Flagstar Financial, Inc. reported its second quarter 2025 financial results, recording a net loss of $70 million, which marks a 30% improvement from the net loss of $100 million reported in the first quarter of 2025. Additionally, this represents a significant improvement from the net loss of $323 million reported in the second quarter of 2024. The net loss attributable to common stockholders was $78 million for the second quarter of 2025, compared to $108 million in the first quarter of 2025. The company reported adjusted operating expenses of $460 million, down $25 million or 5% from the previous quarter, showcasing disciplined expense management. Furthermore, new loan originations increased by 57% and new commitments rose by 80% on a linked-quarter basis, indicating strong commercial and industrial (C&I) momentum. Flagstar Financial announced plans to eliminate its bank holding company and reported a decline in criticized and classified assets by 9% from the prior quarter and 15% over the first half of the year. Credit costs are moderating, with a decline in the provision for credit losses compared to the first quarter. The company also highlighted record par payoffs, including 45% in substandard loans, which contributed to a reduction in commercial real estate exposure. Flagstar Financial maintained strong capital and liquidity positions, with stockholders' equity reported at $8.1 billion.