Flagstar Financial's Q2 net loss narrows to $70 mln
Overview
Flagstar Q2 2025 net loss narrows to $70 mln, showing improvement from Q1
Company plans to eliminate bank holding company to streamline operations
Strong C&I momentum with new loan originations up 57% from prior quarter
Outlook
Flagstar expects return to profitability in Q4 2025
Company plans to merge holding company into the bank to reduce costs
Company sees continued growth in C&I lending
Result Drivers
C&I LOAN GROWTH - New loan originations increased 57% and new commitments rose 80% on a linked-quarter basis, indicating strong momentum in C&I lending
CREDIT QUALITY IMPROVEMENT - Criticized and classified assets declined 9% from the prior quarter, reflecting better credit conditions
EXPENSE MANAGEMENT - Adjusted operating expenses decreased by 5% compared to the prior quarter, contributing to cost-saving goals
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | $496 mln | ||
Q2 Net Income | -$70 mln | ||
Q2 Net Interest Income | $419 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Flagstar Financial Inc is $13.00, about 7.3% above its July 24 closing price of $12.05
Press Release:
