Flagstar Bank, National Association (NYSE:FLG) Announces Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Flagstar Bank, National Association (NYSE:FLG) released its quarterly earnings data on Friday. The company reported $0.01 earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.06), FiscalAI reports. Flagstar Bank, National Association had a net margin of 1.08% and a return on equity of 0.98%. The business had revenue of $530.00 million during the quarter, compared to analysts’ expectations of $545.12 million. During the same quarter in the prior year, the firm posted ($0.07) earnings per share.

Here are the key takeaways from Flagstar Bank, National Association’s conference call:

• Turnaround timing was pushed to 2028 from 2027, reflecting higher-for-longer interest rates, weaker deposit and mortgage growth, and slower credit improvement. Management now forecasts EPS of $0.10–$0.15 for 2026 and $0.85–$0.95 for 2027, with $1.60–$1.70 expected in 2028.
• Credit costs increased as higher rates, inflation, and New York City rent regulations pressured the rent-regulated multifamily portfolio. Provision expense rose to $76 million, criticized and classified loans increased 6% to approximately $11.4 billion, and nonaccrual loans remained elevated at about $2.8 billion.
• Balance-sheet diversification continued, with $2 billion of net C&I loan growth to $20.6 billion and roughly $600 million of related commercial deposit growth. CRE par payoffs totaled $1.2 billion, supporting management’s plan to reduce CRE exposure while expanding relationship-based commercial lending.
• Net interest margin expanded 4 basis points sequentially to 2.17%, while September NIM reached 2.23%; management expects contractual repricing of roughly $12 billion of low-coupon CRE loans through 2027 to support future NII and NIM growth. CET1 capital remained strong at 12.38%, although the company does not expect to resume share repurchases until 2027.

Flagstar Bank, National Association Price Performance

NYSE:FLG traded down $0.97 during trading hours on Friday, hitting $10.46. The stock had a trading volume of 6,542,861 shares, compared to its average volume of 5,000,431. The company has a 50 day simple moving average of $12.53 and a two-hundred day simple moving average of $13.69. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.90 and a quick ratio of 0.90. Flagstar Bank, National Association has a one year low of $10.30 and a one year high of $15.44. The firm has a market capitalization of $4.34 billion, a price-to-earnings ratio of 348.83 and a beta of 1.05.

Flagstar Bank, National Association announced that its board has initiated a stock buyback program on Friday, July 24th that permits the company to buy back $250.00 million in shares. This repurchase authorization permits the company to purchase up to 4.1% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Raymond James Financial started coverage on Flagstar Bank, National Association in a research report on Wednesday, September 2nd. They set a “market perform” rating on the stock. Citigroup lifted their price target on Flagstar Bank, National Association from $17.00 to $18.00 and gave the company a “buy” rating in a research report on Thursday, June 25th. Truist Financial decreased their price objective on Flagstar Bank, National Association from $17.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, October 9th. TD Cowen dropped their price objective on Flagstar Bank, National Association from $17.00 to $16.00 and set a “buy” rating on the stock in a report on Monday, October 5th. Finally, Weiss Ratings raised Flagstar Bank, National Association from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, October 2nd. Ten research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $15.96.

Flagstar Bank, National Association Company Profile

Flagstar Bank, National Association is a full-service regional bank and the principal banking subsidiary of Flagstar Financial, Inc, formerly known as New York Community Bancorp. The bank provides consumer and business banking services through deposits, checking and savings accounts, lending, cash management, and digital banking channels.

Flagstar’s lending activities include residential mortgages, mortgage servicing, commercial real estate loans, multifamily financing, commercial and industrial loans, and other consumer credit products.