Updated 23 Oct 2026, 15:59 CEST. First published 23 Oct 2026, 15:44 CEST. This page is revised in place as the story develops.
Flagstar Bank's net income attributable to common stockholders fell to $3m, or $0.01 per diluted share, in the third quarter of 2026, from $26m, or $0.06, in Q2 2026, against a loss of $0.11 per share in Q3 2025. Executive Chairman and Chief Executive Officer Joseph M. Otting said on 23 October 2026 that the bank's long-term strategic objectives would now be fully realized a year later than planned.
- Net income to common stockholders · Q3 20263 $m
- Diluted EPS · Q3 20260.01 $
- Provision for credit losses · Q3 202676 $m
- Net interest margin · Q3 20262.17 %
- CET1 capital ratio · 30 September 202612.38 %
- CRE concentration ratio · 30 September 2026346 %
“We believe we are on track toward achieving our long-term strategic objectives, however given the higher for longer interest rate environment, the full realization of these objectives has shifted to 2028 from 2027.”
Credit costs rise while core income grows
The provision for credit losses rose to $76m in Q3 2026 from $18m in Q2. Flagstar attributed the $58m increase primarily to higher interest rates, including on its New York City rent-regulated multi-family portfolio; its detailed provision note says the increase was also impacted by net charge-offs. Flagstar said the allowance itself was unchanged at $0.9bn, or 1.50% of loans held for investment: increases for C&I loan growth and higher rates were offset by a smaller multi-family portfolio.
Coverage on multi-family loans with 50% or more rent-regulated units was 2.97%. Net charge-offs fell by $26m, or 26%, to $74m. Substandard loans rose $248m, or 4%. Among its risk factors, the bank cites what it calls recent legislative action in New York City to freeze rents on certain rent-regulated properties from 1 October 2026.
The operating business improved in Q3 2026. Net interest income rose 5% from Q2 to $460m and the net interest margin widened 4 basis points. C&I loans grew $2.0bn, or 11%, to $20.6bn, while multi-family and CRE loans fell $1.1bn to $34.1bn. C&I loans rose to 24% of total assets from 17% at the end of 2025. Flagstar completed a $250m share buyback in early October 2026.
- Flagstar Bank, N.A., Third Quarter 2026 Results (Form 8-K, Exhibit 99.1, SEC EDGAR), 23 Oct 2026, 12:03 CEST