Company Overview - Flagstar Financial, Inc. is the parent company of Flagstar Bank, N.A., one of the largest regional banks in the United States, headquartered in Hicksville, New York [4] - As of December 31, 2024, the company reported total assets of $100.2 billion, loans amounting to $69.2 billion, deposits of $75.9 billion, and total stockholders' equity of $8.2 billion [4] Annual Meeting Details - The 2025 Annual Meeting of Shareholders is scheduled for June 4, 2025, to be held virtually starting at 10:00 a.m. Eastern Time [1] - The record date for voting at the Annual Meeting is set for April 7, 2025, allowing shareholders on this date to receive notice and vote [2] - Additional details regarding participation in the Annual Meeting will be provided in the Company's Proxy Statement and Notice of Annual Meeting, which will be filed with the Securities and Exchange Commission [3] Bank Operations - Flagstar Bank operates 418 branches, with a strong presence in the Northeast and Midwest, and locations in high-growth markets in the Southeast and West Coast [5] - The bank has approximately 80 private banking teams across over 10 cities in the metropolitan New York City region and on the West Coast, catering to high-net-worth individuals and their businesses [5]

A group of leading and influential nonprofit and community leaders attended Dialogue centered on reimagining future of community reinvestment strategies Intent to formalize goals and objectives for sustained meaningful impact HICKSVILLE, N.Y., Jan. 31, 2025 /PRNewswire/ -- Flagstar Bank, N.A., (the "Bank") a subsidiary of Flagstar Financial, Inc. (NYSE: FLG) (the "Company") convened a group of influential nonprofit and community group leaders from key sectors—such as affordable housing, small business, ec ...

Core Viewpoint - Flagstar Financial, Inc. has declared a quarterly cash dividend of $0.01 per share on its common stock, payable on March 17, 2025, to stockholders of record as of March 7, 2025 [1] Group 1: Company Overview - Flagstar Financial, Inc. is the parent company of Flagstar Bank, N.A., one of the largest regional banks in the United States, headquartered in Hicksville, New York [2] - As of December 31, 2024, the company reported total assets of $100.2 billion, loans amounting to $69.2 billion, deposits of $75.9 billion, and total stockholders' equity of $8.2 billion [2] Group 2: Operations and Market Presence - Flagstar Bank operates 418 branches, with a strong presence in the Northeast and Midwest, and locations in high-growth markets in the Southeast and West Coast [3] - The bank has approximately 80 private banking teams across over 10 cities in the metropolitan New York City region and on the West Coast, catering to high-net-worth individuals and their businesses [3] Group 3: Dividend Information - The company declared a quarterly cash dividend on its Fixed-to-Floating Rate Noncumulative Perpetual Preferred Stock, Series A, at a rate of $15.94 per preferred share, equating to $0.3984 for each depositary share [6] - A quarterly cash dividend of $3.3333 per share was declared for its Series B Noncumulative Convertible Preferred Stock, and for its Series D Non-Voting Common Equivalent Stock, payable on March 17, 2025, to holders of record as of March 7, 2025 [6]

