FLAGSTAR BANK, NATIONAL ASSOCIATION (FLG) Company Report

Flagstar turned profitable in Q4 2025 and ended the year with a balance sheet of $87.5 billion, with a target to reach $94 billion by the end of 2027.
The company aims for $6-$7.5 billion of net C&I loan growth in 2026, supported by onboarding over 300 mid-career professionals since June 2024 and plans to add another 40-60 commercial bankers.
Flagstar reduced $700 million of costs comparing full year 2025 to full year 2024, decreasing headcount from 9,200 to 5,500, and maintains a strong 12.8% CET1 capital.
The New York CRE book is expected to decline by $1 billion by the end of 2026, with a significant bankruptcy resolution anticipated before the end of Q1 2026.

Feb 10, 2026, 8:30 PM

Transcript

Flagstar Outlines Strategic Growth and Financial Turnaround at 2026 Conference

FLG

Guidance Update

Share Buyback

New Projects/Investments

Flagstar turned profitable in Q4 (implied Q4 2025) and has undertaken significant balance sheet restructuring, including paying down over $20 billion of wholesale borrowings and taking over $900 million of charge-offs in 2024 to re-underwrite its credit book.
The company aims to grow its balance sheet from $87.5 billion at the end of 2025 to $94 billion by the end of 2027, targeting a diversified mix of one-third each for Commercial Real Estate (CRE), Commercial & Industrial (C&I), and consumer loans.
Flagstar projects $6-$7.5 billion of net C&I loan growth in 2026 and plans to add 40-60 commercial and corporate bankers to support this expansion.
With a CET1 capital of 12.8% at year-end, Flagstar is considering share buybacks in the second half of 2026 if its stock continues to trade at a discount to book value, while prioritizing capital for balance sheet growth.
The company expects Net Interest Margin (NIM) expansion from resetting/maturing CRE loans, C&I loan growth, and further reductions in high-cost wholesale borrowings and non-accruals, alongside $700 million in cost reductions achieved between full year 2024 and 2025.

Feb 10, 2026, 8:30 PM

Transcript

Flagstar Bank discusses Q4 2025 profitability, balance sheet transformation, and 2026 growth outlook

FLG

Guidance Update

Hiring

Share Buyback

Flagstar Bank achieved profitability in Q4 2025 and has significantly transformed its balance sheet by deleveraging over $20 billion of wholesale borrowings and taking over $900 million of charge-offs in 2024.
The company implemented substantial cost reductions, achieving $700 million in savings from full year 2024 to full year 2025 and reducing headcount from 9,200 to 5,500.
Flagstar is focused on C&I growth, targeting $6-$7.5 billion of net C&I loan growth in 2026, supported by hiring over 300 professionals since June 2024 and plans to add another 40-60 commercial bankers.
The bank ended 2025 with $87.5 billion in assets and a 12.8% CET1 capital ratio, with a goal to reach $94 billion by the end of 2027 and expects 40-50 basis points of Net Interest Margin (NIM) expansion.
Management is considering share buybacks later in 2026 if the stock continues to trade at a discount to book value, following the resolution of a significant bankruptcy case expected by the end of Q1 2026.

Feb 10, 2026, 8:30 PM

Transcript

FLG Reports Q4 2025 Profitability and Provides 2026 EPS Guidance

FLG

Earnings

Guidance Update

Revenue Acceleration/Inflection

FLG returned to profitability in Q4 2025, reporting net income attributable to common stockholders of $0.05 per diluted share and an adjusted $0.06 per diluted share.
The company forecasts EPS for 2026 to be in the $0.65-$0.70 range and expects a full year of profitability driven by continued net interest income growth, margin expansion, and disciplined expense management.
Net Interest Margin (NIM) improved 23 basis points quarter-over-quarter to 2.14% (2.05% excluding a one-time benefit) in Q4 2025, with expectations for continued quarter-over-quarter improvement through 2026.
FLG achieved strong net C&I loan growth, up 2% on a linked quarter basis, while reducing overall CRE exposure by $2.3 billion and lowering its CRE concentration ratio below 400%.
The CET1 capital ratio increased to 12.83%, positioning FLG among the best-capitalized regional banks with over $2 billion in excess capital pre-tax relative to its target operating range.

Jan 30, 2026, 1:00 PM

Transcript

Flagstar Bank Reports Return to Profitability in Q4 2025 and Provides 2026-2027 EPS Guidance

FLG

Earnings

Guidance Update

Revenue Acceleration/Inflection

Flagstar Bank returned to profitability in Q4 2025, reporting adjusted net income of $30 million or $0.06 per diluted share, compared to a net loss in the previous quarter.
The bank achieved Net Interest Margin (NIM) expansion of 14 basis points quarter-over-quarter, reaching 2.05% excluding a one-time hedge gain.
Credit quality improved, with non-accrual loans declining $267 million (8%) to $3 billion and a $27 million (37%) decrease in net charge-offs compared to the previous quarter.
The CET1 capital ratio increased to 12.83%, positioning the bank among the best-capitalized regional banks.
For 2026, EPS is forecast to be in the $0.65-$0.70 range, and for 2027, it is expected to be in the $1.90-$2.00 range.

