we discuss ideas like this as they happen in more detail. All active investors are welcome to join on a free trial and ask any question in our chat room full of sophisticated traders and investors.The purpose of this article is to search for an investment opportunity in Flagstar Financial, Inc. (NYSE: FLG ), Flagstar Financial, Inc. 6.375% Dep Shares Fix/Float Non-Cumul Ser A Prfd Stk (NYSE: FLG.PR.A ), and New YorkAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-31565 Flagstar Financial, Inc. (Exact name of registrant as specified in its charter) | Delaware | | 06-1377322 | | --- | --- | --- | | (State or other jurisdicti ...

Key Takeaways Flagstar Financial posted a Q2 loss per share of 14 cents, exceeding the expected loss of 12 cents.Revenue fell 26% year over year to $496M, driven by declines in NII and non-interest income.Total loans and deposits dropped sequentially; capital ratios showed year-over-year improvement.Flagstar Financial, Inc. (FLG) reported a second-quarter 2025 loss per share of 14 cents, wider than the Zacks Consensus Estimate of a loss of 12 cents. It had incurred a loss of $1.05 in the year-ago quarter.Re ...

Financial Data and Key Metrics Changes - The CET1 capital ratio increased to 12.3%, ranking among the highest relative to peer groups [9][19][31] - Adjusted pre-provision, pre-tax net revenue was positive $9 million, an improvement of $32 million from the previous quarter [19][28] - The net loss per diluted share narrowed to $0.19, with an adjusted loss of $0.14 compared to $0.23 in the first quarter [27][28] Business Line Data and Key Metrics Changes - New commitments in the C and I business increased by 80% to $1.9 billion, while originations rose almost 60% to $1.2 billion [14][17] - The corporate regional commercial banking and specialized industries portfolios increased by $422 million, or about 12% compared to the previous quarter [17] - Record par payoffs in the CRE portfolio reached approximately $1.5 billion, nearly double the amount from the first quarter [32] Market Data and Key Metrics Changes - The overall C and I loans declined modestly due to a managed approach to derisking certain outsized credits [16] - The multifamily portfolio has declined nearly $4 billion or 12% year over year, with a strong reserve coverage of 1.68% [33] - The CRE concentration ratio decreased by 80 percentage points to 421% compared to 501% at year-end 2023 [32] Company Strategy and Development Direction - The company plans to merge its holding company into the bank to enhance corporate, legal, and regulatory structure, aiming for cost reductions and streamlined operations [10][11] - Focus areas for 2025 include improving earnings through margin expansion, fee income, and reducing operating expenses [12][30] - The strategy emphasizes growth in C and I and private banking, while proactively managing the CRE portfolio [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to grow C and I, which will diversify the loan portfolio and generate deposits and fee income [10][12] - The company anticipates further progress in the second half of the year, with a focus on returning to profitability [19][38] - Management highlighted the potential for stock price appreciation, indicating a significant valuation gap compared to peers [37][38] Other Important Information - The company reduced criticized assets by $1.3 billion during the quarter, achieving significant growth in new C and I originations [19][36] - The company has taken substantial actions against its New York rent-regulated exposure, with a current loan-to-value ratio of 69% [25][66] - The company is reviewing annual financial statements for borrowers, with more upgrades than downgrades reported [27][68] Q&A Session Summary Question: Can you provide details on the securities purchase and its impact on margin? - Management confirmed that $2 billion in securities purchases were accelerated to optimize NIM, with a weighted average coupon of about 5.25% [42] Question: Is stock repurchase still expected in mid-2026? - Management indicated that the focus remains on investing excess capital in growth rather than stock buybacks, but discussions may occur if profitability is achieved and the stock trades at a discount [46][48] Question: What is the outlook for net charge-offs? - Management expects charge-offs to decrease as the company moves into Q3 and Q4, with a significant reduction in criticized assets [93] Question: Can you elaborate on the health of rent-stabilized multifamily landlords? - Management provided insights on the multifamily portfolio, indicating a high occupancy rate and a significant portion of loans being pass-rated, with adequate reserves against criticized loans [66][68] Question: What is the strategy regarding the multifamily concentration? - Management stated that the strategy involves managing the portfolio through par payoffs and potential sales of non-accrual loans, while focusing on enhancing credit quality [82][84]

