We recently published 10 Losing Stocks in an Otherwise Optimistic Market. Flagstar Bank NA (NYSE:FLG) was one of the worst performers on Wednesday. Flagstar dropped its share prices by 4.26 percent on Wednesday to close at $13.50 apiece as investors booked early profits following an intra-day rally. During the session, the stock opened at $14.20 and hit a day high of $14.29, or just 1.8-percent shy of its 52-week high of $14.54. In other news, Flagstar Bank NA (NYSE:FLG) is set to pay $0.01 worth of div ...

Core Viewpoint - Flagstar Bank, N.A. has declared quarterly cash dividends on its common and preferred stocks, reflecting its ongoing commitment to returning value to shareholders [1] Dividend Announcements - A quarterly cash dividend of $0.01 per share on common stock, payable on March 17, 2026, to shareholders of record as of March 7, 2026 [1] - A quarterly cash dividend of $3.3333 per share on Series D Non-Voting Common Equivalent Stock, payable on March 17, 2026, to holders of record as of March 7, 2026 [1] - A quarterly cash dividend of $3.3333 per share on Series B Noncumulative Convertible Preferred Stock, payable on March 17, 2026, to holders of record as of March 7, 2026 [1] - A quarterly cash dividend of $15.94 per preferred share on Fixed-to-Floating Rate Noncumulative Perpetual Preferred Stock, Series A, equating to $0.3984 for each depositary share, payable on March 17, 2026, to holders of record as of March 7, 2026 [1] Company Overview - Flagstar Bank, N.A. is one of the largest regional banks in the United States, headquartered in Hicksville, New York [1] - As of December 31, 2025, the 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 [1] - The bank operates approximately 340 locations across ten states, with significant presence in the greater New York/New Jersey metropolitan area, the upper Midwest, Florida, and the West Coast [1]

Question-and-Answer SessionAnd maybe just to kick it off with you, Lee, give us an update. I mean, obviously, fourth quarter was a bit of a milestone for Flagstar, turned profitable. As you think about just a mark-to-market in terms of everything that's gone on over the last couple of years with the bank, just talk to us about the progress that's been made in terms of shifting the focus, moving from sort of addressing and ring-fencing the credit quality issues towards pivoting to growth and kind of how you' ...

Summary of Flagstar Financial Conference Call Company Overview - **Company**: Flagstar Financial (NYSE: FLG) - **Date**: February 10, 2026 - **Key Speaker**: Lee Smith, President of the Commercial and Private Bank Key Points Financial Performance and Strategy - Flagstar achieved profitability in Q4 2025, marking a significant milestone after a challenging period over the past couple of years [3][4] - The company has sold non-core businesses, particularly in the mortgage sector, to enhance liquidity and has successfully reduced over $20 billion in wholesale borrowings in the last 15 months [4][30] - The balance sheet stood at $87.5 billion at the end of 2025, with a target of reaching $94 billion by the end of 2027 [6] Credit Quality and Risk Management - In 2024, Flagstar took over $900 million in charge-offs and increased coverage ratios, which are among the highest in the industry for various asset classes [5][27] - The company has re-underwritten its credit book, particularly in multifamily and commercial real estate (CRE), and is focused on maintaining strong credit quality [4][27] - Non-accrual loans are expected to decline by $1 billion by the end of 2026, with ongoing efforts to resolve significant portions of these loans [25][26] Growth Expectations - Flagstar aims for net C&I loan growth of $6-$7.5 billion in 2026, supported by the addition of 40-60 commercial bankers who are expected to generate new client relationships and transactions [11][12] - The company has onboarded over 300 mid-career professionals since June 2024, enhancing its talent pool and market presence [8][10] - Flagstar is focusing on specialized industry segments, adding over a dozen new verticals to better serve clients in sectors like oil and gas, renewable energy, and technology [10] Deposit Growth and Relationship Banking - The bank is leveraging its commercial banking relationships to drive deposit growth, emphasizing a relationship-driven banking model rather than transactional banking [20][22] - Flagstar has 350 branches across key states and is actively working to enhance its product offerings to attract deposits [21] Cost Management and Efficiency - The company has successfully reduced costs by $700 million from 2024 to 2025, optimizing operations and reducing headcount from 9,200 to 5,500 [32][33] - Ongoing efforts include real estate optimization and technology enhancements to further improve efficiency [33] Regulatory Environment and Capital Management - Flagstar is currently operating below the $100 billion asset threshold, which was not a deliberate strategy, but the company is prepared to grow back above this level by 2027 [35] - The bank has a CET1 capital ratio of 12.83% and is considering share buybacks later in the year if trading at a discount to book value persists [36][37] Future Outlook - The strategic plan focuses on profitability, risk management, and compliance, with aspirations to become a leading regional bank by 2028 [39][40] - The company sees opportunities for growth through M&A activities and market dislocation, aiming to expand its market share and client engagement [41][42] Additional Insights - The leadership team emphasizes the importance of a strong culture and entrepreneurial spirit within the bank, which is attractive to new talent [13][14] - The bank's approach to credit risk involves a multi-layered review process to ensure prudent lending practices [28]

Black Bear Value Fund, an investment advisor, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In December, the Black Bear Value Fund returned +0.2%, bringing 2025 returns to -12.6%. The S&P 500 returned +0.1% in December and +17.9% in 2025. In a rising market environment, the Fund has lost 10-15% over the two years. The Fund does not aim to replicate the Index, so some performance variation is expected. Heading into 2026, the firm has several strong names in i ...

