Flagstar Financial, Inc.'s stock surged 6.04% in the pre-market trading session on Thursday, despite reporting a net loss of $160 million for the fourth quarter of 2024. The rally in the stock price can be attributed to the company's strong net interest income during the quarter.
According to the financial report released by Flagstar, the company recorded a net interest income of $461 million for the fourth quarter, which is significantly higher than the previous quarters. This indicates that the company's lending business remained robust, and it was able to generate substantial interest income from loans and other interest-bearing assets.
The pre-market rally in Flagstar Financial's stock price suggests that investors are optimistic about the company's future prospects, despite the reported net loss in the fourth quarter. The higher net interest income could be a positive sign for the company's profitability in the upcoming quarters, as it is a crucial component of a financial institution's revenue stream.