Bernard Von Gizycki's questions to FLAGSTAR FINANCIAL (FLG) leadership • Q2 2025
Question
Bernard Von Gizycki from Deutsche Bank asked if Flagstar is considering portfolio sales to reduce its rent-regulated multifamily exposure and inquired about any new reserve actions in Q2 related to the large borrower that filed for bankruptcy in Q1.
Answer
Senior Executive Vice President & CFO Lee Smith responded that for the performing portfolio, the bank is satisfied with the current strategy of securing par payoffs, but loan sales remain an option for non-accrual loans. He also confirmed that for the specific bankrupt borrower, an additional $18.8 million in charge-offs were taken in Q2 as new appraisals were received, with no new NIM reversal.