Flagstar posts smaller loss as loan loss provisions shrink (updated)

Dennys

30/01/2025 11:07

(Adds provision figure in paragraph 5)
       Jan 30 (Reuters) - Flagstar Financial  FLG.N , formerly
known as New York Community Bancorp, reported a smaller
fourth-quarter loss on Thursday, as it lowered its provisions
for potential loan defaults.
    Its net loss was $168 million, or 41 cents per share, for
the three months ended Dec. 31, compared with $2.7 billion, or
$11.27 per share, a year ago.
    The results come nearly a year after worries about its
exposure to commercial real estate (CRE) loans sent its stock
into a tailspin.
    Following a period of frenzied selloff, the lender has
regained stability under the new management headed by CEO Joseph
Otting, who has been scaling back from CRE and attempting to
diversify its portfolio of loans.
     Provision for credit losses was $108 million in the fourth
quarter, compared with $552 million a year earlier. 

 (Reporting by Niket Nishant and Manya Saini in Bengaluru;
Editing by Arun Koyyur)
 ((Niket.Nishant@thomsonreuters.com;))