10/25/2024 | Press release | Distributed by Public on 10/25/2024 05:02
Third Quarter 2024 Summary
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Asset Quality | Loans, Deposits, and Funding |
•Total ACL of $1.3 billion, or 1.87% of LHFI
•Multi-family ACL coverage, excluding co-op loans, increased to 1.86%
•Office ACL coverage of 6.04%
•Non-office CRE ACL coverage of 1.92%
•Meaningful CRE payoffs at par, including nearly 34% in substandard loans
•68% of total non-accrual loans are current
•Over 90% of multi-family loans that have repriced this year are current or have paid off at par
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•Multi-family loans declined $871 million or 2%
•CRE loans declined $696 million or 5%
•C&I loans decreased $1.3 billion or 8%
•Total deposits of $83.0 billion, up $4 billion or 5.0%
•Retail deposits increased $2.5 billion or 8% to $35 billion
•Private Bank deposits rose $1.8 billion or 11% to $17.9 billion
•Reduced wholesale borrowings by $8.6 billion or 31% to $19.3 billion or 18% of total assets
•Loan/deposit ratio at 86% compared to 110% at Q1'24
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Capital | Liquidity |
•CET1 ratio of 10.8%
•Pro-forma CET1 ratio of 11.4%, including benefit from sale of mortgage operations
•Book value per common share of $19.43
•Tangible book value per share of $18.18
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•Total liquidity of over $41 billion, significantly higher than last quarter
•A 299% coverage ratio on uninsured deposits
•Nearly $19 billion of available borrowing capacity and high-quality liquid assets
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Net Interest Income and Net Interest Margin Summary | September 30, 2024 | ||||||||||||
For the Three Months Ended | compared to (%): | ||||||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||||||
Net interest income | $ | 510 | $ | 557 | $ | 882 | -8 | % | -42 | % | |||
For the Three Months Ended | compared to (bp): | ||||||||||||
Yield/Cost | September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||||||
Mortgage and other loans, net
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5.53% | 5.62% | 5.82% | -9 | -29 | ||||||||
Securities
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4.85% | 4.68% | 4.30% | 17 | 55 | ||||||||
Interest-earning cash and cash equivalents
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5.40% | 5.44% | 5.31% | -4 | 9 | ||||||||
Total interest-earning assets | 5.42% | 5.48% | 5.62% | -6 | -20 | ||||||||
Total interest-bearing deposits
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4.37% | 4.15% | 3.33% | 22 | 104 | ||||||||
Borrowed funds
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5.28% | 5.28% | 3.53% | 0 | 175 | ||||||||
Total interest-bearing liabilities | 4.62% | 4.52% | 3.37% | 10 | 125 | ||||||||
Net interest margin | 1.79% | 1.98% | 3.27% | -19 | -148 |
Net Interest Income and Net Interest Margin Summary | ||||||||
For the Nine Months Ended | ||||||||
(dollars in millions) | September 30, 2024 | September 30, 2023 | % Change | |||||
Net interest income | $ | 1,691 | $ | 2,337 | -28 | % | ||
For the Nine Months Ended | ||||||||
Yield/Cost | September 30, 2024 | September 30, 2023 | (bp) Change | |||||
Mortgage and other loans, net
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5.62% | 5.43% | 19 | |||||
Securities
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4.59% | 4.11% | 48 | |||||
Interest-earning cash and cash equivalents
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5.44% | 5.11% | 33 | |||||
Total interest-earning assets | 5.47% | 5.27% | 20 | |||||
Total interest-bearing deposits
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4.13% | 2.94% | 119 | |||||
Borrowed funds
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5.31% | 3.52% | 179 | |||||
Total interest-bearing liabilities | 4.45% | 3.09% | 136 | |||||
Net interest margin | 2.01% | 3.05% | -104 |
September 30, 2024 | |||||||||
For the Three Months Ended | compared to: | ||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||
Mortgage and other loans, net
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$76,553 | $83,235 | $85,691 | -8 | % | -11 | % | ||
Securities
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12,862 | 12,094 | 10,317 | 6 | % | 25 | % | ||
Reverse repurchase agreements
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- | - | 299 | NM | -100 | % | |||
Interest-earning cash and cash equivalents
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23,561 | 17,883 | 10,788 | 32 | % | 118 | % | ||
Total interest-earning assets | 112,976 | 113,212 | 107,095 | - | % | 5 | % | ||
Total interest-bearing deposits
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63,647 | 59,607 | 58,494 | 7 | % | 9 | % | ||
Borrowed funds
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24,456 | 28,612 | 15,596 | -15 | % | 57 | % | ||
Total interest-bearing liabilities | 88,103 | 88,219 | 74,090 | - | % | 19 | % | ||
Non-interest-bearing deposits | $18,631 | $18,632 | $25,703 | - | % | -28 | % |
For the Nine Months Ended | ||||
(dollars in millions) | September 30, 2024 | September 30, 2023 | % Change | |
Mortgage and other loans, net
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$81,286 | $80,569 | 1 | % |
Securities
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12,180 | 10,314 | 18 | % |
Reverse repurchase agreements
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- | 503 | -100 | % |
Interest-earning cash and cash equivalents
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18,615 | 11,127 | 67 | % |
Total interest-earning assets | 112,081 | 102,513 | 9 | % |
Total interest-bearing deposits
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60,941 | 55,252 | 10 | % |
Borrowed funds
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26,259 | 18,683 | 41 | % |
Total interest-bearing liabilities | 87,200 | 73,935 | 18 | % |
Non-interest-bearing deposits | $18,872 | $21,214 | -11 | % |
September 30, 2024 | ||||||||||
For the Three Months Ended | compared to: | |||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | |||||
