Financial Performance - Flagstar Bank reported net income attributable to common stockholders of $21 million, or $0.05 per diluted share, for Q4 2025, compared to a net loss of $45 million, or $0.11 per diluted share, in Q3 2025[5]. - For the full year 2025, the net loss attributable to common stockholders was $210 million, or $0.50 per diluted share, compared to a net loss of $1,153 million, or $3.49 per diluted share, in 2024[6]. - The diluted loss earnings per share (GAAP) for the year ended December 31, 2025, was $(0.47), compared to $(3.49) for the year ended December 31, 2024[89]. - The net (loss) income (GAAP) for the year ended December 31, 2025, was $29 million, a significant improvement from $(1,118) million in 2024[91]. Loan and Credit Quality - Non-accrual loans decreased by $267 million, or 8%, compared to Q3 2025, while criticized/classified loans declined by $330 million, or 2%[2]. - Total non-accrual loans held for investment decreased by 8% to $2,975 million compared to $3,241 million in Q3 2025, and increased by 14% from $2,615 million in Q4 2024[101]. - Net charge-offs for Q4 2025 totaled $46 million, down 37% from Q3 2025 and down 79% from Q4 2024, representing 0.30% of average loans outstanding[34]. - For the year ended December 31, 2025, total net charge-offs were $351 million, with a charge-off rate of 0.55%, down from $892 million and 1.16% in 2024[107]. - The provision for credit losses in Q4 2025 decreased by $35 million or 92% to $3 million compared to Q3 2025, and down $142 million or 98% year-over-year[33]. Revenue and Income - Total revenues for the year ended 2025 were $2.062 billion, down 19% from $2.552 billion in 2024[39]. - Non-interest income for Q4 2025 was $90 million, down 4% from Q3 2025 and down 45% from Q4 2024[42]. - The year-over-year decline in non-interest income was primarily due to the sale of the Bank's mortgage servicing/subservicing business[43]. - For the year ended 2025, net interest income was $1.721 billion, a decrease of 20% from $2.152 billion in 2024[39]. Expenses and Efficiency - Operating expenses decreased by 3% compared to Q3 2025 and were down 26% for the full year 2025[3]. - Total non-interest expense decreased by 2% to $509 million compared to $522 million in the previous quarter and down 29% from $718 million a year ago[78]. - For the year ended 2025, total non-interest expense was $2.1 billion, down $762 million or 27% compared to 2024[51]. - Efficiency ratio improved to 91.27% for Q4 2025, down from 100.46% in Q3 2025 and 114.98% in Q4 2024[98]. Capital and Assets - The bank's CET1 capital ratio improved to 12.83%, with excess capital of $1.4 billion after tax[2]. - Total assets were $87.5 billion, with total stockholders' equity of $8.1 billion as of December 31, 2025[65]. - Total assets decreased by 5% to $87,512 million compared to $91,668 million in the previous quarter and down 13% from $100,160 million a year ago[76]. - The common equity tier 1 ratio was 12.83% as of December 31, 2025, up from 11.83% a year earlier[64]. Deposits and Funding - Total deposits were $66.0 billion, a decrease of $3.2 billion, or 5%, linked-quarter and down $9.9 billion, or 13%, year-over-year[17]. - The bank reduced brokered deposits by $7.8 billion, or 77%, year-to-date, leading to a 26 basis point improvement in the cost of deposits[18]. - Average interest-bearing deposits decreased by $1.6 billion or 3% to $56 billion from Q3 2025, and declined $9.9 billion or 15% year-over-year[26]. Future Outlook - The bank will host a conference call on January 30, 2026, to discuss its fourth quarter 2025 performance[66]. - The merger with Flagstar Bancorp completed in December 2022 and the acquisition of portions of the former Signature Bank in March 2023 may not yield expected benefits or synergies[71].
Flagstar Financial, lnc.(FLG) - 2025 Q4 - Annual Results