Flagstar Bank, National Association 8-K/A, filed Jan 31, 2024

Flagstar Bank, National Association (FLG)

8-K/A 2024-01-31 For: 2024-01-31

View Original

Added on April 09, 2026

About this 8-K/A

Flagstar Bank, National Association filed this 8-K/A on January 31, 2024.

Items reported

Item 2.02: Financial results
Item 8.01: Other events
Item 9.01: Financial statements and exhibits

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


102 Duffy Avenue,	Hicksville,	New York	11801
(Address of principal executive offices)


Exhibit Number						Description

Exhibit 99.1						Press release issued by the Company on January 31, 202 4 .
Exhibit 104						Cover Page Interactive Data File (embedded within the Inline XBRL document).


	December 31, 2023		September 30, 2023		December 31, 2022
REGULATORY CAPITAL RATIOS: (1)
New York Community Bancorp, Inc.
Common equity tier 1 ratio	9.10	%	9.59	%	9.06	%
Tier 1 risk-based capital ratio	9.67	%	10.17	%	9.78	%
Total risk-based capital ratio	11.82	%	11.97	%	11.66	%
Leverage capital ratio	7.78	%	7.92	%	9.70	%

Flagstar Bank, N.A.
Common equity tier 1 ratio	10.57	%	11.10	%	10.96	%
Tier 1 risk-based capital ratio	10.57	%	11.10	%	10.96	%
Total risk-based capital ratio	11.67	%	11.77	%	11.43	%
Leverage capital ratio	8.50	%	8.64	%	10.87	%


							December 31, 2023
	For the Three Months Ended						compared to:
	December 31, 2023		September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
(dollars in millions)
Net interest income	$	740	$	882	$	379	-16	%	95	%
Non-interest income	146		160		198		-9	%	-26	%
Total revenues	$	886	$	1,042	$	577	-15	%	54	%
Total non-interest expense	695		712		269		-2	%	158	%
Pre - provision net revenue (non-GAAP)	$	191	$	330	$	308	-42	%	-38	%
Bargain purchase gain	(8)		—		(159)		NM		-95	%

Merger-related and restructuring expenses	63		91		60		-31	%	5	%
FDIC special assessment	39		—		—		NM		NM
Pre - provision net revenue excluding merger-related and restructuring expenses and bargain purchase gain, as adjusted (non-GAAP)	$	285	$	421	$	209	-32	%	36	%



	For the Twelve Months Ended
	December 31, 2023		December 31, 2022		Change %
(dollars in millions)
Net interest income	$	3,077	$	1,396	120	%
Non-interest income	2,706		247		996	%
Total revenues	$	5,783	$	1,643	252	%
Total non-interest expense	2,544		684		272	%
Pre - provision net revenue (non-GAAP)	$	3,239	$	959	238	%
Bargain purchase gain	(2,150)		(159)		1252	%
Provision for bond related credit losses	20		—		NM
Merger-related and restructuring expenses	330		75		340	%
FDIC special assessment	39		—		NM
Pre - provision net revenue excluding merger-related and restructuring expenses and bargain purchase gain, as adjusted (non-GAAP)	$	1,478	$	875	69	%


