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

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

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 Stock Performance

Shares of NYSE FLG traded down $0.93 during midday trading on Friday, reaching $10.51. The company’s stock had a trading volume of 7,545,295 shares, compared to its average volume of 5,008,360. The stock has a market capitalization of $4.36 billion, a P/E ratio of 351.40 and a beta of 1.05. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.90 and a quick ratio of 0.90. The firm has a 50 day moving average price of $12.53 and a 200-day moving average price of $13.69. Flagstar Bank, National Association has a 12-month low of $10.30 and a 12-month high of $15.44.

Wall Street Analyst Weigh In

Several research firms have weighed in on FLG. Royal Bank Of Canada lowered their price objective on shares of Flagstar Bank, National Association from $15.00 to $13.00 and set a “sector perform” rating on the stock in a report on Friday, October 9th. Wall Street Zen downgraded shares of Flagstar Bank, National Association from a “hold” rating to a “sell” rating in a research report on Saturday, September 26th. Barclays lowered their target price on shares of Flagstar Bank, National Association from $17.00 to $15.00 and set an “overweight” rating on the stock in a report on Monday, October 5th. Citigroup raised their price target on shares of 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. Finally, Weiss Ratings upgraded Flagstar Bank, National Association from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, October 2nd. Ten equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $15.96.

Flagstar Bank, National Association declared that its Board of Directors has authorized a share repurchase program on Friday, July 24th that allows the company to buy back $250.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 4.1% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

About Flagstar Bank, National Association

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.