Flagstar Bank, National Association (NYSE:FLG) Posts Earnings Results, Beats Estimates By $0.04 EPS

Flagstar Bank, National Association (NYSE:FLG) posted its quarterly earnings results on Friday. The company reported $0.06 EPS for the quarter, topping the consensus estimate of $0.02 by $0.04, FiscalAI reports. The company had revenue of $548.00 million for the quarter, compared to the consensus estimate of $533.00 million. Flagstar Bank, National Association had a negative net margin of 7.06% and a negative return on equity of 3.80%. The firm’s revenue was down 10.9% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.41) EPS.

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 Trading Down 2.4%

Shares of NYSE FLG opened at $13.22 on Friday. The company has a debt-to-equity ratio of 1.73, a current ratio of 1.02 and a quick ratio of 1.01. The stock has a market capitalization of $5.50 billion, a P/E ratio of -13.63, a price-to-earnings-growth ratio of 0.58 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 $12.79 and a 200 day moving average price of $12.14.

Analysts Set New Price Targets

A number of brokerages recently issued reports on FLG. UBS Group lowered their price target on Flagstar Bank, National Association from $13.00 to $11.50 and set a “neutral” rating for the company in a report on Wednesday, November 5th. Cantor Fitzgerald upped their target price on Flagstar Bank, National Association from $15.00 to $16.00 and gave the stock an “overweight” rating in a report on Friday, December 19th. JPMorgan Chase & Co. increased their price target on Flagstar Bank, National Association from $14.00 to $15.00 and gave the stock a “neutral” rating in a research report on Tuesday, December 16th. Weiss Ratings restated a “sell (d-)” rating on shares of Flagstar Bank, National Association in a report on Thursday, January 22nd. Finally, DA Davidson reaffirmed a “buy” rating and issued a $14.50 price objective on shares of Flagstar Bank, National Association in a research note on Thursday, November 13th. Five research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $14.32.

More Flagstar Bank, National Association News

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

• Positive Sentiment: Flagstar returned to profitability for Q4: adjusted net income of $0.06 per diluted share (net income $0.05 per diluted share) and an EPS beat vs. consensus, signaling a rebound from a year‑ago loss. FLAGSTAR BANK RETURNS TO PROFITABILITY – Press Release
• Positive Sentiment: Operational improvements: net interest margin rose ~23 bps QoQ (2.14% reported, 2.05% adjusted); provisions fell ~92%; non‑accrual loans declined and net charge‑offs improved — all signs of improving credit and margin dynamics. Q4 release – details on NIM and credit trends
• Positive Sentiment: Commercial & industrial (C&I) momentum: commitments +28% to $3.0B and originations +22% to $2.1B; total C&I loans rose QoQ — a growth area that could support future NII expansion. C&I lending growth details
• Positive Sentiment: Strategic expansion: Flagstar is expanding its wealth business with a new New York office and an AI focus, which could diversify fee revenue over time. Flagstar expands wealth push – Yahoo Finance
• Neutral Sentiment: Analyst stance: consensus analyst rating remains around “Hold,” indicating limited near‑term upward catalyst from street sentiment. Analyst consensus – American Banking News
• Negative Sentiment: Revenue and profitability caveats: total revenue was down ~10.9% YoY and the company still reported a negative net margin and negative ROE despite the EPS beat—these metrics may limit investor enthusiasm about sustainability. MarketBeat earnings summary

Hedge Funds Weigh In On Flagstar Bank, National Association

Large investors have recently added to or reduced their stakes in the company. Alliancebernstein L.P. boosted its holdings in shares of Flagstar Bank, National Association by 1,130.1% in the 2nd quarter. Alliancebernstein L.P. now owns 6,635,962 shares of the company’s stock valued at $70,341,000 after buying an additional 6,096,512 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in Flagstar Bank, National Association by 12.8% during the third quarter. Dimensional Fund Advisors LP now owns 5,846,016 shares of the company’s stock valued at $67,520,000 after acquiring an additional 661,749 shares during the last quarter. Goldman Sachs Group Inc. acquired a new stake in Flagstar Bank, National Association in the first quarter valued at approximately $21,022,000. Two Sigma Investments LP boosted its stake in Flagstar Bank, National Association by 132.5% in the third quarter. Two Sigma Investments LP now owns 1,699,958 shares of the company’s stock valued at $19,635,000 after acquiring an additional 968,854 shares in the last quarter. Finally, Balyasny Asset Management L.P. grew its holdings in Flagstar Bank, National Association by 156.6% in the second quarter. Balyasny Asset Management L.P. now owns 1,347,144 shares of the company’s stock worth $14,280,000 after purchasing an additional 822,162 shares during the last quarter. 67.88% of the stock is currently owned by institutional investors.

About Flagstar Bank, National Association

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.