New York munity Bancorp(US:NYCB)2025-05-09 20:05Financial Performance - For the three months ended March 31, 2025, the net loss was $100 million, a decrease from a net loss of $188 million for the previous quarter, and a significant reduction from a net loss of $335 million for the same period in 2024[23]. - Net interest income for the three months ended March 31, 2025, was $410 million, down $51 million from the previous quarter and down $214 million compared to the same period last year[30][31]. - Non-interest income for the three months ended March 31, 2025, totaled $80 million, a decrease of 51% from $164 million in the previous quarter[35]. - Total non-interest expenses decreased by $186 million to $532 million compared to the prior quarter, mainly due to a reduction in general and administrative expenses and lower compensation and benefits costs[39]. - The income tax benefit for the three months ended March 31, 2025, was $(21) million, a decrease of $29 million compared to the prior quarter[43]. - The effective tax rate for the three months ended March 31, 2025, was 17.8%, compared to 21.3% in the prior quarter[42]. Asset and Liability Management - As of March 31, 2025, Flagstar Financial, Inc. reported total assets of $97.6 billion, loans of $67.1 billion, deposits of $73.9 billion, and stockholders' equity of $8.2 billion[19]. - Total interest-bearing liabilities amounted to $76.1 billion, with an average cost of 4.02% for the three months ended March 31, 2025[27]. - Total borrowed funds decreased by $248 million to $14.178 billion as of March 31, 2025, primarily due to the repayment of $250 million of FHLB advances[92]. - The company maintained cash at the Federal Reserve of $12.0 billion and high-quality liquid assets (HQLA) of $10.6 billion as of March 31, 2025, compared to $15.0 billion and $7.9 billion respectively on December 31, 2024[111]. - The company’s total on-balance sheet liquidity was $22.6 billion as of March 31, 2025, down from $22.9 billion at the end of 2024[111]. Loan Portfolio and Credit Quality - Total loans and leases held for investment decreased by $1.7 billion to $66.592 billion as of March 31, 2025, reflecting a strategy to diversify the loan portfolio[46]. - The multi-family loan portfolio decreased by $656 million to $33.437 billion, driven by a strategic decision to reduce exposure to multi-family loans[49]. - Commercial real estate loans decreased by $326 million to $11.510 billion, continuing the strategy to diversify the loan portfolio[55]. - Non-accrual loans increased by $665 million to $3,280 million as of March 31, 2025, primarily due to higher non-accrual multi-family loans[72]. - The allowance for credit losses on loans and leases was $1.168 billion as of March 31, 2025, down from $1.201 billion at the end of the previous quarter[45]. Capital Adequacy and Regulatory Compliance - The common equity tier 1 capital ratio was 11.90% as of March 31, 2025, exceeding the minimum requirement of 4.50%[135]. - The total risk-based capital ratio is 13.36%, exceeding the minimum requirement for capital adequacy purposes by 725 basis points[138]. - The Bank's common equity tier 1 ratio is 13.36%, well above the minimum requirement of 6.50% to be categorized as "Well Capitalized"[139]. - The Company submitted its 2024 capital plan to the Federal Reserve and is addressing feedback as part of the capital planning activities for 2025[136]. - The Company maintains a liquidity buffer that meets the regulatory requirement for a 30-day stress horizon[136]. Market and Interest Rate Risk - The estimated percentage change in future net interest income for a 100 basis point increase in short-term interest rates is a decrease of 2.4%[132]. - Interest rate risk and market risk remain the most significant risks for the Company, with no changes reported since the last disclosure[339]. Operational Highlights - The company operates approximately 400 locations across nine states, with significant presence in New York/New Jersey and growing markets in Florida and the West Coast[20]. - A reverse stock split of 1 for 3 was announced, effective July 11, 2024, which is reflected retroactively in all periods presented[22]. - The company is focusing on diversifying its loan portfolio by shifting from multi-family loans to other loan sectors[51]. - The company is currently not in compliance with certain custodial depository criteria but has received a waiver for its custodial deposits[113]. - Material weaknesses in internal control over financial reporting were identified, but remediation costs are not expected to materially impact financial statements[140].