--- title: "Flagstar Financial | 10-K: FY2025 Revenue: USD 4.807 B" type: "news" locale: "en" url: "https://longbridge.com/en/news/277254471.md" published_at: "2026-02-27T22:08:43.000Z" --- # Flagstar Financial | 10-K: FY2025 Revenue: USD 4.807 B Revenue: As of FY2025, the actual value is USD 4.807 B. EPS: As of FY2025, the actual value is USD -0.5, beating the estimate of USD -0.5277. EBIT: As of FY2025, the actual value is USD -1.735 B. Flagstar Bank, National Association operates as a single reportable segment, focusing on a strategic transformation plan to become a fully diversified bank with a strong balance sheet, robust capital position, and consistent earnings power. #### Net Income For the year ended December 31, 2025, Flagstar Bank, National Association reported a net loss of - $177 million, which was an improvement from the - $1.1 billion net loss in 2024. The net loss attributable to common stockholders for 2025 was - $210 million, or - $0.50 per diluted share, compared to - $1.2 billion, or - $3.49 per diluted share, in 2024. #### Net Interest Income (NII) and Net Interest Margin (NIM) Net interest income for the year ended December 31, 2025, decreased by - $431 million compared to 2024. The net interest margin decreased by 6 basis points in 2025 to 1.89%, from 1.95% in 2024. The average yield on total interest-earning assets was 4.91% in 2025, down from 5.38% in 2024, while the average cost of total interest-bearing liabilities was 3.80% in 2025, down from 4.40% in 2024. #### Provision for Credit Losses The provision for credit losses decreased by - $908 million, or -83%, to $184 million in 2025 from $1,092 million in 2024, primarily due to credit trend normalization and stabilized Allowance for Credit Losses (ACL). #### Non-Interest Income Total non-interest income decreased by - $59 million, or -15%, to $341 million in 2025 compared to $400 million in 2024. This decrease was mainly due to the non-recurrence of a $92 million gain on the sale of Mortgage Operations in 2024, lower net return on mortgage servicing rights, reduced fee income, and lower net gain on loan sales and securitizations. These declines were partially offset by the non-recurrence of a - $121 million reduction in the Signature Transaction bargain purchase gain in 2024, - $23 million in selling costs from the mortgage warehouse business sale in 2024, and a $30 million gain on investment in Figure Technology Solutions, Inc. in 2025. #### Non-Interest Expense Total non-interest expenses decreased by - $762 million, or -27%, to $2,076 million in 2025 from $2,838 million in 2024. This was primarily driven by lower compensation and benefits costs (- $287 million), a decrease in general and administrative expenses (- $206 million), and reduced FDIC insurance costs (- $144 million). #### Income Tax Expense The income tax benefit for 2025 decreased by - $239 million compared to 2024, resulting in a benefit of - $21 million. The effective tax rate was 10.6% in 2025, compared to 18.9% in 2024. #### Loans and Leases Total loans and leases held for investment decreased by - $7.5 billion to $60.7 billion at December 31, 2025, from $68.3 billion at December 31, 2024. This reduction aligns with the strategy to diversify the loan portfolio. **Multi-family loans:** Decreased by - $5.1 billion to $29.0 billion at December 31, 2025. **Commercial Real Estate (CRE) loans:** Decreased by - $2.5 billion to $9.3 billion at December 31, 2025. **Commercial and Industrial (C&I) loans:** Decreased by - $159 million to $15.2 billion at December 31, 2025. **One-to-Four Family loans:** Increased by $429 million to $5.6 billion at December 31, 2025. **Loans Held for Sale:** Decreased by - $634 million to $265 million at December 31, 2025. #### Allowance for Credit Losses (ACL) The ACL on loans and leases decreased by - $171 million to $1,030 million at December 31, 2025, from $1,201 million at December 31, 2024. #### Non-Accrual Loans Total non-accrual loans increased by $360 million to $2,975 million at December 31, 2025, compared to $2,615 million at December 31, 2024, primarily due to a $566 million classification of multi-family loans as non-accrual during Q1 2025. #### Delinquencies Loans 30 to 89 days past due totaled $986 million at December 31, 2025, a slight increase of $21 million from $965 million at December 31, 2024. #### Net Charge-offs Net charge-offs decreased to $351 million in 2025 (0.55% of average loans) from $892 million in 2024 (1.16% of average loans). #### Securities Debt securities available-for-sale increased by $5.3 billion to $15.7 billion at December 31, 2025, from $10.4 billion at December 31, 2024. The estimated weighted average life of these securities was 5 years in 2025, down from 6 years in 2024. #### Deposits Total deposits decreased by - $9.9 billion to $66.0 billion at December 31, 2025, from $75.9 billion at December 31, 2024, primarily due to the payoff of brokered certificates of deposit and a reduction in custodial deposits. #### Borrowed Funds Total borrowed funds decreased by - $2.2 billion to $12.2 billion at December 31, 2025, from $14.4 billion at December 31, 2024, largely due to FHLB advance repayments. These actions reduced the weighted-average interest rate on total borrowings from 4.88% to 4.33% at December 31, 2025. #### Regulatory Capital As of December 31, 2025, Flagstar Bank, National Association’s capital measures exceeded minimum federal requirements, with a Common Equity Tier 1 ratio of 12.83%, Tier 1 capital ratio of 13.66%, Total risk-based capital ratio of 16.23%, and Leverage Capital ratio of 9.22%. The Bank was categorized as “Well Capitalized” at December 31, 2025. #### Outlook / Guidance Flagstar Bank, National Association is executing a strategic transformation to become a diversified bank with a strong balance sheet, robust capital, and consistent earnings power. Measurable progress has been made, including reducing non-core assets, improving funding mix, enhancing liquidity, and achieving profitability in the last quarter of 2025. Continued successful execution is expected to drive sustainable earnings and long-term shareholder value. ### Related Stocks - [FLG.US - Flagstar Financial](https://longbridge.com/en/quote/FLG.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | What Analysts Are Saying About Flagstar Bank Stock | In the latest quarter, 9 analysts rated Flagstar Bank (NYSE:FLG) with mixed perspectives. 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