Net interest income | $ | 510 | $ | 557 | $ | 882 | -8 | % | -42 | % |
Non-interest income | 113 | 114 | 160 | -1 | % | -29 | % | |||
Total revenues | $ | 623 | $ | 671 | $ | 1,042 | -7 | % | -40 | % |
Total non-interest expense | 716 | 705 | 712 | 2 | % | 1 | % | |||
Pre - provision net revenue (non-GAAP) | $ | (93) | $ | (34) | $ | 330 | 174 | % | -128 | % |
Merger-related and restructuring expenses | 18 | 34 | 91 | -47 | % | -80 | % | |||
Certain items related to the sale of the mortgage warehouse business | 32 | - | - | NM | NM | |||||
Pre - provision net revenue excluding merger-related and restructuring expenses, as adjusted (non-GAAP) | $ | (43) | $ | - | $ | 421 | NM | NM |
For the Nine Months Ended | ||||||
(dollars in millions) | September 30, 2024 | September 30, 2023 | % Change | |||
Net interest income | $ | 1,691 | $ | 2,337 | -28 | % |
Non-interest income | 236 | 2,560 | -91 | % | ||
Total revenues | $ | 1,927 | $ | 4,897 | -61 | % |
Total non-interest expense | 2,120 | 1,849 | 15 | % | ||
Pre - provision net revenue (non-GAAP) | $ | (193) | $ | 3,048 | -106 | % |
Bargain purchase gain | 121 | (2,142) | -106 | % | ||
Merger-related and restructuring expenses | 95 | 267 | -64 | % | ||
Certain items related to the sale of the mortgage warehouse business | 32 | - | ||||
Pre - provision net revenue excluding merger-related and restructuring expenses and bargain purchase gain, as adjusted (non-GAAP) | $ | 55 | $ | 1,173 | -95 | % |
September 30, 2024 | |||||||||||
For the Three Months Ended | compared to: | ||||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||||
Fee income | $42 | $41 | $58 | 2 | % | -28 | % | ||||
Bank-owned life insurance | 10 | 12 | 11 | -17 | % | -9 | % | ||||
Net return on mortgage servicing rights | 34 | 19 | 23 | 79 | % | 48 | % | ||||
Net gain on loan sales and securitizations | 5 | 18 | 28 | -72 | % | -82 | % | ||||
Net loan administration (loss) income | (8) | (5) | 19 | 60 | % | -142 | % | ||||
Other income | 30 | 29 | 21 | 3 | % | 43 | % | ||||
Total non-interest income | $113 | $114 | $160 | -1 | % | -29 | % |
For the Nine Months Ended | ||||||
(dollars in millions) | September 30, 2024 | September 30, 2023 | % Change | |||
Fee income | $117 | $133 | -12 | % | ||
Bank-owned life insurance | 32 | 32 | - | % | ||
Net losses on securities
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- | (1) | NM | |||
Net return on mortgage servicing rights | 74 | 70 | 6 | % | ||
Net gain on loan sales and securitizations | 43 | 73 | -41 | % | ||
Net loan administration income | 3 | 65 | -95 | % | ||
Bargain purchase gain | (121) | 2,142 | NM | |||
Other income | 88 | 46 | 91 | % | ||
Total non-interest income | $236 | $2,560 | NM | |||
Impact of Notable Item: | ||||||
Bargain purchase gain | 121 | (2,142) | NM | |||
Adjusted noninterest income (non-GAAP) | $357 | $418 | -15 | % | ||
September 30, 2024 | |||||||||||
For the Three Months Ended | compared to: | ||||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||||
Operating expenses: | |||||||||||
Compensation and benefits | $316 | $312 | $346 | 1 | % | -9 | % | ||||
FDIC insurance
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98 | 91 | 19 | 8 | % | 416 | % | ||||
Occupancy and equipment | 59 | 52 | 55 | 13 | % | 7 | % | ||||
General and administrative | 188 | 183 | 165 | 3 | % | 14 | % | ||||
Total operating expenses | 661 | 638 | 585 | 4 | % | 13 | % | ||||
Intangible asset amortization
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37 | 33 | 36 | 12 | % | 3 | % | ||||
Merger-related and restructuring expenses
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18 | 34 | 91 | -47 | % | -80 | % | ||||
Total non-interest expense | $716 | $705 | $712 | 2 | % | 1 | % |
For the Nine Months Ended | ||||||
(dollars in millions) | September 30, 2024 | September 30, 2023 | % Change | |||
Operating expenses: | ||||||
Compensation and benefits | $961 | $854 | 13 | % | ||
FDIC insurance
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239 | 56 | 327 | % | ||
Occupancy and equipment | 163 | 142 | 15 | % | ||
General and administrative | 557 | 440 | 27 | % | ||
Total operating expenses | 1,920 | 1,492 | 29 | % | ||
Intangible asset amortization
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105 | 90 | 17 | % | ||
Merger-related and restructuring expenses
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95 | 267 | -64 | % | ||
Total non-interest expense | $2,120 | $1,849 | 15 | % |
September 30, 2024 | ||||||||||||
As of | compared to: | |||||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | |||||||
Total non-accrual loans held for investment | $2,514 | $1,942 | $434 | 29 | % | 480 | % | |||||
Total non-accrual loans held for investment and repossessed assets | $2,529 | $1,959 | $446 | 29 | % | 467 | % | |||||
NPLs to total loans held for investment | 3.54 | % | 2.60 | % | 0.52 | % | 93 | 302 | ||||
NPAs to total assets | 2.21 | % | 1.65 | % | 0.40 | % | 57 | 181 | ||||
Allowance for credit losses on loans and leases
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$1,264 | $1,268 | $619 | - | % | 104 | % | |||||
Total ACL, including on unfunded commitments
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$1,328 | $1,326 | $667 | - | % | 99 | % | |||||
ACL % of total loans held for investment
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1.78 | % | 1.70 | % | 0.74 | % | 8 bps | 104 bps | ||||
Total ACL % of total loans held for investment
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1.87 | % | 1.78 | % | 0.79 | % | 9 bps | 107 bps | ||||
ACL on loans and leases % of NPLs
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50% | 65% | 143% | -15 | % | -92 | % | |||||
Total ACL % of NPLs
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53% | 68% | 154% | -15 | % | -101 | % |
September 30, 2024 | ||||||||
For the Three Months Ended | compared to: | |||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||
Net charge-offs (recoveries) | $240 | $349 | $24 | -31 | % | NM | ||
Net charge-offs (recoveries) to average loans (1)
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0.31 | % | 0.42 | % | 0.03 | % | -11 bps | 29 bps |
(1) Three months ended presented on a non-annualized basis.
