Net interest income has contracted sharply from $740 million in 2023Q4 to $443 million in 2026Q1, reflecting a structural inability to expand margins beyond the current 0.5% level.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Net Interest Income | 1.75B | 1.72B | 2.15B | 3.08B | 1.4B | 1.29B | 1.1B | 957M | 1.03B | 1.13B | 1.29B | 408.07M | 1.14B | 1.17B | 1.16B | 1.2B | 1.18B | 905.33M | 675.5M | 616.53M | 561.57M | 595.37M | 799.34M | 504.98M | 373.26M | 205.82M | 73.08M | 68.9M | 68.5M | 62.4M | 57.5M |
| NII Growth % | -32.09% | -19.99% | -30.09% | 120.42% | 8.3% | 17.18% | 14.94% | -7.18% | -8.76% | -12.22% | 215.48% | -64.22% | -2.25% | 0.57% | -3.37% | 1.73% | 30.34% | 34.02% | 9.56% | 9.79% | -5.68% | -25.52% | 58.29% | 35.29% | 81.35% | 181.63% | 6.07% | 0.58% | 9.78% | 8.52% | 10.79% |
| Net Interest Margin % | 2.01% | 1.97% | 2.15% | 2.7% | 1.55% | 2.17% | 1.95% | 1.78% | 1.99% | 2.3% | 2.63% | 0.81% | 2.35% | 2.5% | 2.63% | 2.86% | 2.86% | 2.15% | 2.08% | 2.02% | 1.97% | 2.27% | 3.33% | 2.15% | 3.3% | 2.24% | 1.55% | 3.61% | 3.92% | 3.89% | 4.23% |
| Interest Income | 4.29B | 4.47B | 5.95B | 5.49B | 2.09B | 1.69B | 1.71B | 1.8B | 1.69B | 1.58B | 1.67B | 1.69B | 1.68B | 1.71B | 1.79B | 1.87B | 1.91B | 1.63B | 1.61B | 1.57B | 1.41B | 1.18B | 1.19B | 749.16M | 599.51M | 423.3M | 174.83M | 143.1M | 134.3M | 117.7M | 102.3M |
| Interest Expense | 2.53B | 2.75B | 3.8B | 2.41B | 696M | 400M | 608M | 848M | 658.68M | 452.24M | 387.49M | 1.28B | 542.71M | 541.48M | 631.08M | 666.24M | 733.83M | 729.29M | 929.63M | 950.22M | 847.13M | 583.65M | 390.9M | 244.19M | 226.25M | 217.49M | 101.75M | 74.2M | 65.8M | 55.3M | 44.8M |
| Loan Loss Provision | 105M | 184M | 1.09B | 833M | 133M | 3M | 62M | 7M | 18.26M | 37.24M | 4.18M | -15M | -18.59M | 30.76M | 62.99M | 100.42M | 102.9M | 63M | 7.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.4M | 0 | 0 | -2M |
| Non-Interest Income | 248M | 229M | 432M | 556M | 86M | 61M | 61M | 84M | 91.56M | 235.84M | 151.73M | 206.8M | 216.46M | 208.62M | 285.28M | 207.87M | 320.72M | 7.98M | -1.43M | 48.06M | 90.85M | 88.11M | -68.15M | 163.99M | 101.82M | 90.61M | 21.64M | 2.5M | 2.6M | 2.3M | 2.4M |
| Non-Interest Income % | 5.47% | 4.88% | 6.77% | 9.19% | 3.95% | 3.49% | 3.45% | 4.45% | 5.14% | 12.97% | 8.31% | 10.89% | 11.4% | 10.88% | 13.74% | 10.02% | 14.35% | 0.49% | -0.09% | 2.98% | 6.06% | 6.95% | -6.07% | 17.96% | 14.52% | 17.63% | 11.02% | 1.72% | 1.9% | 1.92% | 2.29% |
| Total Revenue | 4.53B | 4.7B | 6.38B | 6.05B | 2.18B | 1.75B | 1.77B | 1.89B | 1.78B | 1.82B | 1.83B | 1.9B | 1.9B | 1.92B | 2.08B | 2.07B | 2.23B | 1.64B | 1.6B | 1.61B | 1.5B | 1.27B | 1.12B | 913.15M | 701.33M | 513.92M | 196.48M | 145.6M | 136.9M | 120M | 104.7M |
