New York Community Bancorp Reports $327 Million Net Loss

New York Community Bancorp, Inc. has recently released its 10-Q report, providing a comprehensive overview of its financial performance. The company, operating as the bank holding company for Flagstar Bank, N.A., offers a range of banking products and services, including deposit products, loan products, cash management products, and online banking services. The company primarily serves individuals, small and mid-size businesses, and professional associations.

In the first quarter of 2024, New York Community Bancorp reported a net loss of $327 million, compared to a net loss of $2.7 billion in the prior quarter and net income of $2.0 billion in the year-ago quarter. The net loss available to common shareholders in the current quarter was $335 million, or $0.45 per diluted share, compared to $2.7 billion, or $3.76 per diluted share, in the prior quarter and net income of $2.0 billion, or $2.87 per diluted share, in the year-ago quarter.

Net interest income, the company's primary source of income, was $624 million for the first quarter of 2024, down $116 million or 15.7% compared to the previous quarter. The net interest margin for the same period was 2.28%, down 54 basis points compared to the previous quarter. The reduction was primarily driven by a higher cost of funds, with the average rate on borrowing costs increasing by 85 basis points, and a deposit mix shift from lower cost interest-bearing checking and money market accounts to higher cost certificates of deposits.

The provision for credit losses totaled $315 million for the first quarter of 2024, compared to a $552 million provision for the previous quarter. Net charge-offs totaled $81 million for the first quarter of 2024, representing 0.10% of average loans outstanding, compared to $185 million for the previous quarter, representing 0.22% of average loans outstanding.

Non-interest income for the first quarter of 2024 totaled $9 million, a significant decrease from $127 million in the previous quarter. This decrease was primarily due to a reduction in the bargain purchase gain related to the final adjustment to the fair value of assets received and liabilities assumed, including the in-transit and other shared accounts of the Signature Transaction.

The market has reacted to these announcements by moving the company's shares -3.9% to a price of $3.45. Check out the company's full 10-Q submission here.

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