Core Viewpoint - Flagstar Financial, Inc. reported a narrower loss per share in Q4 2024 compared to the previous year, but overall financial performance showed significant challenges, particularly in net interest income and loan balances [1][2][3]. Financial Performance - Q4 2024 loss per share was 34 cents, better than the Zacks Consensus Estimate of a loss of 50 cents, and improved from a loss of 80 cents in the same quarter last year [1] - For the full year 2024, loss per share was $2.66, also better than the Zacks Consensus Estimate of a loss of $3.02, but a decline from earnings per share of $1.92 in the prior year [2] - Quarterly revenues were $625 million, down 28% year-over-year, but exceeded the Zacks Consensus Estimate of $590.5 million [4] - Full-year revenues reached $2.55 billion, a 56% increase year-over-year, but fell short of the Zacks Consensus Estimate of $2.58 billion [4] Income and Expenses - Net interest income (NII) for Q4 was $461 million, a decrease of 37.7% from the prior-year quarter, with a net interest margin of 1.73%, down from 2.82% in the previous quarter [4] - Non-interest income was $164 million, up 29.1% year-over-year, driven by a net gain of $89 million from the sale of mortgage servicing and third-party origination business [5] - Non-interest expenses were $718 million, a significant decrease of 77% year-over-year [5] - Adjusted non-interest expenses were $556 million, down 8% from Q4 2023 [6] Asset Quality and Credit Metrics - Total loans and leases held for investment declined 4% sequentially to $68.3 billion, while total deposits fell 8.6% to $745.9 billion [7] - Non-performing assets increased to $2.6 billion from $442 million year-over-year, with net charge-offs rising 20% to $222 million [8] - The provision for credit losses was $108 million, down 80.4% from the prior-year quarter [8] Capital Ratios - As of Dec. 31, 2024, the common equity tier 1 ratio improved to 11.86% from 9.05% year-over-year, while the total risk-based capital ratio increased to 15.17% from 11.77% [9] - The leverage capital ratio declined to 8.08% from 8.48% year-over-year [9] Overall Assessment - The company faces challenges with deteriorating asset quality and declining loan and deposit balances, although an increase in fee income provided some positive support [10]

Group 1 - Flagstar Financial had a significant positive day for its shareholders on January 30th, indicating strong market performance [1] - The company was previously known by a different name, suggesting a potential rebranding or strategic shift [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers have access to a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live sector discussions [2] - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas sector [3]

Core Insights - Flagstar Financial reported a revenue of $625 million for the quarter ended December 2024, reflecting a decline of 29.5% year-over-year, but exceeded the Zacks Consensus Estimate of $590.72 million by 5.80% [1] - The company posted an EPS of -$0.34, an improvement from -$0.81 in the same quarter last year, and surpassed the consensus EPS estimate of -$0.50 by 32.00% [1] Financial Performance Metrics - Net Interest Margin was reported at 1.7%, slightly below the estimated 1.8% [4] - Average Balances of Interest Earning Assets were $106.12 billion, exceeding the estimate of $105.85 billion [4] - Efficiency Ratio stood at 108.2%, significantly higher than the estimated 93.8% [4] - Book Value per Common Share (GAAP) was $18.54, lower than the estimated $19.17 [4] - Net Charge-offs to Average Loans were 0.3%, compared to the average estimate of 1.1% [4] - Total Non-Interest Income was $164 million, well above the average estimate of $68.29 million [4] - Net Interest Income was reported at $461 million, below the average estimate of $486.02 million [4] - Bank-Owned Life Insurance was $10 million, slightly below the estimate of $10.39 million [4] - Fee Income was $33 million, in line with the average estimate of $33.72 million [4] - Other Non-Interest Income was $29 million, exceeding the average estimate of $23.92 million [4] Stock Performance - Flagstar Financial's shares returned +2.9% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Flagstar Financial reported a quarterly loss of $0.34 per share, better than the Zacks Consensus Estimate of a loss of $0.50, and improved from a loss of $0.81 per share a year ago, representing an earnings surprise of 32% [1] - The company posted revenues of $625 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.80%, but down from $886 million in the same quarter last year [2] - Over the last four quarters, Flagstar Financial has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Group 2 - The stock has gained about 2.9% since the beginning of the year, compared to the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Flagstar Financial is mixed, currently translating into a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3 - The current consensus EPS estimate for the coming quarter is -$0.17 on revenues of $555.85 million, and -$0.33 on revenues of $2.34 billion for the current fiscal year [7] - The Zacks Industry Rank for Banks - Northeast is in the top 6% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

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 ...

