New York munity Bancorp(US:NYCB)2025-07-25 10:02Financial Performance - Second quarter 2025 net loss attributable to common stockholders was $78 million, or $0.19 per diluted share, representing a 28% improvement from the first quarter 2025 [4]. - Adjusted net loss for the second quarter 2025 was $60 million or $0.14 per diluted share, compared to an adjusted net loss of $86 million in the first quarter 2025 [19]. - For the first six months of 2025, net interest income decreased by $352 million or 30% to $829 million compared to $1.2 billion for the same period in 2024 [25]. - Total revenues for the first six months of 2025 were $986 million, down 24% from $1,304 million in the first six months of 2024 [41]. - Net loss attributable to common stockholders improved by 72% to $(186) million for the six months ended June 30, 2025, compared to $(668) million for the same period in 2024 [74]. - Basic loss per common share improved by 82% to $(0.45) for the six months ended June 30, 2025, compared to $(2.48) for the same period in 2024 [74]. Loan and Asset Management - New loan originations in the C&I segment increased by 57% to $1.2 billion compared to the first quarter 2025, with new commitments rising 80% to $1.9 billion [3]. - Total non-accrual loans declined by 4% compared to the first quarter 2025, while criticized assets decreased by $1.3 billion or 9% quarter-over-quarter [3]. - Total loans and leases held for investment decreased by $2.5 billion or 4% on a linked-quarter basis to $64.1 billion [12]. - Average loan balances declined by $17.4 billion or 21% to $65.8 billion year-over-year, while average securities balances increased by $3.1 billion or 25% to $15.2 billion [30]. - Total non-accrual loans held for investment increased by 64% to $3,180 million compared to $1,942 million in June 2024 [54]. - Net charge-offs for the first six months of 2025 were $232 million, representing 0.70% of average loans outstanding, compared to 1.06% for the same period in 2024 [39]. Interest Income and Margin - The company's net interest margin increased by 7 basis points to 1.81% compared to the prior quarter [2]. - For the second quarter of 2025, net interest income was $419 million, a 2% increase from the first quarter of 2025 but a 25% decrease from the second quarter of 2024 [26]. - The net interest margin (NIM) for the first six months of 2025 was 1.77%, down 36 basis points compared to the same period in 2024 [31]. - Total interest income decreased by 25% to $2,307 million for the six months ended June 30, 2025, compared to $3,061 million for the same period in 2024 [74]. Credit Losses and Provisions - Provision for credit losses for the first six months of 2025 totaled $143 million, down $562 million or 80% from $705 million in the same period of 2024 [38]. - The provision for credit losses in Q2 2025 was $64 million, down from $79 million in Q1 2025 and significantly lower than $390 million in Q2 2024 [83]. - The allowance for credit losses declined slightly due to stabilization in property values and borrower financials [59]. - The total allowance for credit losses was $1,162 million at June 30, 2025, down from $1,215 million at March 31, 2025 and $1,326 million at June 30, 2024 [57]. Operational Efficiency - The company plans to eliminate the bank holding company structure, simplifying operations and reducing costs [9]. - Total non-interest expense for the first six months of 2025 was $1,045 million, down 26% from $1,404 million in the first six months of 2024 [51]. - Operating expenses decreased by 5% to $472 million compared to $496 million in the previous quarter [73]. - The efficiency ratio for Q2 2025 improved to 103.37%, compared to 108.70% in Q1 2025 and 105.07% in Q2 2024 [89]. Capital and Equity - The common equity tier 1 ratio increased to 12.33% at June 30, 2025, up from 11.83% at December 31, 2024 [61]. - The total risk-based capital ratio was 15.77% at June 30, 2025, compared to 15.14% at December 31, 2024 [61]. - The leverage capital ratio increased to 8.61% at June 30, 2025, up from 7.68% at December 31, 2024 [61]. - Tangible common stockholders' equity was $7,159 million as of June 30, 2025, compared to $7,337 million as of June 30, 2024 [78]. Market Presence - The Company operates approximately 360 locations across nine states, with significant presence in the greater New York/New Jersey metropolitan region and fast-growing markets in Florida and the West Coast [62]. - The Company will host a conference call on July 25, 2025, to discuss its second quarter 2025 performance [63].