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Fourth Quarter and Full-Year 2023 Summary •Net Income: –Fourth-quarter 2023 net loss available to common stockholders was $260 million compared to net income available to common stockholders of $199 million in third-quarter 2023. –As adjusted, fourth-quarter 2023 net loss available to common stockholders was $193 million compared to net income available to common stockholders of $266 million in third-quarter 2023. –Full-year 2023 net income available to common stockholders totaled $2.3 billion compared to $617 million for full-year 2022. –As adjusted, full-year 2023 net income available to common stockholders was $576 million compared to $603 million in full-year 2022. •Pre-provision Net Revenue ("PPNR"): –Fourth quarter 2023 PPNR was $191 million compared to $330 million in third quarter 2023. –As adjusted, fourth quarter 2023 PPNR was $285 million compared to $421 million in third quarter 2023. –Full-year 2023 PPNR totaled $3.2 billion, up $2.3 billion compared to full-year 2022. –Full-year 2023 PPNR, as adjusted, totaled $1.5 billion, up $603 million compared to full-year 2022. •Net Interest Margin/Income: –Net interest income during fourth quarter 2023 totaled $740 million compared to $882 million during the third quarter 2023. –Fourth quarter 2023 net interest margin ("NIM") was 2.82%, down 45 basis points compared to third quarter 2023, largely due to actions to build on balance sheet liquidity. –Full-year 2023 net interest income increased $1.7 billion to $3.1 billion. –Full-year 2023 NIM was 2.99%, up 64 basis points compared to the full-year 2022. •Balance Sheet: –Total assets of $116.3 billion at December 31, 2023 increased $5.1 billion compared to September 30, 2023, and increased $26.2 billion compared to December 31, 2022 reflecting the impact from the Signature transaction and organic growth. –Total loans held for investment ("LHFI") increased $624 million or 1% to $84.6 billion at December 31, 2023 compared to September 30, 2023, driven by growth in the commercial loan portfolio. –Commercial and industrial loans (“C&I”) totaled $25.3 billion at December 31, 2023, up $831 million or 3% compared to September 30, 2023 –Commercial loans represent 46% of total loans compared to 45% at September 30, 2023 and 33% at December 31, 2022, reflecting the successful execution of our strategy to transform into a diversified commercial bank. –Total deposits were $81.4 billion at December 31, 2023, down $1.3 billion, or 2%, compared to September 30, 2023. Excluding the impact from the expected decline in FDIC-related custodial deposits, total deposits rose $457 million, or 0.6%. –Wholesale borrowings of $20.3 billion at December 31, 2023, up $6.7 billion compared to September 30, 2023, and were flat year over year. •Asset Quality: –Non-performing assets ("NPAs") were $442 million at December 31, 2023 or 0.38% of total assets. –Non-performing loans ("NPLs") were $428 million at December 31, 2023 or 0.51% of total loans. –The allowance for credit losses ("ACL") totaled $992 million at December 31, 2023 or 232% of non-performing loans and 1.17% of total loans, or 1.26% when excluding loans with government guarantees and warehouse loans. –During the fourth quarter, the Company recorded a $552 million provision for credit losses compared to $62 million in the previous quarter. –Net charge-offs were $185 million during the fourth quarter 2023 compared to $24 million in the third quarter 2023, driven by just two loans.


							December 31, 2023
							compared to
(dollars in millions)	December 31, 2023		September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	11,493	$	6,929	$	2,032	66	%	466	%
Securities:
Available-for-sale	9,145		8,723		9,060		5	%	1	%
Equity investments with readily determinable fair values, at fair value	14		13		14		8	%	—	%
Total securities	9,159		8,736		9,074		5	%	1	%
Loans held for sale	1,182		1,926		1,115		-39	%	6	%
Loans and leases held for investment:
Multi-family	37,265		37,698		38,130		-1	%	-2	%
Commercial real estate and acquisition, development, and construction	13,382		13,396		10,522		—	%	27	%
One-to-four family first mortgage	6,061		5,882		5,821		3	%	4	%
Commercial and industrial	25,254		24,423		12,276		3	%	106	%
Other loans	2,657		2,596		2,252		2	%	18	%
Total loans and leases held for investment	84,619		83,995		69,001		1	%	23	%
Less: Allowance for credit losses on loans and leases	(992)		(619)		(393)		60	%	152	%
Total loans and leases held for investment, net	83,627		83,376		68,608		—	%	22	%
Federal Home Loan Bank stock and Federal Reserve Bank stock, at cost	1,392		1,110		1,267		25	%	10	%
Premises and equipment, net	652		638		491		2	%	33	%
Core deposit and other intangibles	625		661		287		-5	%	118	%
Goodwill	2,426		2,426		2,426		—	%	—	%
Mortgage servicing rights	1,111		1,135		1,033		-2	%	8	%
Bank-owned life insurance	1,580		1,576		1,561		—	%	1	%
Other assets	3,075		2,717		2,250		13	%	37	%
Total assets	$	116,322	$	111,230	$	90,144	5	%	29	%
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing checking and money market accounts	$	30,700	$	31,087	$	22,511	-1	%	36	%
Savings accounts	8,773		9,415		11,645		-7	%	-25	%
Certificates of deposit	21,554		17,310		12,510		25	%	72	%
Non-interest-bearing accounts	20,338		24,863		12,055		-18	%	69	%
Total deposits	81,365		82,675		58,721		-2	%	39	%
Borrowed funds:
Wholesale borrowings	20,250		13,570		20,325		49	%	—	%
Junior subordinated debentures	579		578		575		—	%	1	%
Subordinated notes	438		437		432		—	%	1	%
Total borrowed funds	21,267		14,585		21,332		46	%	—	%
Other liabilities	2,870		2,977		1,267		-4	%	127	%
Total liabilities	105,502		100,237		81,320		5	%	30	%
Stockholders' equity:
Preferred stock	503		503		503		—	%	—	%
Common stock	7		7		7		—	%	—	%
Paid-in capital in excess of par	8,231		8,217		8,130		—	%	1	%
Retained earnings	2,896		3,278		1,041		-12	%	178	%
Treasury stock, at cost	(218)		(217)		(237)		—	%	-8	%
Accumulated other comprehensive loss, net of tax:
Net unrealized loss on securities available for sale, net of tax	(581)		(863)		(626)		-33	%	-7	%
Pension and post-retirement obligations, net of tax	(28)		(42)		(46)		-33	%	-39	%
Net unrealized gain on cash flow hedges, net of tax	10		110		52		-91	%	-81	%
Total accumulated other comprehensive loss, net of tax	(599)		(795)		(620)		-25	%	-3	%
Total stockholders' equity	10,820		10,993		8,824		-2	%	23	%
Total liabilities and stockholders' equity	$	116,322	$	111,230	$	90,144	5	%	29	%



