Flagstar’s losses shrink as bank looks toward profitability

Flagstar Financial’s profitability challenges extended into yet another quarter, with the company reporting a net loss, though executives remain optimistic about a near-term financial turnaround.

On Friday, the parent company of Flagstar Bank reported a second-quarter net loss of $70 million, or $0.19 per share, exceeding the consensus net loss estimate of $0.14 per share. 

The results are an improvement compared with the year-ago quarter, when Flagstar reported a net loss of $323 million, or $1.14 per share. Excluding severance expenses, lease costs tied to certain branch closures and “trailing costs” related to the sales of mortgage-related businesses, Flagstar’s net loss for the quarter ending June 30 was $52 million, or $0.14 per share.

In a press release, Flagstar Chairman and…