New York munity Bancorp(US:NYCB)2024-07-25 11:02Financial 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].