New York Community Bancorp, Inc. has recently released its 10-Q report, revealing significant impacts on its balance sheet, results of operations, credit losses, liquidity and funding, and regulatory capital. The company acquired and merged with Flagstar Bancorp Inc., increasing its assets by $26 billion and liabilities by $24 billion. In March 2023, the company acquired $38 billion of assets and assumed $36 billion of liabilities from the FDIC related to the former Signature Bridge Bank, resulting in the company exceeding $100 billion in total assets and being categorized as a Category IV institution for regulatory purposes. The company's loan portfolio began to experience stress in late 2023, leading to significant declines in the company's stock price and large customer deposit withdrawals in the first quarter of 2024. In response, the company raised $1.05 billion in equity capital in March 2024 and stabilized its customer deposit base, which has since continued to increase.
The company reported a second quarter 2024 net loss of $323 million, compared to a net loss of $327 million in the prior quarter. For the first six months of 2024, the company reported a net loss of $650 million, compared to net income of $2.4 billion for the first six months of 2023. Net interest income, the company's primary source of income, was $557 million for the second quarter of 2024, down from $624 million in the first quarter of 2024. The company's net interest margin for the second quarter 2024 was 1.98 percent, down 30 basis points compared to the first quarter 2024.
The provision for credit losses totaled $390 million for the second quarter 2024, reflecting an increase in charge-offs, mainly relating to larger-balance office loans, and the continuing impact of market conditions on the multi-family portfolio as higher rates and inflationary impacts persist. For the first six months of 2024, the provision for credit losses totaled $705 million, compared to a $219 million provision for the first six months of 2023, reflecting substantial increases in the allowance for credit losses.
These figures illustrate the challenges New York Community Bancorp, Inc. has faced and the measures it has taken to address them, including raising equity capital, stabilizing its customer deposit base, and making strategic decisions to simplify its operations and enhance its regulatory capital ratios and liquidity. The market has reacted to these announcements by moving the company's shares -0.3% to a price of $9.35. Check out the company's full 10-Q submission here.
