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

Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of $36 million, an improvement from a net loss of $70 million for the previous quarter[31]. - The net loss attributable to common stockholders for the nine months ended September 30, 2025, was $231 million, or $0.56 per diluted share, compared to a net loss of $957 million, or $3.16 per diluted share for the same period in 2024[32]. - The company reported a net loss of $36 million for the three months ended September 30, 2025, compared to a net loss of $280 million for the same period in 2024, indicating an improvement in financial performance[161]. - The company reported a net loss of $930 million for the nine months ended September 30, 2025, compared to a net loss of $206 million for the same period in 2024, indicating a significant decline in performance[163]. - Basic loss per common share for the three months ended September 30, 2025, was $0.11, compared to a loss of $0.79 for the same period in 2024[155]. - Basic loss per common share for the nine months ended September 30, 2025, was $0.56, compared to a loss of $3.16 in the prior year[179]. Assets and Liabilities - As of September 30, 2025, the company reported total assets of $91.7 billion, loans of $63.2 billion, deposits of $69.2 billion, and stockholders' equity of $8.1 billion[22]. - Total assets decreased to $91,668 million as of September 30, 2025, down from $100,160 million on December 31, 2024, representing a decline of approximately 8.3%[153]. - Total liabilities decreased to $83,559 million as of September 30, 2025, down from $91,992 million on December 31, 2024, a reduction of approximately 9.2%[153]. - Total deposits decreased to $69,152 million as of September 30, 2025, down from $75,870 million on December 31, 2024, a decline of approximately 8.8%[153]. - Total bank liquidity exceeded the balance of uninsured deposits by $14.2 billion as of September 30, 2025[105]. Income and Expenses - Net interest income (NII) for the three months ended September 30, 2025, was $425 million, with a net interest margin of 1.91%[36]. - For the three months ended September 30, 2025, net interest income (NII) increased by $6 million compared to the previous quarter, primarily due to lower-interest bearing deposits and improved yields on loans and leases[42]. - Non-interest income for the three months ended September 30, 2025, increased by $17 million compared to the previous quarter, primarily due to a $21 million gain on investment in Figure Technology Solutions, Inc.[48]. - Total non-interest expenses for the three months ended September 30, 2025, increased by $9 million compared to the previous quarter, driven by higher general and administrative expenses and compensation costs[51]. - Total non-interest income for the nine months ended September 30, 2025, increased to $251 million, compared to $236 million for the same period in 2024, reflecting a growth of 6.4%[155]. Credit Losses and Allowances - The provision for credit losses for the three months ended September 30, 2025, decreased by $26 million compared to the previous quarter, mainly due to volume declines from the strategic reduction in loan portfolios[45]. - For the nine months ended September 30, 2025, the provision for credit losses decreased by $766 million compared to the same period in 2024, reflecting improving credit trends and stabilization in the allowance for credit losses[46]. - The allowance for credit losses on loans and leases was $1.071 billion as of September 30, 2025, down from $1.201 billion at the end of 2024[56]. - The ratio of non-accrual loans to total loans held for investment rose to 5.17% as of September 30, 2025, compared to 3.83% at December 31, 2024[84]. - The company reported net charge-offs of $73 million for the three months ended September 30, 2025, with an annualized percentage of 0.46% of average loans[92]. Loan Portfolio - Total loans and leases held for investment decreased by $5.6 billion as of September 30, 2025, compared to December 31, 2024, due to a strategy of diversifying the loan portfolio[57]. - The multi-family loan portfolio decreased by $3.6 billion to $30.466 billion as of September 30, 2025, primarily due to $2.8 billion in par payoffs and the classification of $254 million of loans to Loans held for sale[60]. - The commercial real estate (CRE) loan portfolio decreased by $1.7 billion to $10.163 billion as of September 30, 2025, consistent with the company's strategy to diversify its loan portfolio[66]. - The C&I loan portfolio decreased by $502 million to $3.2 billion, reflecting a strategic decision to reduce exposure to non-core C&I loans, despite $3.7 billion in new originations[70]. - Specialty finance loans and leases decreased by $672 million, or 17%, to $3.2 billion, as part of the strategy to run off certain non-core loans[72]. Strategic Initiatives - The company is executing a strategic transformation plan aimed at evolving into a fully diversified bank with a focus on financial resilience and sustainable earnings[25]. - The company aims to enhance operational efficiency and develop a customer-centric culture as part of its strategic priorities[27]. - The company is strategically diversifying its loan portfolio by shifting from multi-family loans to other sectors, including C&I loans[62]. Capital and Regulatory Compliance - The Company's total capital as of September 30, 2025, is $7,828 million, with a Common Equity Tier 1 ratio of 12.45%[146]. - The Bank's total capital as of September 30, 2025, is $8,832 million, with a Common Equity Tier 1 ratio of 14.05%[147]. - The Company exceeded the minimum capital requirements for a bank holding company by 792 basis points as of September 30, 2025[147]. - The Company identified material weaknesses in internal control over financial reporting, with remediation progress discussed in the latest report[149]. - The Company has developed a resolution plan in alignment with FDIC requirements, submitted prior to the due date of July 1, 2025[145].