Core Viewpoint - Flagstar Financial, Inc. reported a second-quarter 2025 loss per share of 14 cents, which was wider than the expected loss of 12 cents, and a significant decline in revenues and net interest income impacted the results [1][9] Financial Performance - The net loss available to common shareholders was $78 million, an improvement from a net loss of $333 million in the prior-year quarter [2] - Quarterly revenues were $496 million, down 26% year-over-year, and missed the Zacks Consensus Estimate by 5.6% [3][9] - Net interest income (NII) was $419 million, a decrease of 24.8% from the prior-year quarter, with a net interest margin of 1.81%, down 17 basis points [3] - Non-interest income fell to $77 million, a decline of 32.4% year-over-year, primarily due to the absence of net return on mortgage servicing rights and lower fee income [4] - Non-interest expenses decreased to $513 million, down 27% year-over-year, with adjusted operating expenses at $460 million, a 27.8% decline [4] Efficiency and Asset Quality - The efficiency ratio was 95.3%, slightly up from 95.1% in the year-ago quarter, indicating deteriorating profitability [5] - Total loans and leases held for investment declined 3.7% sequentially to $64.1 billion, while total deposits decreased 5.6% sequentially to $69.7 billion [6] - Non-performing assets increased to $3.2 billion from $2.6 billion year-over-year, although net charge-offs decreased by 66.4% to $117 million [7] Capital Ratios - As of June 30, 2025, the common equity tier 1 ratio improved to 12.33% from 9.54% a year earlier, and the total risk-based capital ratio rose to 15.77% from 12.78% [8]
Flagstar Financial Q2 Loss Wider Than Expected, Revenues Fall Y/Y