Flagstar Financial, Inc. (FLG) reported a third‑quarter 2025 net loss of $36 million, or $0.11 per diluted share, a 44 % improvement over the $70 million loss in Q2 2025. On an adjusted basis the loss narrowed to $31 million, or $0.07 per diluted share, reflecting a 50 % quarter‑over‑quarter improvement and an 89 % year‑over‑year gain. The company’s earnings release, issued on October 24, 2025, also noted that the loss was driven by a $21 million fair‑value gain, $14 million litigation settlement, and $17 million merger‑related expenses, all of which were excluded from the adjusted figures.
The bank’s core operating metrics improved markedly. Net interest income rose to $425 million, up $6 million from Q2, while the net interest margin expanded to 1.91 %, a 10‑basis‑point gain. Commercial‑and‑industrial (C&I) loan commitments grew 26 % to $2.4 billion, with $1.7 billion funded, a 41 % increase over Q2. Par payoffs of $1.3 billion were recorded, down from $1.5 billion in Q2, and the multi‑family portfolio declined $1.5 billion to $30.5 billion, reflecting the bank’s ongoing de‑risking strategy.
As of September 30, 2025, total assets stood at $91.7 billion, a 1 % decline from June 30, 2025, and a 8 % drop from year‑end 2024. Deposits were $69.2 billion, down 1 % from the prior quarter and 9 % from December 31, 2024, largely due to a $5 billion reduction in brokered certificates of deposit. The loan portfolio was $63.5 billion, down 3 % quarter‑over‑quarter, with the commercial‑real‑estate (CRE) balance falling $10.2 billion to $10.2 billion and the multi‑family balance at $30.5 billion. These figures underscore Flagstar’s continued focus on C&I expansion and CRE de‑risking as it moves toward profitability.
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