FLAGSTAR BANK, NATIONAL ASSOCIATION
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
FLG$10.51-0.7%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Statements of Condition
| ITEM 1. | FINANCIAL STATEMENTS |
|---|
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| (in millions, except per share data) · (unaudited) | ||
| ASSETS: | ||
| Cash and cash equivalents | $8,484 | $15,430 |
| Securities: | ||
| Debt securities available-for-sale | 15,052 | 10,402 |
| Equity investments with readily determinable fair values, at fair value | 55 | 14 |
| Total securities | 15,107 | 10,416 |
| Loans held for sale | 535 | 899 |
| Loans and leases held for investment, net of deferred loan fees and costs | 62,661 | 68,272 |
| Less: Allowance for credit losses on loans and leases, held for investment | (1,071) | (1,201) |
| Total loans and leases held for investment, net | 61,590 | 67,071 |
| Federal Home Loan Bank stock and Federal Reserve Bank stock, at cost | 1,018 | 1,146 |
| Premises and equipment, net | 464 | 562 |
| Core deposit and other intangibles | 407 | 488 |
| Bank-owned life insurance | 1,633 | 1,605 |
| Other assets | 2,430 | 2,543 |
| Total assets | $91,668 | $100,160 |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
| Deposits: | ||
| Interest-bearing checking and money market accounts | $20,045 | $20,780 |
| Savings accounts | 14,782 | 14,282 |
| Certificates of deposit | 22,369 | 27,324 |
| Non-interest-bearing accounts | 11,956 | 13,484 |
| Total deposits | 69,152 | 75,870 |
| Borrowed funds: | ||
| Wholesale borrowings | 12,150 | 13,400 |
| Junior subordinated debentures | 584 | 582 |
| Subordinated notes | 448 | 444 |
| Total borrowed funds | 13,182 | 14,426 |
| Other liabilities | 1,225 | 1,696 |
| Total liabilities | 83,559 | 91,992 |
| Commitment and contingencies (refer to Note 17) | ||
| Mezzanine equity: | ||
| Preferred stock - Series B | 1 | 1 |
| Stockholders' equity: | ||
| Preferred stock - Series A and D | 503 | 503 |
| Common stock at par $0.01 (666,666,666 and 666,666,666 shares authorized; 422,749,037 and 422,416,178shares issued; and 415,608,145 and 414,934,628 shares outstanding, respectively) | 4 | 4 |
| Paid-in capital in excess of par | 9,300 | 9,282 |
| Accumulated deficit | (1,006) | (763) |
| Treasury stock, at cost (7,140,892 and 7,481,550 shares, respectively) | (198) | (219) |
| AOCL, net of tax | (495) | (640) |
| Total stockholders’ equity | 8,108 | 8,167 |
| Total liabilities, mezzanine and stockholders’ equity | $91,668 | $100,160 |
Condensed Consolidated Statements of (Loss) Income
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| (in millions, except per share data) | 2025 | 2024 | 2025 | 2024 |
| INTEREST INCOME: | ||||
| Loans and leases | $819 | $1,061 | $2,519 | $3,421 |
| Securities and money market investments | 282 | 473 | 889 | 1,174 |
| Total interest income | 1,101 | 1,534 | 3,408 | 4,595 |
| INTEREST EXPENSE: | ||||
| Interest-bearing checking and money market accounts | 151 | 218 | 480 | 664 |
| Savings accounts | 113 | 110 | 334 | 221 |
| Certificates of deposit | 255 | 372 | 850 | 1,000 |
| Borrowed funds | 157 | 324 | 490 | 1,019 |
| Total interest expense | 676 | 1,024 | 2,154 | 2,904 |
| Net interest income | 425 | 510 | 1,254 | 1,691 |
| Provision for credit losses | 38 | 242 | 181 | 947 |
| Net interest income after provision for credit losses | 387 | 268 | 1,073 | 744 |
| NON-INTEREST INCOME: | ||||
| Fee income | 23 | 42 | 67 | 117 |
| Bank-owned life insurance | 12 | 10 | 32 | 32 |
