Flagstar Bank National Association

FLG

Market cap $5.09B

HICKSVILLE, N.Y. , Oct. 29, 2025 /PRNewswire/ -- Flagstar Bank, N.A.

FLG reports a Q3 loss as declines in net interest and fee income outweigh cost reductions and stronger capital.

Flagstar Bank had a $15.8 billion exposure to NYC multifamily properties as of the end of its fiscal 2025 third quarter. Rent-regulated properties formed over 50% of NYC multifamily properties. The bank faces possible near-term headwinds from a floated freeze on rents on rent-stabilized apartments across the five boroughs. CRE exposure is being diversified away into C&I loan growth as FLG chases profitability.

FLG posts a wider Q3 loss as lower net interest and fee income offset expense reductions and capital gains.

Flagstar Bank, National Association delivered a solid Q3 2025, with revenue exceeding forecasts and management executing a significant turnaround strategy. FLG is reducing commercial real estate exposure, cutting costs, and growing commercial and mortgage banking, leading to improved profitability and lower credit loss provisions. Despite ongoing asset quality concerns and negative returns, management projects a strong rebound in net interest margin and earnings per share over the next two years.

Flagstar Bank, National Association (NYSE:FLG ) Q3 2025 Earnings Call October 24, 2025 8:00 AM EDT Company Participants Salvatore DiMartino - First Senior VP & Director of Investor Relations Joseph Otting - President, CEO & Executive Chairman Lee Smith - Senior Executive VP & CFO Conference Call Participants Manan Gosalia - Morgan Stanley, Research Division David Rochester - Cantor Fitzgerald & Co., Research Division Ebrahim Poonawala - BofA Securities, Research Division Jared David Shaw - Barclays Bank PLC, Research Division Mark Fitzgibbon - Piper Sandler & Co., Research Division Bernard Von Gizycki - Deutsche Bank AG, Research Division David Chiaverini - Jefferies LLC, Research Division Christopher McGratty - Keefe, Bruyette, & Woods, Inc., Research Division Christopher Marinac - Janney Montgomery Scott LLC, Research Division Anthony Elian - JPMorgan Chase & Co, Research Division Matthew Breese - Stephens Inc., Research Division David Smith - Truist Securities, Inc., Research Division Jon Arfstrom - RBC Capital Markets, Research Division Presentation Operator Hello, and welcome to the Flagstar Bank NA Third Quarter 2025 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Sal DiMartino, Director of Investor Relations.

Although the revenue and EPS for Flagstar Bank (FLG) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Flagstar Bank (FLG) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to a loss of $0.69 per share a year ago.

C&I LOANS INCREASED $448 MILLION OR 3% FROM PRIOR QUARTER AS NEW LOAN ORIGINATIONS ROSE 41% OR $1.7 BILLION AND NEW COMMITMENTS GREW 26% OR $2.4 BILLION NET INTEREST MARGIN IMPROVES FOR A THIRD CONSECUTIVE QUARTER, UP 10 BASIS POINTS QUARTER-OVER-QUARTER TO 1.91% OPERATING EXPENSES REMAIN WELL CONTROLLED, UP 1% ON A GAAP BASIS AND DOWN 1% ON AN ADJUSTED BASIS COMPARED TO PRIOR QUARTER AND DOWN APPROXIMATELY 28% AND 30% ON A GAAP AND ADJUSTED BASIS, RESPECTIVELY, OR $800 MILLION ANNUALIZED COMPARED TO PRIOR YEAR CRE PAR PAYOFFS OF $1.3 BILLION INCLUDING 42% IN SUBSTANDARD LOANS FURTHER REDUCING OVERALL CRE EXPOSURE PROVISION FOR CREDIT LOSSES DECREASED 41% COMPARED TO PRIOR QUARTER AS CREDIT QUALITY SHOWING SIGNS OF STABILIZATION AND NET CHARGE-OFFS DECREASE 38% CAPITAL AT OR ABOVE PEER LEVELS AND LIQUIDITY POSITION REMAINS STRONG CLOSED HOLDING COMPANY REORGANIZATION ON OCTOBER 17 th WHICH WILL SIMPLIFY OUR CORPORATE STRUCTURE, REDUCE REGULATORY BURDEN, AND LOWER OPERATING EXPENSES   Third Quarter 2025 Summary Asset Quality Loans and Deposits Criticized/Classified loans declined $2.8 billion or 19% since December 31, 2024 CRE par pay-offs totaled $1.3 billion, comprised of 42% substandard loans Total ACL of $1,128 million or 1.80% of total loans HFI Multi-family ACL coverage of 1.83% Multi-family ACL coverage for rent-regulated units equal          to or greater than 50% of 3.05% NCOs decline $44 million or 38% compared to Q2'25; NCOs to average loans improves to 0.46% from 0.72% Non-accrual loans rose a modest $88 million or 3% compared to Q2'25  Continued momentum in C&I lending with overall portfolio growth of 3% vs. Q2'25 Strategic focus areas grew 28% compared to Q2'25 New commitments of $2.4 billion, up 26% vs.

HICKSVILLE, N.Y. , Oct. 17, 2025 /PRNewswire/ -- Flagstar Bank, N.A.