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For the Nine Months Ended | |||||
September 30, 2024 | September 30, 2023 |
Change %
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Net charge-offs (recoveries) | $670 | $23 | NM | ||
Net charge-offs (recoveries) to average loans (1)
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0.82 | % | 0.03 | % | 80 bps |
(1) Three months ended presented on a non-annualized basis.
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September 30, 2024 | June 30, 2024 | December 31, 2023 | ||||
REGULATORY CAPITAL RATIOS: (1)
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New York Community Bancorp, Inc. | ||||||
Common equity tier 1 ratio | 10.76 | % | 9.54 | % | 9.05 | % |
Tier 1 risk-based capital ratio | 11.42 | % | 10.43 | % | 9.62 | % |
Total risk-based capital ratio | 13.92 | % | 12.78 | % | 11.77 | % |
Leverage capital ratio | 7.32 | % | 7.53 | % | 7.75 | % |
Flagstar Bank, N.A. | ||||||
Common equity tier 1 ratio | 11.94 | % | 10.84 | % | 10.52 | % |
Tier 1 risk-based capital ratio | 11.94 | % | 10.84 | % | 10.52 | % |
Total risk-based capital ratio | 13.19 | % | 12.09 | % | 11.61 | % |
Leverage capital ratio | 7.64 | % | 7.82 | % | 8.48 | % |
September 30, 2024 | ||||||||||
compared to | ||||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | December 31, 2023 | June 30, 2024 | December 31, 2023 | |||||
Assets | ||||||||||
Cash and cash equivalents | $ | 23,080 | $ | 18,990 | $ | 11,475 | 22 | % | 101 | % |
Securities: | ||||||||||
Available-for-sale | 10,511 | 10,535 | 9,145 | - | % | 15 | % | |||
Equity investments with readily determinable fair values, at fair value | 14 | 14 | 14 | - | % | - | % | |||
Total securities net of allowance for credit losses | 10,525 | 10,549 | 9,159 | - | % | 15 | % | |||
Loans held for sale | 1,851 | 7,845 | 1,182 | -76 | % | 57 | % | |||
Loans and leases held for investment: | ||||||||||
Multi-family | 35,140 | 36,011 | 37,265 | -2 | % | -6 | % | |||
Commercial real estate and acquisition, development, and construction | 12,482 | 13,178 | 13,382 | -5 | % | -7 | % | |||
One-to-four family first mortgage | 5,247 | 5,790 | 6,061 | -9 | % | -13 | % | |||
Commercial and industrial | 16,474 | 17,819 | 25,254 | -8 | % | -35 | % | |||
Other loans | 1,773 | 1,754 | 2,657 | 1 | % | -33 | % | |||
Total loans and leases held for investment | 71,116 | 74,552 | 84,619 | -5 | % | -16 | % | |||
Less: Allowance for credit losses on loans and leases | (1,264) | (1,268) | (992) | - | % | 27 | % | |||
Total loans and leases held for investment, net | 69,852 | 73,284 | 83,627 | -5 | % | -16 | % | |||
Federal Home Loan Bank stock and Federal Reserve Bank stock, at cost | 1,364 | 1,565 | 1,392 | -13 | % | -2 | % | |||
Premises and equipment, net | 649 | 691 | 652 | -6 | % | - | % | |||
Core deposit and other intangibles | 519 | 557 | 625 | -7 | % | -17 | % | |||
Mortgage servicing rights | - | 1,122 | 1,111 | NM | NM | |||||
Bank-owned life insurance | 1,595 | 1,586 | 1,580 | 1 | % | 1 | % | |||
Other assets | 3,212 | 2,866 | 3,254 | 12 | % | -1 | % | |||
Assets held for sale | 1,720 | - | - | NM | NM | |||||
Total assets | $ | 114,367 | $ | 119,055 | $ | 114,057 | -4 | % | - | % |
Liabilities and Stockholders' Equity | ||||||||||
Deposits: | ||||||||||
Interest-bearing checking and money market accounts | $ | 21,680 | $ | 21,740 | $ | 30,700 | - | % | -29 | % |
Savings accounts | 13,510 | 10,638 | 8,773 | 27 | % | 54 | % | |||
Certificates of deposit | 29,251 | 28,780 | 21,554 | 2 | % | 36 | % | |||
Non-interest-bearing accounts | 18,572 | 17,874 | 20,499 | 4 | % | -9 | % | |||
Total deposits | 83,013 | 79,032 | 81,526 | 5 | % | 2 | % | |||
Borrowed funds: | ||||||||||
Wholesale borrowings | 19,310 | 27,871 | 20,250 | -31 | % | -5 | % | |||
Junior subordinated debentures | 581 | 580 | 579 | - | % | - | % | |||
Subordinated notes | 442 | 441 | 438 | - | % | 1 | % | |||
Total borrowed funds | 20,333 | 28,892 | 21,267 | -30 | % | -4 | % | |||
Other liabilities | 1,978 | 2,476 | 2,897 | -20 | % | -32 | % | |||
Liabilities associated with assets held for sale | 471 | - | - | NM | NM | |||||
Total liabilities | 105,795 | 110,400 | 105,690 | -4 | % | - | % | |||
Mezzanine equity:
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Preferred stock - Series B | 1 | 258 | - | NM | NM | |||||
Stockholders' equity: | ||||||||||
Preferred stock - Series A and D | 503 | 503 | 503 | - | % | - | % | |||
Common stock | 4 | 4 | 2 | - | % | 100 | % | |||
Paid-in capital in excess of par | 9,266 | 8,997 | 8,236 | 3 | % | 13 | % | |||
