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Jun 30, 2025
Flagstar Financial Q2 2025 Earnings Report
Flagstar Financial reported a narrowed net loss in Q2 2025 with improved credit quality and strong C&I lending momentum.
Key Takeaways
Flagstar Financial posted a Q2 2025 net loss of $78 million, an improvement from prior quarters, driven by stronger C&I loan growth, improved net interest margin, and disciplined cost management.
Net loss attributable to common stockholders was $78 million, or $0.19 per share
Adjusted net loss attributable to common stockholders was $60 million, or $0.14 per share
New C&I loan commitments increased 80% and originations rose 57% quarter-over-quarter
Adjusted operating expenses declined 5% quarter-over-quarter, showing disciplined expense management
Forward Guidance
Management expects to return to profitability in Q4 2025, with continued expense reductions and growth in C&I lending.
Positive Outlook
- Expected return to profitability in Q4 2025
- Continued reduction in CRE and multi-family exposure
- Improved credit quality with declining criticized assets
- Net interest margin expected to continue improving
- Hiring additional bankers to drive C&I loan growth
Challenges Ahead
- Still reporting quarterly net losses
- Ongoing exposure to multi-family non-performing loans
- Total deposits continue to decline due to reduced brokered CDs
- Net charge-offs remain elevated compared to pre-2024 levels
- Non-performing loans remain high at nearly 5% of total loans
Historical Earnings Impact
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Avg. Return Before/After Earnings
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