	For the Twelve Months Ended				Change
	December 31, 2023		December 31, 2022		Amount		Percent
(dollars in millions, except per share data)
Interest Income:
Loans and leases	$	4,509	$	1,848	2,661		144	%
Securities and money market investments	982		244		738		302	%
Total interest income	5,491		2,092		3,399		162	%

Interest Expense:
Interest-bearing checking and money market accounts	943		226		717		317	%
Savings accounts	169		60		109		182	%
Certificates of deposit	646		97		549		566	%
Borrowed funds	656		313		343		110	%
Total interest expense	2,414		696		1,718		247	%
Net interest income	3,077		1,396		1,681		120	%
Provision for credit losses	833		133		700		526	%
Net interest income after provision for credit losses	2,244		1,263		981		78	%

Non-Interest Income:
Fee income	172		27		145		537	%
Bank-owned life insurance	43		32		11		34	%
Net losses on securities	(1)		(2)		1		-50	%
Net return on mortgage servicing rights	103		6		97		1617	%
Net gain on loan sales and securitizations	89		5		84		1680	%
Net loan administration income	82		3		79		2633	%
Bargain purchase gain	2,150		159		1,991		1252	%
Other income	68		17		51		300	%
Total non-interest income	2,706		247		2,459		996	%

Non-Interest Expense:
Operating expenses:
Compensation and benefits	1,149		354		795		225	%
Other	939		250		689		276	%
Total operating expenses	2,088		604		1,484		246	%
Intangible asset amortization	126		5		121		2420	%
Merger-related and restructuring expenses	330		75		255		340	%
Total non-interest expense	2,544		684		1,860		272	%
Income before income taxes	2,406		826		1,580		191	%
Income tax expense	32		176		(144)		-82	%
Net Income	2,374		650		1,724		265	%
Preferred stock dividends	33		33		—		—	%
Net income available to common stockholders	$	2,341	$	617	1,724		279	%

Basic earnings per common share	$	3.25	$	1.26	$	2.00	160	%
Diluted earnings per common share	$	3.24	$	1.26	$	1.97	156	%
Dividends per common share	$	0.56	$	0.68	$	(0.12)	-18	%


