The public company is now the bank
Flagstar Bank, N.A. is a national bank headquartered in Hicksville, New York, with FDIC certificate 32541 and Federal Reserve identifier 694904. It ranks 36th in the June 30, 2026 domestic insured-bank and savings-institution asset inventory used for this series, with domestic bank and savings-institution charter classes selected from the FDIC financials and ordered by reported assets. The ranking identifies the insured bank, not a collection of predecessor companies or every business that once used the Flagstar name. [1][2][7]
On October 17, 2025, Flagstar Financial, Inc. merged into its wholly owned bank subsidiary, leaving Flagstar Bank as the surviving entity and public company. Its NYSE ticker remained FLG. Consequently, a current description of Flagstar as a subsidiary of Flagstar Financial would be outdated. Historical releases before the reorganization may correctly refer to the holding company, and their financial amounts retain that original scope. The bank said the restructuring did not change customer accounts, services or day-to-day operations. [4]
The June 2026 financial position
The FDIC reports $87.714 billion of assets, $67.521 billion of deposits, $60.326 billion of net loans and leases and $8.141 billion of total equity capital at June 30, 2026. Regulatory net income was $55.3 million for the first six months of 2026. It is a year-to-date amount, not the second-quarter result. These figures are bank-level regulatory measures, with the FDIC’s thousand-dollar units converted into the rounded amounts shown here. [2]
Flagstar’s July 24 earnings release reported $34 million of second-quarter net income and $26 million attributable to common stockholders, or $0.06 per diluted share. Its adjusted common-stockholder income was $23 million, or $0.05 per diluted share, excluding a specified investment gain. The adjustments are company-defined non-GAAP measures. The release described this as the third consecutive profitable quarter, following the earlier loss period, but modest positive earnings alone do not establish that the restructuring has reached its intended long-run economics. [3]
Scroll horizontally to see all columns.
| Bank regulatory measure | June 30, 2026 |
|---|---|
| Assets | $87.714 billion |
| Deposits | $67.521 billion |
| Net loans and leases | $60.326 billion |
| Total equity capital | $8.141 billion |
| Net income, six months ended June 30 | $55.3 million |
A different business from the former mortgage platform
Flagstar’s present strategy combines retail banking with commercial and private banking and a shrinking legacy property-loan portfolio. Its history includes the December 2022 Flagstar Bancorp merger and the March 2023 FDIC-assisted acquisition of substantial portions of the former Signature Bank. Those transactions explain why the franchise includes both a branch-based deposit network and relationship-oriented private and commercial banking capabilities. They do not mean that every business or obligation of the acquired institutions transferred on identical terms. [3][4]
A major boundary changed on November 1, 2024, when the bank completed the sale of its residential mortgage servicing and subservicing business, mortgage-servicing rights and third-party origination platform to Mr. Cooper Group for approximately $1.3 billion in cash. The bank said it would continue residential mortgages through retail origination and its private bank. Thus, the current institution should not be described using the scale or fee model of its former third-party servicing operation. The completed-sale amount also differs from earlier announcement estimates. [5]
Selling a servicing platform reduces exposure to the costs and operational responsibilities of managing that transferred business, while also removing future revenue streams. Retaining retail mortgage origination serves a different purpose: extending products to existing branch and private-banking customers. The July 2026 release linked part of the year-over-year decline in adjusted non-interest income to the mortgage-business sale. A smaller or simpler balance sheet can therefore improve funding and operating efficiency without making every revenue comparison positive. [3][5]
Commercial lending is replacing some property exposure
At June 30, Flagstar reported $60.987 billion of loans and leases held for investment, before the net-loan regulatory adjustments used in the FDIC snapshot. Commercial and industrial loans were $18.563 billion, up about $2.0 billion or 12% from March. Management attributed most of that increase to specialized industries and corporate and regional commercial banking. Combined multifamily and other commercial-real-estate loans fell about $1.5 billion during the quarter to $35.175 billion. The portfolio was growing overall while its composition changed. [2][3]
The relationship model aims to connect lending with operating deposits and fee services. Management said $706 million of the quarter’s deposit growth was related to commercial and industrial lending. The release also identified higher treasury-management and capital-markets income within fee growth. Economically, these additional services can deepen a customer relationship and diversify income beyond the loan spread. Yet lending growth can precede the emergence of losses, and deposit gains associated with new relationships do not by themselves establish stable long-term funding. [3]
This shift changes rather than eliminates risk. Commercial borrowers depend on business cash flow and can be exposed to industry cycles, concentrated customers and working-capital pressure. Specialized lending requires underwriting and monitoring appropriate to each borrower. Rapid expansion also creates operating demands around staffing, credit administration and the accuracy of customer and collateral information. These are analytical implications of the reported growth, not findings of misconduct or control failure. [3]
Multifamily credit remains the central balance-sheet constraint
Multifamily loans were $26.931 billion at June 30, with other commercial-real-estate loans of $8.244 billion. Together they represented about 58% of the $60.987 billion held-for-investment loan book, calculated from the bank’s disclosed figures. The bank’s stated CRE concentration ratio fell to 350% from 367%; that is its capital-based concentration measure, not the share of total loans. Keeping those two denominators separate is essential to interpreting the reduction. [3]