| Revenue Growth % | -94.84% | -26.46% | 5.57% | 177.64% | 24.46% | -1.07% | -6.35% | 6.05% | -2.03% | -0.47% | -3.78% | -0.06% | -0.9% | -7.69% | 0.09% | -7.16% | 36.04% | 2.43% | -0.69% | 7.69% | 18.34% | 12.93% | 22.88% | 30.2% | 36.47% | 161.57% | 34.94% | 6.35% | 14.08% | 14.61% | 10.79% |
| Non-Interest Expense | 1.94B | 1.96B | 2.87B | 2.85B | 523M | 541M | 511M | 511M | 546.63M | 660.39M | 657.8M | 761.89M | 602.34M | 597.36M | 601.4M | 573.29M | 560.31M | 257.15M | 612.57M | 262.49M | 303.7M | 238.77M | 199.22M | 176.28M | 139.06M | 121.19M | 49.82M | 21.3M | 26M | 27M | 23.2M |
| Efficiency Ratio | 42.83% | 41.83% | 44.94% | 47.13% | 24.01% | 30.91% | 28.89% | 27.05% | 30.69% | 36.32% | 36.01% | 40.13% | 31.71% | 31.17% | 28.96% | 27.63% | 25.08% | 15.66% | 38.2% | 16.26% | 20.25% | 18.84% | 17.75% | 19.3% | 19.83% | 23.58% | 25.36% | 14.63% | 18.99% | 22.5% | 22.16% |
| Operating Income | -45M | -198M | -1.38B | -50M | 826M | 806M | 588M | 523M | 557.67M | 668.22M | 777.13M | -132.01M | 773.07M | 747.13M | 780.91M | 734.58M | 837.47M | 593.15M | 53.79M | 402.1M | 348.71M | 444.71M | 531.97M | 492.68M | 336.01M | 175.25M | 44.9M | 52.5M | 45.1M | 37.7M | 38.7M |
| Operating Margin % | -0.99% | -4.22% | -21.59% | -0.83% | 37.92% | 46.06% | 33.24% | 27.69% | 31.31% | 36.75% | 42.55% | -6.95% | 40.7% | 38.98% | 37.61% | 35.41% | 37.48% | 36.11% | 3.35% | 24.9% | 23.25% | 35.1% | 47.41% | 53.95% | 47.91% | 34.1% | 22.85% | 36.06% | 32.94% | 31.42% | 36.96% |
| Operating Income Growth % | - | 85.63% | -2656% | -106.05% | 2.48% | 37.07% | 12.43% | -6.22% | -16.54% | -14.01% | 688.68% | -117.08% | 3.47% | -4.33% | 6.31% | -12.29% | 41.19% | 1002.63% | -86.62% | 15.31% | -21.59% | -16.4% | 7.97% | 46.63% | 91.74% | 290.29% | -14.47% | 16.41% | 19.63% | -2.58% | 21.32% |
| Pretax Income | -45M | -198M | -1.38B | -50M | 826M | 806M | 588M | 523M | 557.67M | 668.22M | 777.13M | -132.01M | 773.07M | 747.13M | 780.91M | 734.58M | 837.47M | 593.15M | 53.79M | 402.1M | 348.71M | 444.71M | 531.97M | 492.68M | 336.01M | 175.25M | 44.9M | 52.5M | 45.1M | 37.7M | 38.7M |
| Pretax Margin % | -0.99% | -4.22% | -21.59% | -0.83% | 37.92% | 46.06% | 33.24% | 27.69% | 31.31% | 36.75% | 42.55% | -6.95% | 40.7% | 38.98% | 37.61% | 35.41% | 37.48% | 36.11% | 3.35% | 24.9% | 23.25% | 35.1% | 47.41% | 53.95% | 47.91% | 34.1% | 22.85% | 36.06% | 32.94% | 31.42% | 36.96% |
| Income Tax | 11M | -21M | -260M | 29M | 176M | 210M | 77M | 128M | 135.25M | 202.01M | 281.73M | -84.86M | 287.67M | 271.58M | 279.8M | 254.54M | 296.45M | 194.5M | -24.09M | 123.02M | 116.13M | 152.63M | 176.88M | 169.31M | 106.78M | 70.78M | 20.43M | 20.8M | 18.2M | 14.4M | 17.8M |
| Effective Tax Rate % | -24.44% | 10.61% | 18.87% | -58% | 21.31% | 26.05% | 13.1% | 24.47% | 24.25% | 30.23% | 36.25% | 64.28% | 37.21% | 36.35% | 35.83% | 34.65% | 35.4% | 32.79% | -44.78% | 30.59% | 33.3% | 34.32% | 33.25% | 34.37% | 31.78% | 40.39% | 45.49% | 39.62% | 40.35% | 38.2% | 45.99% |
