Flagstar Financial Inc
NYSE:FLG
Flagstar Financial Inc
Flagstar Financial Inc is a US-based company operating in Banks industry. The company is headquartered in Hicksville, New York and currently employs 8,766 full-time employees. Flagstar Financial, Inc. is the parent company of Flagstar Bank, N.A. (the Bank), one of the regional banks in the country. Flagstar Bank, N.A. operates over 400 branches, including a significant presence in the Northeast and Midwest and locations in high growth markets in the Southeast and West Coast. In addition, the Bank has approximately 90 private banking teams located in over 10 cities in the metropolitan New York City region and on the West Coast, which serve the needs of high-net worth individuals and their businesses.
Flagstar Financial Inc is a US-based company operating in Banks industry. The company is headquartered in Hicksville, New York and currently employs 8,766 full-time employees. Flagstar Financial, Inc. is the parent company of Flagstar Bank, N.A. (the Bank), one of the regional banks in the country. Flagstar Bank, N.A. operates over 400 branches, including a significant presence in the Northeast and Midwest and locations in high growth markets in the Southeast and West Coast. In addition, the Bank has approximately 90 private banking teams located in over 10 cities in the metropolitan New York City region and on the West Coast, which serve the needs of high-net worth individuals and their businesses.
Return to Profitability: Flagstar Bank reported a return to profitability in Q4 2025, with adjusted net income of $30 million ($0.06 per share), compared to a loss in the previous quarter.
Net Interest Margin: Net interest margin expanded 23 bps QoQ to 2.14% including a onetime hedge gain; excluding the gain, NIM was 2.05%, up 14 bps QoQ.
CRE Exposure Reduced: The bank reduced its multifamily and CRE loans by $2.3 billion in Q4 and $12.1 billion (25%) since year-end 2023, lowering its CRE concentration ratio to 381%.
Credit Quality Improved: Nonaccrual loans fell by $267 million QoQ to $3 billion, net charge-offs dropped 37% QoQ, and criticized/classified loans were down $330 million.
Balance Sheet Strength: CET1 capital ratio rose to 12.83%, with the bank holding $2.1 billion in excess capital pretax, among the highest of regional peers.
Expense Control: Core operating expenses declined about $700 million YoY, with more cost savings projected for 2026.
C&I Growth: Strong C&I loan growth continued, with total commitments up 28% and originations up 22% sequentially.
2026 Guidance: The bank expects continued profitability, NIM expansion, further CRE reduction, and positive operating leverage in 2026, though NII guidance was trimmed due to higher-than-expected payoffs.
