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Flagstar Financial, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a net loss of $280 million for the third quarter of 2024, compared to a net loss of $323 million for the second quarter of 2024. The net loss attributable to common stockholders was $289 million, or $0.79 per diluted share.
Total assets increased slightly to $114.4 billion as of September 30, 2024, from $114.1 billion at the end of 2023. This was driven by an increase in cash and cash equivalents, offset by a reduction in loans held for investment.
Total loans and leases held for investment decreased to $71.1 billion, primarily due to the sale of the warehouse lending portfolio and reductions in commercial and industrial loans.
The company reported a provision for credit losses of $242 million in the third quarter of 2024, down from $390 million in the second quarter. Net charge-offs totaled $240 million, compared to $349 million in the previous quarter.
Non-interest income for the third quarter was $113 million, a slight decrease from $114 million in the second quarter. The decline was primarily due to a decrease in net gain on loan sales and securitizations.
Non-interest expenses increased to $716 million in the third quarter, up from $705 million in the second quarter, driven by an increase in FDIC insurance expenses.
The company reported an income tax benefit of $55 million for the third quarter, compared to a benefit of $101 million in the second quarter, with an effective tax rate of 16.34 percent.
Flagstar's net interest margin for the third quarter was 1.79 percent, down from 1.98 percent in the previous quarter, affected by an increase in the average cost of interest-bearing deposits.
The company completed the sale of its warehouse lending portfolio in the third quarter, providing significant liquidity and allowing for the repayment of wholesale borrowings.
Flagstar anticipates further capital ratio improvements following the sale of its mortgage servicing and origination activities, which was completed on October 31, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Flagstar Financial Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.