Flagstar Bank, National Association (NYSE:FLG) Releases Earnings Results, Beats Estimates By $0.04 EPS

30 Jan 2026, 17:50 by Michael Walen · The Markets Daily

Flagstar Bank, National Association (NYSE:FLG – Get Free Report) issued its quarterly earnings results on Friday. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.04, FiscalAI reports. Flagstar Bank, National Association had a negative return on equity of 3.80% and a negative net margin of 7.06%.The firm had revenue of $548.00 million for the quarter, compared to the consensus estimate of $533.00 million. During the same period in the prior year, the business posted ($0.41) earnings per share. The company’s revenue for the quarter was down 10.9% on a year-over-year basis.

Here are the key takeaways from Flagstar Bank, National Association’s conference call:

Flagstar returned to profitability in Q4 2025 with adjusted net income of $30 million and adjusted EPS of $0.06, driven by net interest income growth, NIM expansion, and disciplined expense control.
Commercial & industrial (C&I) momentum accelerated — total commitments rose 28% to $3.0 billion and originations increased 22% to $2.1 billion, producing consecutive quarters of net C&I loan growth and management expects continued C&I-led balance sheet growth in 2026.
The bank materially de-risked its CRE/multifamily exposure (Q4 payoffs and actions reduced balances by about $2.3 billion, and CRE balances are down ~$12.1 billion since 2023), lowering CRE concentration below 400 and improving credit metrics and reserve coverage.
Capital and liquidity positions strengthened — CET1 rose roughly 400 basis points to 12.83% (≈ $2.1 billion pre‑tax excess capital) and cash & securities now represent ~25% of assets after reducing brokered deposits by nearly $8 billion.
Elevated CRE/multifamily payoffs and balance-sheet shrinkage drove a ~$100 million downward NII adjustment and management expects $3.5B–$5B of payoffs in 2026, which could pressure near‑term net interest income and margin despite the long‑term de‑risking benefits.

Flagstar Bank, National Association Stock Down 1.3%

FLG traded down $0.17 on Friday, hitting $13.37. The company had a trading volume of 4,229,851 shares, compared to its average volume of 4,940,326. The stock has a market capitalization of $5.56 billion, a price-to-earnings ratio of -13.85, a P/E/G ratio of 0.55 and a beta of 1.09. The company has a debt-to-equity ratio of 1.73, a quick ratio of 1.01 and a current ratio of 1.02. The stock has a fifty day moving average price of $12.75 and a 200-day moving average price of $12.12. Flagstar Bank, National Association has a 12-month low of $9.64 and a 12-month high of $13.85.

Analysts Set New Price Targets

FLG has been the subject of a number of recent analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Flagstar Bank, National Association in a research note on Thursday, January 22nd. UBS Group decreased their price objective on shares of Flagstar Bank, National Association from $13.00 to $11.50 and set a “neutral” rating for the company in a report on Wednesday, November 5th. DA Davidson restated a “buy” rating and issued a $14.50 target price on shares of Flagstar Bank, National Association in a research note on Thursday, November 13th. Cantor Fitzgerald lifted their price target on shares of Flagstar Bank, National Association from $15.00 to $16.00 and gave the company an “overweight” rating in a research note on Friday, December 19th. Finally, JPMorgan Chase & Co. boosted their price target on Flagstar Bank, National Association from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Tuesday, December 16th. Five investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Flagstar Bank, National Association presently has a consensus rating of “Hold” and a consensus target price of $14.32.

View Our Latest Stock Analysis on FLG

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. CIBC Bancorp USA Inc. acquired a new stake in Flagstar Bank, National Association in the third quarter valued at approximately $374,000. Advisory Services Network LLC acquired a new stake in shares of Flagstar Bank, National Association in the 3rd quarter worth $35,000. Caxton Associates LLP grew its stake in Flagstar Bank, National Association by 85.1% during the 3rd quarter. Caxton Associates LLP now owns 20,897 shares of the company’s stock worth $241,000 after buying an additional 9,607 shares during the last quarter. FWL Investment Management LLC increased its position in Flagstar Bank, National Association by 21.1% during the 3rd quarter. FWL Investment Management LLC now owns 322,433 shares of the company’s stock valued at $3,724,000 after buying an additional 56,275 shares in the last quarter. Finally, XTX Topco Ltd purchased a new stake in Flagstar Bank, National Association in the third quarter valued at about $770,000. Institutional investors own 67.88% of the company’s stock.

Key Stories Impacting Flagstar Bank, National Association

Here are the key news stories impacting Flagstar Bank, National Association this week:

Positive Sentiment: Returned to profitability with adjusted EPS of $0.06 (beat estimates) and revenue of $548M that topped consensus — the surprise drove optimism that core operations are stabilizing. FLAGSTAR BANK RETURNS TO PROFITABILITY IN FOURTH QUARTER 2025
Positive Sentiment: Net interest margin improved (up ~23 bps QoQ) and cost of funds declined; provisions plunged and net charge-offs improved — easing credit costs support near-term earnings. FLAGSTAR BANK RETURNS TO PROFITABILITY IN FOURTH QUARTER 2025
Positive Sentiment: Commercial & industrial (C&I) lending momentum: commitments up 28% and originations up 22% YoY with sequential C&I loan growth — a tangible growth driver. FLAGSTAR BANK RETURNS TO PROFITABILITY IN FOURTH QUARTER 2025
Positive Sentiment: Strategic expansion into wealth management with a new New York office and an AI focus could diversify fee revenue and support long-term growth. Flagstar Bank Expands Wealth Push With New York Office And AI Focus
Neutral Sentiment: Analysts maintain a consensus “Hold” rating — signals cautious investor expectations despite the quarter’s beat. Flagstar Bank Receives Consensus Rating of “Hold”
Neutral Sentiment: Multiple previews and snapshots (WTOP, Seeking Alpha, Zacks) summarized the beat and provided context for the call and slides for investors doing deeper diligence. Flagstar Bank: Q4 Earnings Snapshot
Negative Sentiment: Revenue is down ~10.9% YoY and the company still shows a negative return on equity and negative net margin — structural profitability issues remain and could limit multiple expansion. MarketBeat Q4 Earnings Summary
Negative Sentiment: Street models still reflect near-term weakness (analysts forecast negative FY EPS), so the beat may be priced with caution until sustained profitability and top-line stabilization are visible. Flagstar Bank (FLG) Reports Q4 Earnings: What Key Metrics Have to Say

About Flagstar Bank, National Association

(Get Free Report)

Flagstar Financial Corporation (NYSE: FLG) is a bank holding company whose principal subsidiary, Flagstar Bank, provides a range of financial services across the United States. Headquartered in Troy, Michigan, Flagstar combines commercial banking, mortgage lending and servicing, and deposit products to serve individuals, businesses and public entities. As a publicly traded company, Flagstar leverages its banking charter and national mortgage platform to deliver tailored financial solutions through both digital and branch channels.