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

Flagstar Bank, National Association (NYSE:FLG) announced its quarterly earnings results on Friday. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate 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 firm had revenue of $530.00 million for the quarter, compared to the consensus estimate of $545.12 million. During the same period last 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 Performance

Shares of NYSE FLG opened at $10.38 on Friday. The firm has a 50 day moving average of $12.45 and a 200 day moving average of $13.66. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.43. The firm has a market capitalization of $4.31 billion, a price-to-earnings ratio of 69.23 and a beta of 1.05. Flagstar Bank, National Association has a 12-month low of $10.30 and a 12-month high of $15.44.

Flagstar Bank, National Association declared that its Board of Directors has authorized a stock buyback 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 purchase up to 4.1% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Trending Headlines about Flagstar Bank, National Association

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

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on FLG shares. 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. Royal Bank Of Canada dropped their price objective on Flagstar Bank, National Association from $15.00 to $13.00 and set a “sector perform” rating on the stock in a research report on Friday, October 9th. DA Davidson reaffirmed a “buy” rating and set a $17.00 price objective on shares of Flagstar Bank, National Association in a research report on Monday, July 27th. Truist Financial reduced their price objective 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. Finally, JPMorgan Chase & Co. decreased their target price on Flagstar Bank, National Association from $15.50 to $14.00 and set a “neutral” rating for the company in a research report on Thursday, October 1st. Ten analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $15.96.

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.