Core Viewpoint - The article emphasizes a personal investment strategy focused on growth and dividend income, aiming for an easy retirement through a portfolio that prioritizes compounding dividend income and growth [1]. Group 1: Investment Strategy - The strategy involves creating a portfolio that generates monthly dividend income, which is enhanced through dividend reinvestment and annual increases [1]. - The author expresses a beneficial long position in specific stocks, indicating a personal investment in FLG, TFC, and HBAN [1]. Group 2: Personal Opinion and Research - The article is presented as a personal opinion and is not intended as a recommendation for stock purchases or sales [2]. - It highlights the importance of conducting individual research to determine if the discussed companies align with personal investment objectives and financial situations [2].

Financial Performance - The Company reported a net loss of $280 million for Q3 2024, an improvement from a net loss of $323 million in Q2 2024, with a loss per diluted share of $0.79 compared to $1.14 in Q2 2024[20]. - For the first nine months of 2024, the Company experienced a net loss of $930 million, a significant decline from a net income of $2.6 billion in the same period of 2023, resulting in a loss per diluted share of $3.16 compared to earnings of $10.84 per diluted share in 2023[22]. - Included in the Q3 2024 results were $37 million of merger-related expenses, contributing to the overall net loss[20]. - The Company reported a $121 million reduction in the bargain purchase gain from the Signature transaction during the first nine months of 2024[22]. - Total non-interest income for the first nine months of 2024 was $236 million, a significant decrease from $2.6 billion in the same period of 2023, primarily due to the impact of the Signature transaction[47]. - Total non-interest expenses for the first nine months of 2024 were $2.1 billion, up 15% from $1.85 billion in the same period of 2023, largely due to increased FDIC insurance expenses[52]. - The company reported a net unrealized loss on securities available for sale of $468 million, improved from a loss of $581 million[173]. - The company experienced a net increase in cash, cash equivalents, and restricted cash of $11,542 million, compared to an increase of $5,047 million in the previous year[184]. Capital and Liquidity - The Company raised $1.05 billion in equity capital in March 2024 to stabilize its financial position after experiencing significant stock price declines and customer deposit withdrawals[18]. - The sale of the warehouse lending portfolio, valued at approximately $6 billion, was completed in Q3 2024, enhancing liquidity and increasing capital ratios by approximately 70 basis points[19]. - The Company expects the sale of its mortgage servicing activities, completed on October 31, 2024, to further increase its common equity Tier 1 capital ratio by approximately 60 basis points in Q4 2024[19]. - The company’s total liquidity reached $41.4 billion as of September 30, 2024, an increase of $11.6 billion from $27.9 billion at December 31, 2023[127]. - The company has total liquidity of $41.4 billion, exceeding uninsured deposits by $24.8 billion[132]. - The company significantly increased its on-balance sheet liquidity during 2024 to meet Category IV prudential standards, which require maintaining a liquidity buffer equal to the 30-day stress horizon[159]. Loan Portfolio and Credit Losses - The Company faced significant loan portfolio stress due to declines in the office sector and inflation in the multi-family sector, impacting its financial performance[18]. - A $2.3 billion increase in nonaccrual loans led to a reversal of previously accrued interest income[36]. - Provision for credit losses for Q3 2024 totaled $242 million, down from $390 million in Q2 2024, reflecting lower charge-offs due to fewer larger-balance office property downgrades[39]. - For the first nine months of 2024, provision for credit losses increased to $947 million from $281 million in the same period of 2023, driven by risk rating downgrades in commercial real estate and multi-family loans[41]. - Total non-accrual loans reached $2.514 billion at September 30, 2024, an increase of $2.086 billion from December 31, 2023[111]. - The allowance for credit losses on loans and leases increased to $1.3 billion, up $272 million from $1.0 billion at December 31, 2023[118]. - The allowance for credit losses to total loans held for investment ratio rose to 1.78% at September 30, 2024, compared to 1.17% at December 31, 2023[120]. Deposits and Funding - The customer deposit base stabilized and grew substantially in Q2 and Q3 2024 due to returning private banking customers and promotional programs for retail customers[18]. - Total deposits increased by $1.5 billion to $83.0 billion as of September 30, 2024, following a stabilization after a $9.7 billion deposit attrition earlier in the year[59]. - Total brokered deposits increased to $12.771 billion as of September 30, 2024, up from $9.462 billion on December 31, 2023, representing a 35.5% growth[129]. - Uninsured deposits amounted to $16.6 billion as of September 30, 2024, a decrease following credit rating downgrades in early 2024[133]. - Certificates of deposit stood at $29.3 billion and long-term debt at $14.3 billion as of September 