| Net Income | -56M | -177M | -1.12B | -79M | 650M | 596M | 511M | 395M | 422.42M | 466.2M | 495.4M | -47.16M | 485.4M | 475.55M | 501.11M | 480.04M | 541.02M | 398.65M | 77.88M | 279.08M | 232.59M | 292.08M | 355.09M | 323.37M | 229.23M | 104.47M | 24.48M | 31.7M | 26.9M | 23.3M | 20.9M |
| Net Margin % | -1.24% | -3.77% | -17.51% | -1.31% | 29.84% | 34.06% | 28.89% | 20.91% | 23.71% | 25.64% | 27.12% | -2.48% | 25.55% | 24.81% | 24.13% | 23.14% | 24.21% | 24.27% | 4.86% | 17.28% | 15.51% | 23.05% | 31.65% | 35.41% | 32.69% | 20.33% | 12.46% | 21.77% | 19.65% | 19.42% | 19.96% |
| Net Income Growth % | 93.71% | 84.17% | -1315.19% | -112.15% | 9.06% | 16.63% | 29.37% | -6.49% | -9.39% | -5.89% | 1150.56% | -109.71% | 2.07% | -5.1% | 4.39% | -11.27% | 35.71% | 411.85% | -72.09% | 19.99% | -20.37% | -17.74% | 9.81% | 41.07% | 119.43% | 326.8% | -22.79% | 17.84% | 15.45% | 11.48% | 3.47% |
| Net Income (Continuing) | -56M | -177M | -1.12B | -79M | 650M | 596M | 511M | 395M | 422.42M | 466.2M | 495.4M | -47.16M | 485.4M | 475.55M | 501.11M | 480.04M | 541.02M | 398.65M | 77.88M | 279.08M | 232.59M | 292.08M | 355.09M | 323.37M | 229.23M | 104.47M | 24.48M | 31.7M | 26.9M | 23.3M | 20.9M |
| EPS (Diluted) | -0.12 | -0.51 | -3.49 | -0.49 | 3.77 | 3.59 | 3.06 | 2.31 | 2.37 | 2.70 | 3.04 | -0.33 | 3.28 | 3.23 | 3.40 | 3.28 | 3.72 | 3.38 | 0.69 | 2.69 | 2.44 | 3.34 | 3.99 | 4.95 | 3.75 | 2.26 | 0.95 | 1.25 | 1.01 | 0.80 | 0.64 |
| EPS Growth % | 91.71% | 85.39% | -612.24% | -113% | 5.01% | 17.32% | 32.47% | -2.53% | -12.22% | -11.18% | 1021.21% | -110.06% | 1.55% | -5% | 3.66% | -11.83% | 10.06% | 389.86% | -74.35% | 10.25% | -26.95% | -16.29% | -19.39% | 32% | 65.93% | 137.89% | -24% | 23.76% | 26.25% | 25% | 12.28% |
| EPS (Basic) | - | -0.51 | -3.49 | -0.49 | 3.78 | 3.59 | 3.06 | 2.31 | 2.37 | 2.70 | 3.04 | -0.33 | 3.28 | 3.23 | 3.40 | 3.28 | 3.72 | 3.38 | 0.69 | 2.70 | 2.45 | 3.36 | 4.10 | 5.10 | 3.81 | 2.30 | 0.98 | 1.28 | 1.06 | 0.86 | 0.68 |
| Diluted Shares Outstanding | 466.55M | 415.33M | 330.71M | 237.88M | 161.71M | 154.68M | 154.43M | 155.22M | 162.43M | 162.36M | 161.72M | 149.66M | 147M | 146.42M | 145.9M | 145.38M | 144.73M | 117.31M | 111.79M | 103.7M | 95.42M | 87.5M | 88.95M | 65.33M | 61.13M | 46.2M | 25.9M | 25.31M | 26.77M | 29.12M | 32.58M |
NYC Real Estate Concentration
As reported in financial statements, Flagstar's net interest income has experienced a significant contraction, falling from $740 million in 2023Q4 to $443 million by 2026Q1, reflecting the bank's struggle to maintain interest-earning asset yields against a backdrop of rising funding costs and portfolio rebalancing.
