Flagstar Bank, National Association (NYSE:FLG) Announces Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Flagstar Bank, National Association (NYSE:FLG) announced its quarterly earnings results on Friday. The company reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.04, FiscalAI reports. Flagstar Bank, National Association had a negative net margin of 7.06% and a negative return on equity of 3.80%. The firm had revenue of $548.00 million during the quarter, compared to analysts’ expectations of $533.00 million. During the same period in the previous year, the company earned ($0.41) earnings per share. Flagstar Bank, National Association’s quarterly revenue was down 10.9% compared to the same quarter last year.

Here are the key takeaways from Flagstar Bank, National Association’s conference call:

• Flagstar returned to profitability in Q4 2025 with adjusted net income of $30 million and adjusted EPS of $0.06, driven by net interest income growth, NIM expansion, and disciplined expense control.
• Commercial & industrial (C&I) momentum accelerated — total commitments rose 28% to $3.0 billion and originations increased 22% to $2.1 billion, producing consecutive quarters of net C&I loan growth and management expects continued C&I-led balance sheet growth in 2026.
• The bank materially de-risked its CRE/multifamily exposure (Q4 payoffs and actions reduced balances by about $2.3 billion, and CRE balances are down ~$12.1 billion since 2023), lowering CRE concentration below 400 and improving credit metrics and reserve coverage.
• Capital and liquidity positions strengthened — CET1 rose roughly 400 basis points to 12.83% (? $2.1 billion pre?tax excess capital) and cash & securities now represent ~25% of assets after reducing brokered deposits by nearly $8 billion.
• Elevated CRE/multifamily payoffs and balance-sheet shrinkage drove a ~$100 million downward NII adjustment and management expects $3.5B–$5B of payoffs in 2026, which could pressure near?term net interest income and margin despite the long?term de?risking benefits.

Flagstar Bank, National Association Stock Performance

Shares of Flagstar Bank, National Association stock traded down $0.20 on Friday, reaching $13.35. 4,738,106 shares of the stock were exchanged, compared to its average volume of 4,957,218. The firm has a market capitalization of $5.55 billion, a PE ratio of -13.75, a PEG ratio of 0.55 and a beta of 1.09. Flagstar Bank, National Association has a 1-year low of $9.64 and a 1-year high of $13.85. The business has a fifty day moving average price of $12.75 and a two-hundred day moving average price of $12.12. The company has a current ratio of 1.02, a quick ratio of 1.01 and a debt-to-equity ratio of 1.73.

Hedge Funds Weigh In On Flagstar Bank, National Association

Several institutional investors and hedge funds have recently added to or reduced their stakes in FLG. Advisory Services Network LLC acquired a new stake in shares of Flagstar Bank, National Association in the 3rd quarter valued at approximately $35,000. Geneos Wealth Management Inc. purchased a new position in Flagstar Bank, National Association in the first quarter worth $45,000. Johnson Financial Group Inc. purchased a new position in Flagstar Bank, National Association in the third quarter worth $51,000. Strs Ohio acquired a new stake in Flagstar Bank, National Association in the first quarter valued at $102,000. Finally, Inceptionr LLC purchased a new stake in shares of Flagstar Bank, National Association during the 3rd quarter worth $118,000. Institutional investors and hedge funds own 67.88% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on FLG. Barclays raised their price target on Flagstar Bank, National Association from $14.00 to $15.00 and gave the stock an “overweight” rating in a research note on Friday, December 19th. DA Davidson reaffirmed a “buy” rating and issued a $14.50 target price on shares of Flagstar Bank, National Association in a report on Thursday, November 13th. Cantor Fitzgerald upped their price target on shares of Flagstar Bank, National Association from $15.00 to $16.00 and gave the company an “overweight” rating in a research report on Friday, December 19th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Flagstar Bank, National Association in a research note on Thursday, January 22nd. Finally, UBS Group dropped their price objective on shares of Flagstar Bank, National Association from $13.00 to $11.50 and set a “neutral” rating on the stock in a research note on Wednesday, November 5th. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Flagstar Bank, National Association has an average rating of “Hold” and an average price target of $14.32.

Key Headlines Impacting Flagstar Bank, National Association

Here are the key news stories impacting Flagstar Bank, National Association this week:

• Positive Sentiment: Returned to profitability with adjusted EPS of $0.06 (beat estimates) and revenue of $548M that topped consensus — the surprise drove optimism that core operations are stabilizing. FLAGSTAR BANK RETURNS TO PROFITABILITY IN FOURTH QUARTER 2025
• Positive Sentiment: Net interest margin improved (up ~23 bps QoQ) and cost of funds declined; provisions plunged and net charge-offs improved — easing credit costs support near-term earnings. FLAGSTAR BANK RETURNS TO PROFITABILITY IN FOURTH QUARTER 2025
• Positive Sentiment: Commercial & industrial (C&I) lending momentum: commitments up 28% and originations up 22% YoY with sequential C&I loan growth — a tangible growth driver. FLAGSTAR BANK RETURNS TO PROFITABILITY IN FOURTH QUARTER 2025
• Positive Sentiment: Strategic expansion into wealth management with a new New York office and an AI focus could diversify fee revenue and support long-term growth. Flagstar Bank Expands Wealth Push With New York Office And AI Focus
• Neutral Sentiment: Analysts maintain a consensus “Hold” rating — signals cautious investor expectations despite the quarter’s beat. Flagstar Bank Receives Consensus Rating of “Hold”
• Neutral Sentiment: Multiple previews and snapshots (WTOP, Seeking Alpha, Zacks) summarized the beat and provided context for the call and slides for investors doing deeper diligence. Flagstar Bank: Q4 Earnings Snapshot
• Negative Sentiment: Revenue is down ~10.9% YoY and the company still shows a negative return on equity and negative net margin — structural profitability issues remain and could limit multiple expansion. MarketBeat Q4 Earnings Summary
• Negative Sentiment: Street models still reflect near-term weakness (analysts forecast negative FY EPS), so the beat may be priced with caution until sustained profitability and top-line stabilization are visible. Flagstar Bank (FLG) Reports Q4 Earnings: What Key Metrics Have to Say

Flagstar Bank, National Association Company Profile

Flagstar Financial Corporation (NYSE: FLG) is a bank holding company whose principal subsidiary, Flagstar Bank, provides a range of financial services across the United States. Headquartered in Troy, Michigan, Flagstar combines commercial banking, mortgage lending and servicing, and deposit products to serve individuals, businesses and public entities. As a publicly traded company, Flagstar leverages its banking charter and national mortgage platform to deliver tailored financial solutions through both digital and branch channels.

The company’s mortgage business is one of the largest residential originators and servicers in the nation, offering retail, wholesale and correspondent lending channels.