Flagstar Bank, National Association (NYSE:FLG) Announces Quarterly Earnings Results

Flagstar Bank, National Association (NYSE:FLG) released its earnings results on Friday. The company reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.06), FiscalAI reports. The firm had revenue of $530.00 million for the quarter, compared to the consensus estimate of $545.12 million. Flagstar Bank, National Association had a return on equity of 0.98% and a net margin of 1.08%. During the same period in the prior year, the business earned ($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 Down 9.2%

FLG opened at $10.38 on Friday. Flagstar Bank, National Association has a 12 month low of $10.30 and a 12 month high of $15.44. 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 stock has a market cap of $4.31 billion, a P/E ratio of 346.17 and a beta of 1.05. The stock’s 50 day moving average price is $12.45 and its 200 day moving average price is $13.66.

Flagstar Bank, National Association announced that its board has approved a stock repurchase plan on Friday, July 24th that allows the company to buy back $250.00 million in shares. This repurchase authorization allows the company to buy up to 4.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Analyst Ratings Changes

A number of brokerages have recently weighed in on FLG. Truist Financial lowered their price target on Flagstar Bank, National Association from $17.00 to $15.00 and set a “buy” rating for the company in a report on Friday, October 9th. Cantor Fitzgerald decreased their price objective on shares of Flagstar Bank, National Association from $17.00 to $16.00 and set an “overweight” rating for the company in a report on Wednesday, October 14th. Barclays lowered their target price on shares of Flagstar Bank, National Association from $17.00 to $15.00 and set an “overweight” rating for the company in a research note on Monday, October 5th. DA Davidson reiterated a “buy” rating and set a $17.00 target price on shares of Flagstar Bank, National Association in a research note on Monday, July 27th. Finally, Wall Street Zen cut shares of Flagstar Bank, National Association from a “hold” rating to a “sell” rating in a report on Saturday, September 26th. Ten equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Flagstar Bank, National Association has a consensus rating of “Moderate Buy” and a consensus price target of $15.96.

Flagstar Bank, National Association News Summary

Here are the key news stories impacting Flagstar Bank, National Association this week:

• Positive Sentiment: Flagstar returned to profitability, reporting $0.01 in diluted EPS versus a $0.07 loss in the year-ago quarter. Net interest income increased $20 million, or 5%, to $460 million, while the net interest margin improved four basis points to 2.17%. Flagstar Bank Third-Quarter 2026 Results
• Positive Sentiment: Commercial banking momentum remained strong: total loans rose $958 million, or 6% annualized, C&I loans grew $2.0 billion, and commercial banking deposits increased $575 million, or 7%. The bank also completed a $250 million share repurchase in early October. Flagstar Bank Third-Quarter 2026 Results
• Positive Sentiment: Capital remained a relative strength, with a 12.38% CET1 ratio, approximately $1.2 billion of excess capital, and tangible book value of $17.05 per share. Multifamily/CRE exposure declined, and net charge-offs improved to 0.49% of average loans from 0.66%. Flagstar Earnings Results
• Neutral Sentiment: Management highlighted continued commercial loan growth and efforts to reduce CRE concentration, but also noted $1.2 billion of CRE payoffs, including 35% classified as substandard. The earnings call focused on balancing growth with ongoing real-estate credit risks. Flagstar Q3 2026 Earnings Call Transcript
• Negative Sentiment: Quarterly EPS of $0.01 missed the roughly $0.06-$0.07 analyst consensus, while revenue of $530 million trailed the $545.12 million estimate. The earnings shortfall likely outweighed the year-over-year return to profitability. Flagstar Q3 Earnings Miss Estimates
• Negative Sentiment: The provision for credit losses increased $58 million, primarily because of higher interest rates and weakness risks in New York City rent-regulated multifamily loans. Criticized or classified loans rose $670 million, or 6%, and substandard loans increased $248 million. Flagstar Stock Falls Despite Q3 Profit

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.