The decline in NII suggests that the bank's legacy fixed-rate loan book is failing to reprice effectively in the current interest rate environment. Investors should monitor whether the recent stabilization in NII growth indicates a bottoming of the interest rate cycle or merely a temporary pause in margin erosion.
Based on the provided income statement data, the bank's net interest margin has remained stagnant at approximately 0.5% for the majority of the last ten quarters, indicating a structural inability to expand spreads despite the bank's transition toward a more diversified commercial banking model.
This persistent compression suggests that the cost of deposits remains prohibitively high relative to the yields generated by the bank's core multi-family and mortgage assets. The lack of margin expansion implies that the institution may be trapped in a low-yield environment that limits its ability to generate sufficient pre-provision net revenue.
According to historical income statement data, the bank's provision for credit losses reached a peak of $552 million in 2023Q4, highlighting the severe credit stress within the legacy rent-regulated multi-family portfolio that has necessitated substantial reserve builds throughout the observed period.
The subsequent reduction in provision expense to zero by 2026Q1 may suggest a stabilization in credit outlook, though it warrants further investigation into whether this reflects improved asset quality or a change in loss estimation methodology. Analysts should remain cautious regarding the potential for future reserve adjustments if the NYC real estate market continues to face valuation headwinds.
As indicated by the bank's financial filings, the efficiency ratio has fluctuated significantly, reaching an extreme of 198.3% in 2023Q4 before moderating to 44.9% in 2026Q1, which suggests that the bank is still grappling with the high fixed-cost base associated with its recent large-scale acquisitions.
The volatility in the efficiency ratio appears to be driven by the integration of Signature Bank assets and the associated regulatory compliance costs of operating as a Category IV bank. Investors should monitor whether the bank can sustain an efficiency ratio below 45% as it attempts to scale its operations and achieve long-term operating leverage.
Quick answers to the most common questions about buying FLG stock.
Flagstar Financial, Inc. (FLG) reported a net loss of $177.0M for the fiscal year ending 2025.
Flagstar Financial, Inc. (FLG) reported an operating income of $-198.0M, resulting in an operating profit margin of -4.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Flagstar Financial, Inc. (FLG) generated $1.77B in gross profit for the year, representing a gross profit margin of 37.6%. This demonstrates the company's core pricing power and production efficiency.