New York munity Bancorp(US:NYCB)2026-01-30 11:01Financial Performance - Flagstar Bank reported net income attributable to common stockholders of $21 million, or $0.05 per diluted share, in Q4 2025, compared to a net loss of $45 million, or $0.11 per diluted share, in Q3 2025[5]. - For the full year 2025, the net loss attributable to common stockholders was $210 million, or $0.50 per diluted share, compared to a net loss of $1,153 million, or $3.49 per diluted share, in 2024[6]. - The diluted (loss) earnings per share (GAAP) for the year ended December 31, 2025, was $(1,153), compared to $(3.49) per share in 2024[89]. - The net (loss) income (GAAP) for the three months ended December 31, 2025, was $29 million, compared to a loss of $(36) million in the previous quarter[91]. Loan and Asset Management - Total C&I commitments increased to $3.0 billion, up 28% from Q3 2025, with total C&I originations of $2.1 billion, up 22% from the previous quarter[2]. - Total loans and leases held for investment (HFI) were $60.7 billion, down $1.9 billion, or 3%, from Q3 2025[14]. - Average loan balances fell by $1.7 billion or 3% to $61.8 billion on a linked-quarter basis, with an average loan yield of 5.09%, down 6 basis points[27]. - Total assets decreased by 5% to $87,512 million compared to $91,668 million in the previous quarter and down 13% from $100,160 million a year ago[76]. Credit Quality - Non-accrual loans decreased by $267 million, or 8%, compared to Q3 2025, while criticized/classified loans declined by $330 million, or 2%[2]. - The provision for credit losses in Q4 2025 decreased by $35 million or 92% to $3 million compared to Q3 2025, and down $142 million or 98% year-over-year[33]. - Net charge-offs for Q4 2025 totaled $46 million, down $27 million or 37% from Q3 2025 and down $176 million or 79% from Q4 2024[34]. - Total non-accrual loans held for investment decreased by 8% to $2,975 million compared to $3,241 million in Q3 2025, and increased by 14% from $2,615 million in Q4 2024[101]. Revenue and Income - Total revenues for the year ended 2025 were $2.062 billion, down 19% from $2.552 billion in 2024[39]. - Non-interest income for Q4 2025 was $90 million, down 4% from $94 million in Q3 2025 and down 45% from $164 million in Q4 2024[42]. - The year-over-year decline in non-interest income was primarily due to the sale of the Bank's mortgage servicing/subservicing business[43]. - Net interest income increased by 10% to $467 million compared to $425 million in the previous quarter, and remained stable compared to $461 million a year ago[78]. Expenses and Efficiency - Operating expenses declined by 3% compared to Q3 2025 and by 26% year-over-year, reflecting strong expense management[3]. - Total non-interest expense decreased by 2% to $509 million compared to $522 million in the previous quarter and down 29% from $718 million a year ago[78]. - The total non-interest expense for the year ended December 31, 2025, was $2,076 million, down from $2,838 million in 2024, indicating a reduction of about 26.8%[91]. - The efficiency ratio improved to 91.27% for Q4 2025, down from 100.46% in Q3 2025 and 114.98% in Q4 2024[98]. Capital and Ratios - The bank's CET1 capital ratio improved to 12.83%, with excess capital of $1.4 billion after tax[2]. - The common equity tier 1 ratio was 12.83% at December 31, 2025, up from 12.45% at September 30, 2025[64]. - The allowance for credit losses on loans to non-accrual loans held for investment was 34.62% as of December 31, 2025, up from 33.05% in Q3 2025[102]. - Total stockholders' equity remained stable at $8,143 million as of December 31, 2025, compared to $8,167 million in 2024[85]. Strategic Initiatives - The merger with Flagstar Bancorp and acquisition of portions of the former Signature Bank are expected to yield anticipated benefits, but there are risks regarding realization and potential legal costs[71].