	At or for the									At or for the
	Three Months Ended,									Twelve Months Ended,
(dollars in millions)	December 31, 2023			September 30, 2023			December 31, 2022			December 31, 2023			December 31, 2022
Total Stockholders’ Equity	$	10,820		$	10,993		$	8,824		$	10,820		$	8,824
Less: Goodwill and other intangible assets	(3,051)			(3,087)			(2,713)			(3,051)			(2,713)
Less: Preferred stock	(503)			(503)			(503)			(503)			(503)
Tangible common stockholders’ equity	$	7,266		$	7,403		$	5,608		$	7,266		$	5,608

Total Assets	$	116,322		$	111,230		$	90,144		$	116,322		$	90,144
Less: Goodwill and other intangible assets	(3,051)			(3,087)			(2,713)			(3,051)			(2,713)
Tangible Assets	$	113,271		$	108,143		$	87,431		$	113,271		$	87,431

Average common stockholders’ equity	$	10,559		$	10,692		$	6,986		$	10,085		$	6,580
Less: Average goodwill and other intangible assets	(3,075)			(3,111)			(2,525)			(3,027)			(2,451)
Average tangible common stockholders’ equity	$	7,484		$	7,581		$	4,461		$	7,058		$	4,129

Average Assets	$	111,708		$	114,274		$	72,332		$	110,502		$	64,402
Less: Average goodwill and other intangible assets	(3,075)			(3,111)			(2,525)			(3,027)			(2,451)
Average tangible assets	$	108,633		$	111,163		$	69,807		$	107,475		$	61,951

GAAP MEASURES:
(Loss) return on average assets (1)	(0.90)		%	0.72		%	0.95		%	2.15		%	1.01		%
(Loss) return on average common stockholders' equity (2)	(9.84)			7.42			9.34			23.21			9.38
Book value per common share	$	14.28		$	14.52		$	12.21		$	14.28		$	12.21
Common stockholders’ equity to total assets	8.87		%	9.43		%	9.23		%	8.87		%	9.23		%
NON-GAAP MEASURES:
(Loss) return on average tangible assets (1)	(0.68)		%	0.99		%	0.84		%	0.57		%	1.03		%
(Loss) return on average tangible common stockholders’ equity (2)	(10.26)		%	14.01			12.38			8.17			14.60
Tangible book value per common share	$	10.06		$	10.25		$	8.23		$	10.06		$	8.23
Tangible common stockholders’ equity to tangible assets	6.41		%	6.85		%	6.41		%	6.41		%	6.41		%


	For the Three Months Ended									For the Twelve Months Ended
(dollars in millions, except share and per share data)	December 31, 2023			September 30, 2023			December 31, 2022			December 31, 2023			December 31, 2022
PROFITABILITY MEASURES:
Net (loss) income	$	(252)		$	207		$	172		$	2,374		$	650
Net (loss) income available to common stockholders	(260)			199			164			2,341			617
Basic earnings per common share	(0.36)			0.27			0.30			3.25			1.26
Diluted earnings per common share	(0.36)			0.27			0.30			3.24			1.26
(Loss) return on average assets	(0.90)		%	0.72		%	0.95		%	2.15		%	1.01		%
(Loss) return on average tangible assets (1)	(0.68)			0.99			0.84			0.57			1.03
(Loss) return on average common stockholders’ equity	(9.84)			7.42			9.34			23.21			9.38
(Loss) return on average tangible common stockholders' equity (1)	(10.26)			14.01			12.38			8.17			14.60
Efficiency ratio (2)	67.86			56.15			48.82			57.47			40.72
Operating expenses to average assets	2.13			2.05			1.13			1.89			0.94
Interest rate spread	1.82			2.25			1.95			2.09			2.17
Net interest margin	2.82			3.27			2.28			2.99			2.35
Effective tax rate	30.21			22.68			7.02			1.33			21.36
Shares used for basic common EPS computation	722,424,143			722,486,509			537,754,255			713,643,550			483,603,395
Shares used for diluted common EPS computation	722,424,143			724,912,890			539,723,483			715,381,488			485,134,345
Common shares outstanding at the respective period-ends	722,066,370			722,485,257			681,217,334			722,066,370			681,217,334


Emerging growth company			☐


Item 2.02			Results of Operations and Financial Condition


Item 8.01			Other Events


Item 9.01			Financial Statements and Exhibits