FLG

Flagstar (the former NYCB) is a regional bank in the middle of a multi-year turnaround after the 2024 commercial-real-estate crisis. The trajectory is improving but the business is still loss-making: FY2025 net income was -$177M (EPS -$0.50), a sharp narrowing from the -$1.12B loss in FY2024, with operating cash flow also negative at -$181M. Management states it 'continued to take decisive actions to build capital, reinforce our balance sheet, strengthen risk management,' and the bank shrank total assets 12.6% to $87.5B as it de-risks, holding an allowance for credit losses of ~$1.1B.

The balance-sheet repair is visible — equity held roughly flat at $8.14B even through losses, long-term debt was cut 29.9%, and the dividend was slashed 71.7% to $15M to conserve capital. But leverage remains high at 9.75x liabilities/equity (normal for a bank, but with less cushion given the credit overhang), retained earnings are negative at -$988M, and cash fell 61.6%. The risk factors emphasize the core dangers: interest-rate risk on the multi-family/CRE book and the adequacy of the credit allowance.