Jan 30, 2026, 1:00 PM

Transcript

Flagstar Bank Returns to Profitability in Q4 2025 and Provides Strong EPS Guidance

FLG

Earnings

Guidance Update

New Projects/Investments

Flagstar Bank returned to profitability in Q4 2025, reporting adjusted net income of $30 million or $0.06 per diluted share, a significant improvement from a net loss of $0.07 per diluted share in the previous quarter.
The bank provided an EPS forecast for 2026 in the range of $0.65-$0.70 and for 2027 in the range of $1.90-$2.00.
Credit quality metrics trended positively, with Criticized and Classified Loans decreasing $330 million quarter-over-quarter, Non-Accrual Loans down $267 million, and net charge-offs declining $27 million. The bank also reduced its CRE balances by $12.1 billion (25%) since year-end 2023.
Flagstar improved its Net Interest Margin (NIM) by 14 basis points quarter-over-quarter to 2.05% (excluding a one-time benefit) and reduced funding costs by paying off $1.7 billion in brokered deposits and $1 billion in FHLB advances. The CET1 capital ratio stood at a strong 12.83%, representing over $2.1 billion in excess capital.

Jan 30, 2026, 1:00 PM

Transcript

FLAGSTAR BANK, NATIONAL ASSOCIATION Reports Return to Profitability in Q4 2025 and Provides Strong 2026-2027 EPS Guidance

FLG

Earnings

Guidance Update

Revenue Acceleration/Inflection

FLAGSTAR BANK, NATIONAL ASSOCIATION (FLG) returned to profitability in Q4 2025, reporting an adjusted diluted EPS of $0.06.
The company provided a positive outlook, forecasting adjusted diluted EPS of $0.65 - $0.70 for 2026 and $1.90 - $2.00 for 2027.
Credit quality significantly improved, with criticized and classified loans decreasing $2.9 billion (19%) compared to December 31, 2024, and the net charge-off ratio declining to 30 basis points in Q4 2025.
FLG proactively managed its Commercial Real Estate (CRE) portfolio, reducing the CRE concentration ratio to 381% from 405% in the prior quarter, and achieving $1.8 billion in multi-family and CRE par payoffs.
The CET1 ratio strengthened to 12.83% at December 31, 2025, and adjusted operating expenses were reduced by almost $700 million (26%) through operational efficiencies.

Jan 30, 2026, 11:02 AM

8-K

Flagstar Bank Reports Return to Profitability in Q4 2025

FLG

Earnings

Revenue Acceleration/Inflection

Flagstar Bank returned to profitability in Fourth Quarter 2025, reporting net income attributable to common stockholders of $21 million or $0.05 per diluted share, and adjusted net income attributable to common stockholders of $30 million or $0.06 per diluted share.
The Net Interest Margin (NIM) increased by 23 basis points quarter-over-quarter to 2.14%, with the adjusted NIM rising 14 basis points to 2.05%.
C&I lending showed strong momentum, with commitments up 28% to $3 billion and originations up 22% to $2.1 billion compared to the prior quarter, leading to a 2% increase in total C&I loans.
The Bank demonstrated strong expense management, with operating expenses down 3% quarter-over-quarter and 26% for the full-year 2025.
Credit quality improved as non-accrual loans declined 8% compared to the prior quarter, provision for credit losses declined 92%, and the CRE concentration ratio improved to 381% from 405%.

Jan 30, 2026, 11:01 AM

8-K

Flagstar Bank Reports Return to Profitability in Q4 2025

FLG

Earnings

New Projects/Investments

Guidance Update

Flagstar Bank returned to profitability in Q4 2025, reporting net income attributable to common stockholders of $21 million, or $0.05 per diluted share, compared to a net loss of $45 million, or $0.11 per diluted share, in Q3 2025. Adjusted net income attributable to common stockholders was $30 million, or $0.06 per diluted share.
The bank demonstrated improved credit quality, with non-accrual loans declining 8% and net charge-offs improving to 0.30% of average loans in Q4 2025. The provision for credit losses also decreased 92% quarter-over-quarter.
Net Interest Margin (NIM), excluding hedge gains, expanded by 14 basis points to 2.05% quarter-over-quarter, and operating expenses decreased 3% compared to the prior quarter.
Total Commercial & Industrial (C&I) loans grew 2% quarter-over-quarter to $15.2 billion, driven by a 28% increase in commitments to $3 billion and a 22% increase in originations to $2.1 billion.
The bank continued to reduce its Commercial Real Estate (CRE) exposure, with the CRE concentration ratio improving to 381% from 405% in Q3 2025. Total assets stood at $87.5 billion and total deposits at $66.0 billion as of December 31, 2025.

Jan 30, 2026, 11:00 AM

Press Release

Flagstar Bank N.A. Reports Narrowed Q3 2025 Net Loss and Strong C&I Loan Growth

FLG

Earnings

Guidance Update

Revenue Acceleration/Inflection

Flagstar Bank N.A. reported an adjusted net loss of $0.07 per diluted share for Q3 2025, which significantly narrowed compared to the second quarter.
The company achieved strong C&I business performance, with $1.7 billion in new loan originations and $448 million in net loan growth in the C&I portfolio during Q3 2025.
Net interest margin expanded for the third consecutive quarter, increasing 10 basis points to 1.91%, while operating expenses were reduced by $800 million on an annualized basis year-over-year.
Credit quality improved, with criticized and classified assets declining $600 million or 5% on a linked-quarter basis and $2.8 billion or 20% year-to-date.
Flagstar Financial updated its 2025 adjusted diluted EPS forecast to a range of minus $0.36 to minus $0.41 per diluted share and expects the balance sheet to grow from a Q4 2025 low of $90-$91 billion to $108-$109 billion by the end of 2027.

Oct 24, 2025, 12:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for FLAGSTAR BANK, NATIONAL ASSOCIATION.

Q4 2025

Jan 30, 2026

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Q3 2025

Oct 24, 2025

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FLAGSTAR BANK, NATIONAL ASSOCIATION (FLG)

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