30, 2024[136]. Asset Management - Total assets increased by $0.3 billion to $114.4 billion as of September 30, 2024, compared to $114.1 billion at December 31, 2023[56]. - Total loans and leases held for investment decreased by $13.5 billion to $71.1 billion as of September 30, 2024, primarily due to the sale of the warehouse lending portfolio[57]. - The securities portfolio increased by $1.4 billion to $10.5 billion as of September 30, 2024, with over 90% classified as low credit risk U.S. government agency bonds[58]. - The average yield on investment securities increased by 48 basis points due to the replacement of lower rate securities with higher rate securities[37]. - The net unrealized loss on securities available for sale was $468 million as of September 30, 2024, down from $581 million at December 31, 2023[87]. Regulatory and Compliance - The effective tax rate for Q3 2024 was 16.34%, down from 23.69% in Q2 2024, primarily due to a lower book loss related to the provision for credit losses[53]. - The company is subject to a supervisory stress test every other year, with the first test applicable in 2026[159]. - The company has identified material weaknesses in internal control over financial reporting, with remediation progress ongoing as of September 30, 2024[169]. - Proposed amendments to the Basel III Capital Rules may require the company to calculate risk-based capital ratios under both current and expanded approaches, with potential impacts being evaluated[167]. Strategic Initiatives - The company is strategically diversifying its loan portfolio to shift from multi-family loans to other loan sectors[70]. - The company is curtailing future originations of loans secured by rent-regulated properties to mitigate exposure[70]. - The company announced the sale of its residential mortgage servicing business for approximately $1.3 billion, expected to increase common equity tier 1 ratios by about 60 basis points[165]. - The company completed a business acquisition that resulted in the fair value of tangible assets acquired amounting to $37,526 million[186]. - The Company is assessing the impact of new accounting standards, including ASU 2023-07, which improves segment reporting disclosures, effective January 1, 2024[199].

Core Insights - Flagstar Bank has released its 2023 ESG Report, highlighting its commitment to sustainability and social responsibility, and showcasing early achievement of its 2030 carbon emissions targets [1][4] Environmental Initiatives - The bank reduced its Scope 1 and 2 greenhouse gas emissions by 34% in 2023, exceeding its goal of a 30% reduction by 2030 based on a 2019 baseline [3] - The report aligns with key standards such as the Global Reporting Initiative Universal Standards and the Task Force on Climate-related Financial Disclosures framework [4] Social Responsibility - Flagstar has expanded its mentorship program to over 150 mentees and 40 mentors, focusing on guidance and career growth [3] - The bank completed a full rollout of in-language loan documents in Spanish across all retail locations in 2023 [3] - It invested over $93.1 million in CRA low-income housing tax credits and provided $5.6 million in CRA-qualifying grants and sponsorships [3] Governance and Community Impact - Flagstar became a member of six national certifying and advocacy organizations to enhance supplier diversity, including support for women, veterans, individuals with disabilities, and LGBTQ community members [3] - The Community Foundation awarded $3.16 million in grants to organizations focused on workforce readiness, arts and culture, and financial capability [3] Company Overview - New York Community Bancorp, Inc. is the parent company of Flagstar Bank, with assets totaling $119.1 billion and loans amounting to $82.4 billion as of June 30, 2024 [5] - Flagstar operates over 400 branches, with a significant presence in the Northeast and Midwest, and has approximately 90 private banking teams in major cities [6]

Core Viewpoint - New York Community Bancorp, Inc. has approved employment inducement awards for two new executives as part of their hiring process [1][2]. Group 1: Executive Appointments - Richard Raffetto has been appointed as Senior Executive Vice President and President of Commercial and Private Banking [2]. - Kris Gagnon has been appointed as Senior Executive Vice President and Chief Credit Officer [2]. Group 2: Employment Inducement Awards - Both executives received a one-time stock option grant to acquire 1,000,000 shares of the Company's common stock at an exercise price of $10.48, which is equal to the closing price on the grant date [3]. - The stock options will vest in three equal annual installments on the first, second, and third anniversaries of the grant date [3]. - The inducement awards are made outside of the Company's 2020 Omnibus Incentive Plan but will generally follow similar terms and conditions [4]. Group 3: Company Overview - New York Community Bancorp, Inc. is the parent company of Flagstar Bank, N.A., with total assets of $119.1 billion, loans of $82.4 billion, deposits of $79.0 billion, and total stockholders' equity of $8.4 billion as of June 30, 2024 [5]. - Flagstar Bank operates over 400 branches and has a significant presence in the Northeast and Midwest, as well as locations in high-growth markets in the Southeast and West Coast [6].