Retained earnings
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(562) | (270) | 443 | 108 | % | -227 | % | |||
Treasury stock, at cost | (219) | (223) | (218) | -2 | % | - | % | |||
Accumulated other comprehensive loss, net of tax: | ||||||||||
Net unrealized loss on securities available for sale, net of tax | (468) | (674) | (581) | -31 | % | -19 | % | |||
Pension and post-retirement obligations, net of tax | (27) | (28) | (28) | -4 | % | -4 | % | |||
Net unrealized gain (loss) on cash flow hedges, net of tax | 74 | 88 | 10 | -16 | % | 640 | % | |||
Total accumulated other comprehensive loss, net of tax | (421) | (614) | (599) | -31 | % | -30 | % | |||
Total stockholders' equity | 8,571 | 8,397 | 8,367 | 2 | % | 2 | % | |||
Total liabilities, Mezzanine and Stockholders' Equity
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$ | 114,367 | $ | 119,055 | $ | 114,057 | -4 | % | - | % |
September 30, 2024 | ||||||||||
For the Three Months Ended | compared to | |||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||||
(dollars in millions, except per share data) | ||||||||||
Interest Income: | ||||||||||
Loans and leases | $ | 1,061 | $ | 1,167 | $ | 1,251 | -9 | % | -15 | % |
Securities and money market investments | 473 | 381 | 261 | 24 | % | 81 | % | |||
Total interest income | 1,534 | 1,548 | 1,512 | -1 | % | 1 | % | |||
Interest Expense: | ||||||||||
Interest-bearing checking and money market accounts | 218 | 214 | 268 | 2 | % | -19 | % | |||
Savings accounts | 110 | 64 | 43 | 72 | % | 156 | % | |||
Certificates of deposit | 372 | 337 | 180 | 10 | % | 107 | % | |||
Borrowed funds | 324 | 376 | 139 | -14 | % | 133 | % | |||
Total interest expense | 1,024 | 991 | 630 | 3 | % | 63 | % | |||
Net interest income | 510 | 557 | 882 | -8 | % | -42 | % | |||
Provision for credit losses | 242 | 390 | 62 | -38 | % | 290 | % | |||
Net interest income after provision for credit losses
|
268 | 167 | 820 | 60 | % | -67 | % | |||
Non-Interest Income: | ||||||||||
Fee income | 42 | 41 | 58 | 2 | % | -28 | % | |||
Bank-owned life insurance | 10 | 12 | 11 | -17 | % | -9 | % | |||
Net return on mortgage servicing rights | 34 | 19 | 23 | 79 | % | 48 | % | |||
Net gain on loan sales and securitizations | 5 | 18 | 28 | -72 | % | -82 | % | |||
Net loan administration (loss) income
|
(8) | (5) | 19 | 60 | % | -142 | % | |||
Bargain purchase gain | - | - | - | NM | NM | |||||
Other income | 30 | 29 | 21 | 3 | % | 43 | % | |||
Total non-interest income | 113 | 114 | 160 | -1 | % | -29 | % | |||
Non-Interest Expense: | ||||||||||
Operating expenses: | ||||||||||
Compensation and benefits | 316 | 312 | 346 | 1 | % | -9 | % | |||
FDIC insurance
|
98 | 91 | 19 | 8 | % | 416 | % | |||
Occupancy and equipment | 59 | 52 | 55 | 13 | % | 7 | % | |||
General and administrative | 188 | 183 | 165 | 3 | % | 14 | % | |||
Total operating expenses | 661 | 638 | 585 | 4 | % | 13 | % | |||
Intangible asset amortization | 37 | 33 | 36 | 12 | % | 3 | % | |||
Merger-related and restructuring expenses | 18 | 34 | 91 | -47 | % | -80 | % | |||
Total non-interest expense | 716 | 705 | 712 | 2 | % | 1 | % | |||
(Loss) income before income taxes | (335) | (424) | 268 | -21 | % | -225 | % | |||
Income tax (benefit) expense | (55) | (101) | 61 | -46 | % | NM | ||||
Net (loss) income | (280) | (323) | 207 | -13 | % | -235 | % | |||
Preferred stock dividends | 9 | 10 | 8 | -10 | % | 13 | % | |||
Net (loss) income attributable to common stockholders
|
$ | (289) | $ | (333) | $ | 199 | -13 | % | -245 | % |
Basic (loss) earnings per common share | $ | (0.79) | $ | (1.14) | $ | 0.82 | NM | NM | ||
Diluted (loss) earnings per common share | $ | (0.79) | $ | (1.14) | $ | 0.81 | NM | NM | ||
Dividends per common share | $ | 0.01 | $ | 0.01 | $ | 0.17 | - | % | -94 | % |
For the Nine Months Ended | Change | ||||||
September 30, 2024 | September 30, 2023 | Amount | Percent | ||||
(dollars in millions, except per share data) | |||||||
Interest Income: | |||||||
Loans and leases | $ | 3,421 | $ | 3,279 | 142 | 4 | % |
Securities and money market investments | 1,174 | 765 | 409 | 53 | % | ||
Total interest income | 4,595 | 4,044 | 551 | 14 | % | ||
Interest Expense: | |||||||
Interest-bearing checking and money market accounts | 664 | 657 | 7 | 1 | % | ||
Savings accounts | 221 | 122 | 99 | 81 | % | ||
Certificates of deposit | 1,000 | 436 | 564 | 129 | % | ||
Borrowed funds | 1,019 | 492 | 527 | 107 | % | ||
Total interest expense | 2,904 | 1,707 | 1,197 | 70 | % | ||
Net interest income | 1,691 | 2,337 | (646) | -28 | % | ||
