Flagstar Bank, National Association reported financial results for the quarter ended September 30, 2026, filing an -K with the SEC on October 23, 2026. The bank reported net income of $12 million for the third quarter of 2026, a decrease from $34 million in the second quarter of 2026. Net income attributable to common stockholders was $3 million, or $0.01 per diluted share. This compares to $26 million, or $0.06 per diluted share in the second quarter of 2026, and a net loss attributable to common stockholders of $45 million, or $0.11 per diluted share, in the third quarter of 2025.
Net interest income increased 5% quarter-over-quarter to $460 million, while the net interest margin expanded by 4 basis points to 2.17%. The bank reported a provision for credit losses of $76 million, an increase of $58 million compared to the prior quarter. This increase was attributed to the impact of higher interest rates, including on the New York City rent-regulated multi-family portfolio. Net charge-offs totaled $74 million, down $26 million from the previous quarter.
Flagstar’s total loans and leases held for investment increased 2% to $61.9 billion, driven by growth in the Commercial & Industrial (C&I) platform. C&I loans grew $2.0 billion, or 11%, to $20.6 billion. However, the combined multi-family and commercial real estate portfolio declined $1.1 billion, or 3%, to $34.1 billion. The bank completed a $250 million share repurchase in early October. The bank’s Common Equity Tier 1 (CET1) capital ratio was 12.38%, and the company noted it has $1.2 billion in excess capital using the low end of its target CET1 range of 10.5%.
