Flagstar Bank, National Association (FLG)

Flagstar Bank delivered a solid third quarter in 2025, with revenue exceeding forecasts. The company's board approved a merger of Flagstar Financial, Inc. into its bank subsidiary, Flagstar Bank, N.A. The bank completed the sale of its residential mortgage servicing business to Mr. Cooper Group for approximately $1.3 billion in cash. Flagstar Bank returned to profitability in the fourth quarter of 2025, reporting net income attributable to common stockholders of $0.05 per diluted share. Analysts have generally expressed cautious optimism, with several firms raising their price targets for FLG. Flagstar Bank opened a new Private Client Office on Park Avenue in New York City. Flagstar Bank was scheduled to participate in the Bank of America Securities 2026 Financial Services Conference.

The banking industry typically experiences seasonal trends, primarily in the volume of new loans. Demand for loans tends to be low in January and February, increases in March, and peaks in August or September, before dropping again towards December. These fluctuations are often influenced by changes in interest rates and tax planning.

Flagstar Bank, N.A. is a regional bank based in Hicksville, New York, with $87.5 billion in assets, $61.0 billion in loans, and $66.0 billion in deposits as of December 31, 2025. It offers a range of financial products and services to individuals, small and mid-size businesses, and professional associations, including deposit accounts, loans, private banking, and investment management. Flagstar has expanded its specialized industries group, offering tailored solutions across various sectors.

Flagstar Bank operates approximately 340 to 360 locations across ten states, with a strong presence in the greater New York/New Jersey metropolitan region and the upper Midwest. It also has a significant presence in fast-growing markets in Florida and the West Coast. While its retail presence is concentrated in these regions, its mortgage division conducts business nationally, and it has private banking teams in several cities within the metropolitan New York City region and on the West Coast.

Flagstar Bank's brand reputation has been shaped by its turnaround strategy and efforts to address past challenges. The bank has been working on improving credit quality and pivoting towards higher-touch, fee-leaning private banking services. Moody's Ratings upgraded Flagstar Financial's long-term issuer rating, and Morningstar DBRS confirmed Flagstar Financial's credit ratings at BBB (low) with a stable trend. Flagstar Bank faced negative press related to the slowdown in its mortgage origination business and scrutiny over its financial health and regulatory compliance. The company reported a material weakness in internal controls related to its internal loan review. Flagstar announced a new brand and has shrunk its workforce, with a nearly 20% reduction in employees. Analyst coverage is moderate, with a "Hold" consensus rating.

Flagstar Bank has significant institutional ownership, with 657 institutional owners and shareholders holding a total of 413,943,368 shares. Major institutional owners include Liberty 77 Capital L.P., BlackRock, Inc., and Reverence Capital Partners, L.p. Individual insiders hold 0.711% of the shares, while the general public holds 9.33%.