| Net gain on investment securities | 22 | — | 22 | — |
| Net return on mortgage servicing rights | — | 34 | — | 74 |
| Net gain on loan sales and securitizations | 5 | 5 | 24 | 43 |
| Net loan administration (loss) income | — | (8) | 5 | 3 |
| Bargain purchase gain | — | — | — | (121) |
| Other | 32 | 30 | 101 | 88 |
| Total non-interest income | 94 | 113 | 251 | 236 |
| NON-INTEREST EXPENSE: | ||||
| Operating expenses: | ||||
| Compensation and benefits | 242 | 316 | 723 | 961 |
| FDIC insurance | 37 | 98 | 136 | 239 |
| Occupancy and equipment | 47 | 59 | 155 | 163 |
| General and administrative | 153 | 188 | 433 | 557 |
| Total operating expense | 479 | 661 | 1,447 | 1,920 |
| Intangible asset amortization | 26 | 37 | 81 | 105 |
| Merger-related expenses | 17 | 18 | 39 | 95 |
| Total non-interest expense | 522 | 716 | 1,567 | 2,120 |
| (Loss) before income taxes | (41) | (335) | (243) | (1,140) |
| Income tax (benefit) | (5) | (55) | (37) | (210) |
| Net (loss) | $(36) | $(280) | $(206) | $(930) |
| Preferred stock dividends | 9 | 9 | 25 | 27 |
| Net (loss) attributable to common stockholders | $(45) | $(289) | $(231) | $(957) |
| Basic (loss) per common share | $(0.11) | $(0.79) | $(0.56) | $(3.16) |
| Diluted (loss) per common share | $(0.11) | $(0.79) | $(0.56) | $(3.16) |
Condensed Consolidated Statements of Comprehensive (Loss) Income
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| (in millions) | 2025 | 2024 | 2025 | 2024 |
| Net (loss) | $(36) | $(280) | $(206) | $(930) |
| Other comprehensive (loss) income, net of tax: | ||||
| Debt securities available for sale | 50 | 206 | 159 | 113 |
| Pension and post-retirement obligations | 1 | 1 | 2 | 1 |
| Cash flow hedges | (4) | (14) | (16) | 64 |
| Total other comprehensive (loss) income, net of tax | $47 | $193 | $145 | $178 |
| Total comprehensive (loss) income, net of tax | $11 | $(87) | $(61) | $(752) |
| Income tax expense (benefit) of items included in other comprehensive income: | ||||
| Debt securities available for sale | $18 | $71 | $56 | $40 |
| Pension and post-retirement obligations | — | — | 1 | 1 |
| Cash flow hedges | (2) | (5) | (6) | 21 |
See accompanying notes to the condensed consolidated financial statements
Condensed Consolidated Statements of Changes in Stockholders' Equity
| (in millions, except share data) | Shares Outstanding | Preferred Stock A (Par Value: $0.01) | Common Stock (Par Value: $0.01) | Paid-in Capital in excess of Par | (Accumulated deficit)/Retained Earnings | Treasury Stock, at Cost | AOCL, Net of Tax | Total Stockholders’ Equity | Preferred Stock Mezzanine (Par Value: $0.01) |
|---|---|---|---|---|---|---|---|---|---|
| Balance at June 30, 2025 | 415,353,394 | $503 | $4 | $9,291 | $(957) | $(204) | $(542) | $8,095 | $1 |
| Shares issued for restricted stock, net of forfeitures | 408,579 | — | — | (8) | — | 8 | — | — | — |
| Compensation expense related to restricted stock awards | — | — | — | 17 | — | — | — | 17 | — |
| Net loss | — | — | — | — | (36) | — | — | (36) | — |
| Dividends paid on common stock ($0.01) | — | — | — | — | (4) | — | — | (4) | — |
| Dividends paid on preferred stock ($15.94), Series B ($3.33) | — | — | — | — | (9) | — | — | (9) | — |
| Purchase of common stock | (153,828) | — | — | — | — | (2) | — | (2) | — |
| Other comprehensive income (loss), net of tax | — | — | — | — | — | — | 47 | 47 | — |
| Balance at September 30, 2025 | 415,608,145 | $503 | $4 | $9,300 | $(1,006) | $(198) | $(495) | $8,108 | $1 |
