New York munity Bancorp(NYCB) - 2024 Q4 - Annual Results

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] - Total revenues for 2024 were $2,552 million, down 56% from $5,764 million in 2023, driven by a 30% decline in net interest income and an 85% drop in non-interest income[40] - The company reported a net loss of $1.090 billion for the year ended December 31, 2024, compared to a net loss of $79 million in 2023[87] - The efficiency ratio for the year ended December 31, 2024, was 68.99%, an increase from 57.78% in 2023, indicating a decline in operational efficiency[94] Loan and Deposit Trends - Total loans and leases held for investment decreased by $16.3 billion, or 19% year-over-year, to $68.3 billion as of December 31, 2024[13] - Multi-family loans declined by $3.2 billion, or 9%, year-over-year, while commercial real estate (CRE) loans decreased by $1.8 billion, or 17%[8] - Total deposits decreased by $5.7 billion, or 7%, year-over-year, and by $7.1 billion, or 9%, on a linked-quarter basis[15] - Retail deposits increased by $0.9 billion, or 3%, on a linked-quarter basis, and by $7.3 billion, or 17%, year-to-date[17] Interest Income and Expenses - Net interest income for the fourth quarter 2024 totaled $461 million, down $49 million, or 10%, compared to 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] - The average cost of funds rose 115 basis points to 4.40% for the year ended 2024[30] - Total interest income increased by 8% to $5,953 million in 2024 from $5,491 million in 2023, driven by a 61% increase in securities and money market investments[77] Credit Quality and Loss Provisions - Provision for credit losses declined by 55% quarter-over-quarter, reflecting an improving credit quality profile[3] - Provision for credit losses decreased by $134 million or 55% to $108 million in Q4 2024 compared to Q3 2024, and declined by $444 million or 80% compared to Q4 2023[35] - 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 ended December 31, 2024, were $892 million, a significant increase from $208 million in 2023[57] Non-Interest Income and Expenses - Non-interest income for 2024 totaled $400 million, a decrease of $2,287 million or 85% compared to $2,687 million in 2023, primarily due to a partial reversal of a bargain purchase gain[47] - Non-interest expenses for 2024 were $2,838 million, down 43% from $4,981 million in 2023, with notable items including severance costs of $31 million and long-term asset impairment charges of $77 million[48] - Total non-interest expense for Q4 2024 was $718 million, consistent with Q3 2024 and down 77% from Q4 2023[86] Capital and Asset Management - CET1 capital ratio improved to 11.9%, representing an increase of over 280 basis points during the year, placing the company in the top quartile of its peer group[10] - The common equity tier 1 ratio improved to 11.86% as of December 31, 2024, compared to 10.76% in Q3 2024 and 9.05% in Q4 2023[62] - Total assets reached $100.2 billion, with loans amounting to $69.2 billion and deposits of $75.9 billion as of December 31, 2024[63] - Tangible common stockholders' equity was $7,204 million as of December 31, 2024, down from $7,239 million at the end of 2023[82] Asset Quality and Non-Performing Loans - Total non-accrual loans held for investment increased to $2,615 million, up 4% from $2,514 million in Q3 2024 and significantly up from $428 million in Q4 2023[56] - Non-performing loans (NPLs) to total loans held for investment rose to 3.83% compared to 3.54% in Q3 2024 and 0.51% in Q4 2023[57] - The total allowance for credit losses to total loans was 1.78% as of December 31, 2024, down from 1.87% in Q3 2024 and up from 1.23% in Q4 2023[60] Future Outlook and Strategy - The company plans to focus on organic growth and potential business combinations to enhance its capital management strategies[78]