NYCB reported a second-quarter 2024 loss per share of $1.05, wider than the Zacks Consensus Estimate of a loss of 38 cents. It reported earnings of $1.41 in the year-ago quarter. The results excluded certain non-recurring items. After considering these, the net loss available to common shareholders was $333 million. The net income to common shareholders was $405 million in the prior-year quarter. Quarterly revenues were $671 million, which declined 44.2% from the prior-year quarter. The top line also missed ...

Core Insights - New York Community Bancorp (NYCB) shares declined following disappointing second-quarter earnings results, complicating the bank's path to profitability [1] Financial Performance - NYCB reported a loss of $1.14 per diluted share, significantly worse than the expected loss of 43 cents [6] - Net interest income was $557 million, falling short of the anticipated $587.6 million [6] - The bank has lowered its profit guidance for 2025 to a maximum of 5 cents per share, down from a previous estimate of 35 to 40 cents [8] - For 2024, NYCB expects losses between $2.20 and $2.30 per share, wider than the earlier forecast of 50 to 55 cents [8] Strategic Actions - CEO Joseph Otting emphasized ongoing management actions to reposition the bank for long-term success [2] - NYCB has expanded its review of the loan portfolio, increasing loan loss provisions and charge-off levels [3] - The bank has reduced its multifamily portfolio to $33.9 billion from $35.4 billion as of June 30, 2023 [4] - NYCB's Flagstar Bank unit agreed to sell its residential mortgage servicing business to Mr. Cooper Group for $1.4 billion [5] Market Impact - NYCB shares fell 3% on Thursday, and the stock has lost approximately two-thirds of its value this year [9] - The bank's loans to rent-regulated multifamily buildings in New York City are under pressure due to high interest rates, inflation, and declining property values [11] Business Focus - Otting has committed to reducing NYCB's reliance on commercial real estate loans, which have decreased by 4% year-over-year [10] - The mortgage servicing business, while previously significant, is being divested due to financial and operational risks in a volatile interest rate environment [12]

Financial Data and Key Metrics Changes - The net loss to shareholders for the quarter was $333 million, primarily driven by a provision for loan losses of $390 million, which included $350 million in charge-offs and approximately $40 million in reserve build [32] - The net interest margin ended the quarter at 1.98%, experiencing margin pressure from interest reversals associated with non-accruals, which had a negative impact of about 7 to 8 basis points [32][34] - The allowance for loan loss increased to 1.7% of the total portfolio, with the credit loss reserve rising to 1.78%, up from about 1.5% [31] Business Line Data and Key Metrics Changes - The company has made significant progress in addressing credit risk management, having reviewed approximately 75% of its commercial real estate (CRE) portfolio, which includes 80% of the multi-family portfolio [11][24] - The office portfolio review is at 82%, with only about $500 million remaining under review, resulting in significant charge-offs this quarter [12] - The company reported a $3.2 billion increase in customer deposits in the retail space and a $500 million growth in the private banking sector [13] Market Data and Key Metrics Changes - The company has seen a reduction in its CRE exposure, with a long-term goal to decrease it from roughly $45 billion to between $30 billion and $33 billion [24] - The multi-family loans that have hit their reprice dates have shown strong payoffs, with 69% repricing to an average of 8.19%, up from 3.85% [30] Company Strategy and Development Direction - The company aims to simplify its business model and strengthen its balance sheet through strategic sales, which are expected to add about 130 basis points to its CET ratio [22][23] - There is a focus on expanding the commercial and industrial (C&I) business, with a goal to grow C&I assets from around $20 billion to $30 billion to $35 billion over the next three to five years [25] - The company is actively hiring experienced personnel to enhance its C&I and private banking initiatives, viewing these as key growth engines [7][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that over 70% of the commercial real estate portfolio continues to perform as agreed, despite recognizing future risks associated with interest payments [43] - The company anticipates continued charge-offs but expects them to decrease in the third and fourth quarters as the review of the remaining portfolio progresses [69] - Management highlighted the importance of maintaining strong relationships with borrowers to mitigate risks and enhance future performance [110] Other Important Information - The company has closed on the sale of its mortgage warehouse