| Balance at June 30, 2024 | 351,304,364 | $503 | $4 | $8,997 | $(270) | $(223) | $(614) | $8,397 | $258 |
| Issuance of Common Shares for the Conversion of Series B preferred, net | 63,770,655 | — | — | 257 | — | — | — | 257 | (257) |
| Shares issued for restricted stock, net of forfeitures | 282,417 | — | — | (5) | — | 5 | — | — | — |
| Compensation expense related to restricted stock awards | — | — | — | 17 | — | — | — | 17 | — |
| Net loss | — | — | — | — | (280) | — | — | (280) | — |
| Dividends paid on common stock ($0.01) | — | — | — | — | (3) | — | — | (3) | — |
| Dividends paid on preferred stock ($15.94), Series B ($3.33) | — | — | — | — | (9) | — | — | (9) | — |
| Purchase of common stock | (99,469) | — | — | — | — | (1) | — | (1) | — |
| Other comprehensive income (loss), net of tax | — | — | — | — | — | — | 193 | 193 | — |
| Balance at September 30, 2024 | 415,257,967 | $503 | $4 | $9,266 | $(562) | $(219) | $(421) | $8,571 | $1 |
Condensed Consolidated Statements of Changes in Stockholders' Equity
| (in millions, except share data) | Shares Outstanding | Preferred Stock A (Par Value: $0.01) | Common Stock (Par Value: $0.01) | Paid-in Capital in excess of Par | (Accumulated deficit)/Retained Earnings | Treasury Stock, at Cost | AOCL, Net of Tax | Total Stockholders’ Equity | Preferred Stock Mezzanine (Par Value: $0.01) |
|---|---|---|---|---|---|---|---|---|---|
| Balance at December 31, 2024 | 414,934,628 | $503 | $4 | $9,282 | $(763) | $(219) | $(640) | $8,167 | $1 |
| Shares issued for restricted stock, net of forfeitures | 1,368,201 | — | — | (28) | — | 28 | — | — | — |
| Compensation expense related to restricted stock awards | — | — | — | 46 | — | — | — | 46 | — |
| Net loss | — | — | — | — | (206) | — | — | (206) | — |
| Dividends paid on common stock ($0.03) | — | — | — | — | (12) | — | — | (12) | — |
| Dividends paid on preferred stock ($47.82), Series B ($9.99) | — | — | — | — | (25) | — | — | (25) | — |
| Purchase of common stock | (694,684) | — | — | — | — | (7) | — | (7) | — |
| Other comprehensive income (loss), net of tax | — | — | — | — | — | — | 145 | 145 | — |
| Balance at September 30, 2025 | 415,608,145 | $503 | $4 | $9,300 | $(1,006) | $(198) | $(495) | $8,108 | $1 |
| Balance at December 31, 2023 | 240,688,790 | $503 | $2 | $8,236 | $443 | $(218) | $(599) | $8,367 | $— |
| Issuance of mezzanine preferred stock Series B, net (192,062 shares) | — | — | — | — | — | — | — | — | 258 |
| Issuance of mezzanine preferred stock Series C, net (256,307 shares) | — | — | — | — | — | — | — | — | 346 |
| Issuance of Commons Shares and Conversion of Series B preferred to common shares, net | 63,770,655 | — | — | 257 | — | — | — | 257 | (257) |
| Issuance of Common Shares for the Conversion of Series C preferred, net | 85,435,618 | — | 1 | 340 | — | — | — | 341 | (346) |
| Issuance of Common Shares for March 2024 capital raise | 25,543,655 | — | 1 | 102 | — | — | — | 103 | — |
| Issuance of warrants to purchase common shares | — | — | — | 302 | — | — | — | 302 | — |
| Shares issued for restricted stock, net of forfeitures | 275,051 | — | — | (9) | — | 9 | — | — | — |
| Compensation expense related to restricted stock awards | — | — | — | 38 | — | — | — | 38 | — |
| Net loss | — | — | — | — | (930) | — | — | (930) | — |
| Dividends paid on common stock ($0.19) | — | — | — | — | (48) | — | — | (48) | — |
| Dividends paid on preferred stock Series A ($47.82), Series B ($6.66) | — | — | — | — | (27) | — | — | (27) | — |
| Purchase of common stock | (455,802) | — | — | — | — | (10) | — | (10) | — |