Total nonaccrual loans were $2.800 billion, including $2.132 billion of multifamily and $471 million of other commercial real estate. Nonaccrual means the bank has stopped recognizing interest under its normal accrual treatment; it is neither a prediction of a total principal loss nor proof that collateral will cover the exposure. The two property categories accounted for approximately 93% of nonaccrual balances, calculated from the disclosed table. Meanwhile, criticized and classified loans declined, demonstrating that different credit indicators can move in different directions in the same quarter. [3]
Rent-regulated New York City multifamily lending is a particular sensitivity. The bank reported 2.87% allowance coverage for multifamily loans with at least 50% rent-regulated units, compared with 1.63% for multifamily overall. Its second-quarter provision discussion referred to revised assumptions connected with recent New York City rent-regulated developments. The underlying economic mechanism is that constrained rental income can limit an owner’s ability to absorb higher maintenance, insurance, tax and financing costs. Actual effects depend on a property’s rent rules, expenses, debt structure and borrower resources; the portfolio label alone does not determine repayment. [3]
A low provision is not the same as low realized losses
Flagstar recorded $100 million of second-quarter net and an $18 million provision for credit losses. The annualized charge-off rate was 0.66%, up from 0.52% in the first quarter. The provision was lower than charge-offs because current losses can draw on allowances built previously, while portfolio runoff and updated loss estimates also affect the required reserve. The two measures describe different accounting events and should not be substituted for one another. Total credit allowances were approximately $0.9 billion, or 1.52% of held-for-investment loans under the bank’s presentation. [3]
The bank reported $66 million of pre-provision net revenue, a non-GAAP measure calculated before the provision and taxes, compared with $32 million in the first quarter. Its separately adjusted version was $62 million. Second-quarter revenue was $516 million and non-interest expense $450 million. That earnings base has improved, but the relationship between operating income, realized credit losses and future reserve needs remains important. Reserve releases or investment gains are not evidence that recurring customer revenue has expanded by the same amount. [3]
Funding is improving, with wholesale borrowing still material
Deposits increased $689 million during the second quarter to $67.521 billion. The bank reported that core deposits rose $644 million, while commercial and private-bank deposits together grew $905 million; these are different groupings and should not be added as if they were independent inflows. Average deposit costs declined, and the bank reduced wholesale borrowing. This mix supports the intended move away from more expensive funding, but the savings depend on deposit pricing, retention and the yields earned on the assets being funded. [3]
Total borrowed funds remained $10.937 billion, including about $9.9 billion of Federal Home Loan Bank of New York advances. Those advances provide funding but also require eligible collateral and carry refinancing and interest-cost considerations. Net interest margin was 2.13% in the quarter, down two from March despite lower funding costs, because asset yields also declined. The simultaneous movements illustrate why reducing deposit costs does not automatically produce a wider lending spread or higher net interest income. [3]
Private banking expansion and capital choices
On August 5, 2026, Flagstar said its private-banking division had fully implemented a regional operating model covering the Northeast, Southeast and West Coast. It announced Flagstar Insurance Agency and Guided Portfolio Solutions, including managed investment portfolios, as new client capabilities. This is a company report of implementation and product availability, not independent evidence of customer adoption, investment performance or incremental profitability. The private bank is a division of Flagstar Bank, not another separately ranked insured bank. [6]
The commercial and private-bank connection is strategically coherent: a business owner can have operating accounts, borrowing, personal investments and planning needs in the same broader relationship. It also adds distinct duties involving investment administration, customer suitability, confidential information, insurance distribution and coordination across products. Banking deposits and market investments have different risks and protections; offering them through a common relationship does not make those protections identical. [6]
Flagstar reported a 13.16% common-equity Tier 1 capital ratio at June 30 and announced a $250 million share-repurchase authorization with its July results. An authorization is not a completed repurchase or a commitment to buy the entire amount. Capital distributions, commercial growth and remaining property-credit losses draw on the same overall financial capacity. Further dated results could clarify whether the franchise sustains earnings while resolving problem assets and expanding relationships. The sources here establish specific reporting dates and announcements, not a comprehensive current supervisory assessment or confirmation that all restructuring risks are resolved. [3][6]
Sources
- FDIC BankFind: Flagstar Bank, N.A., certificate 32541Official sourceBack to text: ↑
- FDIC financials: June 30, 2026 bank-level assets, deposits, net loans, equity and year-to-date net incomeOfficial sourceBack to text: ↑1↑2↑3
- Flagstar Bank: second-quarter 2026 results, July 24, 2026SourceBack to text: ↑1↑2↑3↑4↑5↑6↑7↑8↑9↑10↑11↑12↑13↑14
- Flagstar Bank: completion of holding-company reorganization, October 17, 2025SourceBack to text: ↑1↑2
- Flagstar Bank: completed sale of mortgage servicing and third-party origination, November 1, 2024SourceBack to text: ↑1↑2
- Flagstar Private Bank: operating model and new client capabilities, August 5, 2026SourceBack to text: ↑1↑2↑3
- FDIC June 30, 2026 asset-ranked financials; domestic charter classes selected for the insured-bank and savings-institution inventoryOfficial sourceBack to text: ↑