Financial Performance - Fourth quarter 2024 net loss attributable to common stockholders was $168 million, or $0.41 per diluted share, an improvement from a net loss of $289 million, or $0.79 per diluted share in the previous quarter[4] - For the full year 2024, the net loss attributable to common stockholders was $1,125 million, or $3.40 per diluted share, compared to a net loss of $112 million, or $0.49 per diluted share for 2023[5] - The company reported a net loss of $160 million for Q4 2024, compared to a net loss of $280 million in Q3 2024 and a net loss of $2.705 billion in Q4 2023[86] - For the year ended December 31, 2024, net loss attributable to common stockholders was $2,713 million, compared to a net loss of $1,125 million for the year ended December 31, 2023[94] - Basic loss per common share was $(3.40) in 2024, compared to $(0.49) in 2023, indicating a substantial increase in losses per share[77] Asset and Loan Performance - Total assets decreased by $13.9 billion, or 12%, year-over-year to $100.2 billion as of December 31, 2024, driven by a reduction in total loans and leases held for investment[12] - Total loans and leases held for investment were $68.3 billion, down $16.3 billion, or 19%, year-over-year, with multi-family loans declining $3.2 billion, or 9%[13] - Total assets as of December 31, 2024, were $100.2 billion, with total loans at $69.2 billion and deposits at $75.9 billion[63] - Non-accrual loans held for investment increased to $2,615 million as of December 31, 2024, compared to $428 million in the same period last year, representing a significant increase[99] - Total non-performing assets reached $2,629 million, representing 2.62% of total assets, compared to 2.21% in Q3 2024 and 0.39% in Q4 2023[57] Income and Revenue - Net interest income for the fourth quarter 2024 totaled $461 million, down $49 million, or 10%, from the previous quarter, and down $279 million, or 38%, year-over-year[22] - For the year ended 2024, net interest income was $2,152 million, a decrease of 30% compared to 2023[33] - Total revenues for the year ended 2024 were $2,552 million, down 56% from $5,764 million in 2023[40] - Non-interest income for the year ended 2024 totaled $400 million, a decline of 85% compared to $2,687 million in 2023[40] - Total non-interest income fell by 85% to $400 million in 2024 from $2,687 million in 2023, with significant declines in net gain on loan sales and securitizations, down 46%[77] Credit Quality and Losses - Provision for credit losses declined by 55% quarter-over-quarter, indicating an improvement in credit quality[3] - Net charge-offs for Q4 2024 totaled $222 million, down 8% from Q3 2024 but up 20% from Q4 2023[36] - Net charge-offs for the year reached $892 million, a significant increase from $208 million in the previous year[56] - The provision for credit losses for the year ended December 31, 2024, was $(1.055) billion, an increase of 27% compared to $(833) million in 2023[87] - Total charge-offs for the year ended December 31, 2024, reached $938 million, up from $223 million in the previous year[102] Capital and Ratios - CET1 capital ratio improved to 11.9%, reflecting a 280 basis point increase during the year, positioning the company in the top quartile of its peer group[10] - The common equity tier 1 ratio improved to 11.86% from 10.76% in Q3 2024 and 9.05% in Q4 2023, indicating a strong capital position[62] - The leverage capital ratio for Flagstar Bank, N.A. was 8.08%, up from 7.64% in Q3 2024 and down from 8.48% in Q4 2023[62] - The allowance for credit losses on loans to total loans held for investment was 1.72% as of December 31, 2024, compared to 1.17% in 2023[99] Operational Efficiency - The efficiency ratio for the year ended December 31, 2024, was 68.99%, compared to 57.78% in 2023, indicating a decline in operational efficiency[94] - The company experienced a 43% reduction in total non-interest expenses, which amounted to $2,838 million for 2024, down from $4,981 million in 2023[40] - Operating expenses for the year ended 2024 increased by 24% to $2,596 million, compared to $2,099 million in 2023[52] Tax and Other Charges - The effective tax rate for the year ended 2024 was 18.70%, a significant decrease from 59.59% in 2023[55] - The effective tax rate for the year ended December 31, 2024, was 3.96%, compared to -59.59% in 2023, indicating a significant change in tax circumstances[94] - The company reported severance costs of $31 million and long-term asset impairment charges of $77 million in the fourth quarter of 2024[48]

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 ...