loans to JPMorgan Chase, receiving $5.9 billion in liquidity, which is seen as a significant milestone [22] - The company is evaluating an additional $2 billion to $5 billion in non-core activities for potential sales by the end of the year [40][87] Q&A Session Summary Question: What is the appetite among GSEs for refinancing? - Management noted that there has been a pickup in refinancing activity with agencies, which could trigger more loans being refinanced out of the bank [18] Question: What is the outlook for the company's earnings forecast? - The reduction in earnings forecast for 2026 is attributed to the sale of the mortgage warehouse and servicing, with expectations of redeploying capital into lending [39][40] Question: How is the company managing its non-accrual loans? - Management indicated that over 60% of non-accrual loans are still performing, and they are focused on reducing these through sales and appraisals [57][106] Question: What is the current cost of deposit growth? - The company is not significantly increasing costs in the private client and commercial space, with most growth coming from typical pricing in the retail space [95] Question: What is the strategy for reducing non-accrual loans? - The company is actively studying pools of loans for potential sales and has added experienced personnel to lead these efforts [106]

Core Insights - New York Community Bancorp reported a revenue of $671 million for the quarter ended June 2024, reflecting a year-over-year decline of 44.2% and an EPS of -$1.05 compared to $1.41 a year ago [5] Financial Performance Metrics - The reported revenue of $671 million was below the Zacks Consensus Estimate of $701.39 million, resulting in a surprise of -4.33% [1] - The company experienced an EPS surprise of -176.32%, with the consensus EPS estimate being -$0.38 [1] - Net Interest Margin was reported at 2%, lower than the average estimate of 2.2% based on seven analysts [3] - Book value per common share (GAAP) was $22.47, significantly higher than the six-analyst average estimate of $8.50 [3] - Average balances of interest-earning assets were $113.21 billion, exceeding the $109.08 billion average estimate based on six analysts [3] - The Efficiency Ratio was reported at 95.1%, worse than the 90.7% estimated by six analysts [3] - Net charge-offs to average loans were 0.4%, slightly better than the 0.5% estimated by four analysts [3] - Total non-interest income was $114 million, below the seven-analyst average estimate of $117.83 million [3] - Net Interest Income was $557 million, lower than the seven-analyst average estimate of $582.80 million [3] - Bank-owned life insurance income was $12 million, above the $10.23 million estimated by six analysts [3] - Fee income was reported at $41 million, exceeding the $31.14 million estimated by six analysts [3] - Net gain on loan sales and securitizations was $18 million, slightly below the $19.44 million average estimate based on five analysts [3] - Net return on mortgage servicing rights was $19 million, lower than the $21.33 million estimated by four analysts [3] - Other non-interest income was $29 million, above the $18.42 million average estimate based on four analysts [3] Stock Performance - Shares of New York Community Bancorp have returned +19.2% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Company Performance - New York Community Bancorp reported a quarterly loss of $1.05 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.38, and compared to earnings of $1.41 per share a year ago [8] - The company posted revenues of $671 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.33%, and down from $1.2 billion in the same quarter last year [2] - The company has surpassed consensus EPS estimates only once over the last four quarters [9] Stock Performance - New York Community Bancorp shares have declined approximately 64.4% since the beginning of the year, while the S&P 500 has gained 13.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.20 on revenues of $703.88 million, and for the current fiscal year, it is -$1.40 on revenues of $2.79 billion [5] Industry Context - The Financial - Savings and Loan industry, to which New York Community Bancorp belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating a challenging environment [13] - The performance of New York Community Bancorp's stock may be influenced by the overall outlook for the industry [13]

