Flagstar Bank Q4 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy FLG?
Source: seekingalpha
- Earnings Performance: Flagstar Bank reported a Q4 GAAP EPS of $0.05, beating expectations by $0.03, demonstrating resilience in profitability despite a 10.9% year-over-year revenue decline.
- Revenue and Capital Position: The bank's revenue reached $557 million, exceeding estimates by $25.53 million, while the CET1 capital ratio improved to 12.83%, indicating strong capital adequacy compared to peers and boosting market confidence.
- Operational Efficiency Improvement: Adjusted PPNR surged to $60 million from $15 million in Q3, reflecting significant enhancements in cost control and revenue generation, driving approximately 900 basis points of positive operating leverage.
- Net Interest Margin Increase: The net interest margin, excluding hedge gains, rose by 14 basis points to 2.05% compared to Q3, although net interest income decreased by 2% year-over-year to $509 million, indicating potential for improved profitability.
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Analyst Views on FLG
Wall Street analysts forecast FLG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FLG is 14.30 USD with a low forecast of 13.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 13.910
Low
13.00
Averages
14.30
High
16.00
Current: 13.910
Low
13.00
Averages
14.30
High
16.00
About FLG
Flagstar Bank, National Association (the Bank) is a regional bank. The Bank operates over 360 locations across nine states, in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in Florida and the West Coast markets. Its private banking includes personal private banking, residential lending, financial planning, investment management, insurance solutions, and business credit and lending. Its services also include personal banking, small business, and corporate and commercial banking. Its treasury management services include cash flow optimization, payables and fraud, and receivables management. Its banking services include working capital solutions, asset-based lending, expansion, merger and acquisition, syndications, capital markets, interest rate risk management, foreign exchange, and global trade services. Its Flagstar Corporate Connect provides small business and commercial banking online treasury management services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Flagstar Bank Preferred Stock Dividend History
- Preferred Stock Performance: Flagstar Bank's 6.375% Fixed-to-Floating Rate Series A Noncumulative Perpetual Preferred Stock (Symbol: FLG.PRA) is down approximately 0.4% in Tuesday trading, indicating a cautious market sentiment towards this preferred stock.
- Common Stock Movement: In contrast, Flagstar Bank's common shares (Symbol: FLG) are up about 1.4%, suggesting stronger investor confidence in the common stock, which may reflect a more optimistic outlook on the company's overall performance.
- Dividend History: The dividend history of this preferred stock shows a stable payment record, and despite current price fluctuations, its 6.375% yield continues to attract income-seeking investors.
- Market Perspectives: The views and opinions expressed in the article do not necessarily reflect those of Nasdaq, Inc., highlighting the diversity and subjectivity of market analysis.
See More
Flagstar Bank to Participate in 2026 Financial Services Conference
- Conference Participation: Flagstar Bank will participate in the Bank of America Securities 2026 Financial Services Conference on February 10, 2026, in Miami, where CFO Lee Smith and President of Commercial and Private Banking Richard Raffetto will engage in a fireside chat, highlighting the company's strategic direction and market positioning.
- Webcast and Replay: The conference will feature a live webcast available on the company's website, with a replay accessible within 24 hours post-presentation, and archived until 5:00 PM on March 10, 2026, ensuring investors can access relevant information at their convenience.
- Bank Size and Assets: As of December 31, 2025, Flagstar Bank reported total assets of $87.5 billion, loans of $61.0 billion, deposits of $66.0 billion, and total stockholders' equity of $8.1 billion, reflecting its robust financial position as one of the largest regional banks in the U.S.
- Market Coverage and Presence: Flagstar Bank operates approximately 340 locations across the U.S., with a strong presence in the greater New York/New Jersey metropolitan area and the upper Midwest, as well as significant operations in rapidly growing markets in Florida and the West Coast, showcasing its competitive strength and expansion potential.
See More
Flagstar Bank to Participate in 2026 Financial Services Conference
- Conference Participation: Flagstar Bank will participate in the Bank of America Securities 2026 Financial Services Conference on February 10, 2026, in Miami, showcasing its influence in the financial services sector and likely attracting investor interest.
- Executive Speakers: CFO Lee Smith and President of Commercial and Private Banking Richard Raffetto are scheduled for a fireside chat at 3:30 PM ET, sharing the bank's strategies and future outlook, thereby enhancing engagement with investors.
- Webcast Availability: The presentation will be available via a simultaneous webcast on Flagstar Bank's website, allowing investors who cannot attend in person to access real-time information, thus improving transparency and participation.
