Flagstar Bank returned to profitability in Q4 2025, driven by improved net interest margin, strong expense management, and a significant reduction in provision for credit losses. The bank continues to strategically reduce its CRE exposure while growing its C&I lending platform.
Returned to profitability in Q4 2025 with net income attributable to common stockholders of $21 million ($0.05 per diluted share).
positiveNet interest margin (NIM) increased 23 basis points quarter-over-quarter to 2.14%, and 41 basis points year-over-year to 2.14%.
positiveProvision for credit losses decreased 92% quarter-over-quarter to $3 million and 98% year-over-year to $3 million.
positiveCommercial and Industrial (C&I) lending momentum continued with commitments up 28% to $3 billion and originations up 22% to $2.1 billion.
positiveCredit quality improved with non-accrual loans declining 8% quarter-over-quarter and net charge-offs improving to 0.30% of average loans.
positiveOperating expenses decreased 3% quarter-over-quarter and 26% year-over-year.
positiveTotal assets decreased 5% quarter-over-quarter to $87.5 billion and 13% year-over-year to $87.5 billion, driven by a strategy to reduce multi-family and CRE exposure.
attentionTotal loans and leases held for investment decreased 3% quarter-over-quarter to $60.7 billion and 11% year-over-year to $60.7 billion.
attentionTotal deposits decreased 5% quarter-over-quarter to $66.0 billion and 13% year-over-year to $66.0 billion.
attentionNon-interest income decreased 45% year-over-year to $90 million, primarily due to the sale of the mortgage servicing business.
attentionFull-year 2025 net loss attributable to common stockholders was $210 million ($0.50 per diluted share).
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Multi-family | N/A | — | — | — |
Commercial real estate | N/A | — | — | — |
One-to-four family first mortgage | N/A | — | — | — |
Commercial and industrial | N/A | — | — | — |
Other loans | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Returned to profitability in Q4 2025, a significant milestone in the Bank's turnaround.
Continued growth in the C&I portfolio, driven by strategic focus areas and experienced bankers.
Net interest margin expansion coupled with an increase in net interest income.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.