Financial Performance - The Company reported a net loss of $323 million for Q2 2024, compared to a net loss of $327 million in Q1 2024 and net income of $413 million in Q2 2023[1]. - Net loss available to common stockholders for Q2 2024 was $333 million, or $1.14 per diluted share, compared to a net loss of $335 million, or $1.36 per diluted share, in the prior quarter[5]. - For the six months ended June 30, 2024, pre-provision net loss was $100 million compared to pre-provision net revenue of $2.7 billion for the same period in 2023[33]. - Total revenues for the six months ended June 30, 2024, were $1.304 billion, a decrease of 66% compared to $3.855 billion for the same period in 2023[62]. - Total revenues for the three months ended June 30, 2024, increased by 6% to $671 million compared to $633 million for the previous quarter[91]. - The company reported a net loss of $(323) million for Q2 2024, a marginal improvement from $(327) million in Q1 2024[82]. - Basic loss earnings per common share for Q2 2024 was $(1.14), compared to $(1.36) in Q1 2024 and $1.66 in Q2 2023[82]. - The loss return on average assets was (1.09)% for the three months ended June 30, 2024, compared to (1.13)% for the previous quarter[119]. - The loss return on average common stockholders' equity was (16.69)% for the quarter, compared to (16.97)% in the previous quarter and 15.58% in the same period last year[138]. Credit Losses and Provisions - The provision for credit losses totaled $390 million in Q2 2024, up from $315 million in Q1 2024 and $49 million in Q2 2023[14]. - Net charge-offs totaled $349 million for Q2 2024, compared to $81 million in Q1 2024 and a net recovery of $1 million in Q2 2023[30]. - Net charge-offs for the six months ended June 30, 2024, were $430 million, compared to a recovery of $(1) million for the same period in 2023[43]. - The total allowance for credit losses was $1.3 billion at June 30, 2024, up from $628 million at June 30, 2023[45]. - The provision for credit losses for the six months ended June 30, 2024, totaled $705 million, compared to $219 million for the same period in 2023[59]. - Total charge-offs for the three months ended June 30, 2024, were $354 million, compared to $91 million for the previous quarter, representing a significant increase[102]. - The ratio of non-accrual loans to total loans held-for-investment was 2.61% at June 30, 2024, compared to 0.97% at March 31, 2024, and 0.28% at June 30, 2023[103]. Income and Expenses - Net interest income for Q2 2024 totaled $557 million, down 11% from Q1 2024 and down 38% from Q2 2023[10]. - Non-interest income for the second quarter 2024 totaled $114 million, down 62% from $302 million in the second quarter 2023[35]. - Total non-interest expense for the six months ended June 30, 2024, was $1.4 billion, a 23% increase from $1.1 billion for the same period in 2023[39]. - Total non-interest expenses for the quarter ended June 30, 2024, were $705 million, up 1% from the previous quarter and up 7% from the year-ago quarter[69]. - Total operating expenses rose to $638 million, reflecting a 3% increase from Q1 2024 and a 24% increase from Q2 2023[82]. - Non-interest income plummeted by 95% to $123 million, down from $2,400 million year-over-year[124]. Capital and Assets - The Company achieved a pro-forma CET1 capital ratio of 11.2% following the sale of two businesses and the conversion of Series B Preferred Stock[3]. - As of June 30, 2024, New York Community Bancorp, Inc. reported total assets of $119.1 billion, an increase of 5% compared to $112.9 billion on March 31, 2024[81]. - The common equity tier 1 ratio improved to 9.54% from 9.45% in the previous quarter, while the total risk-based capital ratio decreased to 12.78% from 13.09%[81]. - Total stockholders' equity remained stable at $8.4 billion, with a slight increase from $8.39 billion in the previous quarter[81]. - Tangible common stockholders' equity was $7,337 million at June 30, 2024, compared to $7,297 million at March 31, 2024[119]. - Book value per common share was $22.47 at June 30, 2024, down from $29.42 at March 31, 2024[119]. Loans and Deposits - Total deposits increased by 5.6% to $79.0 billion, with a growth of $4.2 billion during the quarter[2][18]. - Average loan balances decreased by $0.9 billion, or 1%, to $83.2 billion compared to the previous quarter, primarily due to declines in multi-family and commercial real estate loans[12]. - Total loans and leases held for investment decreased by 9% to $74.6 billion compared to $82.3 billion on March 31, 2024[81]. - Total non-performing loans (NPLs) rose to $1.944 billion, a 144% increase from the previous quarter and a 735% increase year-over-year[72]. - Average interest-bearing liabilities increased by $12.9 billion, or 17%, to $86.7 billion for the six months ended June 30, 2024, driven by growth in average deposits and borrowings[59]. Strategic Initiatives - The Company is simplifying its business model by selling parts of its mortgage business, which is expected to bolster its liquidity profile and capital ratios[16][17]. - The company completed its merger with Flagstar Bancorp, Inc. on December 1, 2022, which is expected to enhance its market position[78]. - The company is focused on executing its strategic plan, including risk management programs for institutions with assets over $100 billion[78]. - The company plans to discuss its second quarter 2024 performance in a conference call scheduled for July 25, 2024[76].