Provision for credit losses | 947 | 281 | 666 | 237 | % | ||
Net interest income after provision for credit losses
|
744 | 2,056 | (1,312) | -64 | % | ||
Non-Interest Income: | |||||||
Fee income | 117 | 133 | (16) | -12 | % | ||
Bank-owned life insurance | 32 | 32 | - | - | % | ||
Net losses on securities | - | (1) | 1 | -100 | % | ||
Net return on mortgage servicing rights | 74 | 70 | 4 | 6 | % | ||
Net gain on loan sales and securitizations | 43 | 73 | (30) | -41 | % | ||
Net loan administration income | 3 | 65 | (62) | -95 | % | ||
Bargain purchase gain | (121) | 2,142 | (2,263) | -106 | % | ||
Other income | 88 | 46 | 42 | 91 | % | ||
Total non-interest income | 236 | 2,560 | (2,324) | -91 | % | ||
Non-Interest Expense: | |||||||
Operating expenses: | |||||||
Compensation and benefits | 961 | 854 | 107 | 13 | % | ||
FDIC insurance
|
239 | 56 | 183 | 327 | % | ||
Occupancy and equipment | 163 | 142 | 21 | 15 | % | ||
General and administrative | 557 | 440 | 117 | 27 | % | ||
Total operating expenses | 1,920 | 1,492 | 428 | 29 | % | ||
Intangible asset amortization | 105 | 90 | 15 | 17 | % | ||
Merger-related and restructuring expenses | 95 | 267 | (172) | -64 | % | ||
Total non-interest expense | 2,120 | 1,849 | 271 | 15 | % | ||
(Loss) income before income taxes | (1,140) | 2,767 | (3,907) | -141 | % | ||
Income tax (benefit) expense | (210) | 141 | (351) | -249 | % | ||
Net (loss) income | (930) | 2,626 | (3,556) | -135 | % | ||
Preferred stock dividends | 27 | 25 | 2 | 8 | % | ||
Net (loss) income attributable to common stockholders
|
$ | (957) | $ | 2,601 | (3,558) | -137 | % |
Basic (loss) earnings per common share | $ | (3.16) | $ | 10.86 | NM | NM | |
Diluted (loss) earnings per common share | $ | (3.16) | $ | 10.84 | NM | NM | |
Dividends per common share | $ | 0.03 | $ | 0.51 | - | -94 | % |
At or for the | At or for the | |||||||||
Three Months Ended September 30, | For the Nine Months Ended | |||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
Total Stockholders' Equity
|
$ | 8,571 | $ | 8,397 | $ | 10,993 | $ | 8,571 | $ | 10,993 |
Less: Goodwill and other intangible assets | (519) | (557) | (3,087) | (519) | (3,087) | |||||
Less: Preferred stock | (503) | (503) | (503) | (503) | (503) | |||||
Tangible common stockholders' equity | $ | 7,549 | $ | 7,337 | $ | 7,403 | $ | 7,549 | $ | 7,403 |
Total Assets | $ | 114,367 | $ | 119,055 | $ | 111,230 | $ | 114,367 | $ | 111,230 |
Less: Goodwill and other intangible assets | (519) | (557) | (3,087) | (519) | (3,087) | |||||
Tangible Assets | $ | 113,848 | $ | 118,498 | $ | 108,143 | $ | 113,848 | $ | 108,143 |
Average common stockholders' equity | $ | 8,122 | $ | 7,984 | $ | 10,692 | $ | 8,003 | $ | 9,925 |
Less: Average goodwill and other intangible assets | (544) | (578) | (3,111) | $ | (578) | $ | (3,011) | |||
Average tangible common stockholders' equity | $ | 7,578 | $ | 7,406 | $ | 7,581 | $ | 7,425 | $ | 6,914 |
Average Assets | $ | 118,396 | $ | 118,353 | $ | 114,274 | $ | 117,495 | $ | 110,095 |
Less: Average goodwill and other intangible assets | (544) | (578) | (3,111) | (578) | (3,011) | |||||
Average tangible assets | $ | 117,852 | $ | 117,775 | $ | 111,163 | $ | 116,917 | $ | 107,084 |
GAAP MEASURES: | ||||||||||
(Loss) return on average assets (1)
|
(0.94) | % | (1.09) | % | 0.72 | % | (1.06) | % | 3.18 | % |
(Loss) return on average common stockholders' equity (2)
|
(14.19) | % | (16.69) | % | 7.42 | % | (15.94) | % | 34.94 | % |
Book value per common share | $ | 19.43 | $ | 22.47 | $ | 43.56 | $ | 19.43 | $ | 43.56 |
Common stockholders' equity to total assets | 7.05 | % | 6.63 | % | 9.43 | % | 7.05 | % | 9.43 | % |
NON-GAAP MEASURES: | ||||||||||
(Loss) return on average tangible assets (1)
|
(0.82) | % | (1.01) | % | 0.99 | % | (0.82) | % | 0.85 | % |
(Loss) return on average tangible common stockholders' equity (2)
|
(13.27) | % | (16.62) | % | 14.01 | % | (13.32) | % | 12.67 | % |
Tangible book value per common share | $ | 18.18 | $ | 20.89 | $ | 30.74 | $ | 18.18 | $ | 30.74 |
Tangible common stockholders' equity to tangible assets | 6.63 | % | 6.19 | % | 6.85 | % | 6.63 | % | 6.85 | % |
For the Three Months Ended | For the Nine Months Ended | |||||||||
(dollars in millions, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
Net (loss) income - GAAP | $ | (280) | $ | (323) | $ | 207 | $ | (930) | $ | 2,626 |
Merger-related and restructuring expenses, net of tax (1)
|
13 | 25 | 67 | 70 | 198 | |||||
Certain items related to sale on mortgage warehouse business | 24 | - | - | 24 | - | |||||
Bargain purchase gain | - | - | - | 121 | (2,142) | |||||
Net (loss) income, as adjusted - non-GAAP | $ | (243) | $ | (298) | $ | 274 | $ | (715) | $ | 682 |
Preferred stock dividends | 9 | 10 | 8 | 27 | 25 | |||||
Net (loss) income attributable to common stockholders, as adjusted - non-GAAP
|
$ | (252) | $ | (308) | $ | 266 | $ | (742) | $ | 657 |
Diluted (loss) earnings per common share - GAAP | $ | (0.79) | $ | (1.14) | $ | 0.81 | $ | (3.16) | $ | 10.84 |
Diluted (loss) earnings per common share, as adjusted - non-GAAP | $ | (0.69) | $ | (1.05) | $ | 1.09 | $ | (2.45) | $ | 2.73 |
September 30, 2024 | ||||||||||
For the Three Months Ended |
compared to (%):
|
|||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | June 30, 2024 | September 30, 2023 | ||||||
(dollars in millions) | ||||||||||
Net interest income | $ | 510 | $ | 557 | $ | 882 | -8 | % | -42 | % |
Non-interest income | 113 | 114 | 160 | -1 | % | -29 | % | |||
Total revenues | $ | 623 | $ | 671 | $ | 1,042 | -7 | % | -40 | % |
Total non-interest expense | 716 | 705 | 712 | 2 | % | 1 | % | |||
Pre - provision net revenue (non-GAAP) | $ | (93) | $ | (34) | $ | 330 | 174 | % | NM | |
Merger-related and restructuring expenses | 18 | 34 | 91 | -47 | % | -80 | % | |||
Certain items related to sale on mortgage warehouse business | 32 | - | - | NM | NM | |||||
Pre - provision net revenue excluding merger-related and restructuring expenses, as adjusted (non-GAAP) | $ | (43) | $ | - | $ | 421 | NM | -110 | % | |
Provision for credit losses | (242) | (390) | (62) | -38 | % | 290 | % | |||
Merger-related and restructuring expenses | (18) | (34) | (91) | -47 | % | -80 | % | |||
Certain items related to sale on mortgage warehouse business | (32) | - | - | NM | NM | |||||
(Loss) income before taxes | $ | (335) | $ | (424) | $ | 268 | -21 | % | NM | |
Income tax (benefit) expense | (55) | (101) | 61 | -46 | % | NM | ||||
Net (Loss) Income (GAAP) | $ | (280) | $ | (323) | $ | 207 | -13 | % | NM |
For the Nine Months Ended | Change | |||||||
September 30, 2024 | September 30, 2023 | Amount | Percent | |||||
(dollars in millions) | ||||||||
Net interest income | $ | 1,691 | $ | 2,337 | $ | (646) | -28 | % |
Non-interest income | 236 | 2,560 | $ | (2,324) | -91 | % | ||
Total revenues | $ | 1,927 | $ | 4,897 | $ | (2,970) | -61 | % |
Total non-interest expense | 2,120 | 1,849 | $ | 271 | 15 | % | ||
Pre - provision net revenue (non-GAAP) | $ | (193) | $ | 3,048 | $ | (3,241) | NM | |
Bargain purchase gain | 121 | (2,142) | $ | 2,263 | NM | |||
Merger-related and restructuring expenses | 95 | 267 | $ | (172) | -64 | % | ||
Certain items related to sale on mortgage warehouse business | 32 | - | $ | 32 | NM | |||
Pre - provision net revenue excluding merger-related and restructuring expenses and bargain purchase gain, as adjusted (non-GAAP) | $ | 55 | $ | 1,173 | $ | (1,118) | -95 | % |
Provision for credit losses | (947) | (281) | $ | (666) | 237 | % | ||
Bargain purchase gain | (121) | 2,142 | $ | (2,263) | NM | |||
Merger-related and restructuring expenses | (95) | (267) | $ | 172 | -64 | % | ||
Certain items related to sale on mortgage warehouse business | (32) | - | $ | (32) | NM | |||
(Loss) income before taxes | $ | (1,140) | $ | 2,767 | $ | (3,907) | NM | |
Income tax (benefit) expense | (210) | 141 | $ | (351) | NM | |||
Net (Loss) Income (GAAP) | $ | (930) | $ | 2,626 | $ | (3,556) | NM |
For the Three Months Ended | ||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||||
(dollars in millions) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||
Assets: | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Mortgage and other loans, net | $ | 76,553 | $ | 1,061 | 5.53 | % | $ | 83,235 | $ | 1,167 | 5.62 | % | $ | 85,691 | $ | 1,251 | 5.82 | % |
Securities | 12,862 | 153 | 4.85 | 12,094 | 139 | 4.68 | 10,317 | 111 | 4.30 | |||||||||
Reverse repurchase agreements | - | - | - | - | - | - | 299 | 5 | 6.11 | |||||||||
Interest-earning cash and cash equivalents | 23,561 | 320 | 5.40 | 17,883 | 242 | 5.44 | 10,788 | 145 | 5.31 | |||||||||
Total interest-earning assets | 112,976 | $ | 1,534 | 5.42 | 113,212 | $ | 1,548 | 5.48 | 107,095 | $ | 1,512 | 5.62 | ||||||
Non-interest-earning assets | 5,420 | 5,141 | 7,179 | |||||||||||||||
Total assets | $ | 118,396 | $ | 118,353 | $ | 114,274 | ||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||
Interest-bearing checking and money market accounts | $ | 22,207 | $ | 218 | 3.90 | % | $ | 23,000 | $ | 214 | 3.73 | % | $ | 31,321 | $ | 268 | 3.40 | % |
Savings accounts | 12,281 | 110 | 3.57 | 9,173 | 64 | 2.82 | 9,628 | 43 | 1.76 | |||||||||