- Asset Overview: As of December 31, 2025, Flagstar Bank reported total assets of $87.5 billion, loans of $61.0 billion, and deposits of $66.0 billion, demonstrating its strong position and market presence among regional banks.
See More
Flagstar Bank Returns to Profitability in Q4 2025
- Return to Profitability: Flagstar Bank reported an adjusted net income of $30 million or $0.06 per diluted share in Q4 2025, a significant turnaround from a net loss of $0.07 per diluted share in the previous quarter, marking a major milestone that boosts investor confidence.
- Net Interest Income Growth: Management highlighted that growth in net interest income and net interest margin expansion were key performance drivers, with NIM increasing by 23 basis points to 2.14%, laying a solid foundation for future profitability.
- Loan Portfolio Optimization: The bank achieved a 2% quarter-over-quarter growth in C&I loans, approximately 9% annualized, while reducing multifamily and CRE loans by $2.3 billion, lowering the CRE concentration ratio below 400%, demonstrating effective risk management.
- Positive Future Outlook: Management expects EPS guidance for 2026 to range between $0.65 and $0.70, and $1.90 to $2 for 2027, indicating confidence in future profitability while continuing to focus on expense reduction and loan portfolio optimization.
See More
Flagstar Bank Reports First Profitable Quarter in Two Years
- Return to Profitability: Flagstar Bank achieved profitability in Q4 2025 with an adjusted EPS of $0.06, exceeding the analyst estimate of $0.02, marking a significant milestone in the bank's turnaround and indicating expected continued positive operating leverage into 2026.
- Net Interest Income Growth: The bank reported net interest income of $467 million in Q4, a 10% increase quarter-over-quarter, surpassing the Visible Alpha estimate of $454.2 million, demonstrating positive trends in net interest margin expansion and income growth.
- Effective Expense Management: Adjusted operating expenses were $462 million, up 1% sequentially but down 17% year-over-year, indicating significant progress in cost control, which is crucial for enhancing overall profitability.
- Decline in Credit Loss Provisions: Provisions for credit losses fell to $3 million in Q4, down from $38 million in Q3 and $145 million in Q4 2024, reflecting improvements in credit quality and effective risk management practices.
See More
Flagstar Bank Returns to Profitability in Q4 2025
- Return to Profitability: Flagstar Bank reported a net income of $29 million in Q4 2025, a significant turnaround from a net loss of $36 million in Q3 2025 and a net loss of $188 million in Q4 2024, indicating a recovery in profitability that is expected to boost investor confidence.
- Loan Growth: The bank's commercial and industrial (C&I) loans grew by $1.5 billion in Q4, achieving an annualized growth rate of 31%, which suggests an expanding market share in key sectors and potential for increased revenue streams in the future.
- Net Interest Margin Improvement: The net interest margin rose to 2.14% in Q4, up 23 basis points from Q3, reflecting the bank's success in reducing funding costs and optimizing asset allocation, which is expected to enhance future profitability.
- Cost Control: Operating expenses decreased by 29% year-over-year to $509 million in Q4, demonstrating effective cost management strategies that will contribute to improved overall financial health moving forward.
See More
Analysis of Flagstar Bank Preferred Stock Dividend History
- Preferred Stock Performance: Flagstar Bank's 6.375% Fixed-to-Floating Rate Series A Noncumulative Perpetual Preferred Stock (Symbol: FLG.PRA) is down approximately 0.4% in Tuesday trading, indicating a cautious market sentiment towards this preferred stock.
- Common Stock Movement: In contrast, Flagstar Bank's common shares (Symbol: FLG) are up about 1.4%, suggesting stronger investor confidence in the common stock, which may reflect a more optimistic outlook on the company's overall performance.
- Dividend History: The dividend history of this preferred stock shows a stable payment record, and despite current price fluctuations, its 6.375% yield continues to attract income-seeking investors.
- Market Perspectives: The views and opinions expressed in the article do not necessarily reflect those of Nasdaq, Inc., highlighting the diversity and subjectivity of market analysis.
See More
Flagstar Bank to Participate in 2026 Financial Services Conference
- Conference Participation: Flagstar Bank will participate in the Bank of America Securities 2026 Financial Services Conference on February 10, 2026, in Miami, where CFO Lee Smith and President of Commercial and Private Banking Richard Raffetto will engage in a fireside chat, highlighting the company's strategic direction and market positioning.
