Flagstar Financial Files 10-Q for Q3 2024

TL;DR

**FLAGSTAR FINANCIAL (FBC) Q3 10-Q FILED - CHECK FINANCIALS**

AI Summary

Flagstar Financial, Inc. filed its 10-Q for the period ending September 30, 2024. The company, formerly known as New York Community Bancorp, Inc., reported on its financial performance and position. Key financial data and disclosures relevant to investors are included in this filing.

Why It Matters

This filing provides investors with a detailed look at Flagstar Financial's financial health and operational performance for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details within can reveal significant risks or opportunities.

Key Players & Entities

• FLAGSTAR FINANCIAL, INC. (company) — Filer of the 10-Q
• NEW YORK COMMUNITY BANCORP, INC. (company) — Former name of Flagstar Financial
• 20240930 (date) — End of the reporting period
• 20241108 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share FLG New York Stock
• $1.05 billion — ant exercises related to our March 2024 $1.05 billion capital raise, the Flagstar Bancorp acq
• $26 billion — tar Bancorp") which increased assets by $26 billion and liabilities by $24 billion. In Marc
• $24 billion — ssets by $26 billion and liabilities by $24 billion. In March 2023 the Company acquired $38
• $38 billion — ion. In March 2023 the Company acquired $38 billion of assets and assumed $36 billion of li
• $36 billion — uired $38 billion of assets and assumed $36 billion of liabilities from the FDIC related to
• $100 billion — tions resulted in the Company exceeding $100 billion in total assets which results in being
• $6 billion — ehouse lending portfolio (approximately $6 billion in assets) and (ii) entered into a defi
• $280 million — ported a third quarter 2024 net loss of $280 million compared to a net loss of $323 million
• $323 million — $280 million compared to a net loss of $323 million for the second quarter 2024. The net lo
• $289 m — kholders for the third quarter 2024 was $289 million, or $0.79 per diluted share, comp
• $0.79 — third quarter 2024 was $289 million, or $0.79 per diluted share, compared to a net lo
• $333 m — iluted share, compared to a net loss of $333 million, or $1.14 per diluted share for t
• $1.14 — pared to a net loss of $333 million, or $1.14 per diluted share for the second quarte
• $37 million — d in the third quarter 2024 results are $37 million of merger-related expenses and certain

Filing Documents

• fbc-20240930.htm (10-Q) — 4423KB
• exhibit311section302certif.htm (EX-31.1) — 11KB
• exhibit312section302certif.htm (EX-31.2) — 11KB
• exhibit320section906certif.htm (EX-32) — 7KB
• 0000910073-24-000186.txt ( ) — 23264KB
• fbc-20240930.xsd (EX-101.SCH) — 105KB
• fbc-20240930_cal.xml (EX-101.CAL) — 173KB
• fbc-20240930_def.xml (EX-101.DEF) — 756KB
• fbc-20240930_lab.xml (EX-101.LAB) — 1326KB
• fbc-20240930_pre.xml (EX-101.PRE) — 1056KB
• fbc-20240930_htm.xml (XML) — 5404KB

– FINANCIAL INFORMATION

PART I. – FINANCIAL INFORMATION

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6

Financial Statements

Item 1. Financial Statements Consolidated Statements of Condition – September 30, 2024 (unaudited) and December 31, 2023 34 Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income – For the three and nine months ended September 30, 2024 and 2023 (unaudited) 35 Consolidated Statements of Stockholders' Equity – For the three and nine months ended September 30, 2024 and 2023 (unaudited) 36 Consolidated Statements of Cash Flows – For the nine months ended September 30, 2024 and 2023 (unaudited) 38 Notes to the Consolidated Financial Statements (unaudited) Note 1 - Organization Basis of Presentation 40 Note 2 - Computation of Earnings Per Common Share 42 Note 3 - Business Combination 42 Note 4 - Accumulated Other Comprehensive Income 45 Note 5 - I nvestment Securities 46 Note 6 - Loans and Leases 49 Note 7 - A llowance for Credit Losses 57 Note 8 - L eases 59 Note 9 - Mortgage Servicing Rights 61 Note 10 - Variable Interest Entities 62 Note 11 - Borrowed Funds 62 Note 12 - Pension and Other Post-Retirement Benefits 64 Note 13 - S tock-Related Benefit Plans 64 Note 14 - D erivative and Hedging Activities 65 Note 15 - I ntangible Assets 69 Note 16 - F air Value Measures 70 Note 17 - Mezzanine and Stockholders' Equity 78 Note 18 - Commitments and Contingencies 81 Note 19 - A ssets Held for Sale and Associated Liabilities 82 Note 20 - Subsequent Events 84

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 85

Controls and Procedures

Item 4. Controls and Procedures 85

– OTHER INFORMATION

PART II. – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 88

Risk Factors

Item 1A. Risk Factors 88

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 93

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 94

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 94

Other Information

Item 5. Other Information 95

Exhibits

Item 6. Exhibits 95

SIGNATURES

SIGNATURES 97 2 For the purpose of this Quarterly Report on Form 10-Q, the words "Parent Company" are used to refer to Flagstar Financial, Inc. on a standalone basis, and the words "we," "us," "our," and the "Company" are used to refer to Flagstar Financial, Inc. and our consolidated subsidiary, Flagstar Bank, N.A. (the "Bank"). CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING LANGUAGE This report, like many written and oral communications presented by the Company and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of the words "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "seek," "strive," "try," or future or conditional verbs such as "will," "would," "should," "could," "may," or similar expressions. Although we believe that our plans, intentions, and expectations as reflected in these forward-looking statements are reasonable, we can give no assurance that they will be achieved or realized. Our ability to predict results or the actual effects of our plans and strategies is inherently uncertain. Accordingly, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained in this report. There are a number of factors, many of which are beyond our control, that could cause actual conditio

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Background Flagstar Financial, Inc. is a bank holding company (collectively with its subsidiaries the "Company") whose principal operation is its subsidiary Flagstar Bank, N.A. (the "Bank"). The Company has experienced a number of events in the last 22 months that have significantly impacted its balance sheet, results of operations, credit losses, liquidity and funding, and regulatory capital. At the end of 2022, the Company acquired and merged with Flagstar Bancorp Inc. ("Flagstar Bancorp") which increased 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. These transactions resulted in the Company exceeding $100 billion in total assets which results in being categorized as a Category IV institution for regulatory purposes, increasing requirements and expectations related to liquidity, risk management and governance. Refer to Regulatory Capital and Requirements of Category IV Standards for additional information. Effective October 25, 2024 the Company's name changed to Flagstar Financial, Inc. from New York Community Bancorp, Inc. Beginning in late 2023, the Company's loan portfolio began to experience stress, related principally to vacancy-driven declines in the office sector, and inflation and high interest rates in the multi-family sector, particularly for the sub-set of the Company's loan portfolio comprised of majority rent-regulated collateral, a portion of which is impacted by a 2019 New York State law change. Concerns about the impact of these portfolio stresses led to significant declines in the Company's stock price and customer deposit withdrawals in the first quarter 2024. In response to these declines, the Company raised $1.05 billion in equity capital in March 2024 through the issuance of shares of

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View this 10-Q filing on SEC EDGAR