Certificates of deposit | 29,159 | 372 | 5.07 | 27,434 | 337 | 4.95 | 17,545 | 180 | 4.06 | |||||||||
Total interest-bearing deposits | 63,647 | 700 | 4.37 | 59,607 | 615 | 4.15 | 58,494 | 491 | 3.33 | |||||||||
Borrowed funds | 24,456 | 324 | 5.28 | 28,612 | 376 | 5.28 | 15,596 | 139 | 3.53 | |||||||||
Total interest-bearing liabilities | 88,103 | $ | 1,024 | 4.62 | 88,219 | $ | 991 | 4.52 | 74,090 | $ | 630 | 3.37 | ||||||
Non-interest-bearing deposits | 18,631 | 18,632 | 25,703 | |||||||||||||||
Other liabilities | 2,858 | 2,521 | 3,286 | |||||||||||||||
Total liabilities | 109,593 | 109,372 | 103,079 | |||||||||||||||
Stockholders' and mezzanine equity
|
8,803 | 8,981 | 11,195 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 118,396 | $ | 118,353 | $ | 114,274 | ||||||||||||
Net interest income/interest rate spread | $ | 510 | 0.80 | % | $ | 557 | 0.97 | % | $ | 882 | 2.25 | % | ||||||
Net interest margin | 1.79 | % | 1.98 | % | 3.27 | % | ||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.28 | x | 1.28 | x | 1.45 | x |
For the Nine Months Ended | ||||||||||||
September 30, 2024 | September 30, 2023 | |||||||||||
(dollars in millions) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||
Assets: | ||||||||||||
Interest-earning assets: | ||||||||||||
Mortgage and other loans, net | $ | 81,286 | $ | 3,421 | 5.62 | % | $ | 80,569 | $ | 3,279 | 5.43 | % |
Securities | 12,180 | 415 | 4.59 | 10,314 | 318 | 4.11 | ||||||
Reverse repurchase agreements | - | - | - | 503 | 21 | 5.74 | ||||||
Interest-earning cash and cash equivalents | 18,615 | 758 | 5.44 | 11,127 | 426 | 5.11 | ||||||
Total interest-earning assets | 112,081 | $ | 4,594 | 5.47 | 102,513 | $ | 4,044 | 5.27 | ||||
Non-interest-earning assets | 5,414 | 7,582 | ||||||||||
Total assets | $ | 117,495 | $ | 110,095 | ||||||||
Liabilities and Stockholders' Equity: | ||||||||||||
Interest-bearing deposits: | ||||||||||||
Interest-bearing checking and money market accounts | $ | 23,872 | $ | 664 | 3.71 | % | $ | 28,385 | $ | 657 | 3.09 | % |
Savings accounts | 9,960 | 221 | 2.97 | 10,240 | 122 | 1.60 | ||||||
Certificates of deposit | 27,109 | 1,000 | 4.93 | 16,627 | 436 | 3.50 | ||||||
Total interest-bearing deposits | 60,941 | 1,885 | 4.13 | 55,252 | 1,215 | 2.94 | ||||||
Borrowed funds | 26,259 | 1,019 | 5.31 | 18,683 | 492 | 3.52 | ||||||
Total interest-bearing liabilities | 87,200 | $ | 2,904 | 4.45 | 73,935 | $ | 1,707 | 3.09 | ||||
Non-interest-bearing deposits | 18,872 | 21,214 | ||||||||||
Other liabilities | 2,648 | 4,518 | ||||||||||
Total liabilities | 108,720 | 99,667 | ||||||||||
Stockholders' and mezzanine equity
|
8,775 | 10,428 | ||||||||||
Total liabilities and stockholders' equity | $ | 117,495 | $ | 110,095 | ||||||||
Net interest income/interest rate spread | $ | 1,691 | 1.02 | % | $ | 2,337 | 2.18 | % | ||||
Net interest margin | 2.01 | % | 3.05 | % | ||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.29 | x | 1.39 | x |
For the Three Months Ended | For the Nine Months Ended | |||||||||
(dollars in millions, except share and per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||
PROFITABILITY MEASURES: | ||||||||||
Net (loss) income | $ | (280) | $ | (323) | $ | 207 | $ | (930) | $ | 2,626 |
Net (loss) income attributable to common stockholders | (289) | (333) | 199 | (957) | 2,601 | |||||
Basic (loss) earnings per common share | (0.79) | (1.14) | 0.82 | (3.16) | 10.86 | |||||
Diluted (loss) earnings per common share | (0.79) | (1.14) | 0.81 | (3.16) | 10.84 | |||||
(Loss) return on average assets | (0.94) | % | (1.09) | % | 0.72 | % | (1.06) | % | 3.18 | % |
(Loss) return on average tangible assets (1)
|
(0.82) | (1.01) | 0.99 | (0.82) | 0.85 | |||||
(Loss) return on average common stockholders' equity | (14.19) | (16.69) | 7.42 | (15.94) | 34.94 | |||||
(Loss) return on average tangible common stockholders' equity (1)
|
(13.27) | (16.62) | 14.01 | (13.32) | 12.67 | |||||
Efficiency ratio (2)
|
105.96 | 95.05 | 56.15 | 93.75 | 54.16 | |||||
Operating expenses to average assets | 2.23 | 2.16 | 2.05 | 0.54 | 1.81 | |||||
Interest rate spread | 0.80 | 0.97 | 2.25 | 1.02 | 2.18 | |||||
Net interest margin | 1.79 | 1.98 | 3.27 | 2.01 | 3.05 | |||||
Effective tax rate | 16.34 | 23.69 | 22.68 | 18.40 | 5.09 | |||||
Shares used for basic common EPS computation | 366,637,882 | 293,122,116 | 240,828,836 | 302,382,890 | 236,894,841 | |||||
Shares used for diluted common EPS computation | 366,637,882 | 293,122,116 | 241,637,630 | 302,382,890 | 237,479,350 | |||||
