Flagstar Bank Reports Q3 Revenue Beat Amid Adjusted 2025 Guidance

Flagstar Bank (NYSE: FLG) reported third-quarter 2025 earnings that met Wall Street expectations, with a non-GAAP loss per share of $0.07 and revenue of $519 million, slightly exceeding forecasts despite a 16.7% year-over-year decline. The bank's net interest margin increased by 10 basis points to 1.91%, supported by strong growth in commercial and industrial lending, which contributed positively to the results. While Flagstar lowered its 2025 guidance for noninterest income to $310 million-$320 million, it maintained net interest income projections between $1.70 billion and $1.75 billion. The bank's capital position remains solid, with a CET1 ratio of 12.45% and tangible book value per share of $17.32, though it faces challenges such as a three-year revenue decline rate of -3.6% and a negative return on equity of -7.71%. Management emphasized ongoing strategic execution and improving operating results, despite the adjusted loss per share guidance of $0.36-$0.41 for 2025. Flagstar continues to operate across multiple U.S. regions, focusing on consumer and commercial banking, mortgage lending, and wealth management services.