Core Thesis - Flagstar Bank, National Association (FLG) is undergoing a significant turnaround following a period of severe balance sheet stress, with a current share price of $13.50 and a forward P/E of 7.75 [1][2]. Financial Challenges - The bank faced challenges primarily due to high exposure to rent-controlled multifamily properties and office loans, which deteriorated amid rising interest rates and weakening commercial real estate fundamentals [2]. Recapitalization Efforts - Flagstar raised over $1 billion in new capital last year to strengthen its balance sheet and address investor concerns regarding solvency and asset quality, marking a pivotal moment for the bank [3]. - A comprehensive management overhaul occurred, with Joseph Otting, the former Comptroller of the Currency, stepping in as CEO to lead the turnaround [3]. Strategic Actions - The new management team has actively worked to stabilize the bank by selling non-core assets to simplify operations and improve capital ratios, while the loan portfolio has been fully remarked to reflect impairments [4]. - These actions have reset expectations, alleviated uncertainty around hidden losses, and restored credibility with regulators and the market [5]. Earnings Outlook - With legacy issues recognized and addressed, Flagstar's earnings profile is beginning to improve, supported by a cleaner balance sheet and a more conservative risk posture [5]. - Despite progress, the stock trades at approximately 0.7x tangible book value, indicating a significant discount for a bank that has absorbed credit pain and recapitalized [6]. Market Positioning - As earnings normalize and confidence rebuilds, Flagstar is well-positioned for a valuation rerating towards peer banks that trade at or above book value [6]. - The current market pricing reflects an overly pessimistic view, creating an attractive risk-reward setup for investors willing to support the turnaround [8].

Core Insights - Flagstar Financial, Inc. (FLG) reported fourth-quarter 2025 adjusted earnings per share of 6 cents, surpassing the Zacks Consensus Estimate of 3 cents, and improved from a loss of 34 cents in the same quarter last year [1][2] - The results were driven by an increase in net interest income (NII), a significant reduction in provision for credit losses, and lower expenses, although lower non-interest income posed a challenge [1][9] Financial Performance - The net income available to common shareholders (GAAP basis) was $21 million, a recovery from a net loss of $196 million in the prior-year quarter [2] - Quarterly revenues reached $557 million, exceeding the Zacks Consensus Estimate by 4.3%, but declined 10.9% year over year [3] - For the full year 2025, revenues totaled $1.9 billion, reflecting a 28.6% increase from the previous year [3] - NII was reported at $467 million, a 1% year-over-year increase, with a net interest margin (NIM) of 2.14%, expanding by 41 basis points [3][8] - Non-interest income fell to $90 million, down 45% from the prior-year quarter, primarily due to the absence of gains from mortgage servicing operations and lower fee income [4][8] - Non-interest expenses decreased by 29% year over year to $509 million, with adjusted operating expenses down 17% to $462 million [4] Loan and Deposit Trends - Total loans and leases held for investment decreased by 3% sequentially to $60.7 billion as of December 31, 2025 [5] - Total deposits also declined by 5% sequentially to $66 billion as of the same date [5] Credit Quality - Non-accrual loans totaled $3 billion, slightly higher than the previous year [6] - Net charge-offs were $46 million, a significant drop of 79% from the prior-year quarter [6] - The provision for credit losses was reduced to $3 million from $145 million in the year-ago quarter, indicating stabilization in credit trends [6] Capital Ratios - As of December 31, 2025, the common equity tier 1 ratio improved to 12.83% from 11.83% a year earlier [7] - The total risk-based capital ratio increased to 16.23% from 15.14% in the prior-year quarter [7] - The leverage capital ratio rose to 9.22% from 7.68% a year ago, reflecting enhanced capital strength [7]

Smith said NIM improved 23 basis points quarter-over-quarter to 2.14% when including a $20 million gain related to “tearing up” hedges tied to long-term Federal Home Loan Bank (FHLB) advances that were restructured at quarter-end. Excluding that one-time benefit, NIM was 2.05%, still up 14 basis points from the third quarter.CFO Lee Smith said reported net income attributable to common stockholders was $0.05 per diluted share, with notable quarter items including a $9 million upward revaluation of the bank’ ...

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Company and Industry Summary - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1]

Core Viewpoint - Vanguard Mining Corp. is advancing its exploration efforts at the Redonda Copper-Molybdenum Project through additional re-assaying and a planned Phase 2 drill program to enhance the understanding of mineralization and evaluate the project's potential [1][2][3]. Exploration and Drilling Program - The company plans to conduct additional re-assaying of selected drill core using multi-element analytical methods to evaluate gold, copper, silver, rare earth, and other elements [1][2]. - The Phase 2 Drill and Exploration Program is fully permitted and aims to build upon the encouraging results from the recently completed drill program [4]. - The Redonda Project consists of nine mineral claims totaling 2,746.46 hectares, located approximately 40 kilometers northeast of Campbell River, British Columbia [4]. Geological Insights - The geological setting at Redonda is characterized by copper-molybdenum mineralization along a hornblende-rich dike, with significant mineralization confirmed at depth [5][7]. - The project shares similarities with other porphyry-style copper-molybdenum systems in southwestern British Columbia [8]. Drilling Details - The planned drilling will include up to seven diamond drill holes totaling approximately 2,800 meters, targeting areas with historical mineralization [6]. - Recent drilling results indicate that copper-molybdenum mineralization is laterally and vertically continuous within the drilled area, with significant intersections reported [10]. Collaboration and Community Engagement - The company prioritizes collaboration with the Klahoose First Nation, focusing on local labor, training opportunities, and the use of Klahoose-affiliated service providers [14]. - Ongoing engagement with the Klahoose First Nation will include regular updates on work plans and adherence to cultural heritage protocols [14]. Quality Assurance and Analytical Procedures - Quality assurance and quality control procedures were implemented during the sampling and analysis process, ensuring accuracy and precision in the results [15][16]. - Analytical work was conducted by ALS Laboratories, which is independent and accredited to ISO/IEC 17025 standards [16].