 billion at the end of September 2023[184] Loan Portfolio and Credit Quality - The company's loan portfolio experienced stress in late 2023 due to vacancy-driven declines in the office sector and inflation in the multi-family sector[18] - Nonaccrual loans increased by $2.3 billion in the first nine months of 2024, reversing previously accrued interest income[36] - Provision for credit losses in Q3 2024 totaled $242 million, down from $390 million in Q2 2024, reflecting lower charge-offs due to fewer large-balance office property downgrades[39] - Net charge-offs in Q3 2024 were $240 million, or 0.31% of average loans outstanding, compared to $349 million (0.42%) in Q2 2024[40] - For the first nine months of 2024, provision for credit losses totaled $947 million, up from $281 million in the same period of 2023, driven by risk rating downgrades on commercial real estate and multi-family loans[41] - Classified loans increased by $1.2 billion to $11.4 billion in Q3 2024[102] - Non-accrual loans increased by $2.086 billion to $2.514 billion at September 30, 2024, compared to December 31, 2023[111] - Charge-offs of $599 million were recorded on commercial real estate and multi-family loans during the nine months ended September 30, 2024[106] - Non-accrual loans to total loans held for investment increased to 3.54% at September 30, 2024, from 0.51% at December 31, 2023[109] - The allowance for credit losses on loans and leases to non-accrual loans decreased to 50.28% at September 30, 2024, from 231.51% at December 31, 2023[109] - Total loans 30-89 days past due increased to $261 million at September 30, 2024, up $11 million from $250 million at December 31, 2023[115] - The allowance for credit losses on loans and leases increased to $1.3 billion at September 30, 2024, up $272 million from $1.0 billion at December 31, 2023[118] - The allowance for credit losses to total loans ratio increased to 1.78% at September 30, 2024, compared to 1.17% at December 31, 2023[120] - Net charge-offs for the nine months ended September 30, 2024, were $670 million, compared to $23 million for the same period in 2023[122] - Multi-family loans accounted for 49.4% of total loans at September 30, 2024, with an allowance for credit losses of $624 million, representing 1.78% of the portfolio[116] - Commercial real estate loans had a net charge-off rate of 4.13% for the nine months ended September 30, 2024, compared to 0.14% for the same period in 2023[122] - Provision for credit losses for the nine months ended September 30, 2024, was $947 million, significantly higher than $281 million in the same period in 2023[174] - Transfers of loans from held for investment to held for sale amounted to $7.486 billion in 2024[186] Interest Income and Expenses - Net interest income is the primary source of income, influenced by interest-earning assets, funding costs, and external factors such as market interest rates[23] - Net interest margin for Q3 2024 was 1.79%, down 19 basis points from Q2 2024 and 148 basis points from Q3 2023[33] - Average cost of interest-bearing deposits increased by 22 basis points to 4.37% in Q3 2024[33] - Average interest-bearing deposits grew by $4.0 billion (7%) to $63.6 billion in Q3 2024[33] - Net interest margin for the first nine months of 2024 was 2.01%, down 104 basis points from the same period in 2023[35] - Average loan yield increased due to multi-family loans repricing to higher rates at the end of their initial fixed rate periods[37] - Average yield on investment securities increased by 48 basis points due to lower rate securities maturing and being replaced with higher rate securities[38] - Net interest income for the three months ended September 30, 2024, was $510 million, a decrease from $882 million in the same period in 2023[174] - Total interest income for the nine months ended September 30, 2024, was $4,595 million, compared to $4,044 million in the same period in 2023[174] - Total interest expense for the nine months ended September 30, 2024, increased to $2,904 million from $1,707 million in the same period in 2023[174] - Interest rate sensitivity analysis shows a 3.1% increase in Economic Value of Equity (EVE) under a -200 basis points shock scenario[152] - The estimated change in net interest income over the next twelve months for a 100 basis point reduction in short-term interest rates is -0.20%, and for a 100 basis point increase, it is -0.6%[156] Non-Interest Income and Expenses - Non-interest income in Q3 2024 was $113 million, slightly down from $114 million in Q2 2024, with a $13 million decline in net gain on loan sales offset by a $15 million increase in mortgage servicing rights[45] - Total non-interest expenses in Q3 2024 were $716 million, up $11 million (2%) from Q2 2024, primarily due to an $7 million (8%) increase in FDIC insurance expense[50] - Total non-interest income for the nine months ended September 30, 2024, was $236 million, a sharp decline from $2,560 million in