| Other comprehensive income (loss), net of tax | — | — | — | — | — | — | 178 | 178 | — |
| Balance at September 30, 2024 | 415,257,967 | $503 | $4 | $9,266 | $(562) | $(219) | $(421) | $8,571 | $1 |
Condensed Consolidated Statements of Cash Flows
| Nine Months Ended September 30, | ||
|---|---|---|
| (in millions) | 2025 | 2024 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net (loss) | $(206) | (930) |
| Adjustments to reconcile net income to net cash used in operating activities: | ||
| Provision for credit losses | 181 | 947 |
| Amortization of intangibles | 81 | 105 |
| Depreciation | 32 | 34 |
| Amortization of discounts and premiums, net | 87 | 141 |
| Net gain on securities | (22) | — |
| Net gain on sales of loans and securitizations | (24) | (43) |
| Bargain purchase gain adjustment | — | 121 |
| Stock-based compensation | 46 | 38 |
| Deferred tax expense | (97) | (229) |
| Other operating activities | (7) | — |
| Changes in operating assets and liabilities: | ||
| Decrease (increase) in other miscellaneous assets | 115 | (423) |
| (Decrease) increase in other miscellaneous liabilities | (542) | 125 |
| Change in loans held for sale, net | 364 | (423) |
| Net cash provided by (used in) by operating activities | 8 | (537) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Proceeds from repayment of securities available for sale | 1,494 | 1,525 |
| Proceeds from sales of securities available for sale including loans that have been securitized | 85 | 269 |
| Purchase of securities available for sale | (5,994) | (2,607) |
| Redemption of Federal Home Loan Bank stock | 131 | 217 |
| Purchases of Federal Home Loan Bank and Federal Reserve Bank stock | (3) | (189) |
| Proceeds from bank-owned life insurance, net | 4 | 18 |
| Net proceeds from sales of MSR's | — | 66 |
| Other changes in loans, net | 5,219 | 11,733 |
| Purchases of premises and equipment | (29) | (33) |
| Other investing activities | 14 | — |
| Net cash provided by investing activities | 921 | 10,999 |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Net decrease in deposits | (6,727) | 1,476 |
| Net decrease in short-term borrowed funds | (250) | (940) |
| Proceeds from long-term borrowed funds | 500 | 12,250 |
| Repayments of long-term borrowed funds | (1,500) | (12,250) |
| Net receipt (disbursement) of payments of loans serviced for others | 92 | (375) |
| Cash dividends paid on common stock | (12) | (48) |
| Cash dividends paid on preferred stock | (25) | (27) |
| Proceeds from common stock and warrants issued, net | — | 1,003 |
| Proceeds from preferred stock issued, net | — | 1 |
| Payments relating to treasury shares received for restricted stock award tax payments | (7) | (10) |
| Net cash (used in) provided by financing activities | (7,929) | 1,080 |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (7,000) | 11,542 |
| Cash, cash equivalents, and restricted cash at beginning of period | 15,559 | 11,609 |
| Cash, cash equivalents, and restricted cash at end of period | $8,559 | $23,151 |
| Supplemental information: | ||
| Cash paid for interest | $2,254 | 2,722 |
| Cash paid for income taxes | 17 | 31 |
| Non-cash investing and financing activities: | ||
| Transfers to repossessed assets from loans | $3 | 8 |
| Securitization of loans to mortgage-backed securities available for sale | — | 262 |
| Transfer of loans from held for investment to held for sale | 590 | 7,486 |
| Shares issued for restricted stock awards | 28 | 9 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.