New York munity Bancorp(NYCB) - 2025 Q3 - Quarterly Results

Financial Performance - The net loss attributable to common stockholders for Q3 2025 was $45 million, or $0.11 per diluted share, an improvement of 44% from Q2 2025 and 86% from Q3 2024[6]. - Adjusted net loss for Q3 2025 was $31 million, or $0.07 per diluted share, a 50% improvement from Q2 2025 and an 89% improvement from Q3 2024[21]. - GAAP net loss for the three months ended September 30, 2025, was $36 million, compared to a loss of $70 million for the previous quarter and $280 million for the same period in 2024[78]. - Basic loss per common share for the nine months ended September 30, 2025, was $(0.56), an 82% improvement from $(3.16) in the same period last year[73]. - Dividends per common share for the nine months ended September 30, 2025, were $0.03, an 84% decrease from $0.19 in the same period last year[73]. Loan and Asset Management - Total criticized and classified loans decreased by $2.8 billion, or 19%, since December 31, 2024, with net charge-offs declining by $44 million, or 38%, compared to Q2 2025[2][12]. - C&I loans increased by $448 million, or 3%, from the prior quarter, with new loan originations rising by 41% to $1.7 billion and new commitments growing by 26% to $2.4 billion[3][18]. - Total loans and leases held-for-investment (HFI) were $62.7 billion, down $1.5 billion, or 2%, from the prior quarter and down $5.6 billion, or 8%, year-over-year[16]. - Average loan balances declined by $2.3 billion or 3% to $63.5 billion on a linked-quarter basis, while average loan yield increased by 3 basis points to 5.15%[27]. - Total loans and leases decreased to $63,541 million in Q3 2025 from $76,553 million in Q3 2024, a decline of 16.9%[85]. Interest Income and Margin - Net interest income for Q3 2025 totaled $425 million, up $6 million, or 1%, from Q2 2025 but down $85 million, or 17%, year-over-year[24]. - The net interest margin improved by 10 basis points to 1.91%, marking the third consecutive quarter of improvement[3][12]. - The net interest margin (NIM) for the third quarter of 2025 was 1.91%, an increase of 10 basis points from the second quarter of 2025 and 12 basis points from the third quarter of 2024[26]. - Total interest income for the three months ended September 30, 2025, was $1,101 million, a decrease of 4% compared to $1,143 million in the previous quarter and a decrease of 28% from $1,534 million a year ago[71]. - Net interest income for the nine months ended September 30, 2025, was $3,408 million, down from $4,594 million for the same period in 2024, a decrease of 26.0%[87]. Credit Losses and Provisions - Provision for credit losses for the third quarter of 2025 decreased by $26 million or 41% to $38 million compared to the second quarter of 2025, and decreased by $204 million or 84% compared to the third quarter of 2024[31]. - Net charge-offs for the third quarter of 2025 totaled $73 million, down $44 million or 38% from the second quarter of 2025 and down $167 million or 70% from the third quarter of 2024[32]. - Provision for credit losses for the nine months ended September 30, 2025, was $181 million, an 81% decrease from $947 million in the same period last year[73]. - The allowance for credit losses on loans and leases was $1,071 million at September 30, 2025, down 15% from $1,264 million a year earlier[55]. - The allowance for credit losses on loans to non-accrual loans held for investment was 33.05% as of September 30, 2025, down from 45.93% at December 31, 2024[95]. Non-Interest Income and Expenses - Non-interest income in the third quarter of 2025 was $94 million, up $17 million or 22% from the second quarter of 2025 but down $19 million or 17% from the third quarter of 2024[38]. - Total non-interest income for the first nine months of 2025 was $251 million, a 6% increase from $236 million in the same period of 2024[43]. - Non-interest expense for the third quarter 2025 totaled $522 million, a 27% decrease from $716 million in the third quarter 2024[44]. - Total non-interest expense for the first nine months of 2025 was $1.6 billion, down 26% from $2.1 billion in the same period of 2024[47]. - Operating expenses for the first nine months of 2025 were $1.4 billion, down 27% from $1.9 billion in the same period of 2024[48]. Regulatory and Structural Changes - The company completed a holding company reorganization on October 17, 2025, simplifying its corporate structure and reducing regulatory burden[4][13]. - The company is subject to heightened regulatory standards as a national bank with assets of $50 billion or more, impacting governance and risk management strategies[63]. - The company completed the merger with Flagstar Bancorp in December 2022 and the acquisition of substantial portions of the former Signature Bank in March 2023, which are expected to enhance operational efficiencies[65]. Asset and Liability Management - Total assets as of September 30, 2025, were $91.7 billion, down $0.6 billion, or 1%, from June 30, 2025, and down $8.5 billion, or 8%, from December 31, 2024[15]. - Total deposits decreased by $0.6 billion, or 1%, linked-quarter and by $6.7 billion, or 9%, year-over-year, primarily due to a decline in certificates of deposits[19]. - Total liabilities decreased to $83,851 million as of September 30, 2025, from $109,593 million at December 31, 2024, a reduction of 23.5%[94]. - Cash and cash equivalents increased by 5% to $8.484 billion compared to $8.094 billion in the previous quarter, but down 45% from $15.430 billion year-over-year[69]. - Interest-bearing checking and money market accounts increased by 5% to $20.045 billion compared to $19.067 billion in the previous quarter, but down 4% from $20.780 billion year-over-year[69].