Flagstar Bank, National Association (NYSE:FLG) Issues Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Flagstar Bank, National Association (NYSE:FLG) announced its quarterly earnings data on Friday. The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.06 by ($0.01), FiscalAI reports. Flagstar Bank, National Association had a negative return on equity of 0.11% and a negative net margin of 1.22%.The firm had revenue of $512.00 million during the quarter, compared to analysts’ expectations of $540.87 million. During the same period last year, the business posted ($0.14) EPS. The company’s revenue was up 4.0% compared to the same quarter last year.

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

• Flagstar reported its third consecutive quarter of profitability, with adjusted EPS improving to $0.05 from a $0.14 loss a year ago and pre-provision net revenue up 51% sequentially.
• The bank announced a $250 million share repurchase program, supported by a strong 13.16% CET1 ratio and about $1.6 billion of excess capital above its target range.
• C&I lending momentum was strong, with record $2.8 billion of originations and $2.0 billion of net loan growth in the quarter, alongside a strong pipeline for continued growth.
• The company continued to shrink CRE and multifamily exposure through elevated payoffs, which helps diversification and asset quality but is also pressuring near-term interest income and NIM guidance.
• Credit trends were mixed: criticized and classified loans declined, but net charge-offs rose to $100 million and nonaccrual loans increased modestly as management performed an 18-month forward review of maturing and resetting credits.

Flagstar Bank, National Association Price Performance

FLG stock traded down $0.69 during mid-day trading on Friday, hitting $14.03. 4,199,169 shares of the stock were exchanged, compared to its average volume of 4,991,506. The business has a fifty day moving average price of $14.50 and a 200 day moving average price of $13.80. Flagstar Bank, National Association has a 12 month low of $10.57 and a 12 month high of $15.44. The company has a debt-to-equity ratio of 1.47, a current ratio of 0.90 and a quick ratio of 0.90. The stock has a market capitalization of $5.85 billion, a price-to-earnings ratio of -63.37 and a beta of 1.01.

Flagstar Bank, National Association Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Sunday, June 7th were paid a dividend of $0.01 per share. The ex-dividend date of this dividend was Friday, June 5th. This represents a $0.04 annualized dividend and a yield of 0.3%. Flagstar Bank, National Association’s payout ratio is -18.18%.

Institutional Trading of Flagstar Bank, National Association

A number of hedge funds have recently bought and sold shares of FLG. Alliancebernstein L.P. lifted its stake in shares of Flagstar Bank, National Association by 1,130.1% in the 2nd quarter. Alliancebernstein L.P. now owns 6,635,962 shares of the company’s stock valued at $70,341,000 after acquiring an additional 6,096,512 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Flagstar Bank, National Association by 5.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 6,162,628 shares of the company’s stock valued at $77,589,000 after purchasing an additional 316,612 shares during the period. Goldman Sachs Group Inc. grew its holdings in shares of Flagstar Bank, National Association by 60.9% in the fourth quarter. Goldman Sachs Group Inc. now owns 4,626,146 shares of the company’s stock worth $58,243,000 after purchasing an additional 1,750,889 shares during the last quarter. Alyeska Investment Group L.P. purchased a new position in shares of Flagstar Bank, National Association in the fourth quarter worth $53,216,000. Finally, Bank of New York Mellon Corp raised its holdings in Flagstar Bank, National Association by 7.4% during the 4th quarter. Bank of New York Mellon Corp now owns 2,245,437 shares of the company’s stock valued at $28,270,000 after buying an additional 154,671 shares during the last quarter. Institutional investors own 67.88% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. Royal Bank Of Canada boosted their target price on shares of Flagstar Bank, National Association from $15.00 to $16.00 and gave the company a “sector perform” rating in a report on Monday, April 27th. Cantor Fitzgerald boosted their price objective on Flagstar Bank, National Association from $16.00 to $17.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. Morgan Stanley lifted their target price on Flagstar Bank, National Association from $14.00 to $15.00 and gave the company an “equal weight” rating in a report on Monday, June 29th. JPMorgan Chase & Co. upped their price target on Flagstar Bank, National Association from $15.50 to $17.00 and gave the company a “neutral” rating in a research report on Wednesday, July 1st. Finally, UBS Group started coverage on shares of Flagstar Bank, National Association in a research note on Tuesday, July 7th. They set a “buy” rating and a $18.00 price objective for the company. Nine equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $16.96.

Flagstar Bank, National Association Company Profile

Flagstar Financial Corporation (NYSE: FLG) is a bank holding company whose principal subsidiary, Flagstar Bank, provides a range of financial services across the United States. Headquartered in Troy, Michigan, Flagstar combines commercial banking, mortgage lending and servicing, and deposit products to serve individuals, businesses and public entities. As a publicly traded company, Flagstar leverages its banking charter and national mortgage platform to deliver tailored financial solutions through both digital and branch channels.

The company’s mortgage business is one of the largest residential originators and servicers in the nation, offering retail, wholesale and correspondent lending channels.