the same period in 2023[174] - Total non-interest expense for the nine months ended September 30, 2024, increased to $2,120 million from $1,849 million in the same period in 2023[174] - The company incurred $37 million in merger-related expenses and items related to the sale of the mortgage warehouse business in Q3 2024[20] Loan and Deposit Portfolio Changes - Total assets increased $0.3 billion to $114.4 billion as of September 30, 2024, with a $11.6 billion increase in cash and cash equivalents offset by a $13.5 billion decrease in loans held for investment[56] - Total deposits increased $1.5 billion to $83.0 billion at September 30, 2024, recovering from $9.7 billion in deposit attrition in February and March 2024[59] - Loans held for investment decreased to $71.1 billion at September 30, 2024, from $84.6 billion at December 31, 2023, driven by the sale of the warehouse lending portfolio and strategic reductions in commercial and industrial loans[57] - The securities portfolio increased $1.4 billion to $10.5 billion at September 30, 2024, with over 90% in low credit risk U.S. government agency bonds[58] - Loan production for investment in Q3 2024 totaled $1.9 billion, down from $2.2 billion in Q2 2024, with specialty finance and commercial & industrial loans being the largest contributors[63] - Multi-family loan portfolio decreased to $35.1 billion at September 30, 2024, down $2.1 billion from $37.3 billion at December 31, 2023[66] - $14.0 billion of multi-family loans were in their interest-only period as of September 30, 2024, with a weighted average interest-only period of approximately 20 months remaining[67] - 56% of the company's total multi-family loan portfolio ($19.8 billion) was secured by properties in New York State as of September 30, 2024[68] - Commercial real estate loans decreased to $9.2 billion at September 30, 2024, down $1.3 billion from $10.5 billion at December 31, 2023[73] - One-to-four family loans decreased to $5.2 billion at September 30, 2024, down $0.9 billion from $6.1 billion at December 31, 2023[80] - Loans held for sale increased to $1.9 billion at September 30, 2024, up $0.7 billion from $1.2 billion at December 31, 2023[83] - The company completed the sale of its warehouse lending portfolio for approximately $6 billion in Q3 2024, incurring transaction costs of $23 million[84] - Total securities increased to $10.5 billion at September 30, 2024, up $1.3 billion from $9.2 billion at December 31, 2023[86] - Net unrealized loss on securities available for sale decreased to $468 million at September 30, 2024, down from $581 million at December 31, 2023[87] - Weighted average yield of available-for-sale debt securities due after ten years is 4.55% for mortgage-related securities and 6.11% for other debt securities[90] - Total borrowed funds decreased by $8.6 billion to $20.3 billion at September 30, 2024, from $28.9 billion at June 30, 2024[91] - FHLB advances decreased to $18.3 billion at September 30, 2024, from $19.3 billion at December 31, 2023[93] - The company repaid $4 billion drawn from the FRB discount window in Q3 2024[94] - Repurchase agreements outstanding at September 30, 2024, were $60 million[95] - Total brokered deposits increased to $12.771 billion as of September 30, 2024, compared to $9.462 billion as of December 31, 2023[129] - Uninsured deposits decreased to $16.6 billion as of September 30, 2024, following credit rating downgrades in early 2024[133] - Custodial deposits increased to $9.2 billion as of September 30, 2024, up from $6.6 billion as of December 31, 2023[131] - Certificates of deposit totaled $29.3 billion, and long-term debt stood at $14.3 billion as of September 30, 2024[136] - Operating lease obligations increased to $484 million as of September 30, 2024, up from $446 million as of December 31, 2023[137] - Loans and leases held for investment, net decreased from $83.627 billion in December 2023 to $69.852 billion in September 2024[173] Regulatory and Compliance - The company is subject to Category IV prudential standards, including heightened requirements for capital, liquidity, and risk management, with a supervisory stress test first applicable in 2026[159] - The company is required to prepare and maintain formal resolution plans for firm failure, with the first plan under the final rule to be submitted in mid-2025[159] - The company is evaluating the potential impact of proposed Basel III Capital Rules amendments, which could affect regulatory capital calculations and AOCI recognition[167] - The company's credit ratings were downgraded, with Moody's rating at B2 and Fitch at BB as of September 30, 2024[134] Mergers and Acquisitions - The company recorded a bargain purchase gain of approximately $2.0 billion from the Signature Transaction, adjusted for final fair value adjustments[205] - The company issued 13,010,668 shares of common stock to the FDIC as part of the Signature Transaction consideration[202] - The company acquired