Flagstar Bank, N.A. (NYSE: FLG) shares closed 1.59% lower at $13.31 on Friday, despite the company reporting a return to profitability for the fourth quarter of 2025. The regional lender’s stock movement contrasted with its financial results, which exceeded analyst expectations for both revenue and earnings. Intraday trading saw the stock reach a high of $13.83 before retreating to close with a market capitalization of $5.54 billion.
Market Capitalization
The company’s market capitalization stands at approximately $5.54 billion as of the market close on January 30, 2026.
Latest Quarterly Results
Flagstar Bank reported consolidated revenue of $557 million for the fourth quarter of 2025, an increase of 7% from the previous quarter but an 11% decline from $625 million in the same period last year. The company posted a GAAP net income of $21 million, a significant turnaround from the net loss of $196 million reported in the fourth quarter of 2024. Adjusted net income for the quarter was $30 million.
Segment Highlights:
- Commercial & Industrial (C&I): The bank achieved net loan growth of $343 million, a 2% increase sequentially. Total C&I commitments rose 28% year-over-year to $3 billion.
- Commercial Real Estate (CRE): Exposure to multi-family and CRE loans was reduced by $2.3 billion. The CRE concentration ratio improved to 381% from 405% in the prior quarter.
- Consumer Banking & Deposits: Total deposits were managed down to optimize costs, with a $7.8 billion reduction in brokered deposits year-to-date.
Financial Trends
Full Year Results Context
For the full year ended December 31, 2025, Flagstar reported a net loss of $210 million, narrowing significantly from the $1.15 billion net loss incurred in 2024. Annual revenue totaled $2.06 billion, reflecting a 19% contraction compared to the prior year. The results indicate a directional trend of stabilizing operations.
Business & Operations Update
Flagstar continued its strategic transformation, focusing on diversifying its loan portfolio. The bank reduced non-accrual loans by 8% sequentially to $3.0 billion. The provision for credit losses declined by 92% compared to the previous quarter. The bank’s Common Equity Tier 1 (CET1) capital ratio rose to 12.83%.
M&A or Strategic Moves
The company recorded $17 million in merger-related expenses during the quarter, associated with the integration of legacy systems. No new mergers or acquisitions were announced in the period.
Guidance & Outlook
Management projected 2026 adjusted EPS in the range of $0.65 to $0.70. Net interest margin is expected to expand to between 2.40% and 2.60%.
Performance Summary
Flagstar Bank delivered a profitable quarter. The stock closed down 1.59% despite sequential revenue growth. The reduction in CRE exposure signals a continued operational pivot.