Common shares outstanding at the respective period-ends | 415,257,967 | 351,304,364 | 240,825,252 | 351,304,364 | 240,825,252 |
September 30, 2024 | June 30, 2024 | December 31, 2023 | ||||
CAPITAL MEASURES: | ||||||
Book value per common share | $ | 19.43 | $ | 22.47 | $ | 32.66 |
Tangible book value per common share - as reported (1)
|
18.18 | 20.89 | 30.08 | |||
Common stockholders' equity to total assets | 7.05 | % | 6.63 | % | 6.90 | % |
Tangible common stockholders' equity to tangible assets (1)
|
6.63 | 6.19 | 6.38 |
September 30, 2024 | ||||||||||
compared to | ||||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | December 31, 2023 | June 30, 2024 | December 31, 2023 | |||||
Non-accrual loans held for investment: | ||||||||||
Multi-family | $ | 1,504 | $ | 794 | $ | 138 | 89 | % | 990 | % |
Commercial real estate | 692 | 753 | 128 | -8 | % | 441 | % | |||
One-to-four family first mortgage | 39 | 106 | 95 | -63 | % | -59 | % | |||
Acquisition, development, and construction | 21 | 18 | 2 | 17 | % | 950 | % | |||
Commercial and industrial | 235 | 247 | 43 | -5 | % | 447 | % | |||
Other non-accrual loans | 23 | 24 | 22 | -4 | % | 5 | % | |||
Total non-accrual loans held for investment | 2,514 | 1,942 | 428 | 29 | % | 487 | % | |||
Repossessed assets | 15 | 17 | 14 | -12 | % | 7 | % | |||
Total non-accrual held for investment loans and repossessed assets | $ | 2,529 | $ | 1,959 | $ | 442 | 29 | % | 472 | % |
Non-accrual loans held for sale: | ||||||||||
Commercial real estate | $ | 112 | $ | 15 | $ | 163 | 647 | % | -31 | % |
One-to-four family first mortgage | 64 | - | - | NM | NM | |||||
Acquisition, development, and construction | 13 | - | 1 | NM | NM | |||||
Total non-accrual mortgage loans held for sale | $ | 189 | $ | 15 | $ | 164 | 1160 | % | 15 | % |
September 30, 2024 | June 30, 2024 | December 31, 2023 | ||||
Non-accrual held for investment loans to total loans held for investment | 3.54 | % | 2.60 | % | 0.51 | % |
Non-accrual held for investment loans and repossessed assets to total assets | 2.21 | 1.65 | 0.39 | |||
Allowance for credit losses on loans to non-accrual loans held for investment | 50.28 | 65.31 | 231.51 | |||
Allowance for credit losses on loans to total loans held for investment | 1.78 | 1.70 | 1.17 |
September 30, 2024 | ||||||||||
compared to | ||||||||||
(dollars in millions) | September 30, 2024 | June 30, 2024 | December 31, 2023 | June 30, 2024 | December 31, 2023 | |||||
Loans 30 to 89 Days Past Due: | ||||||||||
Multi-family | $ | 124 | $ | 893 | $ | 121 | -86 | % | 2 | % |
Commercial real estate | 43 | 125 | 28 | -66 | % | 54 | % | |||
One-to-four family first mortgage | 21 | 22 | 40 | -5 | % | -48 | % | |||
Acquisition, development, and construction | 16 | 54 | 2 | -70 | % | 700 | % | |||
Commercial and industrial | 47 | 100 | 37 | -53 | % | 27 | % | |||
Other loans | 10 | 10 | 22 | - | % | -55 | % | |||
Total loans 30 to 89 days past due | $ | 261 | $ | 1,204 | $ | 250 | -78 | % | 4 | % |
For the Three Months Ended | For the Nine Months Ended | |||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||
(dollars in millions) | ||||||||||
Charge-offs: | ||||||||||
Multi-family | $ | 101 | $ | 76 | $ | 2 | $ | 188 | $ | 2 |
Commercial real estate | 110 | 237 | 14 | 411 | 14 | |||||
One-to-four family residential | 7 | 1 | - | 8 | 3 | |||||
Acquisition, development and construction | 4 | - | - | 4 | - | |||||
Commercial and industrial | 33 | 35 | 6 | 79 | 6 | |||||
Other | 5 | 5 | 4 | 15 | 9 | |||||
Total charge-offs | $ | 260 | $ | 354 | $ | 26 | $ | 705 | $ | 34 |
Recoveries: | ||||||||||
Multi-family | $ | (3) | $ | - | $ | - | $ | (4) | $ | - |
Commercial real estate | (6) | - | - | (6) | - | |||||
One-to-four family residential | (5) | - | - | (5) | - | |||||
Commercial and industrial | (4) | (4) | (1) | (15) | (8) | |||||
Other | (2) | (1) | (1) | (5) | (3) | |||||
Total recoveries | $ | (20) | $ | (5) | $ | (2) | $ | (35) | $ | (11) |
Net charge-offs (recoveries) | $ | 240 | $ | 349 | $ | 24 | $ | 670 | $ | 23 |
Net charge-offs (recoveries) to average loans (1)
|
0.31 | % | 0.42 | % | 0.03 | % | 0.82 | % | 0.03 | % |
September 30, 2024 | June 30, 2024 | |||||
(dollars in millions) |
Unpaid Principal Balance (1)
|
Number of accounts |
Unpaid Principal Balance (1)
|
Number of accounts | ||
Subserviced for others (2)
|
$ | 265,343 | 912,835 | $ | 269,924 | 945,888 |
Serviced for others (3)
|
79,020 | 310,684 | 77,484 | 305,113 | ||
Serviced for own loan portfolio (4)
|
8,658 | 51,772 | 8,435 | 51,899 | ||
Total loans serviced | $ | 353,021 | 1,275,291 | $ | 355,843 | 1,302,900 |