NYCB News & Events

Reports Q3 Net charge-offs totaled $240M, compared to $349M for Q2 and $24M last year. Chairman, President, and CEO, Joseph M. Otting stated, "During the Q3, we made significant progress on each of our strategic priorities, as we continue to transition into a diversified regional bank. The first of which is our funding mix. We had a second consecutive quarter of strong deposit growth, especially in the Private Bank, where we are seeing many customers returning to Flagstar and we are winning new relationships. Also, we utilized a portion of our liquidity from deposit growth and previously announced business transaction, to pay down a significant amount of wholesale borrowings. Wholesale borrowings declined nearly $9 billion or 31% to $19B, while deposits increased $4B or 5% to $83B. This positive shift in our overall funding mix will help reduce our overall funding costs.

Flagstar Bank, a subsidiary of New York Community Bancorp, announced a workforce reduction as part of its strategic transformation plan, consistent with the business strategy outlined previously, and aimed at further integrating its three legacy banks that were united through acquisitions. Commenting on the reduction, Joseph Otting, Chairman, President and CEO stated, "We want to express our appreciation for our employees' contributions. Their hard work and dedication have been greatly appreciated, and we approached this decision with empathy and compassion for everyone affected. Approximately 700 employees, or 8%, across the Bank's footprint, were impacted by the workforce reduction. In addition, the Bank anticipates finalizing the previously announced sale of its Mortgage Servicing and Third-Party Origination business to Mr. Cooper in the fourth quarter of 2024. This transaction will result in a further reduction of approximately 1,200 employees, the majority of whom will be offered the opportunity to transfer to the buyer, facilitating a smooth transition and ensuring continued employment.