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]
Flagstar Financial, lnc.(FLG) - 2024 Q4 - Annual Results