Financial Data and Key Metrics Changes - The CET1 capital ratio increased to 12.3%, ranking among the highest relative to peer groups [15][17][30] - Adjusted pre-provision, pre-tax net revenue was a positive $9 million, an improvement of $32 million from the previous quarter [18][27] - The net loss per diluted share narrowed to $0.19, with an adjusted loss of $0.14 compared to a loss of $0.23 in the first quarter [26][27] Business Line Data and Key Metrics Changes - New commitments in the C and I business increased by 80% to $1.9 billion, while originations rose by almost 60% to $1.2 billion [12][13] - The corporate, regional, commercial banking, and specialized industries portfolios increased by $422 million, or about 12% compared to the previous quarter [15] - Record CRE par payoffs reached approximately $1.5 billion, significantly reducing CRE exposure [31][32] Market Data and Key Metrics Changes - The overall cost of deposits decreased by 11 basis points quarter over quarter, and the overall cost of funds fell by 10 basis points compared to the prior quarter [20] - The multifamily portfolio has declined nearly $4 billion or 12% year over year, with a strong reserve coverage of 1.68% [32] Company Strategy and Development Direction - The company plans to merge its holding company into the bank to enhance corporate, legal, and regulatory structure, aiming for a reduction in operating expenses [9][10] - Focus areas for 2025 include improving earnings through margin expansion, fee income, and reducing operating expenses [11] - The strategy emphasizes growth in C and I and private banking, while proactively managing the CRE portfolio [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to grow C and I, which will diversify the loan portfolio and generate deposits and fee income [8] - The company anticipates further progress in the second half of the year, with a focus on returning to profitability [38] - Management highlighted the potential for stock price appreciation, indicating a valuation gap compared to peers [37] Other Important Information - The company has significantly improved its reserve coverage through a rigorous credit review process [18][22] - Approximately 50% of the criticized loans have already reset to a higher rate and are paying, with 40% expected to reprice by the end of 2026 [24][70] Q&A Session Summary Question: Can you provide details on the securities purchase and its impact on margin? - The company accelerated $2 billion in securities purchases to optimize NIM, with a weighted average coupon of about 5.25% [44] Question: Is stock repurchase still expected in mid-2026? - Currently, the focus is on investing excess capital in growth rather than stock buybacks, but this may be reconsidered if profitability is achieved [48][50] Question: What is the outlook for net charge-offs? - The company expects charge-offs to decrease as it moves into Q3 and Q4, supported by a significant reduction in criticized assets [94][95] Question: What is the health of the rent-stabilized multifamily landlords? - The multifamily portfolio is largely occupied, with a significant portion of loans rated as pass, indicating a stable outlook despite potential challenges [68][70] Question: Will the merger of the holding company into the bank have any downsides? - The merger is expected to reduce costs significantly and streamline regulatory supervision, with no major downsides anticipated [59][115]

Flagstar Financial (FLG) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to a loss of $1.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this bank holding company would post a loss of $0.26 per share when it actually produced a loss of $0.23, delivering a surprise of +11.54%.Over the last four quarters, the c ...

Second Quarter 2025 Results July 25, 2025 Cautionary Statement Forward-Looking Information More information regarding some of these factors is provided in the Risk Factors section of our Annual Report on Form 10‐K for the year ended December 31, 2024, and in other SEC reports we file. Our forward‐looking statements may also be subject to other risks and uncertainties, including those we may discuss in this news release, on our conference call, during investor presentations, or in our SEC filings, which are ...

• ANNOUNCES PLANS TO ELIMINATE BANK HOLDING COMPANY • STRONG C&I MOMENTUM AS NEW LOAN ORIGINATIONS INCREASE 57% AND NEW COMMITMENTS RISE 80% ON A LINKED-QUARTER BASIS • CRITICIZED & CLASSIFIED ASSETS DECLINE 9% FROM PRIOR QUARTER AND 15% OVER FIRST HALF OF YEAR • CREDIT COSTS MODERATING AS PROVISION FOR CREDIT LOSSES DECLINED COMPARED TO FIRST QUARTER • RECORD PAR PAYOFFS INCLUDING 45% IN SUBSTANDARD LOANS DRIVE CRE EXPOSURE LOWER • DISCIPLINED EXPENSE MANAGEMENT PUSHES ADJUSTED OPERATING EXPENSES DOWN 5% C ...

ANNOUNCES PLANS TO ELIMINATE BANK HOLDING COMPANY STRONG C&I MOMENTUM AS NEW LOAN ORIGINATIONS INCREASE 57% AND NEW COMMITMENTS RISE 80% ON A LINKED-QUARTER BASIS CRITICIZED & CLASSIFIED ASSETS DECLINE 9% FROM PRIOR QUARTER AND 15% OVER FIRST HALF OF YEAR CREDIT COSTS MODERATING AS PROVISION FOR CREDIT LOSSES DECLINED COMPARED TO FIRST QUARTER RECORD PAR PAYOFFS INCLUDING 45% IN SUBSTANDARD LOANS DRIVE CRE EXPOSURE LOWER DISCIPLINED EXPENSE MANAGEMENT PUSHES ADJUSTED OPERATING EXPENSES DOWN 5% COMPARED TO ...

Core Viewpoint - Flagstar Financial, Inc. has announced a merger agreement with Flagstar Bank, where the Company will merge into the Bank, simplifying its organizational structure and operations [1][2][4] Group 1: Merger Details - The merger will result in Flagstar Bank, N.A. as the surviving entity, with its common stock continuing to trade under the ticker symbol "FLG" on the NYSE [1] - The reorganization aims to reduce costs, streamline operations, and eliminate redundant corporate activities [2] Group 2: Approval Process - The merger is subject to regulatory and shareholder approval, with a proxy statement expected to be filed with the SEC in Q3 2025 [3] - The Company anticipates completing the merger before the end of 2025, assuming all approvals are received [3] Group 3: Company Overview - As of March 31, 2025, Flagstar Financial, Inc. had $97.6 billion in assets, $67.1 billion in loans, $73.9 billion in deposits, and total stockholders' equity of $8.2 billion [4] - Flagstar Bank operates approximately 400 locations across nine states, with a strong presence in the New York/New Jersey metropolitan area and significant markets in Florida and the West Coast [4]