- Webcast and Replay: The conference will feature a live webcast available on the company's website, with a replay accessible within 24 hours post-presentation, and archived until 5:00 PM on March 10, 2026, ensuring investors can access relevant information at their convenience.
- Bank Size and Assets: As of December 31, 2025, Flagstar Bank reported total assets of $87.5 billion, loans of $61.0 billion, deposits of $66.0 billion, and total stockholders' equity of $8.1 billion, reflecting its robust financial position as one of the largest regional banks in the U.S.
- Market Coverage and Presence: Flagstar Bank operates approximately 340 locations across the U.S., with a strong presence in the greater New York/New Jersey metropolitan area and the upper Midwest, as well as significant operations in rapidly growing markets in Florida and the West Coast, showcasing its competitive strength and expansion potential.
See More
Flagstar Bank to Participate in 2026 Financial Services Conference
- Conference Participation: Flagstar Bank will participate in the Bank of America Securities 2026 Financial Services Conference on February 10, 2026, in Miami, showcasing its influence in the financial services sector and likely attracting investor interest.
- Executive Speakers: CFO Lee Smith and President of Commercial and Private Banking Richard Raffetto are scheduled for a fireside chat at 3:30 PM ET, sharing the bank's strategies and future outlook, thereby enhancing engagement with investors.
- Webcast Availability: The presentation will be available via a simultaneous webcast on Flagstar Bank's website, allowing investors who cannot attend in person to access real-time information, thus improving transparency and participation.
- Asset Overview: As of December 31, 2025, Flagstar Bank reported total assets of $87.5 billion, loans of $61.0 billion, and deposits of $66.0 billion, demonstrating its strong position and market presence among regional banks.
See More
Flagstar Bank Returns to Profitability in Q4 2025
- Return to Profitability: Flagstar Bank reported an adjusted net income of $30 million or $0.06 per diluted share in Q4 2025, a significant turnaround from a net loss of $0.07 per diluted share in the previous quarter, marking a major milestone that boosts investor confidence.
- Net Interest Income Growth: Management highlighted that growth in net interest income and net interest margin expansion were key performance drivers, with NIM increasing by 23 basis points to 2.14%, laying a solid foundation for future profitability.
- Loan Portfolio Optimization: The bank achieved a 2% quarter-over-quarter growth in C&I loans, approximately 9% annualized, while reducing multifamily and CRE loans by $2.3 billion, lowering the CRE concentration ratio below 400%, demonstrating effective risk management.
- Positive Future Outlook: Management expects EPS guidance for 2026 to range between $0.65 and $0.70, and $1.90 to $2 for 2027, indicating confidence in future profitability while continuing to focus on expense reduction and loan portfolio optimization.
See More
Flagstar Bank Reports First Profitable Quarter in Two Years
- Return to Profitability: Flagstar Bank achieved profitability in Q4 2025 with an adjusted EPS of $0.06, exceeding the analyst estimate of $0.02, marking a significant milestone in the bank's turnaround and indicating expected continued positive operating leverage into 2026.
- Net Interest Income Growth: The bank reported net interest income of $467 million in Q4, a 10% increase quarter-over-quarter, surpassing the Visible Alpha estimate of $454.2 million, demonstrating positive trends in net interest margin expansion and income growth.
- Effective Expense Management: Adjusted operating expenses were $462 million, up 1% sequentially but down 17% year-over-year, indicating significant progress in cost control, which is crucial for enhancing overall profitability.
- Decline in Credit Loss Provisions: Provisions for credit losses fell to $3 million in Q4, down from $38 million in Q3 and $145 million in Q4 2024, reflecting improvements in credit quality and effective risk management practices.
See More
Flagstar Bank Returns to Profitability in Q4 2025
- Return to Profitability: Flagstar Bank reported a net income of $29 million in Q4 2025, a significant turnaround from a net loss of $36 million in Q3 2025 and a net loss of $188 million in Q4 2024, indicating a recovery in profitability that is expected to boost investor confidence.
- Loan Growth: The bank's commercial and industrial (C&I) loans grew by $1.5 billion in Q4, achieving an annualized growth rate of 31%, which suggests an expanding market share in key sectors and potential for increased revenue streams in the future.
- Net Interest Margin Improvement: The net interest margin rose to 2.14% in Q4, up 23 basis points from Q3, reflecting the bank's success in reducing funding costs and optimizing asset allocation, which is expected to enhance future profitability.
- Cost Control: Operating expenses decreased by 29% year-over-year to $509 million in Q4, demonstrating effective cost management strategies that will contribute to improved overall financial health moving forward.
See More
